Shoe Industry Earthquake Promotes Industry Westward

An earthquake in shoe industry is taking place. The epicenter is in the East.

Since the second half of 2007, a large number of small and medium-sized shoe enterprises have closed down in Dongguan and Wenzhou, the two largest shoe industry in China.

"Nowadays, enterprises talk about cost is no longer a question of how much profits are related, but whether they can continue to live."

A shoe enterprise boss's heart tells the East shoe enterprises are facing the life and death torment.

"Under the global background of industrial pfer, today, the eastern region where manufacturing is over saturated is suffering from multiple problems such as rising cost of raw materials and labor, appreciation of the renminbi, processing trade and adjustment of export tax rebate policy."

Zhang Shuhua, director of the China Leather Association, spoke of the worries of the shoe owners in the East.

But at the same time, Bishan, Chongqing, which has the reputation of the western footwear capital, is in a big way to welcome this opportunity of industrial adjustment.

The cost revolution cost revolution is very popular in this year's shoe industry in Wenzhou.

The head of AOKANG group, the largest private shoe making enterprise in China, told reporters that "the overall cost of shoemaking this year has increased by 20% compared with that of last year. Under the situation that the retail price of leather shoes has not risen, the cost pressure of enterprises has been increasing."

AOKANG set up a cost team this year to set up a full-time post to further refine the cost control.

Quantitative utilization of raw materials, further integration of human resources, and even energy conservation in offices and living quarters are all being considered.

In the Wenzhou Ouhai Industrial Zone, which is known as the Chinese shoes capital, it was busy season at this time of the year, but this year it seems a lot of cold and cheerless.

The rise of cost makes the enterprise's ability to resist risks weaken, so enterprises are careful to make orders.

"In fact, enterprises do not have no single list to do so, but they are afraid to accept it. They are not affected by the instability of the RMB exchange rate. Some of the bills in July and August are afraid to pick up. They can only pick up some recent ones."

A 500 person shoemaking business owner said, "the overall cost of the enterprise has increased by about 26% over last year. After the implementation of the new labor contract law, the increase in staff salaries alone is 2 million yuan. Most of the other costs are raw materials, export tax rebates, RMB exchange rate and so on. Now the enterprises are basically in the dilemma of keeping capital and running the business."

According to the survey of the local Footwear Association, nearly 1 / 3 of the small and medium shoe enterprises in Ouhai alone fail or operate poorly, and 1 / 3 of the shoe companies keep their original business, while the other 1 / 3 have only a small profit.

"It's too fast for us to prepare. It's just like a disaster."

A shoe business owner who has been running shoes for more than 30 years said.

The same situation, the Pearl River Delta seems to be more serious: according to the November 2007 statistics report of the Asian footwear industry association, there are five thousand or six thousand shoe factories in Guangdong, and more than 1000 large and medium-sized shoe factories have been closed, of which two or three small shoe factories in Huidong have failed in two or three months.

In addition to policy factors, the industry itself has also made it possible for enterprises to doomed their fate from that day.

At present, more than 70% of PRD enterprises still rely on the "low cost, low profit" processing trade mode, always living at the low end of the price chain, and the profit is only between 5% and 10%.

Such labor-intensive enterprises do not have the core competitiveness. Once the low cost advantage is lost, they will directly face the choice of life and death.

The Western opportunities are quite different from those faced by the Eastern shoe companies. Bishan, Chongqing, is still a busy place.

Every year, about 60000000 pairs of leather shoes are sold around the world.

According to Jiang Yuanwu, general manager of Chongqing AOKANG Real Estate Co., Ltd., from May 2003, the construction of China's western Shoes Capital Industrial Park was opened by AOKANG group.

The total area of 2600 mu of the park base, the first phase of the project 1000 mu, built the largest shoe material trading center in Western China, covering 137 acres of AOKANG Group production base - Chongqing red Firebird Shoes Co., Ltd., at present, the red Firebird men and women's leather shoes have won the national inspection free and Chongqing famous brand products.

The two phase covers an area of 1600 mu. On the basis of the first phase, a shoe trading center and a quality inspection center will be built. 50 shoe manufacturers, including the world's top 500 enterprises, Brazil and Cairo, will be completed and put into operation in 1 years. The three phase project has already completed the preliminary planning work, covering 2500 mu, and will build a production and processing base for leather goods, leather and footwear brand enterprises, and introduce a number of well-known shoemaking enterprises.

Now, 5 years later, the first phase of the project has already been completed successfully.

The two phase of the project is under construction.

The western shoe market has explored a successful way of "interaction between the East and West, cooperation and development, complementary advantages, joint efforts to build a prosperous, prosperous and prosperous industry".

In fact, the main reason for the successful operation of the western shoes city and the prosperity and development of the western footwear industry is the cost advantage of the West.

For the Chinese footwear industry, which relies solely on cost survival, the West has the absolute advantages of land, energy, pportation, labor and so on.

It is estimated that every pair of shoes produced in Bishan, Chongqing, can save 20% of the cost compared with the eastern coast.

At the same time, Chongqing has its unique port advantages and low cost logistics advantages of the Yangtze River golden waterway.

Li Kun, director of Sichuan Jiahui logistics company, who has been engaged in export freight business from west to Shanghai for years, told reporters that the cost of export logistics of western enterprises accounted for 20% of the total product cost, while the cost of waterway pportation was only half of that of the highway and 1 / 3 of the railway.

Moreover, recently, the Chongqing Cun Tan bonded port area has been examined by the Customs General Administration of China. After the establishment of the bonded zone, the export products do not need to go to Shanghai for customs declaration, and directly take the waterway from Chongqing, thus greatly reducing the logistics cost.

In addition, the western region has developed animal husbandry, providing more than half of the country's cattle, sheep and pigs and other raw skin resources. For a long time, these pellets have been pported to the eastern coastal areas for long-distance leather processing and then exported to the eastern leather shoes manufacturers.

This "leather in the west, shoes in the East" situation does not meet the requirements of the rational allocation of resources in the market economy, for shoe-making enterprises, increased production costs.

"Moving east shoes to the west" can effectively reduce production costs.

The winter of industrial pfer is coming. The migratory birds in the East are moving westward.

"In the process of moving eastward to the East, the most powerful promoter is not the government but an invisible hand - cost."

Zhang Shuhua, chairman of the China Leather Association, believes that the footwear industry is a "migratory bird economy" and is always pferred to countries and regions where labor costs are low.

In the 60s of last century, the world shoe center moved to Japan and South Korea in Italy in 70s, moved to Taiwan in China in 80s and pferred to Guangdong Dongguan and Zhejiang Wenzhou in 90s.

Nowadays, the shoe center is pferring to the central and western parts of China. The low cost advantage of the west is like a huge depression, attracting the capital inflow into the East.

"The reason why AOKANG chose to invest in Bishan should be AOKANG moving directly to the trend of China's footwear industry moving from east to west, and welcoming the result of strategic adjustment from domestic and international competition."

Wang Zhentao, President of AOKANG group, said so.

Driven by AOKANG, the shoemaking enterprises in the western shoe market have developed rapidly, and enterprises in the coastal areas have shifted to the West.

Recently, more than 20 shoe factories supporting the processing of Brazil's shoe giant, Dongguan, have been unable to bear the pressure of cost. They have quietly moved to Bishan, the western shoe market, to prepare for the two venture.

"Moving east shoes to the west" also provides convenience for the development of the western market.

At present, due to the blocked foreign trade, many shoe companies are turning to domestic sales. The three giants of Dongguan shoe industry, Yuyuan, Xing ang and Huajian, are now forging ahead with their own brands to rush to the mainland market.

In this war of domestic sales, the western market has become a competitive destination for all shoe companies.

Recently, the largest leather trade and trading center in Western China will be put into operation. The leather city integrates wholesale, retail and display of leather goods, bags, leather shoes and leather products. Based on Chongqing, it will radiate the surrounding areas such as Sichuan, Guizhou, Yunnan and so on, which will facilitate the development of the footwear industry in the western market.

In the process of "shifting East shoes to the west", the government's strength should not be ignored.

If the shortage of energy and labor has sowed the "fire" of the shoemaking enterprises in the eastern coastal areas, then the government's policy guidance is a catalyst for the shoe industry to escape.

The shoemaking industry is a chicken ribs for the eastern coastal areas. It is attractive to the vast Midwest cities.

The shoemaking industry can bring huge employment population, can drive huge GDP output value, and has a strong industrial driving role, which makes local governments heartbroken.

Therefore, the attitude of the eastern government is different from that of the eastern government. The Chongqing municipal government has stepped up the planning of the park, issued preferential policies, and opened the door to welcome the entry of the eastern manufacturing sector.

In April this year, the main leaders of the municipal Party committee and municipal government of Chongqing took the initiative to invest in the eastern coastal cities.

Insiders said, "the movement of the East shoe to the west is like migrating birds to avoid the cold winter. The Chinese shoe industry has come to the cold winter. The slow flying enterprise is likely to become the victim of this winter."

The new path of Chinese shoe industry pfer has been clear.