Africa Becomes China'S New Round Of Shoe-Making For Low Cost Pfer Of Shoes Industry

For far away Africa, a large number of manufacturing enterprises in Dongguan are still daunting.

Factories have been set up in Ethiopia.

"Even paper suitcases are shipped from China", the responsible person confessed that almost 100% of the raw materials from the African factories were imported from China and raised the cost: in China, the logistics cost accounted for 2% of the total cost of the enterprise, and the Ethiopia factory was up to 8%.

This is just one of the challenges. Public relations, market development and even greater cost tests are hidden.

"Big business can bear, small businesses have to plan carefully."

Domestic labor costs are rising, and manufacturing enterprises are considering shifting. "Can these small and medium-sized enterprises be gathered together to open factories in Africa? If we can bring upstream and downstream manufacturers to the past, most of the raw materials do not need to be imported from China."

Dr. shoes:

This is the key. If there is no complete industrial chain in the past, everything is empty talk. It is said that although XX Group has been in the past few years, it is not profitable at present.

At present, including the central television station and the media are all advocacy, why? That is to give the past enterprises to find partners, forming a complete industrial chain.

Several intentional bosses said to Dr. Wang Yongjun, "if we go, then Huajian group should give us some of their upstream and downstream matching facilities, and digest some of our orders. It will not be very difficult.

Africa's temptation to Chinese shoe companies

1. labor cost is only domestic 1/10

The monthly salary of workers in the factory is only 50 to 80 dollars, which is only 1/10 of the domestic labor cost.

2. good policy:

African governments from South Africa to Somalia are opening their economies to foreign direct investment, developing their own manufacturing industries, and helping Africa get rid of its dependence on resource exports.

3. Market Outlook:

The three major regional free trade areas of the African continent: the southern African development community, the eastern and southern African common market and the East African community will be merged into "the"

"Covering the entire African continent from Cape Town to Cairo.

The free trade area will have more than 630 million people, most of whom are young people.

Standard Chartered Bank predicts that by 2020, consumer spending in sub Saharan Africa will reach US $1 trillion.

4. zero tariff and zero quota:

To support the development of Africa, the United States and Africa have a trade agreement called AGOA (the African Growth and Opportunity Act). The EU and Africa have EBA (except weapons, all Everythingbut notarms) agreement, whereby all products exported to Africa are exported to Europe and the United States with zero tariffs and zero quotas.

but

Products exported to Europe and the United States must pay tariffs and trade barriers.