Should Guangdong Shoe Industry Face Difficulties In Moving Or Moving Outward?

In recent years, the United States sovereign debt crisis and European sovereignty.

The continuous outbreak of the international economic situation has pushed China's small and medium enterprises to survive.

On the one hand, the international stock market and commodity market are diverging in the European debt crisis, and the deviation of US economic data affects public confidence.

On the other hand, domestic prices are rising, labor costs are rising, the RMB exchange rate has been strong, the government has tightened monetary policy, and private capital interest rates have been rising.

All along, the development of Guangdong's footwear industry has attracted the attention of the global industry. Under the situation of uncertain global economic recovery and the surging European debt crisis, Guangdong footwear industry, which has been in a strong position, is facing severe challenges and opportunities.

How will the footwear industry of Guangdong pform and upgrade its industry in the future? Where is the way out? How to change from the low-end market to the high-end market? How does the pattern change? How to change from quantity to quality and efficiency, and how to develop in the future?

After thirty years of reform and opening up in China, the footwear industry in Guangdong has gone through an unprecedented period of rapid development. It has attracted worldwide attention and has become a well-known footwear and leather goods production and export base in the whole country and even the world. Its output accounts for half of the country's total production, accounting for 1/4 of the world's total.

world

Look at China, the shoe industry of China looks at Guangdong.

The footwear industry in Guangdong has dominated the industry for many years. However, after many years of rapid growth, Guangdong footwear industry is entering a painful period of pformation and upgrading due to various factors such as raw materials, cost and competition.

It is manifested in the following aspects: first, land and labor costs.

With the shortage of land resources and the increase of labor costs in Guangdong, the cost of raw materials, energy, pportation and finance is increasing. Large enterprises are struggling to cope with the problem. Small businesses are struggling, the profits of small and medium-sized enterprises have dropped from 8 to 10% to 2 to 3%, from 8 to 10% of the cost of shoes to shoe soles, and the loan interest rate has increased 30 to 40% on the basis of the benchmark interest rate. Two is the lack of international marketing network.

Compared with Wenzhou, Fujian and Quanzhou, which are the base of shoemaking, more than 70% of Guangdong's shoe enterprises are organized and produced and sold in the form of processing trade (so-called OEM), and lack of an independent international marketing network channel.

He believes that the footwear industry in Guangdong is "becoming foreign trade and losing foreign trade".

The footwear industry in Guangdong is short of brand and independent innovation research and development, facing production crisis and even survival crisis.

In the domestic market, there is no independent brand, or the brand name is not well known, it is not familiar with the market rules of the domestic market, it is difficult to open the market; three is the international trade barrier.

At present, some countries and regions of the United States, the European Union and other countries carry out trade barriers to China's footwear products. Although the EU anti-dumping act has expired, the safety inspection of Chinese footwear has been further strengthened, and the export of Chinese footwear is suppressed by every means; four is the lack of professional talents.

Guangdong footwear enterprises, although there are a large number of enterprises, but the lack of professional talents; five is the excess capacity, small scale of the enterprise.

According to preliminary estimates, the overcapacity of the footwear industry in Guangdong is over 30%. Serious excess capacity leads to internal disorderly competition and serious resource depletion.

Cheng also orders an order for failure.

After the outbreak of the financial crisis in 2008, the foreign trade orders of the footwear industry in Guangdong decreased significantly, leading to the collapse of some small and medium-sized shoe enterprises.

The profits of the enterprises that have been maintained are also compressed.

According to Mr Ho, OEM profits are now dropping by a large margin. Women's shoes sold for $more than 100 in the US market before, and OEM manufacturers could earn $5, and profits fell by 10% after the financial crisis in 2008.

He said that the turbulence of the current international economic situation has a direct impact on the development of the footwear industry in Guangdong. The manufacturing cost is rising and the profit margins are narrowing. The competitiveness of Guangdong's footwear industry is weakening.

But facing the pressure of domestic and international economic environment, the footwear industry in Guangdong still maintains a good momentum of rapid growth and structural optimization.

According to customs export data, export shoes in 2011 1-7 dollars increased by 21% compared with the same period last year, and Guangdong exported 8 billion 420 million US dollars, up 24% from the same period last year, accounting for 36% of the total in the country. The proportion of exports increased slightly over the same period last year. From the export volume, exports of 6 billion 110 million pairs in the first half of the year increased by 9.2% compared with the same period last year, while 2 billion 560 million 2 billion 560 million of Guangdong exports increased by 4.8%, accounting for the national 41.9%.

From January to July, the national export value increased by 17.9% over the same period last year, and Guangdong increased by 16.9%. From the two quarter, the national average increased by 21.4% over the same period last year, up 15.2% from the first quarter, while Guangdong increased by 24.3% compared with the same period last year, a 10.6% increase over the first quarter.

The value of exports is still rising.

Ms. He Guiling, President of Guangdong Footwear Manufacturers Association, said that in the face of pressure, Guangdong's shoemaking enterprises have both advantages and disadvantages.

After more than 20 years of accumulation, Guangdong has become a global footwear trade center and shoe making material supply center. Its industry is well matched, raw material procurement costs are low, and enterprises have strong capabilities in R & D and production and market expansion; however, the footwear industry in Guangdong has many OEM brands, few independent brands, and low added value of products. There is still a certain gap between materials, technology and technology compared with the advanced international level. Modern logistics and electronic pactions are relatively slow, professional and technical personnel and management personnel are relatively scarce, and the problems of "shortage of labor and shortage of electricity" are prominent.

He also said that the adverse factors had a greater impact on the economically developed areas such as the Pearl River Delta, which had little impact on several shoe making industrial clusters, and had a greater impact on small factories and less impact on big factories. However, the overall impact on the footwear industry in Guangdong was not large, showing overall growth and structural optimization.

Enterprises with backward production management will be unable to adapt to the new competitive environment and quit the footwear industry. Enterprises that are good at collocating resources, focusing on innovation and independent intellectual property rights, managing norms and assuming social responsibilities will survive and develop.

Migration: moving internally or externally?

Looking at the current footwear market in Guangdong, the inherent advantages of the shoe industry have now evolved into a short board for development. Today, with the sharp reduction in the profits of the foundry industry, Guangdong shoe enterprises, associations and governments are all thinking about the way out for Guangdong's footwear industry.

Is it to pform itself from simple processing to independent brand, or to find a low labor cost and low environmental cost to achieve the gradient pfer of manufacturing?

With the rising cost of land, labor and raw materials, many shoe companies have shifted their footwear factories to inland areas where land costs and labor costs are relatively low, so as to maximize cost savings to maintain profitability.

Of course, many shoe companies have turned their attention to Southeast Asia and other places.

It can be seen that industrial pfer efforts are gradually increasing.

For the current industrial pfer, he president said that from the current development trend, industrial pfer is undoubtedly a major trend in the development of the footwear industry.

However, industrial pfer is not achieved overnight, and large-scale and comprehensive pfer takes a long time.

The speed of pfer depends on whether the Midwest and Southeast Asia have the ability and conditions to undertake pfer.

In addition to geographical location, pportation, land resources, human capital flow and industrial chain capital flow, policy and knowledge also play a crucial role in the success or failure of pfer.

He president told us that what shoe companies need most is supporting the design and development, spare parts and logistics services, and the conditions for pferring to the land are hard to fully meet.

The shoe industry is currently more successful in Jiangxi Ganzhou Huajian shoe industry and Baocheng Jiangxi high Yu Sheng footwear industry, most other shoe factories are still in the running in period, and it takes some time to adapt.

At present, most of the shoe factories belong to the nature of the processing field, mainly in shoe processing, and other high technology links are still in Guangdong.

However, we can not deny that the overseas route is much harder and longer than moving inland. The shoemaking enterprises that set up factories in India, Bangladesh, Vietnam, Burma and Kampuchea have encountered many difficulties.

For example, although labor costs seem to be relatively low, the local labor force is low in quality and lacks skilled industrial workers. The industrial chain is incomplete, which restricts the development of the footwear industry. Based on the differences and obstacles of language, religion and lifestyle, many enterprises encounter great problems in management, and the result is not imagined.

All in all, the footwear industry in Guangdong should focus on the pformation and upgrading of the industry while focusing on industrial pfer.

After all, only by increasing the R & D of footwear industry and the input of brand innovation can we push the "made in Guangdong" to a new mileage of "Guangdong creation" before stepping out the footprints of Guangdong characteristics.

After upgrading the added value of products and accelerating pformation and upgrading, after more than 20 years of industrial and economic development, SMEs are faced with problems such as rising prices of raw material fuels, rising exchange rates and increasing wage costs. The footwear industry in Guangdong is required to adjust its economic structure and implement industrial pformation and upgrading.

He said that the traditional way of development is facing various challenges. With the gradual weakening of comparative advantage, Guangdong is in the critical stage of economic pformation and social pformation.

The strategic thinking of Guangdong during the "12th Five-Year" period began to be adjusted. Scientific development is the theme. Changing the mode of economic development is the main line, and accelerating pformation and upgrading is the core.

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The pressure of pformation is to tide over the sand and overcome the fittest.

The pformation will inevitably eliminate a number of enterprises without technical content, avoiding labor laws inside, purchasing cheap raw materials for upstream, and fighting price wars abroad.

Enterprises with strong financial strength will expand at a low cost and accelerate the pace of integration in the course of the wave of the tide. In particular, listed companies such as BELLE, Daphne, and Saturday, etc., these enterprises are listed first by means of capital strength, so that enterprises and brands can stand on a higher platform, and more importantly, advanced ideas, management concepts, production capacity and brand development have been developed systematically.

When it comes to what is the pformation and upgrading of industrial structure, President ho emphasized:

"Giving priority to the development of modern service industries, vigorously developing advanced manufacturing industries, accelerating the development of strategic emerging industries, and upgrading and upgrading traditional industries."

At the same time, it is also pointed out that "for enterprises to pform, they may die early, may survive, do not turn to death, wait until the price is upside down, and the capital chain breaks down, so that enterprises really need to fall into a crisis.

Therefore, facing new challenges, industrial pformation and upgrading is the general trend. "

Just as the pformation and upgrading of enterprises are in six aspects: first, the key to pformation and upgrading is the pformation of ideology; at present, no crisis is the biggest crisis; second, the key to pformation and upgrading is the upgrading of management level; third, the key of strategy is the concept of differentiation, product differentiation and technology concentration.

Do not make competitors your opponent; fourth, the key to competition is innovation and brand culture, innovation can guide the market consumption; fifth, the key is the industry leader, guide the development of the industry; sixth, the key of the team is reasonable structure, wisdom and practical combination.

For a single production enterprise, pformation and upgrading is to increase the added value of products. Then, how can we increase the added value of products?

First, work hard on technological innovation and increase the added value of products.

The added value of products is mainly derived from product manufacturing, rational layout of production processes, and penetration of science and technology into all production activities.

Technological innovation first requires equipment innovation, automatic computer control to reduce manual errors, reduce invalid labor and reduce wastage; equipment should be environmentally friendly, such as dust collecting and automatic gluing; energy saving; labor saving, such as using man-machine conversation, computer edition accurate cutting, saving labor and raw materials; safe and efficient.

Although equipment upgrading increases investment in fixed assets, increases depreciation and increases costs, it can be compensated from improving quality and increasing selling price; two, relying on staff to increase labor productivity and increase added value of products.

Since 2011, the wage cost of employees has increased, affecting the added value of products. It is an indisputable fact that rising wages is a reflection of the law of market economy. Treating employees well is an important factor for enterprise stability and harmony. Three, deepen enterprise management and tap the potential of added value of products.

In the total cost of enterprise products, raw material fuel accounts for a large proportion, reducing the cost of raw material fuel, starting from procurement, inventory and production process.

Reduce raw material inventory, optimize process, reduce WIP and semi-finished products; four, create brand products to achieve a leap in added value.

The gravitational effect of brand is well known. Brand is the irreplaceable intangible asset of an enterprise. The core value of a brand product is quality, function, taste, service and so on.

Brand strategy is a top priority. The status quo of Guangdong footwear industry is still dominated by processing, but this does not mean that it does not possess the potential advantages of creating independent brands and famous brands.

It has a strong industrial foundation, a large R & D team, a good market connecting the domestic and foreign markets, and different opportunities for the development of footwear industry.

Therefore, Guangdong shoe enterprises are thinking, especially small and medium enterprises, in the treatment of brands, are ready to go, or have acted.

In recent years, the history of shoe brand development in Guangdong shows that Guangdong is not lack of brand, but lack of well-known brand.

In the past two years, the footwear industry in Guangdong has launched a new wave of brand building besides its original brand.

He told us: at present, there are more than 100 independent brands of shoes in Guangdong. If we add some companies that have just been registered, we will be even more impressive.

In addition, the well-known brand system of Guangdong footwear industry is becoming more and more mature, and a ladder shaped regional cluster has been formed.

For example, Dongguan's high-end independent brand Qisheng shoe factory, Di Bao AI, although it doesn't sell much, is the first brand of Chinese men's shoes, and its lowest price in the market is more than 1500 yuan.

However, there is still much room for development in the high-end market.

Followed by Guangzhou, Shenzhen's high-end shoes, such as BELLE, Fu Lida and so on.

Besides, the finished shoes of Heshan, Zhongshan, Huidong and other places are in the hot brand operation.

The brand operation of Qisheng in Dongguan is a typical example of how to gradually pform from a foreign trade production enterprise into a brand enterprise, and how to improve the brand territory of the buyout brand itself.

In 2002, the acquisition of Debao al o, at present, Di Bao AI basically covered all kinds of shopping malls in all the provincial capitals of China. There are more than 130 stores in the country, mainly to join, a small part of self run, with an annual sales volume of about 150 thousand pairs.

Take the Guangzhou market as an example, Di Bao azo nearly achieved a comprehensive coverage, and there are sales outlets in Guangzhou friendship store, Guang Bai, Tianhe City, Zheng Jia square, Guangzhou Wangfujing department store and so on.

Yin Jiqi, general manager of Qisheng shoe industry, has pformed into a brand oriented enterprise for foreign trade production enterprises. "For the domestic enterprises, their biggest challenge is brand operation, which involves the whole system engineering of packaging, promotion, channels and so on, which is quite different from the practice of export."

To make foreign trade take customers as the main body, it is efficiency to fight; to do domestic marketing is strong in its leading role, to fight for technology, and to require highly product research and development.

In addition to its initial success, Qi Bao, Callahan, the European shoe hall, which includes many international first-line brands of the company, has given the company a more comprehensive brand lineup.

This year, we plan to step up efforts to promote the women's shoes of Di Bao.

Unlike women, men are very concerned about whether shoes fit well, while women consider comfort on the basis of style and fashion.

This is a big difference, and brand new demands are put forward.

Since creating brands is so difficult, is there no other successful path to follow? Perhaps BELLE will have more say in building brands.

Founded in March 8, 1992, the BELLE group was founded in March 8, 1992 and invested in the production and marketing integration enterprise group developed by the Hongkong Lihua Shoes Trade Co., Ltd. on the basis of the investment and processing enterprises built by mainland China. BELLE group independently operates 4 famous footwear brands: BELLE (BELLE), Staccato (TEENMIX), TEENMIX (Teenmix) and TATA (HERS), acting as the 6 famous brand JOY&PEACE (real beauty), famous sports brand NIKE (Nike), ADIDAS (NEWBALANCE), NEWBALANCE (New brun), leisure brand Levi "s", exclusive agent, one of the most widely distributed footwear brands.

In the past two years, BELLE group has an annual turnover of more than 23 billion yuan, ranking the first in the Chinese market for similar products in terms of sales and market share.

The sales network covers more than 130 major cities in mainland China, including all provincial capitals.

Products radiate in China (including Hongkong), the United States, Europe, Japan, Southeast Asia, the Middle East, Africa and other countries or regions.

The pain of brand is the prerequisite for the healthy development of Guangdong footwear industry, and the only way to a successful brand.

Guangdong shoe industry has good opportunities to develop its brand, and with its own development advantages, we believe that it is not difficult for Guangdong shoe industry to create brand and build more famous brands. The emergence of many brands and the era of "stars" will not be too far away.

Facing the new pattern of economic globalization and international division of labor, the situation of economic development has put forward higher requirements for the optimization and upgrading of the footwear industry structure in Guangdong.

In this period of historical pition, what is crucial? First of all, the government's understanding of the footwear industry, attitudes and measures are very important, which directly determines the environment for the development of footwear industry in Guangdong.

Although the shoe industry is a traditional industry, it is a must for human life, so long as human beings exist, it will never be a sunset industry.

Faced with such a harsh environment, the leadership of the Guangdong provincial government assessed the situation and put forward the development strategy of urban industrial pformation and upgrading in a timely manner, encouraging independent innovation of shoemaking enterprises, and giving great support and support to the footwear industry.

Dongguan Houjie town government has taken the lead in the formulation of "Dongguan footwear pformation and upgrading and cluster development policy support program" has been submitted to the Dongguan municipal government for examination and approval.

The plan points out that the planned investment will be 1 billion 280 million yuan to develop and build the world shoe base, with the focus on introducing shoe research and development institutions, international trade and purchasers, shoe manufacturers and branding manufacturers all over the country, and the aggregate effect of the international and domestic footwear cluster.

The plan also points out that the pilot project will be carried out first, and the Houjie Town will be selected as a trial town for the pformation and upgrading of footwear industry. At the same time, 30 shoe manufacturing enterprises, 20 shoe industry brand enterprises, 20 shoe trade enterprises, 5 shoe machine enterprises and 25 supporting enterprises of raw materials will be selected as the pilot enterprises for the pformation and upgrading, giving priority to the policies for the pformation and upgrading of the footwear industry.

The Huidong county government has planned to build 6000 acres of land to build the production base for Chinese women's shoes. At present, the first phase of the project has been planned for 2000 mu, and the construction period of the project has been 4 to 5 years, and the first phase has invested 1 billion yuan.

There are standard factories, supporting dormitories and comprehensive service buildings.

In addition, the Huidong county government put the development of footwear industry on the agenda, organized the Huidong shoe leather industry association to assist the government departments such as the SME Bureau, and strengthened the service, guidance, management and supervision of Huidong shoe leather enterprises, and formulated production policy and industrial planning for the county Party committee and county government.

The future development trend and outlet of the footwear industry in the Pearl River Delta will bring new opportunities for development and even leaping economic development for every country and region to undertake the pfer.

In the thirty years of reform and opening up, Guangdong has undertaken the historical shift of Hong Kong, Taiwan and Eurasian leather shoes industry, making the Chinese footwear industry have made considerable progress in the past thirty years.

Over the past thirty years, the footwear industry in Guangdong has been developed by extensive, energy consumption and expansion. Future development should be in line with the new trend of international development and the requirement of national economic adjustment.

In the new situation, how to pform and upgrade Guangdong's footwear industry as an advantageous traditional industry, shift the low value-added manufacturing links, and leave the most high-end and taxation of the industrial chain to ensure the realization of the goal of "happy Guangdong"? According to Mr. Ho, the urgent task for the footwear industry in Guangdong is to integrate resources, optimize the structure, and create a harmonious and healthy industrial ecological chain. This is a must for every industry in the whole industry to face, and we must deeply understand and act positively.

At present, the "double pfer" strategy, which is being implemented in Guangdong, will have a far-reaching impact on the industrial structure and industrial development mode of the Pearl River Delta. The upgrading rate of manufacturing industry will further accelerate; the factories of the Pearl River Delta enterprises will gradually shift to Guangdong, Guangdong, and Northern Guangdong, and the headquarters, R & D, sales and brand will be concentrated in the PRD. The remaining high-end industrial chain (enterprise headquarters) will be regrouped and developed, and a suitable carrier to undertake and provide development environment will further promote the development of the business and service industries in the Pearl River Delta.

The major changes in the economic structure will often lead to a profound adjustment of the economic structure and industrial structure and a new development platform, which is the objective law of economic development.

The upgrading and adjustment of the footwear industry is irresistible.

So, how should shoes manufacturers take an active part in this adjustment and find their own position in the new industry chain?

First, we must resolutely abandon the idea of relying on low cost and high profit growth for development. We should rely on the quality of survival, rely on management and efficiency, rely on innovation and develop the concept of development and strive to improve the core competitiveness of enterprises.

Second, we must change from pursuing short-term interests to focusing on long-term sustainable development.

Enterprises should take the initiative to do well in energy conservation and emission reduction, take the initiative to improve the utilization rate of resources and strictly carry out environmental protection work related to enterprises.

Third, we must change from childhood to independence and focus more on cooperation and development, pay more attention to international division of labor, social division of labor, coordination and cooperation, develop in disorder and have different characteristics, and find their own position in the industrial chain.