China'S Footwear Industry: Demographic Dividend Advantage Load-Bearing Geometry

In the eyes of many market participants,

"The relocation and pfer of large scale foundry enterprises is mainly because the prices of domestic production factors continue to rise, affecting the global market layout and profitability of these capitals," said Guo Weiwen, Secretary General of the China anti dumping alliance.

"We are local enterprises, relocation is not the first consideration, but those multinational enterprises and foreign investment factories are different. They are more motivated by profit and more accustomed to the global pfer of production capacity. Relocation will naturally become their priority."

Taizhou, Zhejiang, Luo Chunyuan, director of Commerce, Ltd.

China's own advantages cannot be replaced by other countries.

According to the Longzhou research company, although there are reports that the labor-intensive industries like shoes and other industries have moved to Southeast Asian countries, Chinese manufacturers are able to raise their prices by 10%-20%, indicating that they have gained some pricing power.

Tao Dong, an economist at Credit Suisse, said the reason is simple: "the efficiency of any other developing country is not as high as that of China".

China has a large workforce, and has higher labor productivity compared with other developing countries, and port road facilities are much better. These factors make it difficult for enterprises to find places to replace China.

Tao Dong said: "when China does not have these advantages, there will be no second China."

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Maintain labor intensive industries "mid end capacity"

It is a real test for China's traditional labor-intensive industries to maintain the "middle end capacity" of the labor-intensive industries in the future.

We must realize that in terms of low end capacity, we have no advantage compared with neighboring countries and regions.

In Europe and America, only five years ago, we could only see "made in China", but now, "made in Egypt" and "made in Vietnam" has been seen everywhere, even coming from behind.

Labor intensive industries have no way out, just by combining prices and manpower.

As China's employment demand for labor force still exists, giving up labor-intensive industries is a choice that China's economy and society will not be able to bear for a considerable period of time.

When the high-end market is difficult to achieve overnight and the low end market competition is weak, the key to the survival of China's labor-intensive industries is to maintain the "middle end advantage" and get room for cushion, progress and development.

From the present perspective, in the middle end industries, the emerging regions represented by Vietnam need to take over at least ten years to replace China's position, because they also need related supporting facilities.

These ten years are important "window periods". Enterprises either seize the opportunity to pform and upgrade as soon as possible, or they will gradually be eliminated by the cruel market.