Market Saturation, Orders Suddenly Reduce Costs, Anti Rising Dongguan Shoe Enterprises Shrink Move

< p > Dongguan Huahong < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > Industry Co., Ltd. at the peak period, there are 3000~4000 workers, now reduced to about 800 people.

Guo Xiaoping, the chairman of the company, is so dumbfounded that even now such a scale is known as "first-class factory" by overseas buyers, squeezed into the top ten shoe factories in Dongguan, the world's largest shoemaking base.

Before, thousands of people and even tens of thousands of people in shoe factories in Dongguan had always been the middle size of their factories, but today they have become "first-class factories".

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< p > < strong > market downturn < /strong > < /p >

< p > "this year shoe industry is extremely bad, this situation is unprecedented.

In the past recession, it is often the same. No such market as this year, the world can not even find a market where there is a slight boom. Orders in the US and EU have been shrinking sharply, and orders have fallen sharply. At present, the prices are mainly based on low price orders, while the domestic market competition is fierce and the investment in R & D and market development is very large. In order to maintain the normal cost of factory water, electricity and labor costs, even if we do not make money, we have to take orders.

Guo Xiaoping yesterday accepted the first Financial Daily reporters to appear very helpless.

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< p > the market downturn is also seen in the 2012 earnings report released by the six major sports Brand Company of China. In 2012, the stock market of the six major campaigns totaled up to 3 billion 327 million yuan, while only Li Ning Co (02331.HK) stock amounted to 919 million yuan. Last year, it lost nearly 2 billion yuan.

Women's shoes giant BELLE International (01880.HK) also faced the problem of high inventory level. Its inventory turnover days increased 15 days to 167.6 days last year.

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< p > and facing the saturation of the domestic market, many shoe companies have taken promotions under the online and offline discounts.

This year, Li Ning Co vigorously promoted sales, and twice joined the electronic business platform, which launched the "48 hour limited time rush to buy 19 yuan" sale.

A few days ago, Dangdang "tail product" famous brand sale channel was also formally launched, and XTEP, Nike, Adidas and other sports major discount rates were all capped by seventy percent off.

Following Dangdang and fan customers entering the discount sale market, BELLE International's e-commerce platform excellent shopping mall has also announced that it will split up the excellent shopping mall and enter the discount sale market.

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< p > < strong > cost rising shoe companies busy moving away < /strong > /p >

< p > "shoe companies are now facing a serious shortage of export orders. Even the cheap orders such as turnip and cabbage prices, which were never seen before, are desperately scramble.

The domestic R & D operation costs are very high and the pressure on the capital is quite large, but the banks are far away from manufacturing companies unwilling to lend. We are like a plague, unless we have property collateral. "

Guo Xiaoping told reporters.

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< p > although the price of orders has plummeted, the wages of workers are still rising.

Guo Xiaoping said, at present, the monthly salary of 3500 yuan is also very difficult to recruit skilled workers, there are many large factories around can not withstand pressure, have reduced scale or move away, for example, a brand enterprise beside his factory has eight production lines, there are only two left.

Although Huahong shoes started walking on two legs in the early years, the situation was slightly better than that of some OEM shoemaking companies, but they also felt chill.

Because of the pressure of manufacturing costs, he has been shrinking the size of Dongguan's factories in recent years.

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< p > "we are discussing some countermeasures with some shoe companies, hoping to get help from China's Ministry of Commerce and pfer some of its production to industrial parks in Southeast Asian countries such as Kampuchea."

Asian Footwear Association Secretary General Li Peng said.

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< p > reporter has learned that as the cost of labor in the Pearl River Delta has risen more rapidly, the monthly salary of workers has expanded to more than 200 US dollars in the past few years than some countries in Southeast Asia, and some shoe factories in the Pearl River Delta have pferred part of their production capacity to overseas or the Midwest.

Baocheng industry, the largest shoemaking enterprise in the world, has set up many new factories in Jiangxi and Anhui in recent years.

Guo Xiaoping told reporters that he also set up factories in Guizhou, now has a scale of 800 people, workers generally earn only about 1500 yuan per month, and the level of technology remains to be improved.

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