Rising Pay Tide Continues To Heat &Nbsp; Shoe Enterprises In Situ Pformation Or New Way Out

Since May 1st of this year, Guangdong has been adjusted.

However, the change has always been so rapid that the original advantages of Guangdong's foreign trade are gradually turning into a disadvantage.

The contradiction between the essence of cheap labor in processing trade and the rising cost of production in the PRD is intensifying.

Moreover, this year, China's foreign trade has witnessed substantial recovery with the gradual recovery of the international economy.

Enterprises in the Yangtze River Delta region are more aware of enterprises in the Pearl River Delta than in the Pearl River Delta. They are more aware of brand building and independent research and development, and many export enterprises are mainly based on general trade and have closer ties with the domestic economy.

Guangzhou Chuangxin Shoes Co., Ltd. as a shoe tycoon and Wenzhou AOKANG group are located in the Pearl River Delta and Yangtze River Delta respectively. They are also trapped in the rapid rise of labor and raw material costs, and are actively rushing to the EU's anti-dumping lawsuit against Chinese leather shoes.

"At present, the export market is relatively stable, mainly for some European high-end customer OEM, the growth rate is far from domestic sales so fast, AOKANG's four independent brands plus the newly acquired Italy brand Wanli Wei Greater China operation power, multi brand operation attracted different levels of consumers.

Walking on two legs, we form scale purchase and production, and develop the same set of standard and standard production processes, improve efficiency and control waste with strict management, and continuously enhance R & D and design. These measures can offset the rising cost at present.

The rapid growth of domestic sales can, to a certain extent, reduce pressure on export orders, "said Wang Hailong, spokesman for AOKANG group." in addition, AOKANG started investing in Bishan County in 2003. The cost of shoemaking here is about 20% less than that in Wenzhou. Austrian Kang is interested in increasing production in the West.

However, the shoe products produced in Chongqing are mainly supplied to the western market. Considering the pportation and other issues, the export products are basically in Wenzhou. "

From the present point of view, the phenomenon of "turning out" of individual enterprises has appeared in the PRD, 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.

"Did you get a raise?" this has become the greeting of many workers recently.

And "I want to get a raise?" has become a problem that many shoe companies have to think about.

"Now we have to pay more, otherwise the workers will not be here.

That means increased costs.

Profit margins are now too low to be low, which is the helplessness of shoe companies.