Dongguan Shoe Industry Bottlenecks After Many Days Of Strike

Over the past two weeks, Prada SpA Prada The group, Nike Inc. (NYSE:NIKE) Nike group and Adidas AG ADS.DE (Adidas) and other global apparel giant suppliers Stella International Holdings Ltd. nine Xing Holdings Limited and Yuyuan group (0551.HK) in mainland China's Pearl River Delta city of Dongguan continue to strike factories, triggering strikes are still workers concerned about social security and provident fund and other welfare issues.

Yu Yuan is the largest in the world. Gym shoes Dai industrial and commerce, nine Xing is the world's largest supplier of fashion shoes, and the strike of the two factories in Dongguan has made global shoe manufacturers nervous.

According to a number of media reports such as WSJReuters, thousands of workers in Xingxing and xingxiong two shoe companies in Xingxing group, Dongguan, have been on strike since March 10th. However, nine Xing denies the number of thousands of people, only saying that there are "hundreds of people".

Yuyuan strike has started since last year and has received the attention of the Ministry of human resources and social affairs.

According to data analysis, in 2014, nine Hing's footwear products shipped as high as 53 million 100 thousand pairs, accounting for about 60% of the high-end fashion shoes in the world. Apart from the well-known Prada Prada brand, Burberry Group PLC (BRBY.L) Boboli, Michael Kors Holdings Ltd. (NYSE:KORS), and the products of the group's footwear products such as the NYSE:KORS group of the LVMH group under the LVMH group, including the group of 10, including Xingang, Xinglai, Xingpeng, xingxiong, Xingli, Xingtai and so on, have nine employees. Yuyuan's annual shipments are more than 200 million, and its employees exceed 400 thousand.

Although the OEM business of Taiwanese, Hong Kong and Chinese capital has been shifting outwards over the past five years, the capacity of other Southeast Asian countries is still weak, and the mainland is still the most important manufacturing market. With the continuous protection of industrial workers, many manufacturers and representatives of industry and commerce are concerned about this situation, because once the strike continues, the whole world will continue to go global. Apparel industry Will be deeply affected.