Dongguan Footwear Industry Seeks To Survive Elsewhere: Its Overall Size Is Shrinking And It Is Still Exploring Its Brand.

See Liupanshui

The factory finally began to make profits, and Xu Wenxiong, general manager of Dongguan Yong Du Shoes Co., Ltd. breathed a sigh of relief.

Since he opened a branch factory in Liupanshui, Guizhou 3 years ago, the factory has been in a state of deficit until June this year.

Xu Wenxiong told the first financial reporter that the local government chose to take the initiative to find Liupanshui, hoping to undertake some industrial pfer.

In fact, since the first Pan Pearl River Delta regional cooperation and development forum was signed in 2004,

Since then, relevant provinces have been actively guiding the orderly pfer of industries.

In March 2016, the State Council issued the "guiding opinions on deepening regional cooperation in Pan Pearl River Delta". Pan Pearl cooperation was officially upgraded to a national strategy. Guiding the orderly pfer of industries as an important part of promoting regional economic cooperation is still placed in an important position.

Factories open in the mainland: Workers' salaries can be saved by half

China is the largest footwear producing and exporting country in the world.

On the system

For such a labor-intensive industry, the biggest cost is labor and factory rent, which is the prominent "comparative advantage" of the inland provinces.

Xu Wenxiong remembers very clearly that the average monthly wage of local workers was 1800~2000 yuan when they visited the industrial park in Liupanshui, Guizhou 3 years ago. At that time, the wages of workers in Dongguan were 3800~4000 yuan per month, that is to say, the wages of local workers were only half of that of Dongguan.

At that time, Liupanshui took investment promotion as the top priority to speed up the economic development of the whole city. Apart from formulating a series of preferential policies including supporting industrial land, it also organized small business teams to carry out targeted, continuous and continuous fine investment in coastal developed areas, and strive to increase the rate of attracting investment projects.

"Today, the cost advantage of Liupanshui still exists.

At present, the factory workers in Liupanshui earn 2800~3000 yuan per month, and the factories in Dongguan need more than 5000 yuan. Besides, when we just went there, the local government gave rent free for 2 years, so in general, the cost there is much lower. "

Xu Wenxiong said to the first financial reporter.

Even with

The pportation cost of finished goods is still cost-effective.

At the beginning of the plant investment, plus the losses in previous years, Xu Wenxiong put in almost 20 million yuan before and after.

This has been a great cost for shoemaking enterprises, which have been hit by domestic and foreign market in recent years.

But Xu Wenxiong was psychologically prepared for this.

He said, workers recruited into the field, is a new student, need a learning process, from the normal operation of factories to achieve profits generally take more than 2 years, this is to open any factory anywhere can not be avoided.

Fortunately, factories in Liupanshui can see returns.

Another shoe factory in Dongguan Houjie, Changjian Shoes Co., Ltd. went to the mainland earlier than ever.

After the global financial crisis in 2008, Tong Shuishun, chairman of Changjian shoes industry, opened the shoe factory to Hunan and Jiangxi.

"At that time, under the pressure of RMB appreciation, we wanted to try to lower the cost. We chose Hunan and Jiangxi because the workers in Dongguan factories came from these two places. Later, we found that the cost is low."

Tong Shuishun said.

Since the "Pan Pearl cooperation" was put forward, the footwear industry in Dongguan has gradually shifted to Hubei, Jingzhou, Anhui, Fuyang, Henan, Zhoukou, Jiangxi, Ganzhou and Nanchang, as well as the provinces, such as Nanchang, Ganzhou, and so on. At the same time, it has shown the trend of shifting from simple shoe processing to the entire middle and low production line.

Despite its low cost, Tong Shui Shun's factory in Hunan and Jiangxi remained closed until 2014, and moved to Vietnam and Kampuchea.

Let Tong Shui Shun do not expect that, in addition to tariffs, people can not attract people to become the main reason for closing factories.

"Instead of going to the local people, people may still be willing to work in Guangdong.

We only recruit hundreds of people in our local factories.

If the workers are not enough (on the scale), the cost will not come down. "

Tong Shuishun said.

In the heyday of shoemaking in Dongguan, Tong Shui Shun opened 5 factories in Dongguan, with nearly 10000 employees and an annual production of 5 million ~600 pairs of shoes.

But now he has reduced the factories to two families, a total of less than 600 people, and more than 1000 factories in Southeast Asia, with a total output of 1 million pairs a year.

There are 700 factories in Dongguan, including 1300 factories in Guangdong and Guizhou Liupanshui. The total annual output is about 2 million pairs.

However, the factory of the shoe industry in Liupanshui has also encountered a dilemma.

In the first year, 1000 people were recruited, and the situation was very good. But in the next second years, it was plunged into "labor shortage", which made Xu Wenxiong very depressed.

This year, the recruitment situation has improved, even Xu Wenxiong himself can not tell why.

20 years of Asian footwear industry in Dongguan

Li Peng, the Secretary General of the association, told the first financial reporter that the employment scale of Dongguan shoe enterprises is shrinking constantly. It is an indisputable fact that the situation is that the factory is becoming more and more, the scale is getting smaller and the number of employment is becoming less and less.

Li Peng analysis says that there are many reasons for not recruiting people in the interior. The first factor is that it takes time to train a migrant worker as an industrial worker; some people are willing to work at home, but in order to take care of the elderly and children, working hours can not be fixed at 9 to 5, not to mention overtime.

In addition, local customs also have an impact on business operations.

For example, a member of the staff has an old man to pass the banquet for a week, relatives and friends to join the factory, no one to work.

For example, many places in the interior of the country are very human. In the past year, gifts are paid more than wages. Many young people prefer to go out to work to avoid these old customs.

"Actually, Dongguan.

70% has been pferred from the beginning to Jiangxi, Hunan, Guangxi, Hubei, and later pferred to Guizhou, Yunnan, Shaanxi, Inner Mongolia and even Southeast Asia, but many enterprises went inland but could not recruit people.

China is not short of labor force itself, and it lacks effective labor resources integration.

Li Peng said.

More than 30 years ago, Houjie Town, Dongguan, was actively introducing and developing the footwear industry by actively accepting the internationalization and division of the world shoe industry, and attracting a large number of overseas footwear entrepreneurs and merchants represented by Taiwan, China.

Manufacturing industry group.

Today, shoemaking enterprises in Dongguan are seeking pformation and upgrading, relying on a sound industrial chain, pferring processing and production links, and retaining R & D design and procurement as the common choice of many enterprises.

The first financial reporter learned from Houjie town government that, according to incomplete statistics, there are about 4000 enterprises producing and selling leather, shoes, shoes, shoes and hardware fittings, of which 300 are shoe making enterprises, more than 800 are traders and purchasers in the thick street, and more than 5000 workers are engaged in shoe processing, trade and procurement in the United States, Brazil and Japan.

More importantly, Dongguan has become the most important distributing center for footwear professionals in the world, including not only skilled footwear makers, but also designers and processing talents.

In Li Peng's view, with perfect matching, even if the shoe industry in Dongguan has been processing OEM routes, there will still be potential in the future.

More than 90% of the products of Yong Du shoes belong to OEM, but Xu Wenxiong is not worried about orders.

Because the company mainly produces outdoor functional shoes, used for hunting, mountaineering, professional climbing, and other occasions, the technology is relatively high, and has special requirements for raw materials and production processes. At present, there are not many factories that can make such functional shoes in the market.

Yong Du shoes's factory in Dongguan is mainly responsible for R & D and procurement functions. The production of spare parts is mainly in four factories, and the Liupanshui factory is the main production base of finished shoes.

"To Liupanshui open factory really reduce production costs, for us to cultivate our own brand 'Ji Jie' to strive for more time.

"Ji Jie" this year is expected to sell to 80 thousand ~10 million pairs, my plan is OEM to do 5 years, gradually let private brands stand on the heel.

Xu Wenxiong said.

The Pan Pearl River Delta region includes nine provinces and autonomous regions such as Fujian, Jiangxi, Hunan, Guangdong, Guangxi, Hainan, Sichuan, Guizhou and Yunnan (hereinafter referred to as "nine provinces in the mainland") and Hongkong and Macao special administrative regions (collectively referred to as "9+2").

Yong Du shoes and Changjian shoes industry are just the epitome of many Pan Pearl regional manufacturers trying industrial pfer.

Jiang Lin, a professor at the south of the Five Ridges College of Zhongshan University, said in an interview with the first financial reporter, that the pan pearl cooperation from 2004 to 2016 has risen to a national strategy. The less developed regions have changed their attitude towards the pfer of labor-intensive industries. Especially with the promotion of infrastructure construction such as pportation, the relationship between the pan pearl region has become increasingly close, and the development of regional integration has become a common understanding.

Over the past 15 years, dozens of different industrial pfer docking zones have been set up in the nine provinces and autonomous regions of the Pan Pearl River Delta, forming Pearl River West River economic belt, Fujian Guangdong Economic Cooperation Zone, Guangdong and Guangxi cooperation special experimental area, Guangdong Guangdong free trade pilot area, Beibu Gulf Marine Industrial Park, Hunan and Jiangxi open cooperation experimental zone and other provincial industrial cooperation platforms.

Take Guangdong and Guangxi cooperation special experimental area as an example, as China's only interprovincial cooperation experimental area across the East and West, as of the end of 2017, the total investment in the 3 years has reached nearly 30 billion yuan, with an average annual growth of more than 30%, becoming a new growth pole in the Pearl River West River economic belt.

Xu Wenwei, vice mayor of Wuzhou, the Guangxi Zhuang Autonomous Region, has publicly stated that 60% of Wuzhou's undertaking of industrial pfer came from Guangdong, Hong Kong and Macao, where the stainless steel and ceramic industry was completely pferred from Guangdong area and achieved a breakthrough from scratch.

In September 5th, the twelfth Pan Pearl River Delta regional cooperation and development forum and economic and Trade Fair was held in Guangzhou. With the theme of "sharing opportunities, opening up and innovative development in the bay area", many provinces expressed their wish to continue to undertake industrial pfer.

Li Peng believes that industrial pfer is not only to create employment, but also help local alleviate the problem of left behind children and train local migrant workers into industrial workers.

On the other hand, industrial pfer is also beneficial to the footwear industry in Dongguan, and the layout of the industrial chain has been optimized to accelerate the pformation and upgrading.

"Fundamentally, this is the inevitable result of market competition.

The original 5000 people's factory turned into 10 R & D centers. From the economic efficiency, people's output value is higher.

Although workers have less impact on the third industry in Dongguan, they have improved Dongguan's living environment, more green space and better public service facilities.

Li Peng told the first financial reporter.

Jiang Lin believes that even if the government has the willingness to undertake, it will ultimately depend on the reaction of the market. If the market is formed spontaneously, it should be encouraged.

It is very important to guide enterprises to pfer to the central and western regions, and the business environment to undertake the business is very important, because these enterprises are from the developed areas in the past and are very sensitive to the market environment, which requires the local government to reform the "letting go management".

"We can also raise industrial pfer from a higher angle. The value lies not in what we do now, but in bringing new ideas and new industries.

The enterprises in developed areas used to teach local governments to do industry matching, cultivate industrial chains, develop modern service industries, and so on. At the same time, whether the industrial chain could overlap and link up with the advanced manufacturing industry, and form a brand new development pattern after pformation and upgrading, which is of great significance to the western region.

Jiang Lin said.