Breakthroughs In Cost Bottleneck &Nbsp; China's Shoe Industry Regain Dominance.

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. Especially with "China" Manufacture "Footwear industry" as the representative of the major industries, 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.

Many burdened businesses began to look for more labour. cheap The establishment of production plants, such as Nike, a famous sports shoe brand, has now shifted the focus of its production 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 general increase in wages across the country. 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, with the aging of the population in China trend Increasingly, 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 transformation and upgrading of production mode has become the urgent need for all shoe companies nowadays to solve.

With the loss of labor cost advantage, many shoe enterprises in the coastal areas are coping with the crisis through the relocation of factories. They have cooperated with more remote cities in the northwest and borrowed relatively low labor costs to maintain the survival of enterprises. Matching Imperfect and high transportation and logistics costs 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 will make shoe companies dare not employ a lot, so the choice and allocation of human resources should be more prudent. 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 people with strong comprehensive skills 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 can not only save costs, but also grasp 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 shoes will be changed 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.