Guangdong Shoe Enterprises Move Westward

Last week, in Sichuan, Guangzhou, to undertake the Guangdong shoe pfer symposium, the vice governor of Sichuan said that Sichuan has built nearly 10 shoemaking parks to undertake the pfer of Guangdong shoes industry.

Some Guangdong shoemaking enterprises have expressed concern about the increase in logistics costs, difficulties in personnel pfer and prolonged pportation time, which will lead to reduced orders.

In this regard, some shoe manufacturers in Guangdong have found solutions through changing their export routes and placing orders.

At the same time, government departments also issued relevant support policies.

The logistics cost offset the artificial saving of logistics. In last week's "Sichuan undertaking the Guangdong shoe pfer Symposium", Huang Xiaoxiang, vice governor of Sichuan Province, said that Chengdu Wuhou District moved to Wenzhou shoe making enterprises to feedback, and compared with the coastal factories, each company produced 20% pairs of shoes.

According to the introduction, "the minimum wage level in Chengdu is 550 yuan, compared with Guangzhou, which is about 300 yuan."

In this regard, most of the shoe manufacturers in Guangdong said that it was no problem to move inland to Sichuan to reduce the cost of human resources, but the increase of logistics cost in raw material procurement and finished goods pportation may offset this figure.

Song Hao, deputy general manager of Guangzhou friendship group shoes and garment accessories company, believes that there is an industrial chain problem in shoemaking.

Shoes exported to Europe and the United States are mainly high-end shoes. The production must have high quality accessories, such as "belt buckle" and "shoe flower". Coastal areas such as Guangdong already have very good technical conditions in this respect.

But such small businesses are costly to move to the Midwest, and most of them do not want to move inland.

A Taiwan funded shoemaking enterprise in Dongguan said that the finished products were pported from Sichuan to the coastal areas and then pported to Europe and the United States market. After internal calculation, the logistics cost of the first two items could increase by 20%, which would also offset the cost savings of human resources.

Countermeasures: change the route of pportation, "how much more logistics, depends on your route."

Wen Renhao, general manager of Jintang Hongtai shoemaking Co., Ltd., revealed that the factory was a Taiwanese funded enterprise. It moved to Dongguan from Chengdu two years ago, and the annual output of the semi finished products in Chengdu factory area is over ten million, and the annual output of finished products exceeds 3 million pairs.

He said that its products had not been pported through the traditional route of Guangdong shoes, that is, pshipment between Europe and the United States through the port of Shenzhen, but through the Shanghai port.

The increase in logistics costs is only within 15%.

The route is too long and the order is too late. The time limit is not only the cost increase but also the loss of orders due to the longer pportation time.

The head of Guangzhou Footwear Industry Association told reporters that buyers in Europe and the United States were exceptionally strict in terms of delivery time requirements for seasonal footwear, and the contract provided a severe penalty for postponing delivery.

Last year, some enterprises in Guangzhou were unable to deliver goods on time due to the resignation of Midway workers. They hoped to postpone one or two days, but the other party refused. Finally, the enterprises could only convert the ocean to air freight, and the freight increased by about 200000 yuan.

Liu Suilong, honorary president of Dongguan footwear industry association, also said that if the shoemaker moved to Sichuan and shipped to Shenzhen or Shanghai to go to sea, the light would take more than 3 days on the road, so the relocation enterprises had to consider this problem when choosing orders.

Countermeasures: Zhou, who has set up factories in the coastal areas and has already set up factories in Wuhou District, Chengdu, says that the delivery time of orders received by them is usually about 2 months, and there is sufficient time to prepare for them. "Dongguan

20 thousand orders for women's sandals will not be more than a month from raw materials to finished products, while he says that his factory in Chengdu has less than 500 workers.

"If there are more than 1000 factories, the time will be fine."

Mr. Zhou suggested that qualified shoemaking enterprises could set up factories in the coastal and inland areas, and lay the main bases in the mainland, while the coastal points would mainly collect information.

Orders for tight orders are processed by coastal factories. The general orders are made by the branch offices in the mainland.

Sichuan employees do not want to go back to Sichuan?

Data from the Sichuan provincial investment promotion department showed that nearly 20 million of the about 88500000 of the total population of Sichuan worked in the coastal areas.

Huang Xiaoxiang, vice governor of Sichuan, also quoted a statistical figure. "60% of the middle-level managers of Guangdong shoemaking enterprises are Sichuan people, and more than 30% of the workers come from Sichuan."

However, a person in charge of the Guangzhou footwear industry association said that many Guangdong entrepreneurs were worried that the "Sichuan army" might not be willing to abandon Guangdong's work. The salary here must be higher. Many of them fear that wages will go down after returning.

Dongguan Footwear Industry Association honorary president Liu Suilong also pointed out that although Sichuan labor force is very rich, but according to part of the move to Sichuan Guangdong shoe factory feedback, recruitment is not as easy as expected.

Countermeasures: Sichuan or recall workers are worried about Guangdong shoe making enterprises, and the relevant sources said that Sichuan will recall workers from Sichuan in Sichuan, Zhejiang, Fujian and Guangdong.

Reporters in Dongguan Jintang Hongtai shoe-making Co., Ltd. General Manager Wen Renhao's business card to see that he is two Dongguan shoe factory and two Sichuan shoe factory responsible person, and he also has an identity is "Chengdu Deputies".

He said: "many villagers in Sichuan are willing to go back to business, and no one will be willing to drift abroad."

Mr. Sun, a Sichuan shoe manager of a large shoe factory in Dongguan, also said that the Sichuan staff of Dongguan's big shoe factories are familiar with each other, and many people want to go back to Sichuan.

Related policies: Gao Li, deputy director of the Ministry of Commerce, Hong Kong, Macao and Taiwan, who participated in the shoe-making Transfer Conference, said that the Ministry of Commerce has issued relevant opinions to support the pfer of processing trade from coastal areas to the mainland. According to this opinion, 11 cities and counties in 6 regions of the mainland will enjoy preferential measures in undertaking industrial pfer.

Gao Li also revealed that this year, the Ministry of Commerce will also have new policies to give financial support and loan support to the processing enterprises.

News background: "recruitment difficulties" and the rise of corporate environmental expenditure have become the two major problems faced by PRD manufacturers in recent years.

As a typical labor-intensive industry in the Pearl River Delta, shoemaking industry has opened its prelude to the pfer of human resources in Sichuan and other mainland provinces.

For entrepreneurs in the Pearl River Delta, if factories are moved to the Midwest, recruitment will be easier and the local minimum wage will be lower.

In order to undertake industrial pfer, the local government has also offered preferential policies in terms of environmental protection and land.