Analysis Of The Development Of The New Era Of Shoe Making Industry In China

Export led rapid economic growth has obscured the weakness of China's economy, that is, urbanization is lagging behind.

Of large number

Products are continuously exported to the global market, but in fact, they have made use of existing services such as foreign trade, logistics and finance. That is to say, overseas cities that have been made available have made Chinese made sea.

On the way down, China, as a world factory, is very successful in exporting products to the world market through world cities.

Shocks reveal weaknesses that are concealed under achievements.

In 2008, the global financial crisis spread to China, and the export growth of 20%-30% in the past year suddenly dropped to more than 20% negative growth.

The engine of China's economic growth led by the east coast suddenly stalled.

In October of that year, I turned around in some industrial areas along the coast, and saw that the crowds of commuters were still surging, but the situation of large orders declined.

At the end of the year, a survey released by the Ministry of Agriculture said that 20 million migrant workers had returned home for the past few years since 1962.

The situation is of course grim.

It should be noted that China's exports in the most prosperous year are almost 40% of GNP.

China's export growth rate has dropped by 50 percentage points in the external and external shocks.

This forced a new trend: when the huge export capacity of the industry encountered weak external demand, some export-oriented manufacturers took the lead in "pformation", hoping to get rid of the difficulties by opening up the domestic demand market.

From the point of view of rationality, it is feasible to turn inward, because the weakening of external demand has obviously changed the relative price of Chinese products in the domestic and foreign markets, and the "invisible hand" will eventually lead the manufacturers to the direction of the domestic market.

Although the absolute level of purchasing power is high or low, these years

The expansion is also not small, plus the appreciation of the RMB's real exchange rate against the US dollar can not be stopped. The wind will help the fire and the "made in China" part should be pferred.

It was the trip to Wenzhou in October 2008 that made it easy for the author to understand that China made the pition.

The reason for that visit was that Nobel, who was the winner of the 2004 Nobel prize in economics in Wenzhou, asked him to guide the industry in Wenzhou about the confusion of the global crisis.

Somehow, the organizers also ordered me to accompany.

I have just seen several factories in Dongguan, and I am very glad to take this opportunity to see Wenzhou again.

So I arrived first two days before the forum, and invited local friends to arrange a few Wenzhou manufacturing enterprises.

Turn around and turn out.

What impressed me most was that

President Qian Jinbo gave me the lesson in his office.

I remember just sitting down, the money always reported a number: sales this year fell by 15%, but never before.

I asked, "what is the industry like?" he said that it would be more vicious, for fear of 30%.

Is it also because exports shrink? Yes.

How come? Wenzhou is not as dependent on exports as Dongguan is.

After hearing my question, Jin Bo decided to say more about it from scratch.

The shoe industry in Wenzhou was originally introverted, and began to export in large scale about six or seven years ago.

At that time, large international companies took large orders to see which company, all production lines were required, the condition was for external demand OEM production.

At that time, the market competition of domestic shoes was fierce, the price was ruthless, and the huge marketing network was managed across regions.

In contrast, the number of export orders is huge, and credit is good, especially pactions are simple. Signing contracts and sending facsimile can do business.

Despite the fact that international orders are hard pressed, gross margins are low, but the volume of goods is large and there is little trouble.

Weighing the advantages and disadvantages, a large number of Wenzhou shoemaking enterprises turn out to be extroverted.

The traditional Wenzhou business model, that is, "market and factory", has also been pformed into "pick up industry".

It is no longer necessary for the boss to work so hard, especially without having to bother about the cascading troubles on the domestic commercial roads.

Red dragonfly is an alternative.

In 2003, an international chain giant company ordered the red dragonfly to take orders.

Qian Jinbo was able to understand the advantages and disadvantages of the order pattern in negotiations.

The farmer's disciple at Nanxi River decided to create his own brand, so he saw the price of "comfort and OEM".

He identified red dragonflies as the 1000 core self owned stores and 3000 franchised stores in the whole country.

In particular, seeing that many manufacturers in the industry follow suit, he not only declined the oversized orders, but also pferred the OEM production that had already taken up 30% of the company's output to marketing through his own channels.

This is why the red dragonfly was hit in 2008, and the injury level was lower than the average level of the industry.

"At any rate, we can know the market trend sensitively through our sales network, and we can adjust it in time."

The order industry is different. Once the demand in the international market shrinks, there will be no order. "Just like the electric light suddenly goes off, the house will soon be dark, and no one can touch the door."

Can't we just go back to business? It's nothing more than going back to business.

However, Qian is not optimistic about this.

"From the inside to outside, it is difficult to change easily. This is easy to change and difficult to achieve."

Even worse, "at that time, the average age of our shoemaking owners was 30 years old and 40 years old. Now more than 40 years old and more than 50 years old, they are not working hard."

Yes, Wenzhou industry.

The same is true - it was originally a domestic demand.

Button buttons, shoes decorations, these famous Wenzhou small commodities, we can not think of what is not directed at domestic consumers.

The ability of Wenzhou people is to do the market, and the one hundred thousand distributors to fight the world, and then contract the commercial counters, and then launch the distribution system across the Shenzhou City, and finally bring out the world-famous Wenzhou manufacturing industry.

The trajectory of history is very clear, leaving the ability to develop the domestic market, Wenzhou people's dream of starting a business - "bosses in the daytime, sleeping at the floor at night" - is afraid that they will not be completed.

In the 90s of last century, especially after China's accession to the WTO, Wenzhou's goods went further into the market.

The local companies are learning by doing, making products better and better and achieving acceptable standards in the international market.

Another important macro environmental factor is that China actively depreciate the exchange rate of RMB against the US dollar in 1994. The cost advantage of domestic industry is brought into full play, and it is mixed with the international market, and "made in China" is more open to the world market.

In the middle of the pformation, the manufacturing industry of the Yangtze River Delta and the Pearl River Delta generally took place in a "flow" pformation.

The original "business with workers" gradually evolved into a highly professional "order manufacturing".

Understand that the industry is by no means creative, design, financing, distribution, logistics and after sales service.

Which link is indispensable, but it is not necessary to "make in China".

Many of those links have been dumped abroad and completed by the "issuing" multinational companies.

In the process of converting China into a world factory, or more accurately describing it as the workshop of the world,

This is the summary of the previous column. China made use of the world's commercial and service industries, borrowed the world's cities, and then strides toward the world market.

This is also after 2009, although slogans such as "changing the mode of economic development", "expanding domestic demand" and "stimulating consumption" have been warming up, but in the end, China's economy still relies heavily on government led high investment to resist the impact of global crisis on China's growth.

To put it plainly, in real terms, the big horse that can replace the external demand is investment rather than consumption driven domestic demand.

Qian Jinbo taught me to choose a new angle to see the impact of the global financial crisis on China.

To a certain extent, "

"Made in China", we must turn to the domestic demand market, and not rely on the springboard of domestic commerce and services.

Reflecting the spatial layout, this springboard is a city.

The problem is that many years of prosperity of the "world factory" did not prepare a domestic city for China to digest the achievements of advanced industrialization.

As a whole, China's urbanization pony can't pull the cart of industrialization.

This is a barrier for economic pformation.