Rising Cost Handicap China'S Footwear Exports

According to the statistics of the General Administration of Customs of China, in January 2015, the volume and amount of export of footwear products in China both dropped sharply. Footwear exports amounted to $5 billion 699 million in the same month, and export volume dropped by 10.9% compared with the same period last year, and the volume of exports dropped by 13.5% over the same period.

"In recent years, our country Labor cost The rapid rise has increased from 1000 yuan per month to 3000~4000 yuan in several years, and the cost of social security paid by enterprises has also risen, which has been eroding profits. " Wu Zhenchang, the honorary president of the Taiwan Businessmen Association and the chairman of Chuangxin Shoes Co., Ltd. Wang Renguo, deputy general manager of Baoding, said in a media interview that the situation of shoe industry has been going downhill since 2008. In 2014, the wages of workers increased by 200 yuan, with an average wage of 3200 yuan per month. With the increase in labor and social security costs, the cost of a factory increased by 23 million yuan a year.

Reporters understand that at present, the monthly salary of skilled workers in the PRD is generally 3000~4000 yuan per month. For this reason, enterprises should pay 759~1012 yuan to pay social security for their employees, plus provident fund, far exceeding the wages of workers and even Vietnamese workers. "Now the labor cost is approaching the area. However, the shoe industry has basically shifted away. Once the industry is transferred, it is very difficult to move back. At present, the cost of labour in the PRD is US $600~650, which is about US $300, while Vietnam is only about 250 dollars, while it is cheaper, which is about 100 dollars. Wu Zhenchang said.

It is understood that even if the recent devaluation of RMB is favorable for export, it will still be unable to retain the pace of Taiwan and Hong Kong shoe industry relocation. A number of shoe makers said that since the reform of the exchange rate system in 2005, the appreciation rate of RMB has exceeded 20%, although the recent devaluation of the RMB is conducive to reducing exports. cost However, due to many years of overvalued appreciation, this callback is limited to the footwear industry. The cost advantage of the footwear industry in mainland China is basically exhausted. The rising cost of labor and the shortage of labor force become the biggest obstacle to the development of traditional shoe enterprises. It is proposed that overseas buyers who move factories to Southeast Asia will increase.

Reporters learned that since the beginning of this year, many foreign shoe factories in the Pearl River Delta are going to be original. A shoe factory Scale down or even shut down. "A pair of leather shoes requires us $20 for orders in the PRD, while in Vietnam only US $18, customers will definitely request to place orders in Vietnam. Southeast Asian countries have an advantage over labor costs, tariffs, and even some Southeast Asian shoes and clothing products in the wholesale market price, lower than the price in the PRD factory. An unnamed shoe manufacturer official said.

Wu Zhenchang said that the cost of labor in the PRD was only 50~100 dollars higher than that of Vietnam and China. However, since the implementation of the new labor law in 2008, the cost gap has gradually widened. It is estimated that by the end of 2015, about half of Taiwanese shoe manufacturers in mainland China will shift their factories from mainland to Southeast Asia. "Shoe industry always puts manufacturing link in low cost place, often not be with main consumer market" coexistence room ". Because of the rapid loss of cost advantage, even China's potentially large domestic market can not change the trend of shoemaking industry relocation. " Wu Zhenchang said.