Market Downturn: How Can Footwear Manufacturers Act On Their Own?

< p > with the continuous change of < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a >, the foundry enterprise has become more and more difficult to survive.

Reporters learned that the reduction of orders from OEM enterprises is an indisputable fact.

It is reported that in early June of this year, a statistical data released by Qingyuan Statistical Bureau of Guangdong province has attracted wide attention: last year, two big shoe factories, Guang Shuo shoes company and WAN Bang shoe company of Qingxin District declined by 5416 people due to the decline in production efficiency.

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< p > as we all know, the above two enterprises are the foundry enterprises for naked shoes of world famous sports brands.

In the environment of "OEM mode" has long been a synonymous with low added value and labor intensive, the OEM shoe manufacturers can reduce thousands of workers in a year, which makes people associate with each other. Is the "foundry mode" unsustainable? Is it necessary for shoes manufacturers to upgrade and pform their own brands? < /p >

< p > Wan Wan is a footwear manufacturing multinational company, producing shoes for famous brands such as Adidas.

It can be found from its public information that since 2001, Wan Bang began to set up Wan Bang (Qingxin) Footwear Company in Taiping Town, Qingxin County, Qingyuan.

Previously, Wan began to set up factories in Guangzhou in 1991.

With the increasing scale of international brand foundry, and the cost of land and labor in the Pearl River Delta increased, the cost of expanding production increased, and the pfer place of Wan bang Guangzhou production line chose Qingyuan.

In the 5 years of 2006, Wan state gradually shifted the production line from Guangzhou to Qingyuan.

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< p > and WAN Bang's track is similar. The predecessor of Guang Shuo shoe industry is also a Guangzhou company. At the end of 2001, in order to better develop, Qingyuan Guang Shuo registered, in March 2003, the Guangzhou company moved to Qingyuan Guang Shuo, and completed the factory expansion in 2006.

According to its official website, Qingyuan has 15 million pairs of capacity and 1.6 employees.

The Qingyuan footwear industry was established in 2004, and was put into operation in 2006, with production capacity exceeding one million pairs per month.

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< p > the development of these Qingyuan shoe enterprises is similar: for Nike, ADI and other world-famous sports brand foundry, before 2000, the production line was basically located in the Pearl River Delta; after 2000, with the increasing cost of production and other production factors in the PRD, the production line began to move inland to expand production.

Qingyuan, the Pearl River Delta region, has chosen Qingyuan with its regional advantages and the initiative of local governments.

After 2000, it was the golden period of Qingyuan's development.

According to public reports, in 2001, Zhang Rongwu, chief executive of Guang Shuo, came to Qingyuan for a tour. The leaders of the local government immediately approached him and worked on the office of water, electricity and soil issues raised by Zhang. All of these were implemented one by one, and the great sincerity was exchanged for the investment of 300 million yuan.

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< p > < strong > cost increased, orders reduced, OEM shoes output value, exports declined, /strong < < /p >

Less than P, the relocation of foundry footwear enterprises once alleviated the pressure brought by the rising cost of production factors, but did not change the trend of Chinese Foundry Enterprises' profits declining.

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< p > in recent years, because of the appreciation of RMB, the continuous increase of manpower cost and raw material cost, and the rise of Southeast Asian generation industry, on the one hand, the export profits of domestic foundry factories have been declining. On the other hand, international famous brands are also more inclined to hand over orders to Southeast Asian factories.

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< p > "RMB appreciation has engulfed the profits of export enterprises. In recent years, the cost of manpower has increased by over 30%, raw materials have exceeded 20%, and the profits of each pair of shoes have dropped rapidly."

A Qingyuan foundry shoe enterprise official told reporters.

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< p > under such circumstances, it is inevitable for the foundry enterprises to move further to the lowland where labor costs are lower. Some large foundry groups have set up factories in the mainland, or have already set up factories in India and Vietnam.

The above shoe industry set up factories in Jiangxi as early as 2007, and WAN Bang shoes industry has set up factories in India since 2006. The shoe industry in collaboration with Vietnam has set up factories in Vietnam.

These factories in foreign countries are developing rapidly. There are statistics. Some OEM groups have even moved the main part of the production line to Vietnam and Indonesia, and the number of production lines abroad has surpassed that in the mainland of China.

Take the WAN Bang shoe industry as an example, as early as 2011, its factories in India led to the employment of tens of thousands of people, forcing the number of employed workers in Qingyuan factories.

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Below P, under such circumstances, the reduction of orders in Qingyuan factories may be unavoidable.

A large shoe manufacturer in Qingyuan told reporters that orders fell by 10% this year.

Reporters learned from the Qingyuan municipal foreign trade department and Qingxin district's bureau that in recent years, the total output value of Qingyuan footwear export and fresh shoe manufacturing industry has decreased to varying degrees.

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< p > Qingyuan's foreign trade statistics show that in the 1-5 month of this year, Qingyuan's footwear exports amounted to 180 million US dollars, down 5.8% compared with the same period last year, and footwear exports in 2012 amounted to 430 million US dollars, down 0.1% from the same period last year.

According to the statistics of Qingxin District, the total output value of footwear industry in this area has declined in 2012, and the annual production value of a large shoe factory has fallen by more than 15%.

The decline in exports and gross domestic product reflects the reduction of international orders and the decline in efficiency of OEM footwear enterprises.

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< p > "although the number of international orders has declined, the value added of each pair of shoes has increased. In addition to our overseas brands, we have been looking for cooperation from domestic well-known shoe manufacturers, so the business efficiency has also been reversed."

A shoe company in Qingyuan said.

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< p > < strong > participate in the development and upgrading of shoemaking equipment shoes enterprises to reduce manual increase of added value of products < /strong > < /p >

"P" is an international brand shooing shoe company, although its advantages are losing, but they are also trying to maintain and solidify their own advantages.

Reduce labor, improve equipment technology, participate in footwear development, and strengthen its own management. OEM shoe manufacturers are adjusting themselves, saving costs, increasing the added value of shoes, increasing the right to speak for OEM, and minimizing their own benefits.

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< p > a responsible person of a large shoe enterprise in Qingyuan told reporters that in recent years, the company has improved the utilization ratio of automation equipment and reduced the demand for employment.

"We need 10 workers to do the work before, and now we only need 8 people."

The official said that the factory currently employs 10%-20% reduction.

The reporter roughly estimated that according to the size of the more than 10 thousand person, 20% is the reduction of 2000 workers, which is consistent with the statistics of the Municipal Bureau of statistics on the significant reduction in the number of fresh shoe enterprises.

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< p > "in addition, we are constantly strengthening R & D strength and actively participating in the development of OEM brand shoes. Our sample room has a team of thousands of people."

The footwear executives said that their production models upgraded from OEM (original equipment manufacturer) to ODM (original designer), from the previous design of others, shoe factories to shoemaking factories and shoe manufacturers to participate in the development of new shoes, which not only increased the added value of products, but also continued to enhance their competitiveness.

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< p > "we are not in the Southeast Asian market whether we have the management capability, production capacity, the level of technology of the equipment, or the development capability that we have. Therefore, although the order is declining, the benefits will not drop in the short term."

The person in charge said.

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< p > < strong > how to pform deeply? < /strong > < /p >

< p > at present, some of the "three to one" OEM enterprises in the Pearl River Delta have been pformed into independent brands and domestic sales. However, the industry generally believes that "the 100 factories turn to be a brand and only one can succeed."

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Will p's footwear manufacturers in Qingyuan develop their own brands? The head of foundry shoe enterprises clearly replied to reporters.

They say that our manufacturing enterprises are the brand of our manufacturing industry, and we are the brand of manufacturing industry.

Reporters learned that, at present, the local government has also actively encouraged foundry enterprises to develop their own footwear brands, but shoe enterprises themselves have little enthusiasm to develop their own brands.

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< p > professor Li Dong and researcher of Qingyuan Polytechnic said that due to the limitation of the mode of OEM enterprises, it is difficult for the shoe companies to develop their own brands in the short term. However, the government can introduce some independent brand enterprises from the perspective of industrial chain investment so as to create footwear industry, < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > a target= "_blank" href= "target=" > clothing industry's complete industry chain, so as to make up for the lack of research and development of OEM shoemaking enterprises.

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< p > Li Dong said that at present, the shoe industry can be a leader in the Qingxin district. Considering the overall consideration, we can introduce the R & D and marketing side of the footwear industry chain, widen the width of the industrial chain, do well in logistics, exhibition and other related services, and gradually cultivate the regional brand of the fresh shoes and textile and clothing, so as to attract the continuous accumulation of related industrial chain links.

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