When One Day, There Was No Shoe Making Industry In Dongguan.

Experts believe that the way out for Dongguan shoe industry is to build its own brand. With the rising cost, the shoe industry is facing more and more pressure. To expand sales channels is also one of the ways for Dongguan's manufacturing industry. "Dongguan shoe industry's most brilliant time should be in the 80~90 century of the last century." Deputy Secretary General of Dongguan Leather Footwear Association told reporters that in 1987, Taiwan opened up its investment in the mainland, and the mainland has introduced a series of policies that are conducive to Taiwan businessmen's investment. For example, the regulations on encouraging Taiwan compatriots to invest, and other factors such as the world industrial transformation, Taiwanese businessmen will shift the world shoe processing to Dongguan. Dongguan's footwear industry has developed rapidly, and has grown rapidly into the world's largest footwear production base in recent years. According to the data provided by Dongguan Municipal Bureau of statistics, the output of leather shoes in Dongguan in 1985 was 170 thousand pairs, 4 million 570 thousand pairs in 1990, 271 million 840 thousand in 1995, and 1599 times in ten years. Then in 2000, the annual output of shoes in Dongguan slipped for the first time and slipped to 234 million 740 thousand pairs. Since then, the annual volume of shoe growth has slowed down significantly. By the end of this year, the shoe industry in Dongguan has been in a cold spell. The "electricity shortage", "oil shortage" and "labor shortage" have followed. There are also unfavorable factors such as anti-dumping, Announcement No. 44 and the new labor law, which have more and more impact on the development of footwear industry in Dongguan. With the upgrading of the industry, it is inevitable for the low-end manufacturing industry to leave Dongguan. For the footwear industry in Dongguan, it is the only way to survive the crisis and build its own brand. An expert said so. Question 1: rising manufacturing costs? 1 way out: raise shoe prices appropriately! After entering the twenty-first Century, the "electricity shortage", "oil shortage" and "labor shortage" came to the Pearl River Delta, and bottlenecks appeared in land, labor and energy allocation. The "two, 00, seven China regional development blue book" compiled by the Academy of Social Sciences in Beijing, Guangdong and other places believes that the cost is rising and the pressure of environmental governance is increasing. This makes the Pearl River Delta economic development into a high cost era, and the environment for the development of an export-oriented economy is becoming increasingly severe. Miss Yin Qi shoe industry told reporters that the minimum wage in Dongguan in 2002 was 450 yuan, now it is 690 yuan, and it has risen by more than 50% in 5 years. In fact, the wages of workers in the Pearl River Delta are far higher than the figure now, ranging from 1000 yuan to 1500 yuan. But even so, business recruitment is still difficult, and it is clear that the cheap labor force is no longer easy to find in the Pearl River Delta. Cheap raw materials, hydropower, factory rents and so on are now hard to find. Experts: a number of people in the industry have been interviewed by reporters. They believe that the price of shoes should be raised appropriately in the face of the rising costs that can not be digested. "Now the EU's anti-dumping excuse is not that China's shoe price is low?" Deputy Secretary General Liang said. Question 2: worker loyalty declined? 2 way out: raise wages and benefits! Since 2003, the word "labor shortage" has often been reported in the Pearl River Delta media. Many shoe factories are not closed because of orders, but because they are short of manpower. The above mentioned Ding fu shoe factory is an example. Deputy Secretary General believes that changing people's values is also one of the reasons why shoe factories are more difficult to manage. "Before working, a group of workers was very sentimental about the factory. When they entered the factory, they thought about how to work hard. They would not imagine the factory closing down at all. But now it is different, workers can pick up a little money and try to pick it up, for fear that the factory will suddenly be unable to return without their own money, and there is a clear lack of sense of belonging. At the gate of the Tai Chang shoe industry, reporters asked several employees coming out of it whether they would be afraid of their factories closing down. They disdained to say: "the family did not beat the western family, but fell down. Anyway, the government will recharge our wages." It is reported that Chang Teng's boss announced the suspension of business on the second day of the workers' strike. Experts: "now factories are closing down, and many factories fail to provide their employees with the necessary protection. Employees are really hard to feel deeply attached to the factory." Mr. Wang, director of Houjie exhibition shoe factory, said that in order to solve the problem of the shortage of workers and the decline of professional ethics, we should also improve staff salaries and protect the employees' benefits. "Man is not grass, which can be merciless. If you treat him well, he will naturally be good to you." Question 3: EU anti-dumping? 3 way out: expand sales channels! In June 30, 2005 and July 7th, the European Union launched an anti-dumping investigation on the export of Chinese labour shoes and leather shoes in spite of many opposition. In March 2006, it passed a resolution to impose provisional anti-dumping duties on Chinese footwear from April of that year. In October this year, the European Union again voted to impose a 16.5% anti-dumping duty on Chinese leather shoes for 2 years starting from October 7th. Children's shoes, which were not included in the scope of provisional anti-dumping duties, were also included in the scope of formal anti-dumping duties. Because most of the shoe products in Guangdong are exported, this measure is tantamount to adding to the Guangdong shoe industry. Experts: Lv Lina, assistant general manager of DELTA, suggested that peers should face up to anti-dumping sanctions and expand sales channels instead of hanging on a tree. Deputy Secretary General Liang believes that Adidas, Nike and other foreign brands are all optimistic about the Chinese market, and they will have a share in it. Chinese shoe factories can also turn their eyes to domestic sales. Deputy secretary general also pointed out that the next round of anti-dumping review is the only way for Chinese enterprises to break the export deadlock. Judging from the overall situation of the first trial last year, there are still many misunderstandings for domestic shoe enterprises against EU anti-dumping. In the face of reexamination, Chinese enterprises must master the main points of the review procedure and seek the best entry point. Question 4: RMB appreciation frequently? 4 way out: RMB pricing. In December 17th, the exchange rate of RMB against the US dollar reached 7.379. Many people predicted that the RMB exchange rate against the US dollar would fall to 1: 6 next year. "Because many shoe factories in Dongguan sign their prices on the US dollar when they sign their contracts, and the appreciation of the renminbi keeps rising, it means that the more we do, the more we lose." According to Liang's deputy secretary general, many shoe factories now do not have no orders, but are afraid to take orders. Expert: "this is a simple question." Deputy Secretary General Liang said, "quite a lot of shoe factories in our members sign the bill in Renminbi." Question 5: the implementation of the new labor law? 5 way out: do the best in accordance with the law. Zhong Jianfu, Secretary General of Houjie branch of Dongguan Association of Taiwanese investment enterprises, told reporters that he had a friend who counted out an account. After the implementation of the new labor law, he spent more than about 200000 yuan per month on more than 200 workers, including the proportion of social security from 40% to ten, and the 4 hours overtime paid by two shifts. It is understood that there is no fixed term contract in the new labor law, which is also a big headache for many shoe factories. Experts: Deputy Secretary Liang believes that in the face of the new labor law, it is the best choice to execute according to law. Because the new labor law safeguards the legitimate rights and interests of workers, can enhance the enthusiasm of employees, and ultimately benefit from the manufacturers. 1 cases of shoe factory failure case, shoe factory failure, boss escape, debt arrears, tens of thousands of nowhere to catch up with reporters visited Hao shoe material square shoe material stalls, almost every stall owner said he had met the shoe factory malicious debt to leave. In this case, the shoe manufacturers lose less than tens of thousands of yuan, and many million yuan. In November this year, the leather of Fu Yi leather on the 1 floor of Ho Ping shoe material square encountered this situation. Yan Zeliang, a staff member of Fu Yi leather, told reporters that in October this year, the Dongguan Ding fu shoe factory suddenly collapsed, resulting in the loss of Fu Yi leather nearly 260 thousand yuan. "In October 28th, we also sent a batch of goods at the request of Ding Fu purchasing department. In October 30th, we could not find anyone again." The reporter saw from Fu Yi leather's delivery records that from July to October, Fu Yi leather sent 7 goods to Dingxiang shoe industry, but all of them were delivered for arrears. When Mr. Yan went to Dingxiang in October 30th, the boss fled. By contrast, the loss of Fu Yi leather is even greater. When the Dingxiang shoe factory closed down, it still owed nearly 1 million 250 thousand yuan of money to Hongxing leather. Reporters learned that dozens of suppliers were defaulted by the Ding fu shoe factory and the total amount was tens of millions of yuan. The tripod shoe factory is not large in size. It is located in the Chai Ling industrial area. The reporter saw that the Dingxiang shoe factory after the closure had been left empty. Miss Zhou, who worked in the purchasing department of Ding Fu footwear department, told reporters that about 1000 people were around before the shoe factory went bankrupt. In fact, orders have been very sufficient and even need to be outsourced to other factories. But the shortage of workers in factories is very serious, and the production efficiency is not high, so the output is not ideal, causing serious losses. On October 28th, Sunday, the boss left the factory while the staff were resting, and did not come to work on Monday. The factory staff knew that the boss had run away because of the company's losses and the factory also went bankrupt. The case is 2, but it is a long time to lose. A well-known shoe maker shut the door overnight. In October 24th, when Dongguan Chang Deng Shoes Co., Ltd. announced that it was closed, Lao Liu was stunned. Over the past decade, Lao Liu has been working on the production line every day. Shoe factories have never had enough orders and need to stop working. But on this day, a large crowd of workers gathered around to see the notice on the wall. Lao Liu squeezed in: the company will suspend business in December 20th. "I didn't believe it was true at first, until later, the leader told me personally that he had to believe it." Lao Liu did not understand. As a "double excellent enterprise", the factory has been in good condition and the order has not been broken. Why did it suddenly go out of business? The workers in the shoe factories often have very long working years. According to a worker's words, "people who come to this job usually don't quit." So the news of the closure of the factory made many workers very sad, and miss Shao and several townsfolk lived in the factory dormitories and did not try to work in other shoe factories. Miss Shao said, "I am used to working in this factory, plus the salary is very good, and the boss is also very good. The notice said that it was suspending business. Maybe it will continue to start next year. It is ready to go home and see it again next year. " In fact, management has long been feeling the downfall of shoe factories. "Business is not as good as it used to be, but the number of orders is decreasing, and shoe factories are increasing. In fact, factories have been losing money for a long time." Mr. Cai, director of the administrative department of Chang Deng shoe factory, told reporters that the footwear industry in Dongguan is increasingly competitive and business is not good enough. Next year, the new labor law will be implemented. Then, all employees in the factory will be required to purchase social security. Before buying 50% or 60%, the minimum wage should be adjusted again. Under all kinds of pressure, the shoe industry often has to choose to graduate, and it should not start again. Founded in 1995, Chang Deng shoe industry is a Taiwanese proprietorship enterprise. Its operation has been good for more than 20 years. It has more than 4000 employees before graduation, and has been awarded the title of "double excellent enterprise", "civilized unit" and "employee satisfaction Enterprise" by the government. Therefore, its sudden closure has shocked the shoe industry in Dongguan. Experts predict that at least one year after the shoe industry is on the rebound, some employees of the shoe industry are still waiting for the factory to reopen. What time do they have to wait? Liang, Deputy Secretary General of Dongguan Leather Footwear Association, believes that the cold wave may continue until the second half of next year.