The Experience And Enlightenment Of Shoe Industry Development In Korea Were Summarized And Analyzed

Korean system footwear industry It began to grow rapidly in the early 1970s and occupied an important position in the export industry for a long time. In the 1980s, it was the third largest export industry after electrical and electronic products and textiles. In 1990, the export reached a record of 4.3 billion US dollars.

However, due to the neglect of the establishment of self brand and the cultivation of market development ability in the process of development, at the end of 1980s, due to the rapid rise of labor cost of domestic workers, the price competitive advantage was lost in a few years, and the export decreased year by year, and went from bad to worse. In 2002, the export was only 577 million US dollars, and in May 2003, it was in South Korea shoes For the first time in the history of product trade, a deficit appeared, which declared the Korean system shoes Industry as a major export industry has come to an end.

Korean system shoes Industry rose rapidly in 20 years and declined rapidly in more than 10 years. Korean system shoes The rise and fall of the industry, a heavy lesson, gives us a profound enlightenment.

Korea shoes The development of the industry

??? The rise of shoe making industry in Korea

Korean system shoes The development of the industry has experienced the introduction period (before 1970), growth period (1971-1978), maturity period (1979-1988) and recession period (after 1988).

Before 1970, it was made in Korea shoes Although it was first exported to the United States in 1962, its products are still mainly supplied to the domestic market due to the limitation of product quality and market development ability. By 1970, the shoes The industry is nothing more than an export of less than $50 million and a total of more than 20000 workers. Since the early 1970s, due to the Japanese investment system shoes The industry developed rapidly, the production capacity and scale expanded rapidly, and the export increased significantly. The export value reached 50 million US dollars in 1971 and 100 million US dollars in 1973. By 1975, the footwear industry had basically transformed into an export-oriented industry with more than 60000 workers. The cooperation with world famous brands is made in Korea shoes A key step in the rise of industry.

Since 1974, Nike, Reebok, Adidas and other world-famous brands have begun to make to order in South Korea shoes And greatly promoted the Korean system footwear industry The development of the product quality has been rapidly improved, so that the Korean system footwear industry Gradually rising and becoming mature, it also laid the foundation for South Korea as a movement shoes Status of major suppliers. In the meantime, Korean system footwear industry The production technology has been accumulated and the localization rate of raw materials has been further improved. With the support of the government's export promotion policy, the export of footwear products has further increased substantially.

??? shoes The large export of products has attracted restrictions from major importing countries. In 1977, the export market to South Korea was the largest shoes After the implementation of "import restrictions", Britain, Italy and Norway followed suit. During the four-year period in the United States, the shoes The four big enterprises with export quota have been able to grow rapidly, and the export volume of their products has reached that of South Korea shoes 80% of exports. However, the four enterprises failed to seize the opportunity to create brands and cultivate the ability to open up the market. Instead, they focused on obtaining the license to become a "comprehensive trade agency" from the South Korean government and missed the good opportunity. On the other hand, due to export restrictions, South Korea made it shoes At the same time, the company began to carry out technical cooperation with Nike and other world-famous brands to carry out OEM production. As a result, the product quality has been improved to some extent, and OEM has gradually developed into Korea shoes The main mode of production and export also makes Korean system shoes The industry is maturing.

1990 system shoes The industry occupies an important position in South Korea's economy, accounting for 2.7% of the total number of enterprises (accounting for the fourth place in the number of Korean enterprises), 6% (the fourth place) of employees, 2.42% (fifth) of output value, 2.51% (fifth) of added value and 6.6% of export. It is the third largest export industry after electrical electronics and textiles. Korean system shoes Most of the enterprises are located in Busan area, which was established in Busan area in 1991 shoes Korean occupation shoes 65.1% of enterprises, 76.8% of production lines, 82.8% of employees and 88.4% of exports. system shoes Since the early 1970s, Busan has been playing an important role in the region's steel industry and the railway industry, which has played an important role in the region's economy since the early 1970s.

In the world, based on the export volume, the system was made in Korea in 1991 shoes Second only to Italy, it ranks second in the world shoes 20% of exports. As a single commodity with such proportion and competitiveness in the international market, it is rare in Korean industry. Korean system shoes The technology and product quality have also reached a higher level in the world. Korean system in mature period shoes The industry has the following characteristics: it is a labor-intensive industry with high employment effect; it relies on export more than 78%; the export market focuses on the United States, Japan, Canada, Europe and other countries. Production movement shoes It is mainly produced and exported by OEM, with a continuous rate of more than 95% from 1991 to 1993, and mainly concentrated in Busan area.

??? The decline of Korean shoe industry

America vs. Korea in 1981 shoes After the expiration of the import restrictions, more enterprises set foot in the system shoes The increasingly fierce competition for customers has led to the collapse of a large number of enterprises. Since 1986, Korea shoes The products have been subject to quota restrictions in Australia, Japan, Canada, the United States, France, Italy, Finland, the Philippines, EC, Sweden, New Zealand and other major export markets. Among them, the United States and Canada in 1987 and EC in 1990 imposed import restrictions on South Korea shoes A heavy blow to the industry. It coincides with the sharp appreciation of the Korean currency against the U.S. dollar, the rise in the prices of raw materials, especially the increase of labor disputes and the sharp rise of labor costs caused by the democratization movement in 1987 shoes Since then, the competitiveness of the industry has declined sharply shoes The industry went into a depression and gradually declined. Since 1990 shoes Production and exports have fallen sharply and have gone from bad to worse. In 1992, a large number of systems appeared shoes Go out of business. In order to ensure competitiveness and avoid import restrictions of major importing countries, the shoes Industry began to move overseas. To overcome the difficulties of the Korean government shoes Industry, system shoes Since 1991, the trade association has been in charge of the system shoes However, it is too late to recover the policy support shoes The fate of industry decline.

The decline is mainly manifested in the sharp decline of exports and sharp decrease of employees. In 2002, the annual average value of exports dropped from 7.75 billion US dollars to 43.3 billion US dollars footwear industry The number of enterprises decreased from 1860 to 1685, and the number of employees decreased from 179600 to 30000, a decrease of 83.3%, and the number of employees was 130000 shoes Workers lost their jobs; production fell by 40%. shoes The proportion of exports decreased from 72% in 1990 to 35.4% in 2001, and the supply to the domestic market increased. system shoes The decline of the industry has brought a heavy blow to the economy of Busan area, with the sharp decrease of exports and the unemployment of a large number of workers. Busan area shoes The export value of products dropped sharply from 3.524 billion US dollars in 1990 to 403 million US dollars in 2001, a decrease of 89%. The area shoes The proportion of exports in China's shoe exports also dropped from 81.8% to 57.4%. The number of employees dropped from 148000 in 1990 to 18000 in 2001. shoes The proportion of products exports in Pusan region decreased from 51.9% to 8.8%. system shoes The status of industry as the largest industry in the region no longer exists.

From a global perspective, South Korea has been overtaken by China, Taiwan Province, Indonesia and other Southeast Asian countries, and its production technology has also been separated from advanced countries. the republic of korea shoes Experience and Enlightenment of industry development

??? Causes of decline

Analysis of Korean system shoes There are many reasons for the decline of the industry.

The direct reason lies in the rapid rise of international labor cost. With the improvement of economic level, wage rise is inevitable. But the rise of the democratic movement in 1987 and the appreciation of the Korean currency gave rise to a labor-intensive system shoes This is a double whammy. From 1986 to 1990, the average annual growth rate of workers' wages was as high as 21%. Therefore, in the face of Southeast Asia and other national systems shoes Industry competition, Korean system-->