"East Shoes Moving To The West" Can Withstand The Cold Winter Of China'S Shoe Industry?

The Western China International Footwear Expo was held in Bishan, Chongqing as scheduled. Compared with previous years, this year, the scale is larger, the grade is higher, and the popularity is more prosperous. However, the reporter found that the entrepreneurs attending the meeting are obviously divided into "two groups": entrepreneurs from the central and western regions are elated, smiling and relaxed; the entrepreneurs in the East are frowning and worried. "in the global context of industrial transfer, today, the eastern region, which is oversaturated with manufacturing industry, is suffering from multiple problems, such as the rising cost of raw materials and labor, the appreciation of RMB, the adjustment of processing trade and export tax rebate policies." Zhang Shuhua, chairman of China Leather Association, said the worries of the Eastern shoe owners. "Nowadays, when enterprises talk about cost, it is no longer a matter of profit, but whether they can continue to live." A shoe enterprise boss said in his heart that the Eastern shoe enterprises are facing the ordeal of life and death. profit? Life and death? cost revolution, this word is very popular in Wenzhou shoe industry this year. when the reporter walked into the headquarters of Aokang Group, the largest private shoe-making enterprise in China, located in Qianshi Industrial Park, Oubei, Wenzhou, the reporter saw a banner: the 2008 cost activity month was solemnly launched and hung above the entrance passageway of the factory where the employees go to work. "the overall cost of shoe making this year has increased by 20% compared with that of last year. In the case of no rise in the retail price of leather shoes, the cost pressure of enterprises is increasing." Aokang shoes manufacturing Co., Ltd. production manager fan manru said to reporters. For this reason, Aokang has set up a special cost team this year and set up full-time posts to further refine the cost control work. In the cost activity month, we mainly take measures such as quantitative use of raw materials, further integration of human resources and energy saving in office and living quarters, so as to let the concept of saving electricity and a drop of water go deep into the heart of every employee. the reporter found in Ouhai Industrial Zone, Wenzhou, China's shoe capital, that the busy production situation at this time of the past year seems much colder this year. "In fact, enterprises do not have orders to do, but dare not take orders. Because of the instability of the RMB exchange rate and other factors, some orders in July and August can not be accepted, so they can only take recent orders." A 500 person shoe-making scale boss Wu told the reporter why. "The overall cost of enterprises has increased by about 26% compared with last year. After the implementation of the new labor contract law, only the wages of employees have increased by about 2 million. Most of the other costs are raw materials, export tax rebates, RMB exchange rate, etc., and now the enterprises are basically operating at breakeven and in a dilemma." the rise in costs makes the enterprise's ability to resist risks very weak. As long as there is a little accident, it is possible to fall into an irreparable situation. Therefore, enterprises are cautious in making orders. According to the survey, only 1 / 3 of the enterprises with poor operation in Ouhai District had poor profits. "It came so fast that we were unprepared. It was like a disaster." A boss of a shoe enterprise who has been running the shoe industry for more than 30 years and has a strong feeling for shoe making is not willing to face the brilliant shoe industry in the past. Today, he is going to decline in the East. the same situation seems to be more serious in the Pearl River Delta: according to the statistical report of the Asian shoe industry chamber of Commerce in November 2007, there are 56000 shoe factories in Guangdong, and more than 1000 large and medium-sized shoe factories have been closed down. Within two or three months, four or five hundred small and medium-sized shoe factories in Huidong have closed down. in addition to policy factors, the industry's own factors also make enterprises doomed to the fate of today from the day they came into being. At present, more than 70% of the enterprises in the Pearl River delta still rely on the processing trade mode of "low cost and low profit", and always stay at the low end of the price chain, and the profit is only between 5% and 10%. This kind of labor-intensive enterprises have no core competitiveness. Once the low-cost advantage is lost, they will face the choice of life and death directly. While the west is full of joy and loss, it is a struggle with its potential. The magic wand of cost will make the eastern and western shoe industry into a scene of ice and fire. quite different from the Eastern shoe enterprises in the face of life and death struggle, Chongqing Bishan western shoes capital has a busy scene. More than 60 million pairs of leather shoes are sold around the world every year. According to Jiang Yuanwu, general manager of Chongqing Aokang Real Estate Co., Ltd., since May 2003, the construction of shoe capital Industrial Park in Western China invested by Aokang Group has begun. Chongqing honghuoniao Shoes Co., Ltd., the largest shoe material trading center in Western China and the 137 Mu Aokang Group production base, has been built with a total area of 2600 mu. At present, the Red Flamingo men's and women's shoes have been exempted from national inspection and Chongqing's famous brand products. phase II covers an area of 1600 mu, and on the basis of improving phase I, it will build a shoe finished products trading center and quality inspection center, and 50 shoe-making enterprises including the world's top 500 enterprises, Brazil and Cairo will be completed and put into operation within one year The preliminary planning work of the third phase project has been completed, covering an area of 2500 mu. A production and processing base for leather goods, leather and shoe-making enterprises will be built, and a number of well-known shoe-making enterprises will be introduced. Now five years have passed and the first phase of the project has already been successfully completed. The second phase project is in full swing. Jiang Yuanwu, general manager of Chongqing Aokang Real Estate Co., Ltd., pointed out that: Aokang Group and Bishan County People's government have explored a successful way of "interaction between the East and the west, cooperative development, complementary advantages, joint efforts to build, enriching the people and prospering the industry, realizing multi win" in the practice of building the western shoe city. Due to the successful operation of the western shoe capital, the demonstration significance has been fully affirmed by the Western Affairs Office of the State Council, and is known as a model of "East West interaction and cooperative development". At the same time, Chongqing is deeply implementing the "314" overall plan made by General Secretary Hu Jintao for Chongqing, and is making every effort to promote the comprehensive urban-rural reform of provincial units across the country. The once desolate countryside now presents a prosperous urban scene. According to the reporter, it is estimated that by 2012, the industrial park of Western China's shoe capital will basically complete the existing planning and construction. By then, the output of footwear products in the Western China shoe capital will exceed 100 million pairs and the annual output value will exceed 10 billion yuan. "the successful operation of the shoe capital in Western China and the prosperity and development of the shoe industry in Western China are mainly due to the cost advantage of the western region." Aokang Group President Wang Zhentao analysis. For China's shoe industry, which only depends on cost, the western region has absolute advantages in land, energy, transportation and labor. It is estimated that, compared with the eastern coastal areas, enterprises in Bishan of Chongqing can save 20% of the cost of producing a pair of shoes. At the same time, Chongqing has the advantage of low-cost logistics of port and Yangtze River golden waterway. Li Kun, head of Sichuan Jiahui logistics company, who has been engaged in export freight business from the west to Shanghai for a long time, told reporters that the export logistics cost of western enterprises accounts for about 20% of the total cost of products, while the cost of waterway transportation is only half of that of highway and 1 / 3 of that of railway. Recently, good news has just come in. Chongqing Cuntan bonded port area has passed the examination and approval of the General Administration of customs. After the establishment of the bonded zone, the export products of foreign trade will no longer need to go to Shanghai for customs declaration and export. Instead, they will take the waterway directly from Chongqing, which will greatly reduce the logistics cost. In addition, animal husbandry in the western region is developed, providing more than half of the raw leather resources such as cattle, sheep and pigs in the country. For a long time, these raw skins have been transported to the eastern coastal areas for processing leather, and then sent to the leather shoes manufacturing enterprises in the East. This situation of "leather in the west, shoes in the East" does not meet the requirements of the rational allocation of resources in the market economy, which increases the production cost for shoe-making enterprises. "Moving shoes from east to west" can effectively reduce production costs. industrial transfer: the thrust of cost the arrival of cold winter, the "migratory birds" in the East are moving to the West collectively. "in the whole process of moving east and west shoes, the most powerful driving force is not the government, but an invisible hand - cost." Zhang Shuhua always thinks that it is the low cost of labor to transfer to China's Leather Industry Association. In the 1960s, the world shoe industry center was in Italy, transferred to Japan and South Korea in the 1970s, transferred to Taiwan in China in the 1980s, and transferred to Dongguan in Guangdong and Wenzhou in Zhejiang in the 1990s. Nowadays, the shoe industry center is transferring to the central and western regions of China. The low-cost advantage of the west is like a huge depression, attracting the capital from the East. "the reason why Aokang chose to invest in Bishan should be the result of the strategic adjustment of domestic and international competition, facing the trend of China's shoe industry from east to west." Five years ago, Wang Zhentao, President of Aokang Group, gave an answer to the media, which has been confirmed by the successful operation of the western shoe city. It can be seen that Aokang has foresight in the industry transfer movement of moving east shoes to the West. It is also because of the construction of the western shoe capital, which provides the space for the Eastern shoe enterprises to develop again. Driven by Aokang, shoe-making enterprises in the western shoe capital have developed rapidly, and enterprises in coastal areas have also transferred to the West. Recently, the reporter learned that more than 20 shoe factories, which were originally in Dongguan for the Brazilian shoe giant parnomon, quietly moved to Bishan, the western shoe capital, under the pressure of cost, and prepared to start a second business and do a big job. besides cost factors, the reasons for the "East shoes moving to the west" provide more convenient conditions for developing the western market. At present, due to the obstruction of foreign trade, many shoe enterprises have turned to domestic sales. Yuyuan, Xingang and Huajian, the three giants of Dongguan shoe industry, are now ambitiously establishing their own brands to attack the mainland market. In this domestic marketing campaign, the western market has undoubtedly become the place where shoe enterprises compete. Taking Aokang Group Chongqing Red Flamingo shoes industry as an example, more than 7 million pairs of leather shoes are sold from Bishan to the vast western market every year. On the one hand, it saves logistics production costs, and on the other hand, it is very helpful for designers, R & D and marketing personnel to be familiar with the western consumer market. Recently, the largest leather trade center in Western China will be put into operation. The leather city integrates the wholesale, retail and display of leather goods, bags, leather shoes and leather clothing. Based in Chongqing, it radiates to Sichuan, Guizhou, Yunnan and other surrounding areas, providing convenience for the shoe industry to develop the western market for domestic sales. In the process of "moving east shoes to west", the power of the government can not be ignored. If the eastern part of China's shoe manufacturing industry is driven by the shortage of energy resources, then the "shoe manufacturing industry" driven by the government is the "catalyst" for the fleeing enterprises. "We should gradually eliminate low value-added, labor-intensive small and medium-sized enterprises out of Wenzhou and introduce high-quality talents and high-tech enterprises." It's no longer a sign that the mayor of Wenzhou has been making a speech on Wenzhou shoes industry for a long time. At the same time, with the adjustment of industrial structure in the Pearl River Delta, a series of preferential policies for manufacturing and processing industry in the early years are gradually disappearing. shoe making industry is chicken ribs for the eastern coastal areas, but it is an attractive hot spot for the vast central and western cities. Shoemaking industry can bring a large number of employees, can drive a huge GDP output value, has a strong industry driving role, which makes local governments excited. Therefore, different from the eastern government's attitude, the Chongqing municipal government is stepping up the planning of the park, introducing preferential policies, and opening the door to welcome the eastern manufacturing industry. In April this year, the main leaders of Chongqing municipal Party committee and municipal government took the initiative to attract investment in eastern coastal cities. "the movement of moving shoes from east to west is like the migration of migratory birds in order to avoid the cold winter. The cold winter of China's shoe industry has come, and the slow flying enterprises are likely to become the victims of this winter." The analysis of the industry, let us clear layers of fog, clearly see the new path of China's shoe industry transfer.