Dongguan, Vanishing Shoes

There are thousands of shoe factories in Houjie, Dongguan, and there are tens of thousands of employees in Taiwan funded shoe factories.

The picture shows the Chengda shoe factory with more than 10000 employees. The staff have lunch at noon, scores the meal and scores the time.

Preface / Dongguan, known as "world shoe capital", is one of the most popular shoes in the world every year.

However, the prices of raw materials, factory inspection, tax inspection, anti-dumping duties, and the government do not support a series of shocks such as high manpower intensive industries, the Taiwanese footwear industry is facing the coldest winter.

The new "labor contract law", implemented on New Year's day, will make the shoe industry worse, and will be the last straw to crush the camel.

There are thousands of shoe factories in Houjie, Dongguan, and there are tens of thousands of employees in Taiwan funded shoe factories.

The picture shows the Chengda shoe factory with more than 10000 employees. The staff have lunch at noon, scores the meal and scores the time.

Reporter Lai Jinhong / Photography "this month, Houjie has fallen several shoe factories", "Wanxin shoe factory thousands of people for the salary and the new contract, go to the streets to make trouble", "24 days ago, once the representative of Dongguan footwear industry, the Taiwanese capital Chang Deng shoes industry suddenly turned to work, to compensate for the cost of more than four thousand million coins, and withdraw from business".

A series of negative news has hit Dongguan, the world shoe capital.

Factory inspection and tax inspection.

Taiwanese businessmen shouted bitterness in the prices of raw materials, factory inspection, tax inspection, anti-dumping duties, the government did not support high labor intensive industries, and under the impact of the new labor law, Taiwanese Footwear makers cried hard.

Bai Zaijun, chairman of Songjiang shoe material factory, said that this winter, shoe factories are easier to recruit, because Houjie has recently closed down many shoe factories, especially small and medium-sized shoe factories, and workers have to find jobs again.

The new labor law adds to the burden of the new labor law, which is the last straw to crush the camel.

He said that the new labor law increased the use of artificial labor, so that labor-intensive small and medium enterprises face enormous pressure, shoe industry bear the brunt.

According to the new law, a worker (proficient) should give at least two thousand yuan RMB, and the boss must also face the risk of higher labor mobility, professional ethics and minimum wage.

The profit is thin.

Zhang Cheng, a leather factory in Nancheng District, also said that the shoe making industry is becoming more and more difficult to do. Problems such as anti dumping, lack of work and power shortage are all tied up. Some even have only five percent profit.

If the labor force is raised again, many enterprises will certainly not be able to sustain it.

40% of the Houjie shoe factory will fail to make the pition, or fail. Mr Bai said that those who make low-end products will have no way to go. The shoe factories in Houjie estimated that at least four percent of the factories will be closed.

This is definitely a big shuffle, a revolution.

He said that the current situation is that there is not enough labor to supply, and the local government has no support. Under the impact of the new labor law, manufacturers can only rely on themselves to break through a road.

More importantly, the attitude of the local government.

The output value of Yuyuan in Dongguan is over RMB forty billion yuan, which is quite a large Wenzhou footwear industry. However, Dongguan has never put the shoe industry on the list of the eight pillar industries, because the footwear industry is considered by the government to be a low value-added and highly manual industry.

Dongguan's policy is clear that it does not welcome the entry of three high industries and no longer welcomes the footwear industry.

Therefore, the shoe factory will face difficulties in its operation. The Dongguan government will not stand on the side of support, instead, it hopes it will move out.

Anti dumping duties will increase again on the European Union's anti-dumping, RMB appreciation, labor force rising, material price rising, processing trade policy change and so on, which is not good news for Dongguan shoemaking industry.

At the beginning of last month, the EU imposed a nine point five percent anti-dumping duty on the mainland, which will be reviewed at the end of next year. It may continue to levy taxes, or increase taxes, and expand some other requirements.

Long Yongtu, Secretary General of the Boao forum, recently said in Dongguan's "world footwear development forum" that Dongguan should move towards the high-end and become a manufacturing base based on R & D and design, and become a base for building Chinese own brand shoes.

Only in this way can we have the right to speak in the world shoe industry.

It's hard for a brand to win its own brand.

Zhang Shixin of Xinqiao shoe industry said.

Everyone knows that they have to create their own brands, but the funds are not big enough. Taiwan businessmen are small and medium-sized enterprises.

Besides, have you done any big factories like Italy and NIKE?

Lin Zhaojie, director of the Taiwan Footwear Association, said that the future market positioning should be put back to the mainland's domestic market. After three or five years, the mainland market will account for 1/3 of the global consumption of shoes. Taiwan businessmen should enlarge the world shoe industry in the thick street, so that the mainland market must be pformed into a middle and high grade price, and the shoe industry will be pformed into domestic market. Only the high and middle price and quality can survive in the market.

The mainland is the most potential footwear market in the world, but can Taiwanese businessmen eat it?

Last year, the European Union anti-dumping duties began, many Taiwanese merchants pferred to the domestic market, but all the way to bumpy, less or less, the main reason is that the domestic market and channels were occupied by the mainland shoe factories.

Taiwan capital Dachang Yuyuan and Xing ang have moved outward and built their own brands and set up R & D centers.

But the other small and medium-sized shoe factories, which are numerous and thousands to ten thousand or twenty thousand, face chaos in the face of the great changes in the market environment and the new policies announced continuously.