Also See "Foxconn" &Nbsp; &Nbsp; OEM Shoe Enterprises Go From Here?

On August 26th, the report of the south wind Institute of the International Development Policy Institute showed that the Guangdong family was

This is the next step.

China has been known as the "world factory" by the world.

There are foundry factories in clothing, shoes, IT and electronic products, many of which are OEM for top companies in the world.

The shoemaking industry is a labor-intensive industry. China's shoe enterprises, based on cheap labor, promote the economic development of the world's brand shoe enterprises, but they can't get rid of the fate of OEM.

The international brand shoe enterprises put production into the developing small and medium-sized shoe enterprises, thus avoiding the waste of resources and putting more energy and energy into product design and promotion. They gained 90% of the total profit. However, the foundry shoes enterprises wasted huge manpower and material resources, but only enjoyed 10% of the profits.

In addition, international brands have increased the working hours of OEM workers in pursuit of production volume.

Workers are not allowed to enjoy certain social benefits.

Can such a "corporate culture" make employees happy and proud? As a result, Foxconn's "jumping door" is the most powerful evidence.

After the baptism of the economic crisis and the recent tragedies, the problems of the foundry shoe enterprises, the dependence on the brand and the confusion of the market have been induced.

Where will the foundry enterprises eventually go? {page_break}

Dongguan foundry shoe companies are in deep trouble.

In the past, Dongguan has concentrated on intermediate manufacturing in the past for a long time, relying too much on the development mode of the international market. The industrial structure level is not high, the international competitiveness is not strong, and the ability of independent innovation is weak.

The main force of Dongguan's enterprise group is foreign capital processing enterprise. Once its overseas environment changes, it is very likely to "pack up and walk away".

"How many factories in Dongguan dare to keep the export price of their women's shoes at more than $10?" it has been running for several years in a shoe material market in Houjie Town, Dongguan. Mr. Shaw said that "the international high-end shoe brands come to China. Orders are concentrated in some large factories. A large number of small and medium-sized factories mainly produce two or three or a pair of rubber or plastic shoes for emerging markets in Asia, Africa and South America. The profit margins are low and frightening."

After the outbreak of the financial crisis, orders for shoe products at high and medium prices in foreign countries decreased. Although the number of low orders increased, the price of customers was even more severe.

If these orders are answered, it is possible for the company to lose money and do business, and it will leave the workers free to do anything.

Orders increase profits reduce shoe enterprises difficult to take steps

Despite the fact that experts have already established the ten thousand golden oil prescriptions of "creating brands and pursuing higher added value", however, under the background of shrinking domestic consumption market and entering the stage of fierce competition in terminal market, it is difficult for us to take such a step to bear the multiple pressures of tight capital chain and rising production costs.

In recent years, with the economic crisis, rising prices and inflation expectations, this upward pressure and labor costs have increased, resulting in higher processing costs for Chinese foundry shoe manufacturers, and some multinational companies have shifted orders to low cost countries.

A former foreign trade worker in Qingdao's Tai Guang shoe making Co., Ltd., a foundry factory in Nike, said that from the beginning of 2009, Nike's orders in China were less and less, most of which were pferred to Vietnam and some pferred to Malaysia.

"According to my judgment, OEM or procurement will slowly shift."

He said that in terms of labor costs, the wages of Vietnamese workers are about five hundred or six hundred yuan per month, while Chinese workers are over one thousand yuan, and Vietnam's cost is obviously more advantageous.

It is imperative for foundry enterprises to pform their own brand.

But do shoe companies have the conditions to create brands? How much opportunity do existing resources have to create a valuable brand? Can they bear the risk of investing in the market? These are the deeper issues that policymakers must consider.