Dongguan Shoe Factory Pformation Customized To Make High-End Products

Dongguan has obvious advantages in design, technology and so on, and international buyers, raw materials and high-end shoe and garment talents still converge here.

The market has recently affected the heartstrings of the Chinese people. However, the continued depreciation of the renminbi is no longer a hot topic for those engaged in the foreign trade industry.

A company responsible for shoemaking factories in Dongguan said that for foreign trade enterprises adopting floating exchange rate bidding mechanism, short-term exchange rate fluctuations are not enough to measure the quality of export market.

Dongguan's foreign trade enterprises, especially shoes and clothing as a typical labor-intensive industry, are still struggling to survive in the winter.

Dongguan Mini shoes and clothing

In recent years, Dongguan's export orders for shoes and clothing are being distributed by emerging markets such as Southeast Asia, due to the increase in raw materials, labor costs and the reflux of manufacturing industries in western countries.

For the labor-intensive shoes and clothing enterprises, they are no longer the large factories that used to be tens of thousands of people in the past, but rather scale down or pform into trading companies.

Many small and beautiful foundries have been diverted from the large scale factories that have been shut down, and the use of the Internet has sprung up.

Shoes and clothing orders on behalf of factories are eaten up.

According to the latest data released by the General Administration of customs, 1-5 months in 2015, China's footwear exports were 1 million 760 thousand tons, down 4.7% from the same period last year, and the export volume was 20 billion 716 million US dollars, up 0.7% from the same period last year.

Compared with shoemaking, the export data of the clothing industry are relatively good. Only in the 1-4 months of this year, the export clothing and clothing accessories in Dongguan totaled 8 billion 980 million yuan, up 9.4% from the same period last year, showing a warming trend, but the export competition intensified. Only in the Dongguan area,

"Ordinary processing of raw materials has no room for survival."

Mr. Li, director of Dongguan Taifeng clothing, said that the factory's living environment is becoming more and more severe, and the cost of various expenditures is increasing.

Fortunately, the European and American economies have been improving. Orders have improved since this year, but customers are still pressing the unit price, because the foundries from Vietnam, Indonesia and Mexico are constantly competing with Dongguan enterprises for international orders.

"Actually the profit is very thin now, the guest does not increase the price, the cost which produces in Dongguan is higher and higher, the production space of the representative factory will be smaller and smaller."

The same is labor intensive Baoding shoe factory, from the surface, unlike in the past, the factory's production line is also functioning normally.

But Wang Renguo, deputy general manager of Baoding shoe factory, said that from 2008 to now, Dongguan

Has been going downhill.

At the beginning of this year, most enterprises are experiencing difficulties in survival, especially in 5-7 months of this year.

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"Most shoe factories this year are either guaranteed or lost."

Wang Renguo said that most shoe factories are in such a situation. Before 2008, a pair of shoes with an export price of 6 dollars could earn about 2.5 dollars, and later they could only earn 1 dollars. Now, because of the rising cost and the low season of shoemaking, a pair of shoes earn only a few dollars.

Some orders for losses are run through the total square spread.

CEO Wang Guoquan, a well-known shoemaking veteran in Dongguan - Emma CNC Technology Co., Ltd., Dongguan, has indirectly confirmed the situation.

Wang Guoquan has been dealing with shoe industry since 1985.

Engaged in research and development of shoe intelligent equipment.

Wang Guoquan said that 90% of Emma's core products "CNC shoe last machine" are sold to foreign markets, and only a few enterprises in the country adopt high-end intelligent shoe making technology, which can foresee the difficult situation of Chinese shoe making enterprises.

"For traditional shoe-making enterprises, the volume is very difficult to grow up. Only those companies who focus on design remain good."

The function of foreign trade and procurement is more prominent.

Reporters learned that in addition to the previous Dongguan Jiuxin, Xinghong and other relatively large shoe factories closed down, from the end of last year to the beginning of this year, there were at least two larger shoe factories relocated to Southeast Asia.

The labor force in Southeast Asian countries is relatively cheap, especially in those countries where tariffs are low. Even in some countries such as Bangladesh and Kampuchea, a zero tariff policy has been implemented. This has made Dongguan vulnerable to competing with other countries and regions for foreign markets.

Taking clothing as an example, according to authoritative reports, Vietnam's textile and garment exports amounted to US $3 billion 400 million in the first two months of 2015, an increase of 15.8%, the highest in history. In March, Vietnam exported 7.5% of the garments exported to the EU.

Compared with the slight growth of shoes and garments in Dongguan, we can see that the export of Dongguan shoes and clothing is facing fierce competition from Southeast Asia and other countries.

But there are also insiders analysis, although many large shoe factories in Dongguan move, but the main low-end orders are diverted.

Dongguan has certain advantages in design, technology and so on. International buyers, raw materials and high-end shoe making talents still converge in Dongguan.

In June this year, the world's largest online shoe selling B2C website Zappos was stationed in Tianan digital city of Dongguan. Xie Chuangang, chief representative of Zappos China Representative Office, said that Zappos's residence in Dongguan is the only overseas headquarters outside Las Vegas headquarters. After entering Dongguan, Zappos will cooperate with Dongguan's footwear industry in customized production and brand services.

It is understood that Zappos has cooperated with more than 700 shoe factories and foreign trade companies in Dongguan, including 1500 well-known and minority shoe brands.

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"There are fewer shoe factories in Dongguan, but there are more trading companies."

Zappos, a head of marketing department, said that although some shoe factories had orders, but the cost of production was high. Due to the difficulty in recruiting workers, they could only marginalized the factories, take orders for trade and issue orders.

Mr. Cheng, a cloth and leather merchant in Humen, said that the market of fabric accessories and thick leather materials in Humen this year showed trade and procurement pformation.

"Customers like to come to Humen Houjie trading company to look at the samples and place the order, and then make the production from the foreign factories.

Due to the high maturity of the shoe and garment manufacturing market in Dongguan, enterprises are more willing to stay in Dongguan for procurement and research and development.

Mr. Cheng said.

"Small and beautiful" mini factory is efficient and meticulous to win.

Due to the need for quality control in order to make orders, some shoe makers have chosen to shrink the size of factories and factories. Many shoe and clothing factories have been shrinking from hundreds of thousands of factories to hundreds of people and even dozens of people.

"The hollowing out of footwear industry is objective, but we should not treat it in a shocking way."

Wang Guoquan said that many shoemaking factories were forced to move abroad or domestic Hunan and Jiangxi areas for a variety of reasons.

But for Dongguan, it was because of the large scale of shoe factories and advanced civilization, but now the process is dispersed and the moon has changed into many stars.

Many of these stars are people who used to be in the industry.

It can be said that the shoe industry has become a collaborative development of many outsourcing processes, and footwear industry thrives in another way in Dongguan or elsewhere.

These small shoes and garment processing plants can be more flexible in their posture to constantly change and try.

Some small processing plants choose Taobao and micro business.

Li Yao, an assistant product manager from a large shoe factory in Houjie from Jiangxi, came back from the Spring Festival in 2014. Li Yao set up a small factory of his 17 person team in the leather market of Houjie Hetian.

With the resources of product manager, some small orders can be shipped in about 5 days.

"In the past, it took at least one and a half months to do a large number of foreign trade orders from the order to the shipment. After receiving the payment for three or four months, the whole process is obviously compressed, and the profit margin can be raised from the original 3% to the current 15%."

And Mr. Li in the Tai Feng garment factory also reduced the size of the original factory. At this time only 21 people's clothing factories, a clothing order quotation, from the fabric, plate making, processing and other links, step by step accounting, before at least 3 days, now 24 hours can be able to quote the price or even come up with a template.

"The future Dongguan shoes and garments are not big, they can be small and fine, and even high-end private customization. R & D procurement stays in Dongguan, giving consumers a brand new experience.

Then, through hard times, the high-end shoes of Dongguan will be left in the future.

An industry engaged in footwear industry for many years said.