Guangdong Shoe Enterprises Move Westward

Last week, in Sichuan, Guangzhou, to undertake the Guangdong shoe pfer symposium, the vice governor of Sichuan said that Sichuan has built nearly 10 shoemaking parks to undertake the pfer of Guangdong shoes industry.

Some Guangdong shoemaking enterprises have expressed concern about the increase in logistics costs, difficulties in personnel pfer and prolonged pportation time, which will lead to reduced orders.

In this regard, some shoe manufacturers in Guangdong have found solutions through changing their export routes and placing orders.

At the same time, government departments also issued relevant support policies.

Logistics clearance

In last week's "Sichuan to undertake the Guangdong shoe pfer Symposium", Huang Xiaoxiang, vice governor of Sichuan Province, said that Chengdu Wuhou District moved to Wenzhou shoe making enterprises to feedback, and compared to the coastal factories, each production of a pair of shoes could save 20% of the cost.

According to the introduction, "the minimum wage level in Chengdu is 550 yuan, compared with Guangzhou, which is about 300 yuan."

In this regard, most of the shoe manufacturers in Guangdong said that it was no problem to move inland to Sichuan to reduce the cost of human resources, but the increase of logistics cost in raw material procurement and finished goods pportation may offset this figure.

Song Hao, deputy general manager of Guangzhou friendship group shoes and garment accessories company, believes that there is an industrial chain problem in shoemaking.

Shoes exported to Europe and the United States are mainly high-end shoes. The production must have high quality accessories, such as "belt buckle" and "shoe flower". Coastal areas such as Guangdong already have very good technical conditions in this respect.

But such small businesses are costly to move to the Midwest, and most of them do not want to move inland.

A Taiwan funded shoemaking enterprise in Dongguan said that the finished products were pported from Sichuan to the coastal areas and then pported to Europe and the United States market. After internal calculation, the logistics cost of the first two items could increase by 20%, which would also offset the cost savings of human resources.

"The increase in logistics depends on the way you go."

Wen Renhao, general manager of Jintang Hongtai shoemaking Co., Ltd., revealed that the factory was a Taiwanese funded enterprise. It moved to Dongguan from Chengdu two years ago, and the annual output of the semi finished products in Chengdu factory area is over ten million, and the annual output of finished products exceeds 3 million pairs.

He said that its products had not been pported through the traditional route of Guangdong shoes, that is, pshipment between Europe and the United States through the port of Shenzhen, but through the Shanghai port.

The increase in logistics costs is only within 15%.

Time pass

"After the relocation, not only the cost increase, but also the loss of orders due to the longer pportation time."

The head of Guangzhou Footwear Industry Association told reporters that buyers in Europe and the United States were exceptionally strict in terms of delivery time requirements for seasonal footwear, and the contract provided a severe penalty for postponing delivery.

Last year, some enterprises in Guangzhou were unable to deliver goods on time due to the resignation of Midway workers. They hoped to postpone one or two days, but the other party refused. Finally, the enterprises could only convert the ocean to air freight, and the freight increased by about 200000 yuan.

Liu Suilong, honorary president of Dongguan footwear industry association, also said that if the shoemaker moved to Sichuan and shipped to Shenzhen or Shanghai to go to sea, the light would take more than 3 days on the road, so the relocation enterprises had to consider this problem when choosing orders.