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Breaking Through The Bottleneck Of Labor Cost &Nbsp; China'S Shoe Industry Regain Dominant Power.

2011/8/5 18:50:00 27

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Breaking Through The Bottleneck Of Labor Cost

For China, which has a population of 1 billion 300 million, the abundant labor force has become the resource of global manufacturing industry scrambling for grabbing. The name of "world factory" has long been known far and wide.

In particular, the major industries represented by "made in China" footwear products occupy a higher share in the international market.

But in recent years, due to the influence of economic factors at home and abroad, many manufacturers who invest in factories in China have gradually fallen into difficulties.

In the slow and unstable recovery stage after the global financial crisis is still in the wake of the financial crisis, China has seen a faster wage rise, leaving the labor-intensive industries with a core advantage.

A lot of overburdened enterprises began to set up factories for finding cheaper labor, such as Nike, a famous sports shoe brand. Now Nike has shifted its focus to Vietnam, and surpassed China in 2010 to become the largest producer of Nike sports shoes.

In addition, the collective price increases of Lining, Anta and other domestic second tier brands are also closely related to the rise in labor costs.

Thus, the era of China as a supplier of cheap labour worldwide may be drawing to a close.

Since last year, there has been a relatively widespread wage in the whole country.

Rise

Wages in the central and western regions are even faster than those in the coastal areas. At the same time, the low end manufacturers in coastal areas complain about the shortage of labour in recent years. This situation has made China's manufacturing industry stagnant for a long time.

An important reason for this phenomenon is that it has something to do with the changing prosperity and the change of ideas in China. This determines the promotion of the treatment requirements of the existing workers.

On the other hand, as China's aging population is becoming more and more obvious, the proportion of the population entering the labor market is shrinking, and the value of the vigorous labor force is increasing day by day.

The growth of labor cost has become an inevitable fact. This will be a severe test and challenge for the shoe industry demanding human resources. How to control labor cost and realize pformation and upgrading of production mode has become the urgent need for all shoe companies nowadays to solve.

With the gradual loss of labor cost advantages, many shoe enterprises in coastal areas have responded to the crisis through the relocation of factories. They have cooperated with more remote domestic cities such as the northwest and borrowed relatively low labor costs to maintain the survival of enterprises. After all, industrial pfer is only an expedient measure. Due to the limited development level, the imperfect local industry and the high cost of pportation and logistics are still very difficult.

And those shoes enterprises, which always used cheap labor as competitive advantages and specially for foreign brands, experienced a bigger "Waterloo". When they got small profits, they made "dresses" for others. In the end, they were spurned because of rising costs.

This extensive mode of production has been out of step with the current market situation. In a word, shoe enterprises should quickly get rid of the traditional mode and adjust their business philosophy.

Coincidentally, the upward trend of labor costs must be made.

Shoe enterprises

We dare not employ a lot of labor, so we should be more cautious in choosing and configuring human resources.

With the continuous progress of economy and society, the employment of enterprises will inevitably change from low cost, low quality to high cost and high quality, so as to ensure higher labor productivity and ensure the daily production and operation of enterprises.

By recruiting skilled personnel, such as skill level, ability and quality, shoe companies can fill the vacancy position accurately, work out effective rules and regulations and processes, and strive to build an efficient team of enterprises. Compared with a team with low mobility, it saves not only cost but also quality.

Of course, this also involves the problem of getting along with employees. The shoe enterprises should standardize the employment system, do their best to provide employees with support for life and work, train them in knowledge and skills, improve the talent reserve mechanism, and cultivate corporate culture. Only by satisfying their employees can they retain more and contribute more to the enterprise.

In addition, shoe manufacturers should also introduce advanced technology and equipment as far as possible, so that production links can be mechanized and automated. This will not only reduce the error rate of manual operation, but also achieve large scale output, and less investment than labor force.

In the era of increasing labor costs, China's shoe industry is destined to change in the world, but this does not mean that Chinese shoes have completely lost their advantages, and the objective conditions such as a complete industrial chain and high occupancy rate make China's footwear industry still occupy a favorable position in the market.

China's shoe enterprises can only overcome their difficulties and win the lead in the global footwear market by sticking to their respective demands, rationally controlling labor costs and changing the way of production and management.