Hunan'S OEM Shoe Manufacturers' Development Paradox

It is affected by the European debt crisis, the world economic downturn, the low international demand and the slowdown in international trade.

This year, the export prospects are not optimistic.

Economy, we will select four samples of Hunan export through the Hunan export series survey, explore problems and opportunities, and see Hunan's future export pattern.

The Hunan foundry shoe company that brought the dream into Hunan Province is now in a collective confusion. Should it continue to move to Southeast Asia?

What makes this group of shoemaking companies is that with the decline of labor cost advantage in the mainland, Adidas, Nike and other world brands will take orders from South China to South East Asia.

Li Peng, secretary-general of the footwear association of Asia, pointed out that "under such circumstances, if the factories still want to rely on orders such as Adidas and Nike, they must go to Southeast Asia together."

After many drifting foundry shoes enterprises, like migratory birds, once again embarked on a drifting fork.

In particular, those who moved to Hunan in order to avoid artificial rise and other factors are facing two wars: the competition between the coastal and other provinces in the mainland, and the coveted shoe manufacturers in Southeast Asia.

Status quo

Understaffed enterprises dare not take orders.

At noon on August 19th, Hengyang's Baisha Chau Industrial Park posted many recruitment news at the gate of many enterprises.

Hunan

Entering the recruitment season.

In the first 7 months of this year, the export volume of Nanyang footwear industry in Leiyang decreased by about 20% compared with the same period last year, but it is still as short as last year, and now it is short of 200 people.

In the southern part of Yizhang, Chenzhou, the order of the shoe industry in November was placed in November. "According to the size of the factory, the design of the plant, the equipment and the quantity of the order, it can also digest the 400 people."

Liu Xueliang, director of the management division of the company, told reporters.

"When I first came to Hunan, it was easy to recruit workers, and the labor cost was low. Now it is harder to recruit workers, and the base salary has increased a lot."

This is the recent news that journalists visit Hengyang foundry shoe enterprises.

Labor costs account for more than half of the production cost of foundry shoe manufacturers. Recruitment plus labor cost advantage is the core driving force to attract coastal labor-intensive enterprises to move inland.

In the past 5 years or so, the foundry shoemaking enterprises moved to Hunan have been laid out in Hengyang, Yongzhou, Yueyang, Chenzhou, Shaoyang and Loudi.

Hengyang, which has obvious advantages in labor resources, has attracted Nanyang footwear industry, Ju Wang shoe industry, Baosheng shoe industry, sun shoes industry, and Rongcheng shoes industry.

What is unexpected is that with the relocation of Coastal Labor-intensive Enterprises in recent years, Hunan's foundry shoe enterprises have lacked people's "disease".

According to statistics of the Baisha Chau Industrial Park Management Committee, as of July, 15 enterprises in the 68 enterprises that had already put into operation were "important".

In addition, Shuangfeng's footwear industry is 1000 missing, Shuangfeng's Rongcheng shoe industry is short of 90 people, and Yongzhou's Xiang Wei shoe industry is short of 300 people.

The shortage of labor has led some enterprises to dare to take orders.

"We are streamlined operations. Once we can't get a job, the impact will be huge."

Huang Shaozhong, director of Leiyang Baosheng shoe industry Co., Ltd., is very experienced.

Huang Yihong, the Commissioner of the executive department of the giant shoe industry, said that, if more than one single, workers could not deliver on time, either out of freight or delay.

In order to recruit people, the companies have reduced the threshold.

"We have relaxed the requirements for recruiters."

Shuangfeng Rongcheng shoe industry Teng Xie Li introduced, "previously stipulated 16-45 years old, now relaxes to 16-55 years old; before long as the female worker, now the male also wants."

Long Liyuan, head of the human resources department of Ju Wang shoes industry, takes three pronged approaches. If the reward fee is recommended, the employee will give cash rewards to each of the recruits or proficient, and send people to various related towns to issue posters, leaflets, and send recruitment information with mobile phones.

Try to avoid homogenization competition.

"This year the situation may be worse than the situation in 2008.

In Europe and America, especially the old customers in Europe, there is basically no order this year.

Wang Ying, Secretary General of China Footwear Association of Light Industry Crafts Import and Export Association, said.

Under the severe situation, in order to avoid homogenization competition, the brands and grades of OEM shoes are different.

Hengyang Rong Yang footwear industry 90% orders from Adidas, Shuangfeng Xing ang shoes industry, Qiyang Kasen shoe main foundry Nike brand, Leiyang Baosheng shoe industry is mainly for high-end brands such as KEEN, FitFlop, Leiyang Nanyang footwear foundry UGG, Teva and other high-end brands, "compared with Adidas and Nike brands in our market, our OEM brand is in the rising period, growth is very slow."

Nanyang footwear manager Xie Shuguang said.

It is understood that due to different positioning, foundry low-end shoes, some of the Hunan enterprises feel good.

Zhan Zhihua, director of Hunan Caixing sporting goods Co., Ltd., said, "our company mainly receives low-end orders from abroad. This year's orders can be made. The current average profit is about 4-5 yuan per pair of gross profit. If it is more high-end, the profit will be slightly higher.

In addition, the domestic well-known brand's foundry business has also become the new competition point.

Qiyang Kasen shoes industry also processed Anta brand and Shuangfeng Rongcheng shoes industry for 361 degrees, and Hunan three Dai shoes industry also did a little bit of Lining products processing.

Chen Jingyi, the responsible person of Xiang Wei footwear industry, said that the next step is to prepare a domestic brand list. "At present, we are talking about cooperation with XTEP."

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Challenge

PK Coast: staff management is more difficult and cost is more serious.

"Compared with Southeast Asia, our mainland does not have many advantages. Now some international brands do not pfer orders, because Southeast Asia can not undertake such a large capacity."

Wang Ying's words stimulate the nerves of moving shoes.

The shoe companies in the field of relocation have also been caught up in collective thinking.

Ju Wang shoe Huang Huang Hong clearly remembers, "the boss came here to build factories, is very prudent, mainly valued near Dongguan, as well as high-speed rail, labor cost advantages."

But now, apart from labor costs and other soft advantages are being diluted, the difficulty of management has also become a new situation for the shoe companies.

According to the press survey, more than 80% of the employees in the shoe factories are local employees.

"Now employees are local people, with relatively low cultural level, slow movements and difficult management."

Huang Shaozhong also counted an account, "the same time, the same number of people, now the team than the Dongguan team processing products about 30% less."

Teng Jianqing, director of Hengyang De Yang Shoes Co., Ltd., said, "the coastal areas are generally migrant workers. If they do not go to work, they will have pressure to survive. When they work at home, they will not feel this way. Therefore, we changed the high pressure management of this frontier sea in the 90s, and changed it into nanny management, so as to stabilize people first."

Xie Shuguang also clearly felt the increase of costs. "Wages are rising fast, and now they are two times the time when they moved. Besides, there are not many ready-made factories in the mainland, which require us to buy land to build, and the cost is increased. In addition, compared with the coastal areas, the cost of material flow has increased relative to the supporting industries.

However, the shoe companies who moved to Hunan generally have confidence in the future. "Moving inland to Hunan has entered a stable growth period. We are now preparing to start a new factory in Chenzhou Guiyang."

Liu Xueliang said.

PK Southeast Asia: differentiation and high-end or a way out

Unlike other manufacturing industries, the cost and profit pparency of foundry enterprises is relatively high. Once the cost is high, there will be the idea of migration.

Staying in the mainland or withdrawing to Southeast Asia has become a choice for many shoe companies.

In terms of labor costs, Southeast Asia's advantages are highlighted.

Liu Xueliang said, "our group has 3 factories in Bangladesh and Vietnam, mainly in terms of cheap manpower. Hunan now has three times the salaries of Bangladesh and two times of Vietnam."

Teng Jianqing disclosed that at present, there are also companies in Vietnam, Kampuchea and Indonesia. According to the company's financial statements, the profits of Southeast Asian companies are higher than those of mainland China.

"The overall productivity of workers in Southeast Asia is not as good as that of Chinese workers, but domestic wages are rising too fast. If wages are low, these international brands are reluctant to pfer orders, because the cost of pferring them is also very high."

Wang Ying said.

As for the short board of Southeast Asian countries, production efficiency is the most important factor for the shoe manufacturers.

"To be honest, the workers in the Southeast Asian region are simple and can't turn their heads."

Teng Jianqing said.

In the short term, some international brands will not withdraw all orders from China, because the industry chain of domestic processing shoes is very perfect, and the industry chain like Vietnam and Indonesia is relatively poor. In addition, China's current advantage is that the workers are hardworking and hard labor and relatively abundant human resources, while some Southeast Asian countries are relatively inefficient because of the influence of regional culture. For example, Indonesia has to worship four times a day. The time of pilgrimage is lost, and the work on the hands of Hengyang is lost.

"China now has such a large capacity and occupies a large share of the international market, so it is impossible to turn it around at once. What needs to be said is that the higher the technology content, or the higher the brand content, the less likely the pfer will be.

It's still a relatively low order.

At present, shoe enterprises have formed a pattern of cascade distribution along the coast, inland and Southeast Asia.

For example, Rongcheng group will keep the high-end orders.

Now, there are two companies in Guangzhou, such as golf shoes and mountaineering shoes. The middle and high-end shoe orders are in the mainland of China, while the slightly simpler orders have shifted to Southeast Asia.

Wang Ying also pointed out that although the low-level orders gradually flow to Southeast Asia, the middle and high-end orders will continue to be pferred to the mainland of China.

Differentiation and high-end are the way out for the current shoe manufacturers.

Background

According to the introduction, in the 1-7 month of this year, the import and export volume of processing trade in Hunan amounted to US $2 billion 540 million, and the contribution rates were respectively South Locomotive Plant, blue science and technology, Hengyang Sheng Tian, Guo Da nonferrous metals, Sany and so on.

At present, the contribution rate of OEM shoemaking enterprises is not very large, but it can be regarded as a new growth point of Hunan's processing trade.

In the 1-7 months of this year, the number of import and export trade of Xiang Wei footwear in Yongzhou was 40 million USD, the import and export volume of Nanyang footwear industry in Leiyang was 19 million 900 thousand dollars, and the import and export volume of Leiyang giant shoe industry was 13 million US dollars.