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    Pearl River Delta Shoe Industry Reshuffle Speed Up &Nbsp; &Nbsp; Enterprises Fight Brand Bet Domestic Market

    2011/8/5 9:25:00 55

    Pearl River Delta Shoe Market

    Recently, one came from the world's largest sporting goods provider.

    Nike

    The information shook the whole shoe industry chain.

    Information shows that in 2010, Nike produced 37% of the total sports shoes in Vietnam, the first time it exceeded China's 34%, and ranked first in Nike's regional production outsourcing.

    For a time, all kinds of speculation and analysis based on the exchange of seats between China and Vietnam were rampant.


    On the other hand, last week, Dongguan's old Hanzi toy factory went bankrupt, and the so-called "collapse tide" of the manufacturing industry spread like wildfire, which also involved the footwear industry.

    In fact, since the economic crisis, industrial pformation and upgrading have been carried out closely.

    The same face of the manufacturing dilemma is now quite different from 3 years ago.


    The industry continues to rebound and the industry rebound is far from being expected.


    From the objective figures,

    Pearl River Delta

    One of the most important components of the manufacturing industry is the aftermath of the global economic crisis erupted in 2008.

    Amateur looking at bustle, professional watch the doorway.

    Although the footwear industry in Pearl River Delta seems to have only 5 to 10 years of simple shoe processing, this does not mean the decline of the whole industry.


    Looking back over the past 10 years, as one of Nike's manufacturing bases, Vietnam's trajectory of growth is very similar to that of China's Pearl River Delta. At the same time, the share of China's manufacturing sector is being eroded by Vietnam.


    Nike's annual report shows that in 2001, 40% of its shoes were made in China, ranking first in the world, while Vietnam accounted for only 13% of the total.

    By 2005, China's share fell to 36%., even though it was also in the first place, Vietnam has leapt to second place at that time, accounting for 26%.

    In 2009, after the global economic crisis, China and Vietnam tied for the first place, all of which were 36%. Now Vietnam has surpassed China in one move, accounting for 37%., and China is relegated to the second place, accounting for 34%.


    This was not a sensational event.

    Because since the outbreak of the economic crisis, Guangdong has pioneered the idea of "changing cage and changing birds" to encourage the upgrading and pformation of manufacturing industry.

    In this way, put the low-end process in Southeast Asia, such as Vietnam, and put quality technology and higher gross profit in the Pearl River Delta. Why not?


    However, three years have passed, and the reality proves that this is not a suitable road for everyone.


    Recently, in 1992, a Dongguan based company limited in the background of Korean capital went bankrupt. The bosses and management personnel had disappeared, and the Court seized the property of the company.

    Is this an individual phenomenon or a "collapse tide"? The Dongguan Municipal Foreign Trade and Economic Cooperation Bureau has released a set of figures. In the 1-6 month of this year, 261 enterprises were shut down in Dongguan, compared with 5 less than the same period last year.

    From the 2008 financial crisis to the present, the shutting down of enterprises has been decreasing year by year, 865 in 2008, 657 in 2009, and 585 in 2010.


    "In the operation of the company, this can only mean that the amount of loss is decreasing year by year, but it is far from being improved."

    The head of a footwear factory in Dongguan, a Taiwanese funded factory, told reporters in Nandu.

    The current reality is that the competitiveness of the low end manufacturing industry outside the Pearl River Delta is strengthening, and the industry is still perfect.

    In this way, the upgrading and pformation of the Pearl River Delta footwear industry? No matter what your decision is, the action should be speeded up.


     

    Pearl River delta system

    footwear industry

    Shuffle acceleration


    The Pearl River Delta is all over the shoe factories. According to Xue Hua (a pseudonym), simple footwear manufacturing can last 5 to 10 years.


    Xue Hua works in an internationally famous sports brand. He is mainly responsible for finding partners in manufacturing, that is, manufacturers.

    She told reporters in Nandu that her job is called "comb production" in the industry, that is, the manufacturer who looks for orders for branded orders.

    {page_break}


    "The footwear industry in Vietnam, Indonesia and other places is rising rapidly, but the PRD still has unparalleled advantages. The political stability is here, the people are hardworking, the supporting facilities are perfect and the technology is advanced."

    Under these advantages, she said, brands are naturally more willing to hand over the products to manufacturers in the Pearl River Delta.

    But with the establishment of the minimum wage system for workers, the cost of labor has become the fastest rising part of producers' expenses.

    It is also a human factor. At present, the whole Pearl River Delta shoe industry is facing the problem of large mobility. "A factory can recruit 7-8 of the workers."

    According to Xue Hua, in this case, both the order and the workers began to tilt towards the big factories.


    "Workers will feel that larger factories are more stable, and brands look at the combing capacity of major plants."

    She gave examples of Nike and Adidas. When the two global sports giant brands released their footwear orders, they would ask the manufacturer to comb at least three countries.

    In addition to China, there are factories in Vietnam, India or Indonesia.

    In this order, some relatively low end products, such as sandals, can be produced in Vietnam and other places, and the relatively high-end products will fall in China.

    Such a large order needs only one manufacturer.


    "Big manufacturers are large, well-developed, and have the ability to comb all over the world, and bargaining power is naturally higher and higher.

    Therefore, we will also give orders to some small factories.

    According to Xue Hua, there is only one reason to find a small factory, that is, the price is relatively cheap.

    At the same time, in order to lower the cost, these small manufacturers were forced to move their factories to the low cost areas in the mainland.

    As a result, migrant workers chose to stay in the local area, which aggravated the labor shortage in the Pearl River Delta.

    Just like a cycle that can not be jumped out, it accelerated the reshuffle of the Pearl River Delta footwear industry.


    Fight for brands and bet on the outbreak of domestic market


    "Compared with the Pearl River Delta, Vietnam and other places as the base of shoe making industry, the biggest problem is matching.

    But I think Vietnam is just like the Pearl River Delta 10 years ago.

    Pang Deli is chairman and CEO of Hongkong de Yu group. The main business of the company is OEM and ODM. of the top and middle grade brand shoes in Europe and America. And Pang Deli also believes that the PRD footwear industry can only survive for 10 years by factory mode alone.

    So he made a bold decision that the main business of the company will be pferred from the foundry to the brand.


    According to Xue Hua, it is not uncommon for the shoe factories to turn into brands in the Pearl River Delta.

    However, brand names differ greatly from foreign brands in terms of quality, shape and design concept.

    Another view is that the existing mode of shoemaking factories determines that in the decision-making group's thinking, the brand is only a useful supplement, but a means to explore new profit models, and it is very difficult to make every effort to do it.


    Pang Deli is not.

    He told reporters in Nandu that the company has decided to regard brand building as the main direction of development in the future.

    To this end, he adopted the Chinese mode of running KAPPA and won the right to operate MISSMAUD, the brand of women's shoes in France, at high price, and is ready to play a big role in the country.


    "We do not make products in Russia, the Middle East and other places, but only in the high-end brands in Europe and the United States."

    Lin Zhifeng, deputy general manager of de Yu group, told Nandu reporters that because of long-term cooperation and pformation and upgrading of the company, some European and American brands have begun to package the design and processing links to the factory of ODM.

    Because of this, de Yu can ensure that the technology and quality of its own brand products reach the level of exports to Europe and the United States.


    Pang Deli did not choose the common "light asset mode" in the industry. He said that MISSMAUD's products were produced by their own factories, so that the standard of each pair of shoes was controllable and high quality.

    On the operation of capital, he also confirmed the mode of "feeding" brand with the existing OEM business, and indicated that he would continuously provide support to MISSMAUD.


    Behind the subversive pformation from the foundry to the brand, Pang Deli has seen an explosive growth in China's domestic market in addition to the challenges facing the foundry industry.

    This can also be seen from the information disclosed by Xue Hua one or two.

    "Taking Nike and Adidas as an example, these international giants obviously pay more attention to the Chinese market than before."

    International brands will have some "key projects" in every quarter and spend money on them.

    "In the past, most of these plans were oriented to the European and American markets, and now there are more and more key projects facing China."

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