Three Inspiration From China'S Shoe Capital: Foxconn'S Massive Relocation

The hot July baked the relatively developed coastal areas of China, roasting the belief of Foxconn, a global electronics OEM giant, to move inland in large scale. At the end of July 5th, Terry Gou, chairman of Hon Hai group, visited Foxconn Longhua base in Shenzhen to mobilize the staff to move.

Then, in

Revelation 1: low employment area is the direction of manufacturing migration.

As early as the Foxconn staff jumped the building incident, Foxconn insiders disclosed the news that Foxconn wanted to move inland on a large scale. Its plan involves the production line of the Foxconn Shenzhen plant 2/3, and the staff in the coastal area will also be reduced from 400 thousand to 100 thousand.

Where does Foxconn migrate? According to the news, Foxconn migration is a low price area.

Based on this strategy, Foxconn's future layout is clear and clear.

The Shenzhen manufacturing base, which mainly produces computer connection equipment, will move to Zhengzhou, Henan. The mobile phone business division will move to Tianjin, and Foxconn computer division will move to Chongqing and Wuhan. It is reported that in May 18th, Foxconn Chongqing factory had built the first notebook computer.

In June 25th,

The big factory of Foxconn in Henan will be located in Zhengzhou, and Henan will provide labor for Foxconn in the form of "group".

In this regard, He Guixia, deputy general manager of Wenzhou Jie Jie clothing company, asserted: "Foxconn moved to places where there are low labor areas. With the guarantee of labor force, all industrial contradictions and manufacturing and social contradictions will be solved."

China's shoes city, Wenzhou, has become the most important leather shoes manufacturing base in China by virtue of the brand and output of leather shoes enterprises. There are more than 1000 shoemaking production lines, including three leading leather shoes in China, including Gilda, and 20 leather shoes enterprises with annual output value exceeding 100 million yuan in Wenzhou. Among the top 30 sales of key leather enterprises in China, Wenzhou enterprises account for more than 70%, almost half of the whole country.

The same thing with Foxconn is that many Wenzhou enterprises are famous foundries abroad.

When the "shortage of migrant workers" is coming, they have encountered unprecedented difficulties, and some deep-seated problems inside the enterprises have also emerged.

"Now we have a large number of foundries, and it is the pain of our hearts that we can not recruit cheap employees."

A shoe factory owner complained to the author: "for the shoe industry with only razor blade profits, it will be profitable to find cheap labor, otherwise everything will be busy."

Foxconn has given us an inspiration, that is, to develop in areas where cheap labor is abundant is our future road.

Revelation two: be good to the wealth of manufacturing industry -- migrant workers

Why is Foxconn moving on a large scale? Many people think that Foxconn is jumping off the building accident, and Foxconn has to raise wages to deal with jumping events. The basic salary of employees has risen from 900 yuan / month to 1200 yuan / month, and then increased to 2000 yuan / month, which immediately cut the profits of Foxconn from 4 billion 500 million to 5 billion yuan this year.

Terry Gou said Foxconn is not a sweatshop. Many media also say that Foxconn is much better treated than some private enterprises in Wenzhou.

The large-scale relocation of Foxconn also sent a signal to Wenzhou: treat the migrant workers well, and the migrant workers are the wealth of the manufacturing industry.

Wenzhou people have a nice name for migrant workers, called new Wenzhou people.

There are about about 3500000 new Wenzhou people in Wenzhou.

According to the author's investigation, most new Wenzhou people have deep feelings for Wenzhou, but 20% still feel that their lives are not satisfactory and lack of happiness.

100 years of work in Wenzhou also can not afford to buy a house, the government's preferential policies will marginalized new Wenzhou people: new Wenzhou people in the recruitment of civil servants, housing preferences, children's education and other aspects are difficult to enjoy the same treatment of Wenzhou people.

There is such a post on the Baidu Post Bar: "new Wenzhou people, why do you want us to respect you?" the Post said, "do not say that Wenzhou is bad for you. It is Wenzhou that allows you to have a job so that you can support yourself, and no one forces you to come to Wenzhou."

From this post, we can see clearly the discrimination of new Wenzhou people. In the consciousness of some Wenzhou people, there is always a sense of "landlords hiring farm workers".

In shoe companies in China's shoe market, migrant workers work 280 hours a month, and some migrant workers suffer from occupational diseases. Some beautiful young workers are worn away in the tinkling of hammers, the noise of sewing machines and the smell of strong chemical raw materials.

Fortunately, the large-scale relocation of Foxconn has given us an inspiration:

Revelation three: pformation and upgrading is the fundamental {page_break} for the development of manufacturing industry.

Foxconn moved to Shenzhen on a large scale, and the "apple" business group did not relocate.

In May 8th, Foxconn 3C retail chain store opened its first store.

The store is mainly the 3C store which mainly deals in electrical appliances, communications and digital products.

Foxconn hopes to raise profits by opening up home appliance chain stores to catch up with Suning Gome.

Recently, Terry Gou also deployed a pformation to Foxconn.

It is reported that Foxconn's current subcontracting industry has become a sunset industry, its annual report 2009 shows that the operating profit margin is only 1.9%.

Some experts say that Foxconn's large-scale relocation is the result of phasing out the low value-added manufacturing industry in Shenzhen. This also gives the manufacturing industry an inspiration that pformation and upgrading are fundamental to development.

Wenzhou, known as China's shoe capital, is actually the world's manufacturing base, the capital of China's light industry.

On this hot and energetic place, we have produced 10% of the total market share of clothing, 20% of shoes, 60% of shavers, 65% of locks, 80% of glasses, 90% of metal casing lighters and 90% of watercolor pens. Besides, electrical appliances, pumps, valves, zippers, hardware, steam and motorcycle accessories, kitchen and toilet, furniture, plastic, ceramic products, buttons, gifts, stationery and other pillar industries also play a very important role in China.

In recent years, the total industrial output value of the city has reached 267 billion 695 million yuan.

For Wenzhou, which is heavily dependent on manufacturing, pformation and upgrading are inevitable.

So where is the pformation and upgrading of China's shoes capital facing?

On July 4th, Zhao Yide, mayor of Wenzhou, chaired thirty-seventh executive meetings of the municipal government, and deliberated and passed the plan of pformation and upgrading of electrical, pump and valve, mould and shoe leather industry in principle.

Shoe leather is an important industry of China's shoe capital.

According to the implementation plan of pformation and upgrading of the shoe leather industry, Wenzhou will focus on upgrading the shoe industrial park, importing the shoe material logistics market, further building the headquarters economy, encouraging enterprises to increase scientific and technological innovation, speed up the construction of information technology, increase the development of energy saving and environmental protection projects, vigorously promote brand cultivation, develop their own brands, promote the innovation of marketing mode, accelerate the pace of integration and reorganization, and consolidate the foundation of product quality.

By 2012, the total industrial output value of Enterprises above Designated Size will reach 97 billion yuan.

It is reported that the manufacturing industry of China's shoes capital is actively upgrading and upgrading. The JD shoe company, which has exclusive praise by CCTV news network, innovated and developed nano functional air conditioning shoes independently, which has a banner role in the pformation and upgrading of Wenzhou.

The Wenzhou people have air conditioning devices in these shoes, and have used functional nanomaterials, and have harvested 28 national patents.

This kind of shoes can discharge the turbid gas in the shoe cavity when people walk, purify the air in the shoes, reduce the sweat and foot odor.

The nano function air conditioning shoes have been touted by consumers after putting them into the market.

At present, Wenzhou has already had the strategy and experience of pformation and upgrading. Perhaps Wenzhou will form a new Wenzhou economic model in the process of a new round of pformation and upgrading to show its people.