The "World Factory" Pay Raise Will Accelerate The Transformation Of Shoe Companies By 3

Chen Weiqiang, general manager of the company, said that the increasingly thin Processing profit Making the factory more difficult to survive, 3% of the garment industry's export profits, compared with more than 15% of the domestic net profit, forced enterprises to choose the market transformation.

The fate of OEM

When Zhang Yansheng came to Dongguan in June, he was told by a Hong Kong business owner that in the production process, from raw material selection to product design to terminal sales, the manufacturers only participated in the manufacturing and assembly of intermediate links.

The way of processing trade has blown up a bloated figure of China's foreign trade. Zhou Shijian, a vice president of the former Minmetals Association and a researcher at the Sino US relations research center of Tsinghua University, said that imports of US $100 were processed by processing trade and exported to US $120. The import and export volume reached US $220, but the actual added value in China was only $20.

Made in China added value How low is it? The two most famous cases are Bobbi dolls of MATTEL group and iPod of Apple Corp.

Zhou Shijian said that the retail price of dolls in the United States was US $9.9, while the actual export price in China was US $2. After deducting the cost of imported raw materials, the Chinese factory actually earned only 0.35 US dollars in processing fees. A iPod in the US sells for $420, of which China earns only $4.

Robert Koopman, chief economist of the US International Trade Commission, reckon that China's exports to the US amounted to US $201 billion in 2006, according to China Customs. However, 113 billion of its exports came from other countries, and only 88 billion US dollars were created in China. 45% of China's total exports to the US belong to the value-added part of China, that is to say, these values remain in China, and another 55% of the value added part belongs to the intermediate components or products of imports.

This is all the remuneration paid by the cheap labor supplier in China in the past 30 years.

According to statistics, in the 10 years before 2005, the monthly wages of the workers in China's processing trade enterprises increased by only 26 yuan. The Panyu jewelry Association estimates that the labor cost of enterprises has increased by about 50% since the implementation of the labor contract law in 2007.

When Labor resources The trade mode of processing trade can hardly continue in China when the price of labor is no longer cheap after excessive consumption. Zhang Yansheng said there is an estimate that there are still about 100 million of the labor force in rural China not transferred. "According to this figure, the transition period to China's foreign trade is only 10 years".

Guangdong province foreign trade system official introduced that through the two years' research, the processing trade enterprises have been roughly classified. The top of the OEM enterprises is the production links of large multinational corporations in the Pearl River Delta. The enterprises rely on China's cheap labor resources. "The characteristics of migratory birds in such factories can not talk about transformation. Only the migration of production links, our train of thought is classified guidance, striving for them to gradually put R & D links into China."

The main body of the series of policies and measures to promote transformation is actually Hong Kong, Macao and Taiwan, as well as private capital processing trade enterprises. Whether such enterprises can accomplish the transformation from low end to middle and low end products production is the key.

Zhang Yansheng's investigation of Hong Kong, Macao and Taiwan foundry enterprises in the Pearl River Delta found that 20% of the enterprises can successfully complete the transformation, and 20% of them will be eliminated in the process of transformation. The question is whether the remaining 60% enterprises can complete the transformation?