Four Questions Of Footwear Industry In Huidong (Two)

In 2011, due to the external market downturn, especially the two dip of the world economy brought by the European debt crisis, it brought great impact to China's manufacturing industry, especially the big foreign trade province of Guangdong.

What is the future of export-oriented manufacturing industry?

As an industrial cluster, how to pform and upgrade in the shock? This is a question worthy of deep thinking.

Just after the new year, the reporter went deep into the shoe industry cluster interview in Huidong, hoping to show and reflect on the current problems faced by the export-oriented manufacturing industry through this specific case.

Most of the shoe factories below the scale of Huidong are closed family management, mainly in the form of family workshops, mainly based on OEM.

Like the famous Foxconn, they play the role of OEM.

The operation mode of "batting the world by chaos" is the mainstream mode of production at the beginning of development. It has played an indelible contribution to promoting the development of Huidong county industry. Now it is also widespread in Yu Huidong's thousands of shoe factories.

In the global economic ecological chain, the Huidong women's shoes industry is like a boat. The early opportunity to seize it has not been sustained. Even the owners who are the helmmakers can not predict where it will go.

Two ask enterprises: where are the leading enterprises?

Huidong is still playing the legend of creating wealth. Countless foreign entrepreneurs are running their own businesses in the intensive shoe factories. The Migrating Workers dream of becoming a boss one day.

Just after the Spring Festival, the factory next to the shoe factory in Leicester just opened its firecrackers, but the second day quietly went out of business.

Leicester, which owns three production lines, has been delayed due to difficulties in recruitment.

In Huidong, a company with a production line is an enterprise of above scale.

Many people in the industry recalled the glory of women's shoes industry in Huidong before and after 2006: when domestic and foreign demand was strong, orders could not be reached, and each factory worked until 2 a.m.

Nowadays, it is rare to see factory processing again. Many shoe factories have not been able to start up to now.

If we fail to compete with Wenzhou from Huidong's conservative character and miss the opportunity, then the conservative operation of technology is the main reason why Huidong is in a difficult position today and can lose two shoes.

Perhaps few people have really thought about why a large number of shoe factories can not undertake the important task of upgrading the industry.

Non direct customer

The Chinese have just passed the lunar new year, and have already felt the atmosphere of overseas market becoming tense again.

The continuous blizzard in Europe has made many business owners of thousands of miles away from Huidong lose their calculations. According to the past years, after the beginning of the year, shoe factories in Huidong have begun preparing for the summer sandals. They are busy producing thick boots for Europeans.

For those who choose to start after the Lantern Festival and gain additional orders, the shortage of manpower is even more difficult.

But fortunately, the production line of a quiet Spring Festival holiday finally broke the silence and began to turn.

"The employees in the factory start work ahead of time. How many pairs can you make?"

Wang sat in the reception room of Guangdong East (International) shoe material marketing center, telling reporters about the recent situation of shoe factories.

Wang is a trader in the huge market of hundreds of stores. The title of the card is "general manager".

However, the company's biggest boss is not him, but the general manager of the Far East Shoe Co., Ltd. Zou Qingyan and partners.

The Far East shoe industry, which produces 2 million 500 thousand pairs of shoes a year, is not the largest shoe manufacturer in Huidong, but it is enough to squeeze into the top ten.

In the eyes of people familiar with Zou Qingyan, this is a person who has ideas and has the courage to put his ideas into practice.

This is a sharp distinction between Huang Po and Jilong many shoe bosses.

Zou Qingyan's Far East shoe factory has achieved semi automated production, which can appropriately reduce dependence on labor.

Zou Qingyan hopes to further improve the automation level of shoe factories, so that "recruitment shortage" may not bother the Far East any more.

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For many factories, upgrading equipment requires huge investment and risks. They are unwilling to try it easily.

However, there is no free lunch in the world. Brand building and technology investment require money. This is also the focus of the biggest controversy between Huidong's manufacturing industry and the future of Guangdong and even China's economic reform.

In fact, many business owners are indirectly connected with Europe. Their factories produce women's shoes that supply Europe or the rest of the world, but never have dealings with businessmen in these countries.

As a result, they are not concerned about the news that Portugal's default swap quotas are going to be higher and Europe is in the process of a new round of policy games.

Many factors, such as rising labor costs and rising prices of raw materials, are plaguing them as if the moisture of the South "Hui Nan Tian" brings them.

Trading companies play a bridge role in international trade.

Just like many years ago, when manufacturing industry in Hongkong and Taiwan began to shift to Guangdong in the former part of the mainland, today, Huidong's industry still retains its distinctive characteristics of the time.

Taiwan businessmen still occupy the lifeblood of the industry -- terminal trading company.

"Huang Bu truly operates more than 20 enterprises in general trade."

Previously, Chen Sheng, a shoe factory in Huang Bu Town, said that Huidong shoe enterprises could not control their fate.

Chen Sheng Da, who founded Wanda Industrial Co., Ltd. in 2003, devoted money to the footwear trade. "Over the past 8 years, more than 20 million yuan has been invested, and there is still no achievement at all."

A few years ago, the Far East shoe industry set up a trading company in the United States, trying to break its brand "shepherd girl" into the US market.

This is a meaningful attempt for the shoe industry in Huidong.

Unfortunately, this attempt ended in failure.

"A lot of business is not what you want to do, but there is division of labor in the market.

Wang Qi regrets that Wenzhou people seem to be more suited to the jungle rule of international trade.

"In order to solve the problem of trading companies' arrears, they began to change their ways last year, and trade companies went to buy materials, factories to process, and only to collect processing fees."

Wang said that he would rather do less and earn a pair of money.

Although he said that such a practice has become the industry consensus, however, from the current feedback information of enterprises, many enterprises are still making their own decisions.

Necrotic ecological chain

Chen Sheng Da has counted factory equipment and said goodbye to the Wanda shoe factory that accompanied him for 24 years.

Since he started making shoes at the age of 16, he has been in the industry for 27 years, almost at the same time as the footwear industry in Huidong.

The curtain call of Wanda shoe factory seems to indicate that the traditional shoe making industry that Huidong is living on has been declining.

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In 2010, a lawsuit by Chen Sheng Da also attracted the attention of the industry.

In May of this year, Chen Sheng Da, together with 3 other Guangdong women's shoes owners, sued the US federal court for a lawsuit against a US footwear importer, RAY CAI (Chinese name Cai Zhiping, Chinese American, native Guangdong Meizhou, former Shenzhen Wuzhou circuit group senior management), and won the lawsuit in arrears, and successfully prevented the defendant who owed $3 million from filing for bankruptcy.

Since July 2006, he has travelled to California for several times, asking CITICROSS to repay the money orally, but he has been rejected by the other side.

In foreign countries, Chen Sheng introduced that they had gone through such difficulties as fighting alone, language barrier, ignorance of law and so on.

Li Naizhong, the general manager of Huidong county's Yedan Shan shoe company, who was sued together for the $1 million payment, disbanded himself in a 700 person factory in Huang Bu Town, Huidong county.

"A case is won, and a news conference will be held immediately to tell the people around the world that we should not take our back."

Chen Shengda said that the $500 thousand owed was not enough for the Wanda shoe factory to close, but it was enough to be the trigger for the incident.

Like the pain of China's manufacturing industry, the reason for the closure of Wanda shoe factory is higher than the price of raw materials and RMB.

After the blind production led to oversupply, the shoe factory profits were directly depressed.

Just a few days ago, Chen Sheng Da displayed some of the best pair of women's shoes he had collected from England on micro-blog.

Chen Shengda wrote: "although the shoe factory did not do it, after all, it has been in operation for more than 20 years, and has deep feelings, and love my shoe treasure will always be treasured."

In real life, everyone else calls Chen Sheng Da proud of the three brothers, which is his micro-blog name.

On micro-blog, he introduced himself like this: general manager of Wanda Industrial (Shenzhen) Co., Ltd., French partner of the wine field, and Chen Sheng Da, deputy director general of China (Shenzhen) wine importer Association, enjoying traveling photography, wine tasting, and meddling.

However, Chen Sheng's heart is still unable to put Huidong's shoe industry in touch, and from time to time he inquired about the situation through colleagues from friends and Wanda industries.

On the day of the interview, Chen Sheng Da bandied the banquet of wine merchant friends who came to Shenzhen.

He wrote in micro-blog: "for the development of the footwear industry, there is no way to eat with you. I am now returning to Huidong to receive interviews in the province, and come back in the morning."

"The footwear industry in Huidong has no system from the beginning.

In a lot of shoe factories in Huidong County, a fax.

The losses suffered by Huidong enterprises are not counted.

Chen Shengda once estimated that the business owners of Huang Bu Town would lose more than 10 million yuan a year.

Chen Shengda's lesson was that he overbelieved the credibility of American companies, and did not require the other party to provide bank letters of credit. Instead, he used cash payment after arrival.

This is also a common problem in the industry. "A car shoe, a piece of paper, no official seal, is the salesman sign a name.

You have to ask me the contract, I let others do it.

Because of the small scale of production, many shoe factory owners in Huidong are unwilling to invest in the research and development of products, and have no independent products. Once a product is found to be more popular in the market, they will immediately follow suit.

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In fact, the shoe industry in Huidong is hiding a deeper crisis.

Chen Sheng Da gave an example: "your factory owes 2 million of this year, 500 thousand of its losses, and it owes 2 million 500 thousand to people, and one year and 500 thousand.

Chen Sheng Da estimates that such enterprises account for more than 60% of the footwear industry in Huidong.

This number can not be confirmed.

However, lending is becoming more selective among major banks, and tends to extend high long-term loans to companies with government backgrounds.

Many small businesses are on the brink of bankruptcy, and some companies are forced to turn to underground banks. The interest rate is likely to be as high as 70% to 80%.

The way of doing business in Huidong likes to "count on credit". It is undoubtedly another time bomb for Huidong's shoe industry.

Before the new year's Eve, a friend of the shoe factory told Chen Sheng Da that a lot of factory owners walked away and will not open next year.

"On these two days, I went to the factory of Guangming Buji in Shenzhen, and the wages of others were not high.

Huidong is also limited by regional restrictions and environmental support. "

Chen Sheng said frankly that if the government does not increase the "horsepower", the shoe industry in Huidong will probably die.

In the two sessions of 2010, Chen Shengda said, "the vitality of Huidong locals in the footwear industry is only 2-3 years, and the whole shoe industry in Huidong has only 8-10 years of vitality".

He said that the reality is gradually corroborate his view.

"Xie Yi has worked with others to set up a factory that specializes in" jumping shoes ". The business is very good and their business is good. You can imagine how bad the whole industry is.

How many enterprises that collect the shoes of jumping building?

Jumping shoes, that is, some businessmen buy shoes for shoes that are not well managed at below cost price.

In the official view, the footwear industry in Huidong is all right and is moving towards an ideal state.

Entering the town of Jilong, there are thousands of shoe material shops on the stripped people's road and its branches. The shoe market, which integrates shoe material wholesale and retail, storage and pportation, and shoe machine exhibition, stretches for several kilometers.

The busy road, the crowded workers, the excitement and panic may be the realistic portrayal of this dream land.

"Here is the grass-roots economy. There are two kinds of shoes factories here: first, wash feet and go ashore, and second of them have no possibility of third kinds of pformation.

Like other places, Taiwan and Hongkong invest in it, clap your ass and go, you can't run away here. "

Wang Yun said that more and more foreigners Lai Huidong started their business, and more and more locals emigrated overseas.