Guangdong Dongguan textile industry took the lead to visit Los Angeles Logistics Center

From February 7 to 11, the Dongguan City Textile and Apparel Industry Association paid a visit to Los Angeles County and signed a letter of intent with the San Gabriel Regional Investment and Development Corporation. The future Dongguan textile and garment enterprises will establish a logistics center in Los Angeles County and strengthen the interaction with Los Angeles fashion flow industry and designers.

Dongguan textile and garment industry has always been one of the major products export markets in Europe and the United States. In past and current order-based production models, feedback from European and American market information and consumer information relies on overseas wholesalers and retailers. Especially in the case of proxy processing, OEM production is highly dependent on overseas brand owners, making Dongguan companies' profits very poor.

From the perspective of industrial upgrading and transformation, Dongguan enterprises must stretch out at both ends of the smile curve to maintain their own survivability and competitiveness under the general trend of appreciation and rising labor costs. Therefore, investing overseas to generate product sales terminals is an initiative to extend the value chain of products and is one of the paths for companies to improve their capabilities.

For those small and medium-sized textile and garment enterprises with overseas investment experience and insufficient capital, the establishment of a logistics center will provide them with a bridgehead that can be attacked and retired. These companies can try to establish wholesale marketing outlets in the logistics center. They can try to extend themselves to sales nodes and consumer terminals in Europe and the United States through their own efforts.

In this sense, the logistics center is actually a market-oriented organizational form in which enterprises from Dongguan go to sea. On the one hand, those enterprises that do not have the capability to independently develop European and American markets have gradually entered the European and U.S. market at a relatively low cost by entering the logistics center. The market's laws, spending habits, and marketing methods gradually evolved into the game capabilities of the European and American markets. On the other hand, the establishment of a logistics center is a form of capital intensive investment. It requires the professional planning of enterprises and specialized investment. However, entering a logistics center is a highly liberal and involuntary marketization of other companies. Through the payment-type operation, the logistics center actually plays the role of organizing Dongguan enterprises to enter the overseas market.

In recent years, it has become a climate for domestic companies to invest overseas to invest in Europe and the United States. However, what kind of business conditions are to be established, how to implant local economic ecology, and the success or failure of investment and the rise and fall of enterprises. In Dongguan, choosing a reasonable investment path can steadily advance the success rate of overseas investment by companies. In this sense, the first step for Dongguan's textile and garment industry to go abroad is to establish a logistics center. Through such a market-oriented organization form of logistics centers, it can be said that it is an innovative attempt to realize the hustle and bustle of Dongguan enterprises.