Footwear Industry: Rising Labor Costs

"In recent years, the cost of labor in China has risen rapidly, rising from 1000 yuan per month to 3000~4000 yuan in several years, and the cost of social security paid by enterprises has also risen, and has continuously eroded profits."

Wu Zhenchang, chairman of Guangzhou Taiwan Business Association and chairman of Chuangxin Shoes Co., Ltd.

Wang Renguo, deputy general manager, said in a media interview that the shoe industry in Dongguan has been on the decline since the beginning of 2008.

In 2014, the workers

It has increased by 200 yuan, with an average wage of 3200 yuan per month. With the increase in labor and social security costs, a factory has increased spending by 23 million yuan a year.

Reporters learned that, at present,

The average monthly salary of skilled workers is 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 in Kampuchea and even Vietnamese workers.

"The cost of employment in Guangzhou is now approaching the Taiwan area.

However, the footwear industry in Taiwan has basically shifted away. Once the industry is pferred, it is very difficult to move back to Taiwan.

At present, the cost of labour in the PRD is 600~650 dollars, and Indonesia is about 300 dollars, while Vietnam has only about 250 dollars, while Kampuchea is cheaper and about 100 dollars.

Wu Zhenchang said.

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It is understood that Tongxiang St. Lee Footwear Co., Ltd. set up a professional electricity supplier team last year, ready to "expand territory" in the field of electricity supplier.

In November 2014, the two brands of Santa Lee, "Cartier" and "Jasmine", were settled on the "vip.com" of the electronic business platform.

From last November to this year's Spring Festival, the total sales volume of two brands reached 10 million yuan in the past 4 months.

In the past years, the annual sales volume of Santa Li in the field of electricity business is only nearly 2 million yuan.

In Shimen shoe enterprises, Santa Li has always been a leading enterprise. Quality and reputation have always been praised in the industry.

"Last year's performance is very impressive, but it is somewhat insignificant compared with competitors in the same industry."

Qian Fei said that San Dali is facing the national market of "master like cloud". Compared with the first tier cities, Tongxiang's electricity supplier atmosphere is not enough; compared with the first tier brands, the accumulation of San Dali brand is not enough, and the style of the products is also not in line with the "new" of Chengdu in Guangzhou, even at the disadvantage of team and professional talents.

However, even if it is difficult, Qian Fei has confidence in playing a "blue ocean" for Santa Lee.

"This year is the first full year of our team. We have strong plasticity and can adjust the marketing strategy to the market at any time."

He said that for Santa Li, this year's more important thing is to build the business enterprise structure.

In fact, like Santa Li, "electric shock", though early, has yet to expand the business of electric business in Shimen.

However, since last year, Shimen shoe enterprises have set up a professional team, settled in the electronic business platform, and hit the "fingertip consumption".

This year, Tongxiang has ushered in such a rare opportunity as "one industry, one network". The influence of the world Internet Conference permanently settled in Wuzhen continues to expand. How can Shimen women's shoes develop on the occasion?

Reporters learned that, in addition to their own "fast", the government, industry associations also work together to serve.

According to Lvliang, deputy mayor of Shimen Town, Shimen will create an e-commerce gathering area in the lambs business center this year.

The gathering area mainly focuses on e-business enterprises engaged in footwear related fields, providing them with rent free platforms, sharing resources, reducing logistics costs, and providing personnel training.

Through these service measures, the traditional women's shoes manufacturers can integrate into the electricity supplier's atmosphere as soon as possible.

Zhong Hongxing, President of Tongxiang footwear industry association, also said that this year, the association will provide enterprises with more opportunities to communicate and learn outside the country, so that entrepreneurs can harvest more new ideas and move out of a development path belonging to Shimen shoe enterprises.