Dongguan Shoe Enterprises: No Profit But Contraction "Winter"

Long Yongtu, Vice Minister of the Ministry of foreign trade and economic cooperation and chief negotiator of China's accession to the WTO, said that footwear industry In fact, it is not a low value-added industry, as long as it is done well, it is also a high value-added industry, and the relevant departments should give great support to it. He said that shoes have created many jobs for the country, a positive industry, but many times the government wants to develop high and new technology industries and ignore the development of shoes.

"Industries that are suitable for local development are high value-added industries." Long Yongtu said that the government and the society should create a profitable environment for the shoe enterprises. If the enterprises are profitable, they will try to innovate and the shoe enterprises will develop.

Investigation "most afraid of customers walking"

since this year on Dongguan Shoe companies are very unstable. They are generally faced with low productivity and unstable quality problems. A big order can cause shrinkage or closure.

Abroad, European debt crisis Deepening, the world economy continues to bottom out, foreign trade orders decline significantly; domestic CPI is high, consumer confidence is obviously insufficient, and domestic market growth is weak. Under the pressure from inside and outside, the high storage pressure suddenly appears. Manufacturers are cautious in production and cautious in the market, resulting in a tightening of the footwear industry.

The shoe industry of China is confronted with the dual pressures of domestic sales and foreign trade. How can shoes enterprises fail to earn money?

At this critical node, is it to shrink business or to continue to grow?

At the world footwear industry development forum held in Houjie, Dongguan in October 31st, Long Yongtu, member of the International Advisory Committee of the Boao forum for Asia, the chief negotiator and former Deputy Minister of the Ministry of foreign trade and economic cooperation, said that the industry that is suitable for local development is a high value-added industry. Dongguan Houjie is the world shoe capital. The government departments should support the development of shoe enterprises, because shoe companies can create many jobs.

Ten shoe factories close down

In fact, from the beginning of this year, the footwear industry in Dongguan is not stable. First of all, in Dongguan stone row, more than 1000 employees of the big bang shoe industry Co., Ltd. closed down, suppliers were in arrears of about ten million of the money, causing a sensation in the industry, followed by some shoe enterprises continue to spread bad news, the entire shoe industry is covered with a layer of melancholy mist.

MALA is the technician of a shoe factory in Houjie. A few months ago, the boss reduced the size of the factory, only retained the elite, and turned to a trading company to prepare for the winter. Although the layoffs had not been cut to him, MALA had no future and chose to leave the company.

"I felt wrong at the beginning," MALA said. He only knew the technology of this line, and left the shoe factory to go to another shoe factory. There was no other way out.

Reporters interviewed many people in the industry learned that many shoe factories have closed down this year, and there are no less than ten of light street. Many shoe factories are two or three hundred, some of them are not registered at all, so the industry has not caused such a big bang.

No profit but contraction "winter"

"Many shoe factories are shrinking now." I have been in Dongguan for many years. shoes Mr. Zhou, general manager of a shoe company, said that the shoe industry is now faced with the problem of low productivity (difficulty in recruiting people) and unstable quality (resulting in large turnover of personnel). If one of the big orders goes wrong, it will cause enterprises to shrink or close.

Xie Qingyuan, President of Dongguan Association of investment enterprises, said in an interview with reporters that the footwear industry was greatly affected by rising costs and declining profits. Last year, a Taiwanese shoe factory, known for its famous shoe-making shoes, contracted from several thousand to more than 1000 people. "It is not a collapse, but a contraction without profit."

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Reporters learned that most of the shoe companies in Dongguan are sent to Europe and America after processing. In the past, European and American manufacturers would send money to the account of Dongguan shoe enterprises immediately after receiving the goods. Now they receive the shoes, sell them first, sell a batch to a lot of money, and directly drag the capital chain of Dongguan shoe enterprises.

Suppliers run 700 thousand yuan evaporation

"Now the market downturn, stability has become the luxury of shoe enterprises." Two years ago, Miss Lee, who had just invested in a shoe factory, did not want to transfer part of his order to find the acquaintance "Jazz". He hoped that his factory could take part of the order, but "Sir" did not dare introduce Miss Li to the boss of the factory. Because this year, the operation of the factory has not been very good, and the boss has much less energy on the shoe factory.

"Sir," he said, "be honest, because if you are too familiar with Miss Lee, if your boss suddenly runs away, you will feel guilty."

Miss Li said that in April, she had been run away by a supplier, and 700 thousand yuan had evaporated. "This year, several of my bosses, who are shoe factories, have encountered more or less the situation of customers running away. The losses have ranged from hundreds of thousands to millions, and a friend has to go bankrupt because the other side is running."

Is there any way to avoid running away? "There is no way out." Mr. Chen, who works in five shoe factories in Houjie street, said that the regulations were all paid again after two or three months of delivery. The boss often did not have any omen on the road, and suddenly he disappeared. "You can't keep him up every day."

"I am looking for opportunities to change." Mr. Zhou, who has been engaged in shoe industry for many years, said that he is now aware of any new high-tech projects. If there are good prospects and less investment, he will change his career.

Transformation road to star custom "high-end shoes"

Many shoe companies in Houjie have reduced the scale of production and replaced the "boutique line".

Dongguan Houjie has 432 shoe manufacturing enterprises, employing about 100 thousand people, with a total investment of US $420 million, which is known as "shoes capital". Due to the difficulty of recruiting workers and the high cost of human resources, some shoe factories in Houjie have adjusted their strategies to reduce the scale of production and change to the "boutique line". At present, this phenomenon is becoming more and more common. Especially for enterprises that manufacture high-end products, such enterprises have developed "advanced customization" mode, such as cooperation with celebrities and celebrities clubs to customize shoes, and gradually create their own brands on the high-end line.

Insiders say that changes in production scale and product strategy represent the track of shoe industry transformation and upgrading. Such enterprises are also testimony to the development of the Houjie shoe industry from its initial development to transformation and upgrading. Dongguan shoe industry urgently needs to seek breakthrough through integration and upgrading.

Clever use of e-commerce to sell domestic products

The head office of the Dongguan trust Bureau said that the old marketing mode had a large investment and slow effect.

Liu Jiongxian, deputy director of the Dongguan Municipal Bureau of letters, believes that the export business is not easy to do at present. Under such circumstances, shoe enterprises can turn to the domestic market by means of e-commerce.

He said that many enterprises in Dongguan are international brands of OEM, which have long been in line with international standards and represent the international industry direction. Therefore, it is advantageous to open up the domestic market. "But many of our businesses are accustomed to doing the order business, not accustomed to the domestic market, and have no domestic sales strategy, so there is no experience in personnel training, team building and channel building."

To open up the domestic market, we need a lot of investment (for example, publicity in advance or open shop). Will the government help solve it? Liu Jiongxian said: "the government should encourage, support and guide, but not everything.

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What the enterprise wants to do is to be wrapped up by the government. He pointed out that the key to developing the domestic market is to use the new marketing mode. Dongguan will vigorously promote the use of e-commerce by enterprises. "If the old marketing mode is used, it will slow down and invest heavily."

To build 30 headquarters shoe companies

Houjie town government promotes the overall transformation and upgrading of shoe industry cluster

In the interview, the reporter learned that Houjie has pushed forward the overall transformation and upgrading of the shoe industry cluster in recent years, and will arrange a special fund of 100 million yuan for scientific and technological innovation, further increase the support for enterprises, and promote the synchronous upgrading of R & D, technology, equipment and management in the footwear industry, so as to achieve the number of headquarters enterprises, the size of leading backbone enterprises and the scale of industrial output in each group, and to promote the development of the thick shoe industry cluster to industrial scale, product quality and high-end brand development.

The Department of Houjie Town said that at present, there are more than 800 shoe traders and purchasers in the thick street, and more than 5000 businessmen, including the United States, Brazil and Japan, are engaged in shoe processing, trade and purchasing. The finished shoes of Houjie are going all over the world. According to the transformation and upgrading plan, the town will strive to introduce 5 footwear world brands, 10 domestic brand enterprises and Houjie town shoe enterprises to cooperate and docking, and establish 30 headquarter footwear enterprises.