Shoe Companies Deal With Wage Increase &Nbsp.

Wang Jian, Secretary General of the China Development and Reform Commission's macroeconomic society, said 13 days that China must endure higher price rises.

Now raising interest rates is not only difficult to control inflation, but also has a negative impact on economic growth.

Statistics from the National Bureau of statistics show that CPI has risen sharply this year and has hit record highs this year.

CPI's first high of over 3% was a year-on-year growth of 3.1% in May, down to 2.9% in June, a new high in July, 3.3% in August, and 0.2 percentage points higher in August, creating a new high of 3.5%, which is 0.5 percentage points higher than the government's annual target 3%.

CPI grew 3% year on year, which is internationally recognized as an inflation warning line.

Judging from the actual market situation, consumer goods prices continue to rise this year, especially vegetable prices are the largest and longest.

Edible oil and food prices are rising.

From the people's feelings and affordability, people have complained about prices.

Especially for some low-income urban areas, the pressure of life is obvious.

As a labor-intensive enterprise, shoemaking enterprises are particularly sensitive to the rise of CPI, so the problem of "wage surge" is full of the shoe making industry.

The enterprises are in a dilemma. On the one hand, the pressure of workers' lives is increasing, and the demand for wage increases is strong. On the other hand, the profit of enterprises has declined although the order of enterprises has increased.

No salary increases, no workers can be saved, so many shoe owners say they are helpless.

Ding Shuibo said XTEP had not been affected too much. In terms of wages, it has been improving every year, and there is no need for high growth.

On the topic of "labor shortage", Ding Shuibo's attitude is "this is a trend and a new pressure on labor-intensive industries."

In addition, he also mentioned that in addition to better improvement of conditions, it is also a trend to migrate such industries to the mainland.

Indeed, as Ding Shuibo said, China is

Comparing all kinds of factors, it is difficult to pfer to the outside world.

"Recently, Chuang Xin has adjusted the staff salaries of the two production lines in Guangzhou and Shenzhen, of which the adjustment of Guangzhou staff has reached 25%."

Wu Zhenchang, the leading shoemaking enterprise in Guangdong and chairman of Guangdong Chuangxin shoes industry, understands that if we want to maintain a large scale of shoe production in Guangdong, it is absolutely necessary to increase the wages of workers.

Wu Zhenchang introduced, 20 years ago, he gave ordinary employees monthly salary of 200 to 250 yuan.

At that time, if these workers stayed in their hometown, they could only earn 80 yuan to 90 yuan a month, and the price difference was very large, so the workers were willing to work.

Now, even if he gives workers a basic salary of more than 1000 yuan, it does not have enough appeal, because wages in the mainland have risen.

Wu Zhenchang came from Taiwan in 1990 to set up factories in Panyu, Guangzhou. It was one of the first shoe manufacturers to move the production line to the mainland.

He made use of the original single channel and domestic cheap labor force to build a large number of large customers such as Nike, and developed rapidly in Guangzhou.

Later, he simply shut down the Taiwan plant and pferred all the orders to the mainland.

At the peak of the order, Chuang Xin had nearly 20 thousand employees, with an annual export volume of US $more than 100 million.

Now, his shoemaking kingdom maintains more than ten thousand workers, at least six thousand or seven thousand workers.

In view of the current operation of the Pearl River Delta, Wu Zhenchang believes that the shoes below 30 dollars are not suitable for production in Guangzhou, and the production lines in Guangzhou and Shenzhen should produce more products with more technical content and higher added value.

In this way, the pfer of enterprises' capacity is inevitable.

However, Wu Zhenchang is somewhat puzzled about whether the enterprise is turning to "inside" or "outside".

A few years ago, Wu Zhenchang also began to represent some brands to expand domestic sales, but the progress was not smooth. At present, it still accounts for less than 10% of the company's sales. It is very difficult for a pure export foundry enterprise to pform into the domestic market.

Wu Zhenchang visited Vietnam and Southeast Asian countries more than once, hoping to pfer some of the production lines to Southeast Asian countries.

The labor cost advantage of Southeast Asian countries is obvious.

According to his textual research, the wage level of Vietnam is only 40% of that of the Pearl River Delta, while other Southeast Asian countries are less than half of the Pearl River Delta and some of them are lower.

Moreover, setting up factories in Southeast Asia can rely on the China ASEAN Free Trade Area to avoid some trade frictions.

However, there are many undesirable places to pfer to the outside world.

"Southeast Asia's water, electricity, pportation, infrastructure and production facilities are far less than the Pearl River Delta, and the business environment is far less than domestic," Wu Zhenchang said.

Whether to leave or stay is to be carefully considered.

Also in Ganzhou, Zhang Huarong, the 53 year old chairman of Huajian international shoe city in Ganzhou, has a little memory of his days in Dongguan.

As the first Guangdong businessman to eat crabs in Ganzhou, Zhang Huarong came to Ganzhou from Dongguan 7 years ago, and built a shoe-making production line.

The labor cost in Ganzhou is cheap, the monthly salary per person is 300 yuan less than that in Dongguan, and the manpower is ample.

The cost of water and electricity in Ganzhou is also much lower. The electricity consumption per kilowatt hour is only 0.68 yuan, while the electricity price in Dongguan is over 0.9 yuan. In Ganzhou, water is 0.9 yuan per ton, while Dongguan is 1.5 yuan.

At first, Zhang Huarong worked hard in Ganzhou, but then he found many disappointments.

Due to the imperfect local industry support, the vast majority of fittings and raw materials have to be pported from Dongguan, and the cost of pportation logistics is increasing.

"In Dongguan, Shenzhen, freight accounts for only 3% of the cost of production, and at least 10% in Ganzhou."

In addition, the lack of skilled skilled workers and experienced managerial personnel also increase the management cost of enterprises.

Zhang Huarong said that after 30 years of development, the Pearl River Delta has formed a complete industrial chain that matches production capacity.

Relocation to the field can, of course, reduce labor costs, but the cost of raw materials matching will also rise.

And the two offset, he did not feel the cost of ease.

At present, the salary increase of enterprises in the Pearl River Delta is mainly due to the fact that the market has made up for the low wages and slow wage growth of the migrant workers in the Pearl River Delta over the years. In the long run, the rising cost of labor in the Pearl River Delta region and the tension of land, energy and various production factors will encourage some enterprises to "pfer" to the areas with low production costs, which is a necessary phenomenon in the market economy.

Ding Li, director of the competitiveness research center of Guangdong Academy of Social Sciences, said.

For many OEM enterprises, pferring to the mainland does not necessarily solve all problems, or even encounter unexpected problems.

For example, Ding Li, a casual wear manufacturer in Zhongshan, Guangdong, pferred to a provincial capital city in Southwest China, and offered preferential treatment in tax policy, land, supporting facilities and so on.

In order to find a cuff button, the purchasing department ran around several counties and cities, and finally had to carry it from Guangdong to the enterprise.

Finally, the enterprise accounts, delays and freight charges, so that the cost of pfer and production in Guangdong almost the same time.

Ding Li believes that from the current perspective, the Pearl River Delta does appear the phenomenon of "turning out" of individual enterprises, but there has not been a large-scale "industrial chain pfer" trend.

In the market competition, enterprises are not alone, they all need upstream and downstream industry chain matching, and the cost of enterprises is not only labor costs, but also more cooperation costs, logistics costs and other operating costs. Under many restrictive conditions, enterprises must be cautious when they go and stay. "Transfer" may be in line with the development strategy of enterprises, leaving behind to digest costs, and in situ pformation and upgrading may also be able to go out of a new path.