Where Is The Way Out For China'S Shoe Industry?

According to reports, the American Chamber of Commerce in Shanghai combined with the Alan consulting company recently released a report entitled "2007 - 2008 competitiveness of China's manufacturing industry".

After investigating the 66 manufacturing enterprises (mostly foreign enterprises), the report found that nearly 20% of the enterprises plan to move their factories to other countries.

According to the ranking, these countries are India, Vietnam, Thailand, Malaysia and Brazil. The reason for leaving China is the rising cost and the appreciation of the renminbi.

"Of course, 83% of the enterprises, that is, the vast majority of enterprises do not have any plans to leave China," said Alan, vice president of Greater China, booth consulting. "These enterprises are still optimistic about China, but what is worrying is that 17% of the companies have already made specific plans to move factories to other neighboring countries."

The reason is that from the national policy to the cost of raw materials to labor costs, shoe manufacturers in China feel that China's manufacturing may no longer be "cheap and cheap" and that it is inevitable to move to cheaper places.

At this stage, China's footwear industry is at a critical stage of development and pformation.

At the end of November last year, the world footwear industry development forum held in Dongguan last year, Liang Yaowen, director of the Guangdong provincial foreign trade and Economic Cooperation Department, gave a clear answer: not only the shoe industry, but for the many processing enterprises in the Pearl River Delta, there is only one way out for the future. That is, "only technology research and development is the way out for enterprises. No technology is always controlled by others. We must take market demand as the guide, speed up the strategic pformation with technological innovation as the driving force, and strive to improve the technological content and added value of shoes products, pform the technological advantages, and accelerate the pformation of our country from a big shoemaking power to a shoemaking power."

A few days ago, senior professional manager, senior researcher of China Brand Research Institute and Ma Chao, an expert in brand China industry alliance, told reporters in "China made news" that "the relocation of shoe companies in China is good and bad for our footwear industry."

This is because it can force some enterprises to take the road of self-improvement and complete the integration and reshuffle of the OEM industry. The bad thing is that inevitably some small and medium-sized enterprises will be washed away.

One baptism always divides the good and bad, and the rest is boutique.

Ma Chao believes that the inevitable choice and way out for China's footwear industry is to make brands.

But this is a long process. At present, the management level and capital level of all enterprises can not reach.

China's footwear industry is now in urgent need of pition from "quantity regulation model" to "technology brand type".

Ding Li, director of the scientific research division of the Guangdong Academy of Social Sciences and regional economic research expert, are more worried about the problems behind the foundries after the "flying away" of enterprises like Adidas.

In his view, Guangdong still can not talk about upgrading the manufacturing industry. First, we must upgrade from the assembly industry to the manufacturing industry, then brand and creativity.

Compared with India, Vietnam and other emerging shoe manufacturing bases, China has perfect infrastructure and supporting industrial chains.

It is understood that the Dongguan based Huajian shoe industry Co., Ltd. also set up factories in Vietnam, but according to the head of the company, there is no perfect raw material and equipment trading market, and most of the raw materials and shoemaking equipment must be purchased from the mainland.

Ma Chao believes that the advantage of China's manufacturing is still in the long run, which has long been impossible for Southeast Asian countries to surpass in the short term.

"To solve the predicament, the first is to introduce policies to adjust the economy. In addition, the domestic OEM plant should continue to expand its scale and make use of scale advantages to improve our competitiveness."

He said that in order to improve the scale of production of local enterprises, in addition to raw materials processing, we should start designing and go up a high level of processing route.

Continue to expand their strengths and integrate resources.

Increase business volume and expand processing scope.

Gradually achieve full production, and control the raw materials channels.

"Control on-line, even on-line, from production to supply."

Ma Chao stressed: "although the brand growth has slowed down, the cost has been greatly saved, and the capital chain has been buffered so that it can continue to develop. At least, it can control the raw material channel on the line, increase the product line and improve the design level."