Africa'S 4 Temptation To Chinese Shoe Companies

Though speaking Africa Almost 100% of the factory's raw materials are imported from China, lifting the cost, but it is only a huge temptation for domestic 1/10's labor cost, favorable policies, zero tariffs and zero quotas, so that the domestic bosses who are interested can not afford to give up. Two days ago, when I was chatting in a factory with an annual output value of 400 million yuan, the boss said that they were also attacking the group. It is best to form a complete industrial chain and prepare for the layout of Africa.

There is no doubt that Africa should be the wheel. footwear industry The last nugget point for low-cost transfer.

For distant Africa, Dongguan A large number of manufacturing enterprises are still in awe, and shoe giant Huajian has set up factories in Ethiopia. "The paper boxes are all shipped from China," the official said. Almost 100% of the raw materials of African factories were imported from China, lifting the cost: in China, logistics costs accounted for 2% of the total cost of enterprises, while the proportion of Ethiopia factories rose 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."

In fact, 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

Factory workers earn only 50 to 80 dollars per month, which is only 1/10 of 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 "African free trade area", 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 Africa's development, the United States and Africa There is a trade agreement called AGOA (Africa Growth and Opportunity Act). There is an agreement between the European Union and Africa on EBA (except weapons Everythingbut notarms). Therefore, all products exported to Africa are exported to Europe and the United States with zero tariffs and zero quotas. But made in China Exit In Europe and the United States, tariffs and trade barriers must be paid.