Shame On Chinese Shoe Makers: What To Compete With Southeast Asia?

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What is the competition between P and Southeast Asia? This is a problem that puzzles China's a target= "_blank" href= "http://www.91se91.com/" shoes /a Enterprises: the same raw materials and similar management level, while the labor cost is about twice as high as that of the other side.

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< p > the trend of "order shifting southward" has become more and more obvious recently.

Yesterday, from the "a href=" http://sjfzxm.com/news/index_p.asp "Asia shoes Association" /a exclusive exclusive information, the association from the survey results show that since the outbreak of the financial crisis in 2008, as China's manufacturing costs continue to climb, the Southeast Asian footwear industry has taken 30% of China's orders.

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< p > < strong > order shift southeast > /strong > /p >

< p > "nowadays, many people in the management of the local shoe factories in Southeast Asia speak Chinese, mainly from the mainland or Taiwan. The management level is almost the same as that of the mainland, and the industrial matching is gradually improving."

The person in charge of a Nike generation factory is introducing the current situation of shoe industry in Southeast Asia.

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Li Peng, Secretary General of the Asian footwear industry association, said that from 2003 to 2013, wages of Chinese shoemaker workers increased 3.5 times in the past ten years, especially after the financial crisis, labor costs rose rapidly, while the central parity of RMB against the US dollar has appreciated by more than 30%, and other costs have risen, and profits have been basically eaten up.

At present, the price advantage of Chinese shoes has been lost, and it has been in an unprecedented predicament. Many shoe factories in Dongguan and some other factories have been cut by half, and 30% orders have been pferred to Southeast Asian countries.

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< p > "quite a few parts of shoe material have been shipped from China, but since the completion of the China ASEAN Free Trade Area, the tax exemption has been enjoyed over the past few years, and the cost has obviously decreased.

When the production conditions are almost the same, the cost of labor is about twice that. Overseas customers prefer to place their orders in Southeast Asia. In order to meet the needs of customers, the production lines pferred from the mainland to Southeast Asia are increasing day by day, and the pfer trend of Taiwan funded enterprises is particularly obvious.

The above Nike plant responsible person said, the current cost pressure seriously troubled the mainland footwear industry.

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< p > the official also said that the monthly salary of the workers in the eastern coastal areas is about 500 dollars, while Indonesia is about 300 dollars, while Vietnam has only about 250 dollars.

For shoe companies, after the production line is pferred to Southeast Asia, the average worker's wages and expenses can save 2000~3000 dollars. If the factory is 10 thousand, it can save 20 million ~3000 million labor cost in a year, which is very impressive.

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< p > our reporter understands that, for many well-known brands such as Nike, Adidas, Reebok and so on, about 20% of the global sports shoes and casual shoes Market (at wholesale prices) is the Baocheng industrial Limited by Share Ltd (9904.TW, hereinafter referred to as "Baocheng"). In recent years, new factories have been built in Jiangxi, Henan, Hunan and other places, but they still can not catch up with the speed of pferring capacity to Vietnam and Indonesia.

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< p > < strong > > a href= "http://sjfzxm.com/news/index_c.asp" > Baocheng < /a > "cut off" the 20% production line of the mainland < /strong > /p >

The data released shortly before Baocheng P showed that there were 523 production lines in the world by the end of 2012, with 204 production lines in mainland China and 51 lower than those in the 2011 by the end of 2011.

Meanwhile, the production line of Baocheng in Indonesia and Vietnam increased significantly in the same period. Indonesia increased from 134 in 2011 to 157, and Vietnam increased from 140 to 156.

The difference between the two countries before the production line with mainland China was more than 100, but in 2012 it narrowed to less than 50.

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< p > Baocheng said that in order to cooperate with the order allocation of brand customers and make good use of production advantages, the company pferred part of China's capacity to Indonesia and Vietnam last year. In 2013, the capacity regulation flexibility was continuously strengthened, so that the capacity of China, Indonesia and Vietnam could be more balanced than that of the three.

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< p > labor costs continue to rise, which has a certain impact on the operation efficiency of shoe making business.

2013 1~6 months, Baocheng subsidiary Yuyuan Industrial (00551.HK) revenue of $3 billion 700 million, an increase of only 1.4% year-on-year; Baosheng International (03813.HK) revenue of $886 million, a slight decrease of 0.3% over the same period.

It is noteworthy that Baoji's net profit margin has dropped to 2.4% in the first quarter of this year, which has dropped to 5% of the "normal" critical line of the shoe industry, compared with 6.5% in the same period last year.

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< p > compared with shoe making giant Baocheng, small and medium-sized shoe enterprises do not have the ability to set up factories overseas and face greater pressure.

When customers pfer their orders to Southeast Asia, in recent years, a number of shoe enterprises have been closed down in Dongguan and other places.

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< p > "now, China produces 13 billion pairs of shoes annually, including 10 billion pairs of exports and 3 billion pairs of domestic sales. Although the domestic sales are increasing rapidly, the export oriented pattern will not be broken in the short term. If the pfer of overseas orders is not accelerated, most factories in the coastal areas will be pferred or closed in 5~10, and the footwear industry, which has about 19000000 employees, will face a huge impact."

Li Peng expressed concern.

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< p > Wu Zhenchang, former president of Guangzhou Association of Taiwanese businessmen, also said, "in fact, global consumption has not decreased. Some mainland orders are being partitioned by Vietnam and Indonesia. Southeast Asia is in a period of rapid economic development. Shoes," a target= "_blank" href= "http:// www.91se91.com/" clothing "/a", electronics and other industries have gradually become evenly matched with China.

In order to avoid large-scale industrial pfer affecting employment stability, it is necessary for the Chinese government to reduce the operating cost pressure through various ways.

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