Will Taiwan'S Shoe Companies Continue To Shift In Dongguan?

According to western academic theories, there will be a global occurrence every 20 years.

Reporter: not long ago, some Taiwanese funded shoe enterprises had a personnel disturbance. What do you think?

Kong Fanxun: from these personal events, I think the environment is not a major factor, but more of a case.

In fact, the shoe manufacturers who are engaged in foundry are most reluctant to see personnel disturbances inside the factory.

Because the most stringent production and marketing delivery system is implemented by the foundries and the order customers.

If the delay is due to the delay in the construction period, this will inevitably have a direct impact on the sales of European and American customers, and the European and American customers will naturally pass the loss onto the factory.

Therefore, once the delivery period is tight, the factory will increase the logistics cost, such as changing shipping to air freight, and so on.

Reporter: is it possible to see the current situation of the shoe enterprises in the face of personnel disturbances?

Kong Fanxun: there are also some inevitable factors behind the case.

At present, the economic factors such as rising prices of the mainland have raised the cost of living of the workers at the grass-roots level.

For example, the price of pork at the beginning of the year is 10 yuan per catty, now it is 16 yuan *, and other living materials such as food, clothing, shelter and housing are all rising.

Therefore, workers' desire for higher wages is stronger.

But the price of the factory's shoes is still relatively fixed.

This situation makes the factory in a dilemma.

As we all know, Taiwan funded shoemaking enterprises have been pferred to the mainland for 20 years.

We have to admit that the footwear industry of Taiwan funded enterprises in Dongguan and other places is very similar to the shoe industry environment in Taiwan more than 20 years ago.

20 years ago, more than 1300 Taiwanese funded shoe enterprises were pferred to Dongguan and other places because of the appreciation of new Taiwan dollar, the increase of raw materials and labor costs.

In particular, labor costs, when employees in Taiwan's commercial market were higher than those in shoes, who would still work in the footwear industry? Similarly, workers in Dongguan today are also accelerating their shift from traditional industries such as shoe companies to business and other service industries.

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Taiwan funded enterprises will split fission

Reporter: since the shoe industry ecology in Dongguan and other places seems to be similar to that of Taiwan enterprises in the same year, will Taiwan's shoe enterprises in Dongguan shift?

Kong Fanxun: I personally don't think that Taiwan's shoe companies will be split.

First of all, it is related to the mainland's market and mature industries.

On the one hand, the pfer of shoes enterprises in Taiwan was due to high cost. On the other hand, its market was not enough to support the pformation of Taiwan shoe enterprises.

The mainland has a wide market for footwear.

As far as I know, Taiwan funded footwear enterprises in Dongguan and Foshan have changed their minds. From then on, European and American orders have been pformed into famous brands in China, such as Lining, Anta, XTEP and so on.

Why? Taiwan businesses do business with mainland brands, not only with stable orders, but also in Renminbi, and there will be no shrinkage in the order revenue caused by the depreciation of the US dollar.

In terms of industry matching, Dongguan has the most mature footwear industry chain in mainland China.

From shoe material, raw materials to shoe machine, from production to design, research and development, etc., there are the most convenient and low-cost matching.

If pferred to the mainland, Southeast Asia and other regions, it will be constrained by the industrial chain restrictions.

For example, not long ago, a Taiwanese shoe manufacturer set up a factory in Philippines and needed shoes lining after the product was produced.

But the whole Philippines did not produce, and finally had to be airlifted from Taiwan.

This has brought huge losses to enterprises.

Therefore, Taiwan funded footwear enterprises in Dongguan based on the domestic market will still upgrade in Dongguan.

And Taiwanese footwear factories like Yuyuan such as the world market will not be completely pferred.

They will only choose to divert orders.

For example, 20 thousand of Nike's 100 thousand double orders were pferred to Indonesia, and 30 thousand pairs were pferred to India.

This is related not only to the industrial chain, but also to the strategic layout of the international order giants.

Of course, Taiwan funded footwear companies engaged in low-end order business in Dongguan will shift to low-cost areas such as the mainland and Southeast Asia due to cost constraints, but high-end footwear will continue to upgrade in Dongguan.

Because high-end shoes still have high profit margins, for example, the same high-end shoes Italy sells for 100 dollars, and Dongguan produces only 80 dollars.

The cost of Italy is obviously higher than that of Dongguan, which is a competitive part of Dongguan in the high-end field.