West Shoe Capital: Farewell To Three Main Bottlenecks In Self Entertainment Era

With the increasingly fierce competition in the manufacturing industry, the Pearl River Delta and the Yangtze River Delta have gradually lost their cost advantages and labor advantages.

There are signs that many international and domestic shoe giants are turning their attention to the mainland.

On the eve of the fourth China western international footwear industry fair, a number of well-known international and domestic enterprises that have invested and built factories along the coast have been or are about to settle in Bishan, the footwear capital of Western China.

From small workshops to large factories, from the self entertainment and Zhejiang, Chengdu compete for "shoes capital" title to down-to-earth development of the upstream and downstream industry chain, Bishan shoe industry is also undergoing a metamorphosis.

When undertaking foreign industries, some footwear enterprises as the main body are not strong enough themselves.

Under such a background, it is also a windfall for Bishan shoe bosses to learn how to establish brands, realize foreign trade sales and cope with the shortage of labor force through the pfer of industries.

Brazil shoe giant enters Chongqing May 18th to 20, the fourth China Western International Footwear Industry Fair (hereinafter referred to as "shoes Fair") will be held in Bishan County, known as the western shoe city.

The local government has set up 4 merchants groups to invest in Zhejiang, Guangdong, Jiangsu, Hebei and Shandong respectively.

"Count the investment team of AOKANG Industrial Park, this time dispatched 5 professional investment teams."

In May 8th, Dong Yifeng, Party Secretary of Bishan merchants Bureau, told reporters.

Recently, Brazil's shoe giant, named Monte Carlo, is one of the investment achievements.

It is understood that the company is a large multinational company in Brazil and the largest leather shoes trading company in Asia. The reason why it moved from coastal areas is simple: the production cost is increased, and the manufacturer's OEM is no longer suitable for the development needs.

And the line to invest in Bishan is also very clear: invest 160 million yuan, build 8 - 12 shoe production lines, and some related supporting enterprises will also move in.

Not only that, it has invested and produced in Guangdong, ranking the front of the leather goods and luggage industry in France, Montagut, Hongkong, Goldlion, Taiwan crown, Wanlima, and Paul Lande, and so on. All of them are interested in investing in factories in Bishan to produce leather goods and bags. French Dupont clothing and Zhejiang Haining clothing also express the same intention; and according to relevant sources, there are 8 Taiwan funded footwear enterprises also ready to move to the west, and will soon be located in Bishan's "shoes city of Western China".

"Cheap labor and better supporting services are what foreign businessmen value most."

In Dong Yifeng's view, there are many skilled workers in the footwear industry in Bishan. Compared with those in the coastal areas, the wages are low and the technology is good. Besides, the footwear industry is relatively complete, such as shoe ornaments, soles and viscose, which can be purchased here directly.

"Foreign enterprises enter Bishan, and the production cost can be reduced by about 3."

A window for the whole world, compared with the previous three sessions, the international footwear trade fair in Western China has increased the two words of "international".

"This is not only the difference between the two words, but it means that the current shoes Expo has risen from a national level industry event to an international level industry event."

Bishan county magistrate told Kevin.

According to the introduction, under the background of the promotion of the Expo, the booth and exhibitors of this Expo will also be the most important: the Expo has 1200 standard booths and trading markets, 1 times more than the last shoe fair. It will invite more than 1600 guests from more than 20 provinces, municipalities and autonomous regions to attend the exhibition, 1 or 4 more than the previous session. It will also invite relevant personages from 7 countries and regions including the United States, Italy, Russia, Brazil, India, Pakistan and Hongkong to participate. It is expected that the guests will reach 6000 and exhibitors will reach 2500, all of which are 4 times of the last Shoe Expo.

This year's shoe Fair is negotiating 55 projects.

11 of these projects are expected to be signed at the shoe fair, with a total investment of around 6 billion yuan.

"The local Yu Hua shoe industry Co., Ltd. has now obtained many orders, and has begun to move outward from the original introverted workshop to the type enterprise."

Dong Yifeng said.

Further disclosed to Kevin, the county will take the opportunity of this international shoe fair to speed up the docking between local enterprises and international enterprises.

We strive to build the footwear industry in Western China into a production base, which integrates production, sales, R & D, testing and logistics, and has strong competitiveness and influence both at home and abroad.

At present, the footwear industry has become one of the three pillar industries in Bishan county.

The county has more than 1300 enterprises and households, with an annual output of 62 million pairs, with an annual output value of 4 billion yuan.

Among them, 15 million pairs of shoes are used for export each year, and 6 footwear enterprises have the right to self export.

That is to say, these enterprises can go through customs clearance procedures to the customs in the future, and then go to the international market to promote their footwear brands.

The three bottlenecks are yet to be broken. "We are vigorously developing the production base of seven pond, eight pond and road, so as to form a distinctive footwear industry cluster."

According to Ke Wen, it is estimated that by the end of 11th Five-Year, the annual output of footwear products across the county will exceed 100 million pairs, and the annual output value will reach 10 billion yuan. The annual turnover will reach 12 billion yuan, creating more than 2 national brands and 15 municipal brands.

To achieve this expected goal, factors that puzzle industrial development can not be ignored.

Liu Zhiguo, director of the Bishan Labor Bureau, summed it up in three aspects: poor brand awareness, imperfect sales channels and labor shortage.

Only 10 thousand of the 450 thousand rural population in the county can be turned into industrial workers.

That is to say, the labor force gap is around 30 thousand this year.

Liu Zhiguo said, the reason is that the speed of investment is beyond the government's expectations, like a company such as that of a company that needs 5000 labor force.

"We are preparing to sign a labor employment training agreement in Southeast Chongqing, Northeast Chongqing, Guizhou, Sichuan and Guang'an, in order to increase skilled workers and improve productivity."

Dong Yifeng believes that there is a necessary link between brand creation and sales channels.

Generally speaking, shoes in Bishan are mainly middle and low grade shoes.

Only one of the brands of red bird is authorized by the state authority.

"Many local shoe companies are only satisfied with doing the two level wholesale market, that is, selling goods through distributors and agents in all wholesale markets, and so do border trade. We don't even know what cards to paste."

It is worth mentioning that some local shoemaking enterprises have begun to open local stores.

It is reported that there will be 6 large buyers in the exhibition. They are: Chongqing department store, new century department store, Pacific department store, American department store and Chaotianmen shoe wholesaler.

Dong Yifeng told reporters.

The profit generated by orders from the beginning of the month may have shrunk during the delivery settlement.

Chen Xun, chairman of Chongqing Shuai Mei shoes industry Co., Ltd., said that the negative impact of RMB appreciation on enterprises is also a problem faced by some export-oriented enterprises.

According to the introduction, the footwear of the company is mainly exported to Britain, Italy and Germany, and exports exceeded 3 million dollars last year.

"Shoes companies usually deliver the goods in two months after receiving orders.

As the appreciation of the renminbi increased, they lost 600 thousand yuan last year alone.

Chen Xun told reporters that the exchange rate rose too sharply last year, and it was too late to deal with it.

The biggest impact on the exchange rate was 50 thousand yuan a loss.

A cut is worth a pound of wisdom.

Chen Xun expects that the company's export volume will reach US $5 million this year.

"When we take orders, we will take into account the factors affecting the appreciation of the renminbi.

In fact, with the appreciation of the renminbi, the price adjustment is nothing. As long as you understand the exchange rate, you know how to avoid risks.

Bishan shoe companies were mostly introverted enterprises before, and they needed a process to turn into mature and export-oriented enterprises.

At present, the local government is striving to guide enterprises to carry out various forms of training, inculcate foreign trade and economic knowledge, and let them know the basic rules of dealing with foreigners.

"In my view, the most effective way is to adopt international standards in the production process."

Dong Yifeng said.