Southeast Asia Is Not A Low-Cost Paradise For Shoe Companies.

In recent years, more and more Chinese

The relocation of factories to foreign countries, especially in Southeast Asia, is the biggest shoe producing and exporting country in the world.

Has China lost its competitiveness in the shoe industry?

Rising costs "forced" shoes enterprises

Let's take a look at the internal causes of the migration of Chinese shoe enterprises.

Reason 1: the rise of labor costs.

With the rise of China's overall economic level, housing prices are rising rapidly, the urbanization process of rural areas is speeding up, and people's living costs are getting higher and higher. Low wages can no longer meet the needs of life, and wages have to rise.

At the same time, the basic popularization of compulsory education, the vigorous development of higher education, the blossom of adult education and training, the improvement of the overall national quality, the less and less cheap labor force in the process of pursuing quality life, and the situation that enterprises can get huge benefits can only be the old yellow flowers and become a more and more distant memory.

Reason two: the increase of land cost.

A large part of China's shoemaking enterprises are dependent on exports, so the Chinese footwear industry is mainly concentrated in the southeast coastal areas, such as

Quanzhou, Huizhou, Dongguan, Shenzhen and so on.

In recent years, the speed of the development of southeast coastal cities in China is obvious, attracting a lot of investment, making land prices rise sharply.

The manufacturing industry originally occupied a large area, and the high land cost became the unbearable burden.

Reason three: rising domestic raw material costs.

At present, domestic raw materials such as cotton yarn and leather have risen to a great extent, and the global economic recession has led to a decline in consumer confidence, which makes it difficult to raise the price of shoes and the profits of enterprises are compressed.

Southeast Asia is not a low-cost paradise.

Southeast Asia and other regions still can provide a lot of cheap labor, the land cost is lower than that in China, and can also provide cheaper raw materials, from the aspect of production cost, competitiveness is stronger than China.

At the same time, in recent years, many countries in Southeast Asia and other regions are also increasing investment in attracting foreign investment. They have extended their "olive branch" to offer preferential policies to investment enterprises, such as low tariffs or even zero tariff import of shoe materials and export products.

In addition, there are many ports in Southeast Asia and convenient pportation at sea, which is also a great advantage for export enterprises.

On the one hand, domestic production costs remain high. On the one hand, there are low-cost labor, venues and raw materials, as well as a large number of preferential policies in Southeast Asia. Under the influence of internal and external forces, many shoemaking enterprises are "normal" to move out.

But is it possible to move out all the problems?

In fact, compared with the domestic environment, the disadvantages of Southeast Asia are also obvious.

Although the cost of labor in Southeast Asia is relatively cheap, workers' proficiency, production skills and professional quality are not yet able to catch up with China for the time being.

From a number of shoemaking enterprises, it is learnt that the enterprises that migrate in the past are mainly production oriented sports shoes, while the relatively complicated women's shoes such as processes and designs are difficult to pfer; some enterprises complain that many workers in India, Bangladesh, Vietnam, Indonesia and Kampuchea are religious believers, which have a certain degree of interference in production; Vietnamese people attach much importance to family life, do not want to work overtime, and do not pay much money; more serious is strikes, according to the statistics of the Vietnam Federation of trade unions.

The number of strikes was the most, accounting for 28% of the total, while the footwear industry accounted for about 10%.

The supporting capacity of Southeast Asia is far less than that of China.

For example, a shoemaking plant in Dongguan will be able to complete the preparation of shoe making equipment, raw materials and workers in less than a week. 100% of the raw materials in the middle and low end can be bought in Dongguan.

To build a shoe factory in India and Vietnam, we need to prepare tens of millions of dollars of funds, most of which are invested in supporting industrial facilities, and even a large part of the raw materials and accessories needed to be shipped from Dongguan.

In addition, with the injection of capital, the cost advantages of Southeast Asian countries can not be maintained in the long run.

It is reported that in recent years, the cost of labor and raw material cost of Southeast Asian countries has increased rapidly, though not as much as that of Southeast China, and in the Midwest of China.

It can be seen that Southeast Asia is not a low cost paradise for shoe companies.