Heshan Shoe Enterprises Expect More Changes.

"Heshan shoes" is very famous both at home and abroad. When it is the most prosperous, 98% of the world's famous brand shoes can be produced in Heshan, so as to witness its strength.

However, since last year, footwear production in Heshan has been troubled by many factors, such as rising costs, export tax rebates, trade barriers and so on, and exports have encountered an unprecedented cold wave.

According to customs statistics, from 1 to May this year, 8 million 830 thousand pairs of shoes exported from Jiangmen were 25.7% lower than the same period last year (the same below), worth 38 million 180 thousand US dollars, down 16.7%.

Faced with all kinds of difficulties, how can Heshan shoe enterprises break through?

In July 4th, a big discussion on the future direction of Heshan footwear industry was launched in the industry. After pains and reflection, Heshan wants to create a regional brand through independent innovation and revitalize Heshan's footwear industry.

Present situation:

More than 10 shoe enterprises went bankrupt and went bankrupt.

It is reported that the footwear industry in Heshan has a long history. It is the second major characteristic industry in Heshan's industrial system, which is next only to the textile service industry. There are more than 300 footwear production enterprises and related enterprises.

After years of active development, the footwear industry in Heshan has gained popularity in China and has become one of the important footwear production bases in the country.

Recently, however, the results of the survey conducted by relevant departments in Heshan showed that the rapid growth of the footwear industry in Heshan was obviously slowing down. Last year, the industrial output value of the footwear industry above scale had a negative growth, and the production of many large scale enterprises had shrunk.

There is a foreign leading enterprise whose staff has been reduced from more than 4000 at its peak to only about 700 now.

Due to the lack of local production capacity, many enterprises will produce large quantities of orders.

According to the Heshan footwear industry association, there are currently 4 to 5 enterprises to reduce production scale in Heshan and set up branches in other places.

Since the end of last year, more than 10 related shoe making enterprises have gone out of business or closed down due to production and operation problems.

Worry:

Lack of brand cultivation for increasing production costs

The increase of production cost is the primary bottleneck that puzzles the development of shoe industry in Heshan.

Heshan shoe enterprises said that the rise in prices, especially the sharp rise in raw materials, greatly reduced the profits of enterprises.

Starting last year, the overall price of raw materials for shoemaking increased by 30%, paper products increased by 20%, and resins increased by 30%.

However, most shoe making enterprises have not raised the price of their products or even raised their prices. The profits of enterprises have been greatly squeezed.

The labour force also has a headache for businesses.

In order to solve the problem of insufficient employment, enterprises have spontaneously raised the wages and benefits of workers, such as the implementation of minimum wage, free accommodation, etc. the average wages of front-line workers have reached 1100~1600 yuan. However, the problem of "unable to keep stocks and increments can not be recruited" still puzzles Enterprises. Many shoe enterprises reflect that orders are sufficient and labor shortages are scarce.

In order to retain employees, shoemaking enterprises to raise wages and other welfare benefits, the labor costs of enterprises are rising significantly.

In addition, the continued appreciation of the renminbi, the reduction of the export tax rebate rate and the implementation of the new labor contract law have gradually reduced the cost advantage of shoe enterprises and increased the pressure of survival.

In addition, the export of footwear products has been frequently subject to anti-dumping barriers, and shoe exports have been in trouble again and again.

At the same time, the enterprise's own factors also have an impact.

Over the years, the shoe industry has not paid much attention to independent innovation and brand cultivation. It has relied too much on low cost, low profit and extensive development with quantity. Moreover, a large number of shoe factories are engaged in OEM production. There are many family and small workshop enterprises, and their ability to resist risks is relatively weak.

A survey report of the Heshan Municipal Development and Reform Bureau said: the shoe industry in the province is facing a "big shuffle", which is both pros and cons for Heshan.

The advantage is that the Heshan shoe industry has a smaller overall scale, and can seize the opportunity to undertake the pfer of the footwear industry in Dongguan, especially the large enterprises. The disadvantages are that the smaller enterprises have narrower living space and may have more business failures.

Reflect:

Learn the experience of brand effect of Wenzhou footwear industry

Under all kinds of pressure, Heshan shoe enterprises have encountered unprecedented difficulties.

In July 4th this year, the Heshan footwear industry development seminar held in Heshan City, the department leaders who went to Wenzhou and Heshan shoe makers all issued a series of exclamations.

Yuan Kong Yun, director of the Heshan Municipal Bureau of foreign trade and economic cooperation, said that two thousand or three thousand shoe companies in Wenzhou had more than 300 well-known trademarks, while more than 300 shoe companies in Heshan only got a "high mark" trademark, and it was obtained through judicial process. The gap is obvious.

He believes that Wenzhou is brand atmosphere, brand quality is high; the market takes the group development, the anti risk ability is strong; creates the enterprise culture, takes the staff as the foundation, retaining the fixed staff, has overcome the Shanzhai factory's thinking, these are the Wenzhou shoes brand effect's good experience.

"We are so complacent and self-sufficient", a shoe maker deeply sighed. From 1993 to 1994, some people in Wenzhou also learned to make shoes in Heshan. Now the apprentice has become the biggest threat to the master.

Way out:

Create regional brand by independent innovation

"Heshan shoe enterprises are also making their own brands before making OEM, but they have not formed a climate. Now they must go back to the brand road and avoid single armed forces alone."

Ye Rongchao, vice mayor of Heshan, put forward a train of thought: in May this year, Heshan took the title of "Guangdong men's shoes production base", which marked the upgrading of Heshan's footwear industry, and its influence and status were improved.

Enterprises should take advantage of the trend and give full play to the leading role of "Guangdong men's shoes production base".

There are more than 300 shoe factories in Heshan, and the scale is not small. They can be united together to create "Heshan men's shoes" regional brand.

Vice mayor Ye Rongchao suggested that enterprises should establish a sense of overall situation, strive to win the title of "China's men's shoes production base", share this resource, and realize one day: in the whole country, when talking about men's shoes, they will think of Heshan; when it comes to Heshan, they think of men's shoes.

"Producing such brand effect is not only a matter of benefit to the footwear industry, but a benefit to the whole of Heshan."

Ye Rongchao said.