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    Workers' Wages Increase By 3.5 Times Over The Past 10 Years, And The Next Stage Of China'S Footwear Industry Is Analyzed.

    2014/5/20 12:32:00 33

    ChinaShoemakingWages

    After entering P in twenty-first Century, as the manufacturing cost of the Pearl River Delta in the world's largest shoemaking base has risen rapidly, some foreign shoe enterprises that have been rooted in the PRD for many years have started a new wave of outward migration to Vietnam, India, Bangladesh and other Asian countries.

    There are also some moving inside, the emergence of "South shoes north, East shoes westward shift" spectacular scene.

    < /p >


    Less than P, Nike, Adidas and other OEM footwear production giant Baocheng industry has moved to the central and western regions of Anhui, Jiangxi and Henan, and has moved to Southeast Asian countries. The production lines in Vietnam and Indonesia have increased year by year, while production lines in the Pearl River Delta are gradually decreasing.

    Among them, in 2012, 51 production lines were cut down in mainland China, and the production lines in the Pearl River Delta region were greatly reduced.

    Adidas, a professional Taiwanese foundry company that manufactures Adidas sports shoes, set up factories in Guangzhou in 1991. After that, the factory moved to Qingyuan to set up Wan Guo shoes (fresh) Co., Ltd., and then set up factories in 2006.

    Brazil international trader, Monte Monte has pferred half of Dongguan's business to Sichuan, Qingdao and other places, and has also built a shoe-making production line in Chongqing.

    < /p >


    Zhou Shijian, executive director of the China International Trade Association, interviewed the first Financial Daily reporter, describing the fate of the labor-intensive OEM products such as the shoemaking industry with "no alternative but to spend".

    He thinks that processing trade has completed its historical mission, and primary processing is doomed to be eliminated.

    < /p >


    < p > Zhou Shijian said that the world's industrial pfer will not stop. The leather shoes on the American market, in 1976, 53 pairs of 100 pairs were produced in the US, while in 2006 only 1.5 pairs were left. The shoe industry basically "euthanasia".

    China's low-end footwear industry is also unable to escape this fate. The world's shoe making pattern is being highly concentrated in China and gradually diverted to Southeast Asia and other regions.

    < /p >


    < p > data show that from 2003 to 2013, wages of Chinese shoemaker workers increased by about 3.5 times, while the central parity of RMB (6.2382,0.0010, 0.02%) to the US dollar appreciated by more than 30%, and other costs increased, and profits were basically eaten up.

    At present, the wages of workers in the eastern coastal areas of China are about 500 dollars, while Indonesia is about 300 dollars, while Vietnam has only about 250 dollars.

    < /p >


    < p > according to the findings of the footwear association of Asia, since the outbreak of the financial crisis in 2008, with the rising cost of manufacturing in China, the footwear industry in Southeast Asia has already taken 30% of China's orders.

    Li Peng, Secretary General of the Asian Footwear Association, expressed concern that if the pfer of overseas orders had not been accelerated, most factories in the coastal areas would be pferred or closed in 5~10, and the footwear industry, which has about 19000000 employees, will face a huge impact.

    < /p >


    < p > however, the road of relocation is not smooth. On the one hand, the manufacturing industry needs to play the effect of the industrial cluster, and the production matching needs relatively long time. On the other hand, the unstable political situation and frequent strikes in some Southeast Asian countries also affect the industrial pfer.

    In addition, some Southeast Asian countries have relatively small population and can not undertake large-scale industrial pfer.

    < /p >


    Huajian group, one of the largest women's shoes manufacturers in China, has opened factories in Vietnam to deal with trade frictions. However, due to the lack of local shoe making facilities, low production efficiency and workers' strike, P's factory in Vietnam finally ended.

    And WAN Bang's factory in India has just started for several years. Due to the lack of local production support and the shortage of skilled workers in India, the scale of production is difficult to expand.

    < /p >


    Workers strike frequently in Southeast Asian countries, which brings many troubles to industrial pfer. P

    At the end of last year, a strike in Kampuchea spread to normal production of many shoe factories and garment factories. Until these factories agreed to raise workers' monthly salary from 80 dollars to 100 dollars from February 1st this year, the strike has subsided.

    < /p >


    Wu Zhenchang, chairman of Guangzhou Chuangxin shoes industry Co., Ltd., yesterday interviewed by the first Financial Daily reporter, said that although the labor force in Southeast Asia is cheaper than the Pearl River Delta, the investment risk is large, and these risks are difficult to control, and there are too many uncertainties.

    In 1990, he moved the factory from Taiwan to Guangzhou. In recent years, he was troubled by the cost of labor. He deliberately shifted part of his capacity and visited Southeast Asia for many times. However, he had been holding back. Southeast Asia's political instability and frequent strikes by workers were the main reasons for his hesitation about investment in Southeast Asia.

    He said that after the end of this round of elections, such as Southeast Asian and South Asian countries, the situation will be clear before making a decision.

    In contrast, he prefers to shift the footwear industry to the west wing and East Guangdong wing.

    < /p >


    < p > Li Peng said that compared with Southeast Asia, China's investment environment and the quality of workers have taken the lead. Although some factories in China have been shut down, they are mainly caused by internal management problems of their own companies, rather than external factors such as politics. They are finally solved. The last stop of the Yuyuan shoes factory in Baocheng, Dongguan, is the largest shoe industry ever since, but it was quickly resolved and resumed production. Foreign shoe companies investing in some Southeast Asian countries are likely to be destroyed by a strike or a political operation that has led to many years of operation.

    From a risk perspective, Li Peng suggested that shoe companies can move to the central and western parts of China. Labor force in many areas is still abundant, and labor costs are not higher than those in Southeast Asia. For example, Guizhou has a monthly salary of 1500~1600 yuan, which is equal to the labor cost of Vietnam.

    < /p >

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