Seeking Shoes Industry Upgrading Strategy Position Shift

In ancient wars, the camp was the foundation of war, but because of the need of strategy, the necessary strategic pfer often appeared.

For example, in October 10, 1934, the Central Committee of the Communist Party of China and the Red Army Headquarters quietly started from Ruijin, leading over 8.6 thousands of people to carry out strategic pfer, heading for Xiangxi, and embarking on a long journey of tragic and uncertain future. They wrote a heroic epic in human history with flesh and blood.

In a huge era, many ambitious enterprises are faced with the possibility of strategic adjustment and pfer: from the industry to the pformation of industries, the balance of the internal market or the market, the diversification and merger of enterprises, and even the internal organizational pformation of enterprises, the strategic pfer capability of enterprises is necessary.

In 2007, when the shoe industry in Jinjiang encountered difficulties such as difficult recruitment of workers, difficult purchase of land, fierce competition for homogeneous products and sharp increase in environmental pressure, entrepreneurs began to look for new growth points to break through these bottlenecks in the industry.

A group of Quanzhou enterprises began to implement strategic pfer, and gradually shifted the processing and manufacturing base to overseas.

Expanding manufacturing bases overseas and stepping up the international market.

Following the 2006 Jinjiang Guo Hui Shoes Co., Ltd. invested and set up factories in Vietnam, Feng an leather base construction in Vietnam has also started.

In addition, Quanzhou Baofeng shoe industry overseas construction plan is also underway. After investigation of Philippines, Vietnam and Indonesia, Baofeng leader expressed his intention to set up overseas plants in Indonesia.

Vietnam has become the preferred base for Cheng Quan enterprises to face the bottleneck of domestic development. Vietnam, a rapidly rising shoe industry, has naturally become the focus of attention of Jinjiang entrepreneurs.

Shoe companies - the pioneer troops in Vietnam are undoubtedly the forerunners on the road to Vietnam's market development.

A few years ago, when Jinjiang shoe companies also focused on expanding their production scale locally, Guo Hui shoes company began to invest in Vietnam and worked with local distributors to produce Kuwait's brand shoes.

According to the general manager of Guo Hui shoe industry Ding Guo Si, the company currently has four shoe making lines in Vietnam to carry out the production of sports shoes.

With the help of cheaper local labor force and preferential policies supported by local governments, the new production base has a certain cost advantage compared to the domestic shoe manufacturers at present.

The market of leather and shoe materials is vast. The shoe industry, which is developing rapidly in Vietnam, is mainly produced by low technology and low grade shoes.

The development of leather shoe material industry matched with the shoe making industry is lagging behind.

The demand for shoe materials in Vietnam is growing rapidly with the development of shoemaking industry.

Cai Qingsan, general manager of new Zhongyi shoes material, introduces that the development of Vietnam's market will be a great breakthrough for the development of shoe material enterprises.

Vietnam's footwear industry is mainly concentrated in Hanoi and Hu Zhiming. The corresponding shoe material supporting industry chain has not yet been established, and the shoe material market has broad prospects.

And Xu Huinong, general manager of Hesheng leather, also said that more and more leather enterprises will have great potential in the Vietnam market.

The shoe machine industry has brought new market to old customers, and Vietnam's shoe making enterprises are mainly Taiwanese funded enterprises.

Most of the Taiwanese funded enterprises invested in factories in Guangdong, Fujian and Zhejiang.

In recent years, the production costs of the footwear industry in the mainland have risen rapidly, and these enterprises have turned their attention to Vietnam, India and other places with lower production costs.

A large number of funds quickly became industrial scale after entering the local area.

And because of the production of low-grade shoes, many Vietnamese enterprises were buying second-hand shoe machines eliminated by China's inland shoe manufacturers.

Now many local enterprises have begun to upgrade the old machinery while expanding the scale of production.

According to Wu Jianjun, general manager of Hongan shoe machine, who has just returned from Vietnam, the shoe machine and hydraulic press produced by the company have begun to provide equipment renewal services for Vietnamese shoe manufacturers.

And many of the manufacturers in Vietnam are old customers of shoe factories. These old customers also drive the sales of products.

There are differences in the industry's immature culture. "Now Vietnam is like Jinjiang, where your shoe industry has just started for 90 years."

Ding Haiyang, general manager of Yu Guan shoes and clothing, said: "Vietnamese enterprises can attract foreign buyers at lower prices and faster export procedures, which is particularly evident in the low-end shoes market.

Most of our company's low price orders have been pferred to Vietnam in the past two years.

Although at present, emerging countries such as Vietnam's footwear industry are developing, with its low land and labor costs and local government's support policies, attracting more and more international funds and attention.

But domestic enterprises should also clearly see that the local industry is in the initial stage of development, and the various systems of industrial development are not perfect.

Guo Hui, general manager of Guo Hui shoes, who has experienced Vietnam's investment, said that the Vietnamese market was extensive, and the local government did not have enough supervision on the development of the industry, and the land ownership was chaotic, which led to many problems when investors bought land use rights.

The unique local life culture makes it impossible for workers to work overtime in a busy season like Jinjiang enterprises.

Local workers are generally reluctant to work overtime.

The labor law of Vietnam stipulates that serious factories insist that workers must be processed.

This brings inconvenience to enterprises during the busy season.

In addition, Indonesia and other Southeast Asian countries are reviving the footwear industry, the situation is very good.

According to the senior official of the textile and footwear industry, Indonesia's Ministry of industry recently revealed that the value of footwear exports in the country reached $1 billion 800 million in 2006, a 29% jump over the previous year's US $1 billion 400 million.

At present, Vietnam's footwear industry is undergoing a revival. According to statistics, there are about 350 shoe factories in Vietnam, with an annual investment of about 2 billion 240 million dollars and a production capacity of 1 billion 100 million pairs.

Experts explained that Chen Jian, Executive Deputy Secretary General of Fujian Footwear Association, said that Quanzhou enterprises should set up factories overseas to consider comprehensively whether they are conducive to reducing costs, whether they are conducive to radiation in other areas, whether the investment environment is stable, and whether the cost of labor is low or not.

He suggested that Quanzhou shoe enterprises offshore factories could take two ways: one is the joint operation of several large enterprises, and the other is to set up bases in the selected countries in the name of "Fujian creation" or "Quanzhou creation"; the other is "tailor-made", such as a shoe brand in Quanzhou, building an overseas production base with the name of the enterprise, and then by the Fujian Footwear Association, the small small and medium-sized enterprises will form an enterprise team to complete a series of supporting construction.

He said that Philippines and Vietnam also organized business representatives and sent business representatives to Fujian last year, hoping that enterprises could invest in factories in their country.

Countries in the Americas also have the initiative to recommend Honduras and Venezuela to go into production.

Because there are many Taiwanese funded enterprises in the local shoe industry, Taiwan businessmen have recommended Panama to expand the overseas market in Quanzhou shoe enterprises.

Engaged in shoemaking industry for 38 years, Cai Huixing, a shoemaking Engineer in Taiwan who once followed the development and pfer of shoemaking industry, believes that the shoe making industry has moved from the United States to Japan, Korea and then to China's Taiwan, Indonesia and Philippines, and finally to the mainland of China. This is the trend characteristic of labor-intensive industries.

He believes that India will be another area of shoemaking industry shift.

Of course, it does not mean that the areas where the labor force is large and the cost is low can become the place where the shoemaking industry can pfer. It also depends on the local customs, culture, laws, politics and the formation of industrial clusters.

Cai Huixing said that the industrial chains of the three major shoemaking bases in Guangdong, Quanzhou and Wenzhou are now relatively centralized and complete.

According to the insiders, the pressure of labor costs and lack of land resources has become the bottleneck of the domestic footwear industry. For export oriented enterprises, the current EU trade barriers against China's leather shoes and other overseas trade barriers have increased the cost of export pressure.