Footwear Industry Should Vigorously Develop Headquarters Economy

The output accounts for nearly 1/3 share of Guangdong (hereinafter referred to as "Ji"): President Chen, would you like to talk about how Dongguan shoes industry developed? Chen Jiawen (hereinafter referred to as "Chen"): the footwear industry in Dongguan has undergone more than 20 years of development since reform and opening up. When the central authorities approved Guangdong to implement special policies and flexible measures, the focus of the work was to introduce foreign capital to set up factories and develop the economy.

As a central city of the Pearl River Delta, Dongguan has developed earlier and faster.

After many field visits, Taiwanese businessmen and Hong Kong businessmen feel that Dongguan is a relatively comprehensive investment environment. They are very willing to invest in Dongguan to run factories.

The vast number of Taiwan and Hong Kong shoe enterprises have accumulated decades of experience in shoe making before entering Dongguan.

Dongguan draws on foreign experience through attracting foreign investment to run factories.

The shoe making industry is developing rapidly and changing rapidly. The products are of higher quality and grade.

The introduction of foreign investment brought about the prosperity of shoemaking industry, and also led to the development of a large number of private enterprises in Dongguan, and improved the management level and technical level of Dongguan shoemaking enterprises.

In the current pattern of China's footwear industry, the PRD is a major town for the development of footwear industry in Guangdong, while Dongguan is the focus of the development of the footwear industry in the Pearl River Delta.

Broadly speaking, Guangdong's footwear production and exports account for about 1/2 share of the whole country, while Dongguan accounts for nearly 1/3 of Guangdong's share.

Reporter: what are the government's preferential policies when Dongguan's shoemaking industry has just developed? Why is Dongguan so attractive to Taiwan and Hong Kong businessmen? Chen: Dongguan's footwear industry has been developing since the 80s of last century. It has decades of history. At the initial stage of reform and opening up, the state gave Guangdong and Fujian two provinces special policies to introduce preferential measures in terms of Taxation and land use to attract foreign capital.

Hong Kong and Taiwan entrepreneurs, as investors, are sure to develop where the trade environment is good.

In general, in the investment environment of Dongguan at that time, geopolitical and human relations were superior, and the advantage of Houjie was more prominent.

Industry chain development and improvement: Guangdong's South China Sea and Heshan footwear industry, compared with the footwear industry in Dongguan, what are the characteristics of the shoe industry? Chen: the development of footwear industry in the Pearl River Delta South China Sea and Heshan has its own characteristics.

But the characteristics of Dongguan shoe industry are quite distinct.

Dongguan has not only developed footwear industry, but also has developed relevant industries such as shoes, shoes, leather and hardware. Many famous shoe factories in Taiwan have been stationed in Dongguan.

It can be said that the links from raw material production to finished shoe circulation are better connected. In footwear varieties, men's leather shoes and sports shoes are relatively concentrated, of which middle and high grade leather shoes are quite numerous.

Reporter: when the shoe traders in Taiwan arrived in Dongguan, did the technical backbone come from Taiwan or in Dongguan? Chen: when Taiwan and Hong Kong businessmen first came to Dongguan to engage in shoe industry, the backbone of the technology was mainly brought by themselves, because they were worried that the quality and technology of some products in Dongguan could not meet the requirements. After a period of running in, the Taiwan and Hong Kong shoe manufacturers and raw materials were also produced in Dongguan.

The footwear industry in Taiwan has a relatively solid foundation, rich varieties and high quality.

While supporting the development of Dongguan's supporting industry chain, it has also promoted the development of other industries such as property and service industries, and has also trained a number of local high level production technology backbone.

Reporter: what are the areas of footwear exported to Dongguan? Chen: the main export areas are the United States and Europe, some of which are sold back to Taiwan, and some of them are exported to Hongkong. However, Hongkong has a small population and small market demand, mostly through the re export trade in Hongkong.

Less shoe brand: how does Dongguan's footwear brand develop? Chen: Dongguan is more about processing foreign brands, and its own brand is relatively small. This is a pity.

Many entrepreneurs are accustomed to the production mode of OEM processing, and brand awareness is not strong enough.

In fact, from a large scale, there are not many famous footwear brands in Guangdong province.

Reporter: previously, there were many remarks that many shoe factories and shoe factories in Dongguan were closed down. How do you think about this problem? Chen: there are such claims in the industry at present, but I do not agree with them. This statement is exaggerated.

Since last year, anti-dumping, appreciation of the renminbi, rising labor costs and tightening of the processing trade policy have increased the pressure on quite a few shoe factories. Therefore, some small factories have been closed down, and some factories have pferred property rights and production to the mainland.

But it is impossible to shut down more than 1000 shoe factories at once.

In the competition of the market economy, the survival of the fittest is a natural law. The shoe enterprises in Dongguan have both closed down and moved out. There are also newly opened businesses. Some agencies have exaggerated the number of factories that have been shut down, but not how many of them have been opened. This argument is unfair and has a negative effect on the society.

For example, some individual footwear enterprises reflect that the banks are affected by this one-sided report and worry about the collapse of shoe enterprises. Therefore, further tightening of loans to footwear enterprises will bring greater difficulty to the operation of shoe enterprises.

Reporter: according to your understanding, what kind of enterprise is the main type of failure? Chen: in fact, most of the enterprises being eliminated are small businesses whose foundation is unstable and their comprehensive strength is not strong. For some large scale and solid foundation shoe enterprises, their business in the order and export business can maintain stable development and little impact.

Reporter: at present, Dongguan is carrying out the pfer and upgrading of labor-intensive industries. What measures do you think Dongguan footwear industry should take in the next step? Chen: actually, in the labor-intensive industry, the pollution of shoemaking industry is not serious.

In the light of the current situation in Dongguan, the development of footwear industry in the future should pay attention to the improvement of quality and grade. We must not only pursue the increase of output; we should focus on the medium and high grade products in the production and processing, raise the scientific and technological content, and strive to create our own brand.

Focusing on technological development, product innovation and brand building, we will enhance the quality and influence of the whole industry.

After so many years of development, the footwear industry in Dongguan has gradually become a center for shoe research, development and production. In the future, it is necessary to further consolidate the foundation and enhance the influence of Dongguan footwear industry base.

How do you think of the development trend of Dongguan thick street to become "the base of the Asian shoe industry" and "the world shoe capital"? Chen: the development of the heavy street shoes industry is obvious to all. This is related to the support of the local government. In the future, we should focus on the economic base of the industry and keep up the trend of the world.

I don't agree with the "capital" everywhere. Everywhere, the center is everywhere, and then there is no center.

I think Dongguan has a good foundation for the development of shoemaking industry. We should make solid efforts to develop R & D centers and production bases, and further develop the headquarters economy.

Dongguan footwear industry is more precisely positioned: Guangdong is the production base of the footwear industry in China, and Houjie is also one of Guangdong's production bases.