Enterprise Failure Is The Survival Of The Fittest In The Low End Footwear Industry.

The biggest private shoe making in Dongguan

"European and American market to market"

Reporters at the forum learned that, as the largest private shoe making enterprise in Dongguan, Huajian group began to make important decisions to go abroad and invest in the African market.

Investor

Footwear industry is still a sunrise industry.

Reporters at the forum learned that, as the largest private shoe industry in Dongguan, Huajian group began to make important decisions to go abroad and invest in the African market.

Zhang Huarong, chairman of Huajian group, explained that no matter how the development of the times, some people need to wear shoes. They need to wear shoes to make shoes. Although the market in the US and the European market fluctuate because of the economic and debt problems, even if the economic situation is unstable, the demand for life will not be reduced. The change is only the quantity of demand. The shoe industry is a sunrise industry forever, because it is closely related to our life.

European and American economic downturn will affect about 5% of the market orders.

For the Chinese market and other developing countries, the footwear industry still has 20%~30% increasing, especially in the Chinese market. The number of shoes and the retail price of the retail market increase by no less than 20%~30% per year.

So, don't worry about the global economy. Suggest that we should worry about how to make shoes well.

Zhang Huarong said that Ethiopia is a manufacturing strategic base for Huajian, and Huajian wants to make global OEM.

An enterprise has its own production base and brand incubation center in the country. If it has its own production base in other countries and helps its own long-term development, the Chinese people will not only create their own domestic GDP, but also have a global vision and create a total value of GNP of national production.

Zhang Huarong said that when enterprises become bigger, they will have greater pursuits in the industry and industry.

Although the shoe industry is not high-tech, the added value is not high, but it helps to solve local employment.

The environment in Africa is just like what we did thirty years ago, when Taiwanese invested factories and Hong Kong invested factories were small in their initial investment. After twenty or thirty years of development, they are now becoming giant enterprises.

Now, there are few opportunities to develop rapidly, only to maintain scale or business value, but there are many opportunities to expand in Ethiopia.

Ethiopia is rich in raw materials and labor resources, and it is also a business opportunity for enterprises.

Zhang Huarong said that investing in Ethiopia has three great significance. First, strengthen the friendship and cultural exchanges between China and Ethiopia, represent the Chinese enterprises to do well in image, play a bridge role, bring economic cooperation, and promote the economic development of Ethiopia.

Second, seek more development opportunities for enterprises' board of directors and achieve better results; third, create more opportunities for growth and development for Chinese employees and Ethiopia employees.

"We have prepared ourselves well to see and solve problems while walking."

He said that the idea of investing in Ethiopia is not only a concept of investment, but also a responsibility for all kinds of social services that need to be worked out with the reform and opening up of the Ethiopia government.

"We use development experience and problems encountered in the process as a guide to help the government of Ethiopia. Our enterprises can also play a great role in promoting Ethiopia's development."

Zhang Ronghua also introduced the current situation in Ethiopia. He told reporters that the environmental conditions in Ethiopia are not very good. There is no abundant underground resources, traffic is not perfect, only large areas of land, only 80 million people without industrial awareness, but these are not problems. The key is the determination of the government's development and investment policies and hardware.

"As a national investment project, we told the Prime Minister of Ethiopia that as long as we give us a piece of land and a good policy, there will be no need for others. Within ten years, we will create 1 billion, 2 billion, and 3 billion US dollars for export earnings," he said.

Exclusive interview

Tedson, Vice Minister of industry of Ethiopia,

Ethiopia is most suitable for undertaking China's industrial pfer.

"China is the most populous country in East Africa, with stable political situation, abundant labor resources and low wages. If we want to pfer industries in Dongguan and even China, we are most suitable here."

Yesterday morning, Tedson, Vice Minister of industry of Ethiopia, came to Dongguan to participate in the third world footwear development forum. In his speech, he gave a detailed account of his investment environment and mobilized Chinese entrepreneurs to venture to invest in the country.

During the break, our reporter further launched an exclusive interview with him. The other side readily accepted and briefed reporters on all aspects of the country. He stressed that Ethiopia is one of the most suitable countries to undertake industrial pfer in China in terms of pportation, infrastructure, population resources, wage level and political stability.

Q: what is the current infrastructure and energy situation in Ethiopia?

A: at present, China's infrastructure construction is heading for a new peak period. The railway construction has reached more than 2000 kilometers, and the power resources can fully meet the industrial production, not only to meet their own needs, but also to pmit electricity to other countries.

In addition, we are building a dam in the world's top five, which will bring abundant power supply after completion.

In addition, 20 years ago, there was only one university in China. Now, there are 32 universities covering a variety of disciplines, and the knowledge structure is also able to meet the needs of localization of talents.

Q: what aspects of Ethiopia are most attractive to Chinese manufacturing investors?

A: there are 85 million people in Ethiopia, half of whom are labor. In the age of aging, this is one of the few demographic characteristics in the world.

We are one of the most populous countries in East Africa.

Q: what is the situation with regard to natural resources?

A: Ethiopia is not like the arid desert area that people imagine. Actually, there are abundant water resources. Among them, cattle and sheep are the largest among African countries. There are about 50000000 sheep, about 50000000 sheep and about 50000000 cattle in Ethiopia. So, from leather manufacturing, Ethiopia can provide the most abundant raw materials in African countries.

Q: how do you manage your investment policy?

A: Ethiopia's investment policy is very enlightened. First of all, Ethiopia's political stability is the lowest in the African countries. Therefore, investors need not worry about corruption.

In addition, as a support for the development of developing countries, Ethiopia has signed duty-free export agreements with developed economies such as the European Union, Au, Japan and other developed economies. The biggest advantage of this agreement is that Ethiopia's export products can be duty-free within seven years and there is no quota ceiling. This is our advantage.

Q: what is the wage level of workers in Ethiopia?

A: at present, the income of factory workers in Ethiopia is about $50 a month, and skilled workers can reach 150 to 200 dollars per month.

Q: how big is the domestic market and the surrounding market in Ethiopia?

A: Ethiopia's economic development is very healthy at present. It is close to the southern European countries and will be a very good economy later.

Secondly, Ethiopia joined the Confederation of Southeast African common market, which is basically similar to the European Union, covering 300 million people. The countries of the alliance have priority, tax exemption and other preferential measures for their export products.

Q: what is the current development of Ethiopia's manufacturing industry, especially footwear industry?

Answer: honestly, at present, the development of shoe industry in our country is like a newborn baby. It is just starting stage, but because of this, there is great potential for development. Because there is no pollution and abundant resources, investors have a broad stage.

Excerpt from speech

Enterprise failure is the survival of the fittest in the low end footwear industry.

Chairman of the international leather trade association, Zhang Shuhua, honorary president of China Leather Association

From the current point of view, despite the difficult export situation, the overall sales volume of footwear industry is still growing.

Especially domestic sales, it is gradually supporting some bright spots of the development of the whole industry.

And the phenomenon of enterprise failure, I think this is temporary and partial. After twenty or thirty years of development, our industry has entered a new stage of pformation and upgrading.

In the face of this new historical period, we must face the new market, that is, changes in the world economy. We must renew our ideas.

In this process, we should also notice that the competitiveness of our shoes and the competitiveness of low grade shoes are not as strong as before. So some low shoe enterprises have quietly moved out of China.

Our industrial structure should be adjusted, that is to say, our position is not to win by low grade and quantity. Our adjustment should be intermediate or high-grade, which will enable us to have a new position in export competition.

Chinese shoe enterprises face six pressures

Zhang Jie, vice president of China Light Industry Crafts Import and Export Chamber of Commerce

Since the 80s of last century, the development of the footwear industry in our country has been gradually moving towards the market and the world by undertaking the shift of the shoe industry abroad.

Up to now, we are already the largest export country of shoes industry. We are the largest country in shoes production, and we are the most important in the world market. But we are now big and not strong. Many of our enterprises are under six pressure: first, the pressure of RMB appreciation; second, the pressure of rising raw material prices; third, the rising labor cost and shortage of labor; fourth, the rise of energy prices and the shortage of energy; fifth, the continuous rise of trade protection; sixth, the reason why some bosses run away, and the pressure of increasing financing.

These six pressures are some of the pressures currently facing footwear enterprises, whether they are foreign trade, domestic sales or production.