China'S Foundry Shoe Enterprises Are Turning To Their Own Brand Development.

Today, with the increasing labor costs, the low value-added foundry mode is being tested. China's foundry is at the crossroads of destiny.

It is disturbing that even if the international financial crisis caused a large number of OEM enterprises to drop in profits, drop in business or even close down, they did not arouse the deep introspection of the OEM enterprises themselves.

When the international financial crisis was most serious, many OEM enterprises tried to turn to build their own brands, but in the end they had nothing to do. Until now, the examples of successful pformation have not yet appeared.

China's headquarters announced that it would terminate some contracts in Chinese factories in October this year, and the news spread like wildfire, almost like a landmark event.

Representative factory, to Chinese, is a love and hate name.

It contains the prosperity of economic prosperity and employment, and it also contains the bitterness and grievances of Chinese labor force and Chinese entrepreneurs.

Today, with the increasing labor costs, China's foundry is at the crossroads of destiny.

Peacock Flies Southeast

The Adidas factory, which migrated like migratory birds, has been flying away in China for several years.

Although Adidas has repeatedly denied that the withdrawal of Chinese factories has nothing to do with wage increases and inventories, industry analysts say that Adidas's withdrawal from China is largely due to the pressure of rising labor costs in China.

Take the factory in Tongling Dong Long, in 2007 and 2008, the number of employees was up to more than 2000, with a monthly salary of 1100 yuan per person.

In recent years, the cost of labor has increased year by year. At present, the per capita wage has reached 2000 yuan per month, and the cost of increase has obviously reduced Adidas profits.

From Europe, Eurasia to Japan, and then to Korea and Taiwan, China will now fly away from mainland China. If we find the logic of "labor cost" behind this path, it is not hard to imagine that Adidas's next "Habitat" will probably be Southeast Asian countries.

Quite skillfully, just in those days, Zhou Xingang, a worker in Adidas factory in Kampuchea, was exploded for only 15 dollars, which indirectly proved the above logic.

It is understood that at present, Vietnam,

The cost of employment in Kampuchea and other countries is only about 1/3 of China.

Before the withdrawal of Adidas and Nike, Clarks, K-Swiss, Bakers and other international footwear giants have also set up production lines in Vietnam and Indonesia.

This is a clear cost account: according to the statistics of the Japan Council for trade promotion, compared with China, Vietnam's production cost is 15% to 30% lower than that of China. Compared with the mainland of China, the average monthly salary of Vietnamese workers in factories last year was about 136 dollars, while that of Indonesia was about 129 dollars, while the average monthly salary of Chinese workers has reached 413 dollars, which is more than three times that of Vietnam and Indonesia. This is indeed very sensitive to labor-intensive enterprises.

Once a feast

Nowadays, Gucci, apple, Nike, Adidas and even some international brand guitars, from electronic products to clothing, from clothing to daily commodities, many international brand products are almost entirely produced in China. With the advantage of labor cost, China has become a "world factory" in 30 years of short and short term reform and opening up.

If we open the map of China's foundries, it is easy to find that the OEM of electronic products is concentrated in the Shenzhen area, which can undertake the OEM and assembly of high-tech electronic products such as mobile phones, computers, Apple machines, etc.

Among them, Shenzhen's Foxconn is the most famous. Even BYD, which is built on mobile phone batteries, is now under the spotlight of its car business. Until now, it has been exposed by Apple as a supplier. BYD's mobile phone business has been placed in the spotlight again, and it is also an apple OEM adapter. The foundry of machine parts processing is concentrated in the coastal area of Zhejiang, which can produce high precision hardware parts. Silk and textile agents are concentrated in Suzhou. Furniture foundry is concentrated in several areas of Guangdong coastal areas, such as Dongguan and Huizhou, there are many famous furniture factories, and some imported furniture are actually foundry on the other side.

The foundry is characterized by cheap labor, no core technology, and little profit.

The small profit of the factory has been recognized by the industry as a whole.

A representative factory employee revealed that he often intertwined for whether to take the order or not. After that, the profits might be hard to protect; if not, he would be robbed by other competitors.

However, it is undeniable that some foundries have accumulated experience and certain skills by subcontracting to foreign brands, and developed Shanzhai products on this basis.

The most successful example is Shenzhen's cottage mobile phones and Shanzhai laptops.

The "world factory" was first praised by Britain in the nineteenth Century. In the era of industrial production in nineteenth Century, the country with the strongest industrial production capacity was the most powerful country at that time.

But for China in the twenty-first Century, "world factory" was not a commendatory word.

Today's world economy is no longer the era of industry as the king. "World factory" has evolved into a low value-added pronoun.

How to pform the foundry?

Today, the low value-added OEM mode is being tested.

Even though the international financial crisis has caused a large number of OEM enterprises to drop in profits, drop in business or even close down, they did not arouse the deep introspection of OEM enterprises themselves.

When the international financial crisis was most serious, many OEM enterprises tried to turn to build their own brands, but in the end they had nothing to do. Until now, the examples of successful pformation have not yet appeared.

In the list of Apple's 156 suppliers, there is an A share listed company Angel clean technology.

In addition to business income, Apple has undoubtedly brought aura and industry recognition to angtech.

But the fact that the low added value of China's foundries is also a problem that the whole industry has to face.

Angie technology is a typical manufacturing enterprise in China. It has changed from simple map processing to research and development in the next generation of new products, and can provide solutions for customers' demands.

This type of manufacturing enterprises can represent the future of China's economy better than enterprises that rely entirely on labor and price.

Director of the Institute of Population Sciences, Chinese Academy of Sciences

In an interview with the media, said: "when the labor force is no longer unlimited supply, capital returns begin to diminishing, and if we do not turn to TFP growth, there will be no sustainability in development."

The revelation that demographic dividend tends to disappear is the time for China's economic growth mode to change.

The current situation is undoubtedly a heavy blow to these foundries.

For example, in Adidas's foundries, Tongling Dong Long company introduced advanced equipment to ensure its equipment and technology to keep up with Adidas's needs, which cost about 10000000 yuan. After termination of cooperation, the equipment can not be used for other garment processing, but can only be sold at a reduced price.

In addition, due to 70% of the company's capacity to serve Adidas, the termination of cooperation will make the company face "turn around" pains.

The experts of Anhui clothing chamber of Commerce believe that the upgrading of garment industry should move from passivity to self-consciousness.

The old saying goes: "there is no need for anxiety.

Enterprises mainly seek the balance between short-term interests and long-term interests of enterprises, and must be prepared before changes in the future.

In order to cope with the recession of the international market in the long run, the OEM factory has come to the domestic market.