The Breaking Point Of Hong Kong Funded Shoe-Making Enterprises In The Pearl River Delta

Suddenly the whole office was pitch black, and there was no surprise for the employees coming and going.

"Is it always like this?"

Journalist asked to sit opposite the chairman of the Hongkong Peninsula footwear industry, Fang Zhigang.

"A moment."

His answer has typical Cantonese characteristics.

This is the office of the peninsula shoe industry in Houjie, Dongguan. Fang Zhigang told reporters that the company's office will soon move to a better environment and give customers a better feeling.

The Pearl River Delta footwear industry accounts for about 1/4 of the global footwear industry. Dongguan Houjie is also known as the "world shoe factory".

In recent years, affected by the appreciation of the renminbi and the rising cost of production factors, the "world shoe factory" faces the "most severe" moment, and the owners are restless.

Stay or move out?

If left behind, how to tide over difficulties?

If you move out, where do you want to move?

Specializing in high-end and developing domestic sales

The "double pfer" policy put forward by the Guangdong provincial Party committee and the provincial government undoubtedly pointed out a certain direction.

But business owners still have doubts.

"In Guangdong, of course, it will be adapted to other places. At least, many people here speak Cantonese, and it is difficult to communicate in other provinces."

Fang Zhigang, who is also chairman of the Hongkong footwear industry association, told reporters that he knew that at present, a minority of the Hong Kong funded shoe enterprises in the Pearl River Delta will consider pferring.

"The characteristics of Hong Kong businessmen are more conservative in their vigour and thinking."

"Now the carton factories and heel factories are very convenient.

Are there any management, cadres and factory directors who will pfer with you?

Such a team can only be built in a year or two, and there are too many variables in it.

Fang Zhigang's exclamation is considered by most conservative Hong Kong shoe companies.

"In the past experience, the government has promised that the factory will be built without the surrounding industrial support, and that the businessmen have failed to reach the stage when the government is completed and matched."

The word "conservative" has been mentioned many times by Fang Zhigang, but the current environment does not give enough time for Hong Kong funded enterprises to think clearly.

"The shoes produced this year are more than 30% higher than that of the same period of last year. No buyers can accept that the policy changes in the country and the international environment have changed.

Orders, procurement and retail can not adapt at once, and the whole value chain is in a very serious moment.

It is understood that, in the face of real suffering, most of the Hong Kong funded shoe enterprises have not yet taken the pace of pfer. They are more inclined to upgrade their products and stay in the PRD.

Fang Zhigang's approach is to specialize in overseas high-end markets, enhance the ability to resist risks, and build private brands and expand domestic sales in China.

"In fact, I am not optimistic about the domestic market, but one more opportunity and another way out."

Hong Kong enterprises have also implemented the pfer, but only a small step in "conservative".

Liu Jingxian, managing director of the Hong Kong funded enterprise Lijun shoe industry Co., Ltd., told reporters that the family moved, but it was hard to reorganize a team in the new place.

"Because of the habit of living in the local area, many employees are reluctant to move out."

In the end, Liu Jingxian decided to retain the old factory buildings in the South China Sea, leaving some workers behind. At the same time, he hired new factories in Heshan, and recruit a number of new employees.

Customers will visit them and bring them to the new factory with beautiful environment.

"But because of the reversal of the image, sales of this year have increased by 80% over the same period."

　　審勢篤行，等待發力

We have built our factory buildings, set the general direction, actively take the initiative and actively invite investment.

Some industrial parks in western Guangdong and eastern Guangdong are considering the idea of shoe manufacturers in the Pearl River Delta region.

But the reality is more difficult than they think.

In August 11, 2007, the Zhongshan torch (Yangxi) industrial pfer park put forward the goal of building a shoe-making base in the whole province.

"For the time being, the industry chain is not yet mature."

Zhu Jiancheng, vice president of the park affairs, pointed out in an interview with reporters that the original intention of building a shoemaking base was to solve the problem of recruiting workers by using the local labor force. At the same time, the location of the port adjacent to Zhongshan port was very suitable for the footwear industry dominated by export-oriented enterprises.

"A lot of Hong Kong shoe owners have seen it, but in the end they have dispelled the idea of diversion."

Zhu Jiancheng said that the pfer of shoe enterprises to western Guangdong can solve the problem of labor recruitment. But with the introduction of the new labor law, the shoe industry must face the problem of labor cost instead of recruiting people.

"Labor laws aggravate their psychological pressure."

Zhu Jiancheng also talked about logistics matching in western Guangdong.

"The footwear industry has high logistics costs and long-term operational costs."

Zhu Jiancheng said that the current industrial pfer Park aims to attract the Pearl River Delta Electronics and food processing industry.

"The demand for quantity of labor in the electronics industry is not high, mostly refined products, high integration, and logistics and pportation costs lower than the footwear industry."

The food processing industry takes into account the abundant resources of aquatic products and agricultural products in western Guangdong, and food processing enterprises can draw materials nearby.

Some large scale shoemaking enterprises, many of them can be completed by themselves, and the action of pfer is already in progress.

In July 19th, Wen Jiabao, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, investigated the economic operation in Guangdong. One of them was Dongguan Huabao Shoes Co., Ltd.

Warburg footwear is a product export enterprise affiliated to Huajian group.

Chen Dan, chief executive of Huajian group, told reporters that the pfer of enterprises began 5 years ago. At present, the manufacturing of low-end products has basically shifted to Ganzhou, Jiangxi.

"After construction, we can build our own facilities."

According to Chen Dan, the logistics of Huabao Jiangxi plant is relatively convenient, so the logistics factor has little impact on the enterprise.

"We have built more than 20 000 square meters of industrial plants and living areas in Jiangxi. In order to stabilize employees, we have built facilities for kindergartens, hospitals and so on."

However, this is not what most of the enterprises in the PRD can do. They are mainly small and medium sized enterprises, even if they are in urgent need of pformation and pfer. They are still waiting for answers to many questions.

The industrial park is waiting for the answer.

"We were the first batch to pfer, and after three years, we had a very hard time."

Zhu Jiancheng said that the next step of Zhongshan Torch Industrial Park is mainly looking at the provincial policy trend.

"The interests of pfer, the interests of receiving, and the interests of enterprises need to be considered.

I am glad that the provincial government realizes that industrial pfer is not a document that can be solved, and now it has been implemented.

According to Zhu Jiancheng, at present, the province is running a competitive demonstration park, and will find one or two parks in eastern Guangdong, western Guangdong and northern Guangdong as a pilot project.

"We have participated in the competition. At present, 14 in 6 has passed, and 5 will carry out 6 to 3. If successful, it will become a provincial demonstration park."