Shoe Industry Survey In Dongguan: Many Shoe Companies Shutting Down Or Moving

According to statistics, at present, 13 billion pairs of shoes are produced annually in China's shoes, accounting for six or seven of the world's total output, of which nearly 10 billion are exported.

Guangdong Dongguan is the world famous footwear foundry base. Once there were 1 pairs of shoes in the world from 10 Dongguan.

Statistics from the Asian Footwear Association show that in 2010, there were more than 1600 shoe enterprises in Dongguan, with an annual output value of 63 billion yuan.

But now, the footwear industry in Dongguan is experiencing severe market tests. There are even rumors that shoe companies are closing down here.

Is this really the case? Let's follow our reporter to Dongguan to see the latest survival of shoe enterprises.

In an interview with reporters in Dongguan, it happened that a shoe company just announced that it had closed down its business. The company called Chang Yu Industrial had two thousand employees, and now only a few dozen people are doing some final cleaning work.

This is shut down, not closed down, why shut down? Because the boss does not want to do this industry, and changed.

Why not make money?

The workers and security guard told reporters that the days of the foundry shoe factories were not easy, and the foundry shoe factories that were forced to close down were not Zhangyu.

According to industry sources, Dongguan's large and medium-sized enterprises such as ANGA shoes, flying shoes, intermodal shoes and other companies have been closed or relocated. Many shoe companies such as mace shoes, Huifeng shoes and Yongsheng shoes industries are reducing production scale in a large scale to cope with the shortage of orders and rising cost pressures.

However, reporters from the Pearl River Delta processing industry experts learned that most shoe enterprises in Dongguan did not go bankrupt, most enterprises only shut down the closure, not insolvent bankruptcy.

Jiang Lin, deputy director of the Hong Kong, Macao and Pearl River Delta Research Center of Zhongshan University, said that more of the shoe factories I saw in Dongguan were not bankrupt or bankrupt, but it was called a halt or half business.

There are thirty percent to forty shoe factories belonging to this kind of edge, which is called bankruptcy. There is no application for a legal procedure, strictly speaking in a state of stop production and half stop production.

In addition, most of the foundry factories that shut down and shut down were small and incompetent.

Zhang Huarong, chairman of the Asia Footwear Association, chairman of Huajian group, said that when the financial crisis or bad economic conditions, there were fewer open businesses. Some of them were normal. Some of them were related to the increase of market factors.

Orders cost less, exports increase, and a pair of shoes earn only 20 cents.

I have a set of data from the Ministry of Commerce.

Li Liangsui, general manager of icannon Footwear Co. Ltd., said that since June, orders have basically been shrinking, including the orders received in November October, which are also very low, falling by 30% to 40%.

Including some development, less and less, the whole market can not see development.

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An important reason for the decline in orders is the widespread debt crisis prevailing in the United States and Europe. Some customers are very cautious because of the market prospect.

According to statistics from the Asian Footwear Association, conservative estimates of global shoe orders will shrink by 10% this year.

Because the shoemaking industry is a labor-intensive industry, the price of labor in Southeast Asia is low, the comparative advantage of Chinese labor is no longer there, and some Taiwanese shoe enterprises are moving to Vietnam and Kampuchea.

Li Liangsui, general manager of icannon Footwear Co. Ltd., says that a master in China may be three thousand yuan, four thousand yuan or even five thousand yuan. In Kampuchea, Vietnam, it only needs four hundred yuan and five hundred yuan.

Shen Hong, deputy general manager of Dongguan Xin Ruida shoes industry Co., Ltd., said that the large Taiwanese capital has been pformed, to Vietnam, to Burma, and to Southeast Asia's poorer areas.

On the one hand, orders are shrinking. On the other hand, shoe manufacturers are also facing enormous cost pressures.

It is understood that from last year to now, leather materials have risen by 10% to 20%, and labor costs have increased by an average of about 15% annually, and the appreciation of RMB since the reform has reached over 26%.

Multiple factors superimposed on it, more and more shoe companies are struggling to break even.

Li Liangsui, general manager of icannon Footwear Co., Ltd., said that now the US dollar depreciated and the raw materials increased. Basically, there is no profit for export. Basically, the foundry industry we processed is on the verge of cost. Basically, if we keep on working overtime, we can survive.

If there is a weak month, we will face negative growth.

Zhang Huarong, chairman of the Asia Footwear Association, chairman of Huajian group, said that the labor cost could be controlled at 18% the year before last, probably 20% last year and 23% this year.

A shoe company official revealed that the shoe industry was very sensitive to costs because of its small profits. 3 years ago, a pair of leather shoes on their factories could earn about $1, and now only about 20 cents left. At present, the average profit of Dongguan shoe enterprises is only about 5%.

Dongguan shoe enterprises seek upgrading for survival

Shoe companies are moving to Southeast Asia. It seems that the new round of world shoe industry's location shift is in progress. But does this mean that the status of Dongguan shoe manufacturing base is not guaranteed? In Dongguan, our reporter found that shoe companies there are also seeking pformation and upgrading.

Li Liangsui, the boss of Dongguan's icannon shoe industry, has been busy researching the market for her high-end women's shoes and selling their own brands in the past few months.

Li Liangsui, general manager of icannon Footwear Co., Ltd., said, "I found that China is not short of BOC's low-grade shoes. It is not short of shoes. It is especially short of medium and low grade shoes. The high-end brand shoes are missing, and some high-end high-end products of Spain and handicrafts are strong in Italy.

Like Li Liangsui, there are many shoe business owners who rely solely on the export market. Enterprises are hard to survive and develop. When they completely abandon the export market, they generally begin to test the water domestic market.

Shen Hong, deputy general manager of Dongguan Xin Ruida shoes industry Co., Ltd., said that we are going to sell domestically and domestically and abroad together, and domestic sales are growing. Daphne's brand is growing and there are more stores in China, so it needs more.

Industry experts said that from the perspective of the history of the world shoe industry pfer, the world's shoe industry center shifted towards the low labor price area, but the previous shoe industry base would not decline completely.

Thirty years ago, Italy was similar to today's Dongguan. It is the world shoe center, with a large scale. Although the shoemaking base has been pferred to China, its position has not declined.

Although the comparative advantage of Dongguan's labor force is no longer exist, the developed industrial chain and the related modern service industries are temporarily unable to surpass the low labor cost countries.

In addition, China's vast domestic market has not yet been fully excavated.

These advantages give Dongguan shoe industry great room for development.

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Zhang Huarong, chairman of the Asia Footwear Association, chairman of Huajian group, said that 80% of the world's footwear traders are in Dongguan. Maybe 35 years later, 60% to 79% designers will come to Dongguan. Dongguan is very dynamic and the footwear industry is very promising.

Financial links

Footwear listed companies: foundry has no oil and water brand to create value.

Shoemaking industry is an export-oriented industry developed by our country in recent ten years, especially in the Pearl River Delta region. It is not only practitioners and consumers, but also investors who are concerned about the trend of the industry.

What is the impact of the downturn in the footwear industry we have just seen on the relevant listed companies? Let's take a look at the views of professional organizations.

In the Shanghai and Shenzhen stock markets, there are quite a few listed companies and main businesses in footwear industry, including 22 shoemaking companies.

Most of them are scale production processors with independent brands, not simple export processing shoemaking, so most enterprises have a good profit level.

以在中小板上市的生產整鞋的凱撒股份 (002425 )為例,去年的每股收益為0.67元,今年半年報每股盈利為0.154元,但是這家公司08年、09年和10年的銷售毛利率分別是43%、45%和48%,顯示利潤仍很豐厚,長江證券 (000783 )給予了謹慎推薦的評級; 而從事鞋底生產的泰亞股份 (002517 ),近三年的毛利率分別是20%、22%和23%,兩者對比恰恰表明在制鞋業中如果沒有品牌利潤就大打折扣,海通證券 (600837 )給予了中性評級;另一家制鞋上市公司星期六 (002291 ),經營品牌較多,也有代工業務,因此近三年毛利率維持在44%、45%和47%,但股價表現相對弱勢,招商證券 (600999 )給予了審慎推薦評級;專工皮革制造的雙象股份 (002395 )也是由于品牌效應不明顯,毛利率在15%左右,而提供特種制鞋的際華集團 (601718 )毛利率更是落在了10%以下。