How To Deal With The Shoe Enterprises In Dongguan?

It is reported that Dongguan shoe machinery The chamber of commerce is planning experts from Germany, Italy and Japan to engage in shoemaking to guide the shoe machine industry in Dongguan. Wang Jingwen said: "I think what our enterprises need most is not loans, not policy support. The most vulnerable part of shoe machine in Dongguan is actually technology. What is most needed is the sublimation of technology.

Experts say that the average annual footwear consumption per person in China is only 2.5 pairs per year, far below the average of 7.5 pairs per person per year in the United States, which has great potential in the future. And Dongguan has a mature industry chain and talent team, with a solid position and broad prospects. Experts believe that although China's footwear exports accounted for 80% of the total, but in the long run, the domestic market will become a more important platform for shoemaking enterprises and related supporting industries.

　　 Dongguan shoe machine industry shrinking

"The world shoe industry looks at Dongguan, Dongguan shoe industry looks at Houjie". The shoe making industry is one of the characteristic industries in Dongguan Houjie. Many foreign shoe making enterprises have taken root in this area, which has also promoted the development of local shoe making enterprises, and the supporting industries such as shoe machines, zippers, netting, reflective materials, leather and so on are also developing rapidly.

The concentration of Dongguan footwear industry relies on the policy of cheap labor and government support. However, Cheng Yu may also be defeated. Cheap labor force is the largest survival capital for labor-intensive enterprises, especially for OEM enterprises. But in recent years, the price of labor has risen, and the cost of various resources and energy has also increased rapidly, so that the owners of shoe enterprises have to find new "price depression" and invest in factories in Southeast Asia and other countries.

With the relocation of Dongguan shoe enterprises to Southeast Asia, the order from these enterprises to Dongguan shoe machine enterprises has also evolved from domestic sales to foreign trade. Data show that the more than 100 member enterprises of the shoe machine Association of Dongguan generally have the phenomenon of rising export orders. The main reason for this phenomenon is the relocation of customers. Driven by the channel reform, many shoe-making enterprises began to study and expand overseas markets.

A shoe machine company told reporters that with the relocation of their customers overseas, the sale of products was also sold to domestic sales, and driven by channels, their enterprises also had the opportunity to extend to overseas markets. "This is not only a continuation of simple domestic marketing channels."

Some customers of shoe machine enterprises have moved to India. Reporters learned that the shoe machine company had only focused on the domestic market, and the domestic market could also support its survival needs. But with the relocation of the customers, the original domestic orders became external orders. "We must pay more attention to the India market and develop corresponding products. At the same time, we will also receive some business opportunities brought about by India, which are not accessible to the domestic market before.

Wang Jingwen said frankly that the export share of the name Ling industry has also increased. "Before exports and domestic sales accounted for 20% and 80% respectively, and now the share of export sales has accounted for 40%. The main reason is that some customers have moved overseas and our supply must follow."

However, the increase in export orders is not enough to make Dongguan shoe machine enterprises excited, or it is just a representation.

"From the data point of view, the export volume is increasing, but more from domestic sales, and now some foreign trade orders are gradually losing. Orders from South American customers have now returned to South America. Local factories are starting to build shoes factories. Wages on our side are basically flat with them. Manufacturing in the United States is also returning. Canada has also begun to have some shoe machine enterprises, which will surely be lost in the future, and it is impossible to maintain the status quo. " Some business owners say so.

There are also some shoe-making enterprises to compete with the shoe machine enterprises in overseas markets, but because of the weak foundation of overseas marketing, they have also lost some customers.

Compared with export sales, the share of domestic sales fell faster. In addition to the relocation of shoe companies, some domestic orders have been taken away, and shoe machine companies that are simply not doing so have existed.

"More than 20%, maybe 30%. 20% is transferred overseas, and 10% is lost. Some shoe-making enterprises did not do so, some of them reduced in size. Therefore, although the share of export sales has increased, for most enterprises, the overall output value and sales volume has decreased. For the status of shoe-making enterprises, Wang Jingwen judged this way.

Reporters also found that although the business proportion of shoemaking enterprises was gradually adjusted with the relocation of shoe enterprises, most shoe machine enterprises did not move along with shoe companies. Most of them only set up overseas branches to sell and service, and headquarters were still in Dongguan. "Taiwan funded shoe-making enterprises may migrate in the future, but the possibility of local enterprises to migrate is not large." Insiders say.

　　 The dilemma of cancer

"To make a pair of shoes 20 years ago to earn a dollar, the price of the shoe sold abroad is almost unchanged, but what is the wage level 20 years ago? What is it? At present, the profits of many shoe machine companies are almost zero." A shoemaking enterprise boss told reporters that the pressure of shoemaking industry mainly came from the downstream shoemaking enterprises, and the pressure of the latter mainly came from the rise of labor costs in China.

"The shoe industry in Dongguan is suffering from cancer." Wang Jingwen said. "The cost of getting goods is impossible to reduce. Price inflation can not be reduced. The appreciation of the renminbi is irreversible, so this is a" cancer ". This piece of land is no longer suitable for the production of footwear, especially for sports shoes, but can only produce some high-end brand and high value-added footwear industries. The production of shoes in general is no longer suitable for this land. "

If you don't fit, you have to move, but for shoe companies, going overseas or moving inland is a difficult choice.

A shoe maker owner told reporters that 70% of his customers had failed to move inland. "Encountered many problems, for example, the mainland is very difficult to manage. I have a few Taiwanese funded enterprises moved to the inland, some went to Henan, some went to Hubei, but the effect is not ideal. They think that the mentality of mainland employees is that they can be very obedient in Guangdong, but when they arrive at the place where they live, their mentality is completely changed. They feel at home. Why do I want to do it? I do not want to come and do not come, causing confusion in management.

More shoe companies have chosen to move overseas. According to the survey data of Guangdong foreign trade and Economic Cooperation Department, there were 41 investment projects transferred from Guangdong to China last year, of which 15 and 13 were transferred to Malaysia and Vietnam, mainly textiles, clothing and shoes and hats.

"In fact, they also have great risks in relocation. Their accumulated government relations, connections, social foundations and so on in Dongguan for many years will be wasted, so they will not be relocated until the last resort. When moving to a strange environment, Kampuchea or Burma will have to start again. That kind of hard work is imaginable. Wang Jingwen said.

However, he said that labor-intensive enterprises themselves earn labor money, and now Dongguan's labor force is no longer available. Enterprises can not earn money and do not move to a dead end, so they have to move. "The relocation of enterprises is not all at once, because in the early stage also accumulated some customers. The factory of ten thousand people may first open a factory of two thousand people outside, and gradually rise there, then gradually reduce this side, and finally completely break off. This is almost the same as that of Taiwan enterprises when they moved to the mainland.

Relocation can not fundamentally solve the problems faced by the footwear industry in Dongguan. Although the labor cost is relatively low after the transfer, the imperfect industrial chain and the lack of infrastructure are also puzzling them.

A shoe maker predicted that the scenery of Taiwan's shoe machine enterprises would be replaced by the growth of the shoe machine industry in the mainland. "In the early days, there was no shoe machine industry in the mainland, all of which depended on Taiwan. After the relocation of Taiwan funded shoemaking enterprises to mainland China, the local shoe machine industry in mainland China has also developed, which is a great blow to the shoe machine industry in Taiwan. Now, too, Dongguan's shoe machine (industry) is transferred to India, Kampuchea, these places, they will also have local people to produce shoes machine, this is sooner or later.

With regard to shoemaking industry, with the relocation of shoemaking enterprises, the export orders of shoemaking enterprises are exported to export, and the cost of output is also rising behind the increase of export orders data.

"If we compare the cost of domestic and export, that is the cost of exporting." Wang Jingwen told reporters that when transferred to the domestic sales section of export, after the transfer, the cost will increase by 5 points compared with the domestic sales. The increase is mainly caused by freight charges. The two is the service charge. The technical personnel should track the products overseas. The three is tariff. "In China, we can be protected by our own country, and exported to other countries, they will impose tariffs on our products." {page_break}

　　 Not "drag" or "wait".

The shoe industry in Dongguan is in a dilemma, and the shoe machine industry in Dongguan is in a more difficult position. Reporters interviewed found that the owners of shoe-making enterprises in Dongguan now have two main mindsets. One is "drag", the two is "waiting".

"Because of the small profits, many shoe-making enterprises actually have no intention of running again, but they suffer from the" labor law "stipulating that the company is going to go bankrupt and the employees are paid an expensive severance payment, so they choose to delay the time. This is a very realistic social phenomenon. For example, a 1000 person enterprise will not have to pay huge compensation when the employee leaves his job and dragged himself to more than 100 people. Wang Jingwen said, as long as the enterprise can maintain the business to maintain capital, in order to compensate for the least, it will use the "drag" strategy, let the factory maintain the status quo, and the workers' salary is not high, so that these employees will slowly leave their own, and they will not be recruits.

The second mentality of shoe makers in Dongguan is "wait". These enterprises do not have transformation and upgrading, nor do they have the possibility of transformation and upgrading. Because there is a glimmer of hope for the future, so long as we do not lose money, we will try our best to maintain it. "After all, the enterprises that they have worked so hard to create are not going to want their companies to fall."

　　 Quality becomes "straw"

"It used to be just a shoe shuffle, and now the shoe machine is the same, but shuffling is just beginning. What will be left in the future is the person who has laid down his mind to do research and development in recent years. If you make a market every day, just make money and do not research and development, then it will be very dangerous now. The era of relying on the market and making quick money has passed. " Wang Jingwen said that the shoe machine industry in Dongguan had come to a really big shuffle.

"The reason is very simple. Before the shoe machine industry, the cake is very big. No matter how well done or badly done, you can get a slice of it. Now, this cake is only enough for three people to eat. It must be the strongest three people to eat it. The shoe machine industry in Dongguan has developed to a state of saturation. There are more than 100 hundreds of us. We used to be able to eat a little bit, and now we have to fight for the fittest. technology We must strive to win the living space by combining quality and price.

Insiders said that although the shoe machine products in Dongguan have been in the forefront of the world in R & D and innovation, they still have quite a distance in terms of basic quality. For example, Germany's world famous industrial sewing machine brand Germany Du Ke Pu has a hundred years of development history, their industry technical experience accumulation has reached a very high level, its strict technological requirements and advanced manufacturing equipment are not yet achieved by Chinese enterprises.

"The output of Dongguan shoe machine is in the front rank in the world, but the quality still has a big gap with the world brand shoe machine." Wang Jingwen told reporters, "if the competition in the South American market, the advantage is only the price." If we compare with Europe, the advantage will be more than the price. "

As for the Southeast Asian region where Dongguan shoe companies migrate, Wang Jingwen believes that shoe makers in Dongguan have relative advantages in quality and price, because the development of shoe machine industry in Southeast Asia is relatively weak, and most of them rely on imports. However, what worries shoe makers is that European and American brand shoe machine enterprises have also been stationed in the Southeast Asian market.

"It used to be a mess. Everyone had to eat and didn't need to have their own core technology. As long as they had a good relationship with the shoe factory or a manager, they could survive the factory. Now, this is going to slow down. The whole industry is shrinking, production capacity is shrinking, and some low investment will be eliminated. Sooner or later, the day will come. This has awakened the whole industry. Before the shoe machine enterprises that only focused on copying and imitation, they must notice that if they want to live, they must have their own original things and have their own core competitiveness. In fact, this is also conducive to the healthy development of the industry in the future.

Now, whether to invest in R & D has become a dilemma for shoemper enterprises. It is difficult to shrink or throw. At present, the industry has not yet bottomed out, and has not reached the end of the storm, so most enterprises are still sticking to their industry. I estimate that if we wait a year or so, we can see whether some enterprises are doing or not.

Dongguan shoe machine association is planning to hire experts from Germany, Italy and Japan to make shoes for the shoe industry in Dongguan. "I think what our enterprises need most is not loans, not government policy support. The most vulnerable part of shoe machine in Dongguan is actually technology. What is most needed is the sublimation of technology. Only by improving the level of technology can we truly enhance the international competitiveness of enterprises and compete with shoe manufacturers in Italy, Germany and Taiwan, China.

"No imagination is so optimistic, not so pessimistic, shoe-making enterprises to a more reasonable attitude to look at. As long as the enterprise can maintain a good competitive edge and concentrate on technology research and development, it will still get a piece of cake. If we continue to imitate and rely on cheap, the mortality rate of enterprises will increase. " Wang Jingwen said.

Xie Jiachen, a researcher in the machinery industry of CIC, said that Guangdong is one of the key areas of shoemaking in China. Under its impetus, Dongguan shoe machine industry started earlier, and accumulated a certain amount of capital and technology experience, and the scale of production continued to expand with the potential of sustained growth. At present, the pressure faced by the industry lies mainly in brand building, scientific research and development, and timely innovation. At the same time, the rising cost of labor and raw materials also poses a challenge to the shoe machine industry. To break through the shoe machine industry in Dongguan, we must pay attention to the development of overseas markets, improve the network of sales channels, increase R & D investment, improve the technological content of products, meet and adapt to the needs of customers. brand Construction, realizing differential competition and improving the overall competitive strength of the industry.

　　 Experts: shoe machine domestic sales money outlook

Xie Jiachen, an analyst with CIC's mechanical industry, said that the relocation of shoe enterprises to Southeast Asia is a good news for Dongguan. The relocation of some enterprises will inevitably bring new equipment demand, and the increase in the order is conducive to the development of shoe machine industry in Dongguan. At the same time, the development of shoe machine industry in Dongguan is relatively concentrated. Under the background of the uncertain external economic development and the rising cost of artificial rents, enterprises need to find new markets and breakthroughs urgently. The opening up of overseas markets will release the strong demand for shoes machine equipment, and it is expected to achieve a big increase in the shoe machine industry in Dongguan.

Experts suggest that shoemaking enterprises and related supporting industries can develop the domestic market into a more important platform. He believes that China's average annual consumption of footwear per person is only 2.5 pairs, far lower than the average annual average of 7.5 pairs per person in the United States, and has great potential in the future. And Dongguan has a mature industry chain and talent team, with a solid position and broad prospects. {page_break}

　　 South China Sea shoe machine has more policy support

In the province of Guangdong, the shoe machine industry in the South China Sea, which was born in the early 1980s, is also famous. In the early days of development, the shoe machine industry in the South China Sea first obtained the "market access voucher" with a flexible small scale enterprise mode. Besides, the shoe machine industry in Dongguan is more and more massive in quantity, but there is not much difference in the shoe machine enterprises between the two places.

Wu Hang, Secretary General of Guangdong Footwear Manufacturers Association, said that the footwear industry cluster in Guangdong province basically looks for its own development mode according to different categories, so there is no fierce competition in the category.

"Basically almost the same, but the South China Sea shoe machine gets more policy support." Wang Jingwen pointed out that the threshold and conditions of Dongguan shoe machine industry (support) are relatively harsh, and the South China Sea will be more supportive of shoemaking. "For example, exhibitions, their business exhibitors generally have subsidies, while Dongguan basically does not. In terms of innovation and technology support, patents and innovation funds, Dongguan is worse than the South China Sea. Dongguan is only bigger because of its earlier development.

Shoe-making enterprises aim at domestic market

Many shoe-making enterprises have set their sights on the domestic market, especially in high-end brands and national brands.

"In the domestic market, the appreciation of the renminbi is not much related to them. They are not linked to the US dollar exchange rate, and the labor cost is rising. The factory price can also be adjusted freely with the price changes in the domestic market. Moreover, national brands can be more supported by the state. Wang Jingwen said.

Mr. Lin, a shoe maker, said that looking at other people is all kinds of scenery. It is profitable to see foreign trade in the domestic market. In fact, no matter what, the key is that enterprises should identify their location and not blindly follow them, because they will have their own potentials and difficulties whether they are domestic or exported.

Shoe-making enterprises have chosen to extend the R & D field, not only to make shoes products, but also extend to other fields such as building materials, so as to balance the overall development of enterprises. Mr. Yi, a shoe maker, is constantly participating in domestic exhibitions, looking for some potential buyers. He also wants to further expand domestic sales channels through online shopping.

According to the insiders, the speed of shoe machine products will definitely accelerate with the new generation in the future, and the demand for product quality will also be higher, and the requirements for automation and intellectualization will be more. Therefore, some high-end and capable shoe-machine enterprises will be pushed to the top of the industry, and some enterprises that can not keep pace with the market will be eliminated.