"World Factory" Wage Surge To Accelerate The Pformation Of Shoe Enterprises (1)

After Foxconn technology group took the lead in raising wages, "world factory" or ushered in a new round of wage increase, the pformation of processing trade as early as possible could be accelerated.

In the early June, the monthly salary of Foxconn front-line employees increased from 900 yuan to 2000 yuan.

In the middle of 6, Shenzhen immediately announced that the minimum wage would be raised to 10% yuan to 1100 yuan / month.

In April this year, several central ministries and commissions in Guangdong investigated foreign trade, and found that this year's labor costs generally rose by more than 15% or even more than the end of last year.

"The era of over consumption of labor force has passed."

Zhang Yansheng, director of the Foreign Economic Research Institute of the NDRC, said that in the international division of labor of pnational corporations, it is difficult for China to continue to play the role of contributors of cheap labor, and the pformation of processing trade is imperative.

Xiao Hefei, deputy director of the international economic and Trade Research Center of Guangdong University of Foreign Studies, said that the relocation of the Pearl River Delta from the export to domestic sales, from simple foundry to upstream research and development, is the three pformation path in front of the foundries.

Factory migration

Zhang is considering building a new factory in Hunan.

Once it is established, it will be the second largest factory in the inland area.

As one of the largest footwear suppliers in China, Zhang's Group employs the raw materials specified by importing purchasers, processing them according to the design and type provided by buyers, and finally completes the export settlement, earning just a little processing fee in the intermediate links.

Through such a way of trade, the Pearl River Delta entrenched in the past 20 years, he has clutched Nike, Adidas such high-quality buyers.

As early as 2006, domestic and foreign trade policies were tightened, export tax rebate rate was lowered and RMB appreciation was appreciated. Most importantly, the voice of gradually shrinking and adjusting the mode of processing trade was rising.

At that time, the Pearl River Delta was also eager to move out factories such as shoemaking and garment making, leaving room for capital intensive and technology intensive industries.

In response to this shift in policy guidance, Zhang set up his first inland factory in Jiangxi in 2007, setting 700 thousand pairs of shoes per month and attracting about 2000 workers.

At present, this wait-and-see and exploratory arrangement has not seen much success yet.

Today, most of the capacity of the company is still concentrated in Guangzhou, Qingyuan and other regions. "The production capacity of factories in Guangdong is close to 3 million pairs per month. The most important thing is that the products with a little complicated technology can only be processed in Guangdong."

Zhang said.

In fact, such capacity migration and adjustment date back to 2004.

At that time,

The idea of factory owners in the PRD to manage and manage factories in Vietnam and other places began to ferment.

After years of purchasing experience and in-depth analysis, these large multinational buyers began to push Zhang to invest in Southeast Asia to set up factories.

The original consideration of Nike was to help local suppliers improve their technology and efficiency. The changes in the trade environment before and after 2006, especially the gradual increase in labor costs, enabled more capacity to move out of the PRD.

Take Zhang's factory as an example, although he still has nearly 3 million pairs of monthly capacity in Guangdong, but after five or six years of development, his capacity in Southeast Asia has been basically close to this figure.

As a matter of fact, it is hard to say where there is more advantage than the comprehensive cost of the two places.

Zhang said, the total cost of a pair of shoes is the largest material cost, and the purchasing price of each area is basically the same. The price and efficiency of labor and the comprehensive management and operation cost have become the competitive points of various regions.

The price of labor in Southeast Asia is generally lower than that in the PRD. The average monthly cost of employing an ordinary worker in Guangdong is around 1600 yuan (covering social security, provident fund and other costs), while the cost of employment in Indonesia is less than 1000 yuan.

But Guangdong's factories still have an advantage over efficiency and high-end products.