Guangdong Shoe Enterprises Face New Challenges

In the first two months, Dongguan's footwear exports ranked the top of all kinds of products, and the next four months are the key period for testing enterprises.

"After May 1, the market suddenly felt like a cold, and the consumption was brakes. Now it is becoming more and more difficult to make shoes." At the twenty-second Guangzhou international footwear, leather and industrial equipment exhibition, which was closed recently, Han Baosheng, chairman of Guangdong English limited company, talked about the shoe industry in Guangzhou. Insiders pointed out that the next four months will be a critical moment for Guangdong shoe enterprises. If they can survive successfully, it means that everyone is willing to continue to stick to it, otherwise there may be a new round of "collapse tide" or "run away tide".

Climate anomalies cause more stress.

Guangdong footwear industry The collapse of the business in 2007 is still fresh in the minds of many people in the industry. Information from the footwear association of Asia shows that in the first three quarters of 2007, there were about 1000 shoe factories and related enterprises in Guangdong, which were closed down or closed up by the courts due to rising costs, appreciation of the renminbi, policy adjustment and other factors. Only 200 of the more than 1000 shoemaking enterprises in Dongguan went bankrupt in -300.

Although the footwear industry has been gradually recovering since 2009, Guangdong shoe enterprises have been in a difficult position since last year. As the base of Guangdong footwear industry, customs data show that the export volume of footwear in Dongguan increased by 15.9% in the 1-10 months of last year. In the 1-2 months of this year, the export volume of footwear in Dongguan increased by 10.6%, ranking the first in the decline of major export products.

"Our company is mainly export oriented, and sales have dropped by 30%-40% this year." Li Jiankang, director of the Limited by Share Ltd, told the new express that apart from the continued debt crisis and the appreciation of the renminbi, the global climate anomaly is also one of the reasons for hinder the growth of shoe exports. "Because the weather is abnormal, the cold weather is not cold, the season does not turn to the season, causing retailers to overstock a lot of inventory, do not dare to place orders."

In addition to the reduction of orders, the cost increase is also a problem that Guangdong shoe companies have to consider. He Guiling, President of Guangdong Footwear Manufacturers Association, told the new express reporter that more than 70% of Guangdong shoe enterprises were organizing production and sales in the form of processing trade. With the increase of land resources, labor, raw materials, energy, transportation and financial costs, the profit of small and medium enterprises in the footwear industry has been decreasing.

"Rising labor costs are the biggest headache." Han Baosheng said, on the one hand, the footwear industry as a labor-intensive industry, even if achieved a higher automation, it is also difficult to get rid of dependence on manual production; on the other hand, Guangdong shoe enterprises, like other industries, are faced with the problem of recruitment difficulties. Now, 3000 yuan or so is difficult to attract workers into the factory, but it is difficult for these enterprises to bear it.

7-9 months may be Shui Ling

The footwear industry in Dongguan has been reported to be "closed down" for many times. Meanwhile, the phenomenon of industrial transfer of footwear industry is becoming more and more obvious.

He Guiling said that in order to reduce the cost pressure, some enterprises are transferring grads, and they will soon turn to the central and western regions with better labour force and cheaper government support, or Vietnam, India and other countries. In addition, some of the enterprises' orders have shifted from relying on external parts to internal ones, and have been OEM for BELLE, AOKANG and other domestic shoe enterprises.

In addition, exhibitors attending the Guangzhou international shoe exhibition said that the price of raw materials in China is soaring, and the price of raw materials abroad is cheaper. For example, the price of imported raw materials from Brazil and the United States is 40% cheaper than domestic prices, and the cost of labor in Southeast Asian countries is relatively low, thus attracting a large number of manufacturers to migrate factories.

Li Jiankang believes that the next four months will be a test of confidence in Guangdong shoe enterprises. "Generally speaking, the order volume of shoes in the second half of the year will be greater than that of the first half, but the previous 7-9 months will be the off-season for the footwear industry. If in the meantime, no large shoe enterprises fail or transfer, it means that the owners are still confident of the market in the coming year. On the contrary, it means that the real collapse will follow. However, He Guiling added that although there were some enterprises shutting down and shutting down production, the structure of China's export products had great complementarity with the mainstream industrial structure of developed countries. The key lies in the competitiveness of products, the vitality of independent innovation, and the driving force of famous brand strategy.

Dongguan shoe exhibition is shrinking

A professional exhibition can best reflect the prosperity of its industry. Under the background that the industry is hard to regain its brilliance, Hongkong Ya style exhibition company has recently announced that the Dongguan International Shoe Fair will be changed from the original spring and autumn two seasons to "one year".

Although the elegant exhibition company said that the major adjustment is to integrate and concentrate resources, there are also insiders who believe that the market pressure of the shoe industry is behind the shrinking scale. "In fact, it is very difficult for enterprises to get new orders at the exhibition. Therefore, we will selectively participate in exhibitions, such as Canton Fair, which are more focused on foreign trade fairs. Li Jiankang said so.