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Dongguan Shoe Enterprises Are "Hungry And Cold" &Nbsp; A Pair Of Shoes Earn Only 20 Cents.

2011/8/22 9:38:00 46

Dongguan Shoe Brand


The climate is changing. Should these migratory birds take off?


In the early August, Dongguan Houjie town looks prosperous. In fact, the most important shoemaking base in the world is turbulent at this time. A group of people are very restless. The most anxious thing is that the suppliers of upstream shoe materials are frequently wandering among their customers.


Recently, the Dongguan system footwear industry The news of factory closure was constantly heard. According to a press survey, Dongguan's large and medium-sized enterprises such as ANGA shoes, Frida shoes, intermodal shoes and other companies have been closed or relocated. Many shoe companies such as mace shoes, Huifeng shoes and Yongsheng shoes industries are reducing production scale in a large scale to cope with the shortage of orders and rising cost pressures. These shoe factories are thousands of people and even tens of thousands of people.


Because of its extreme cost sensitivity, the world shoe industry has never stopped its location transfer. From the 60s of last century, it moved from North America to China and South America, and moved from Europe to Japan, then transferred to Korea and Taiwan, China, and transferred to the southeast coast of the mainland in 80s.


In 1988, Taiwan Baocheng International Group, the world's largest sports shoe manufacturer, went to Dongguan to build Yuyuan plant in Gao Gao town, mainly for Nike, Adidas and other brand foundry, and opened the prelude to large-scale transfer of Taiwanese shoe enterprises to Dongguan. Taiwan shoe group, such as GUCCI, LV, GUESS and other world-class luxury brands, have successively settled in Dongguan.


By the year 1990, more than 400 shoe makers, raw materials suppliers and equipment suppliers in Dongguan settled in Taiwan had become the core strength of Dongguan footwear cluster. At this point, Hongkong shoe-making enterprises are also moving to a large scale here. Because of the arrival of these migratory birds, Dongguan quickly became the world's most important place for shoemaking. Once there were 1 pairs of shoes in the world from Dongguan, 10.


But this time, in the face of global "climate change", can enterprises in shoe capital Dongguan continue?


   Struggling at break even point


Outside Dongguan Liaobu intermodal shoe factory building, our reporter found that his staff dormitory was empty. However, several cars were parked in front of the office building. A person familiar with the matter told reporters that the boss had transferred the production line to Kampuchea not long ago, but there were only design and research departments.


Labor costs increased by about 15% annually. Leather material Since last year, it has also risen by 10%~20%, and the appreciation of RMB has exceeded 26% since its reform. In addition, two days a week blackout, some factories generate electricity for about 50 thousand yuan a day. Multiple factors superimposed on it, more and more shoe companies are struggling to break even.


Yang Yongqing, general manager of Sunway shoe factory, has a deep understanding of this. He was from Taiwan to Dongguan in 1996, and his profits were gradually "thinned" for more than a decade. 3 years ago, a pair of leather shoes earned about 1 dollars, and now only 20 cents (about 1.3 yuan), and the cost of a pair of shoes will cost about 120 yuan, and the profit margin is only about 1%.


"We must make the cost accounting precise and precise, and we must keep every link in the production process. The inspectors from the production line will increase from 4 to 6. Once the product is reworked, it will be lost." Yang Yongqing said that export orders declined this year.


Bei Youping, a businessman in Dongguan who entered the footwear industry earlier than Yang Yongqing, has a bigger gap. "When we opened the factory in Dongguan in 1987, we had a lot of orders. Sometimes we worked overtime in factories for two days and two nights, but at that time, the monthly salary of a worker was only 100 yuan, and it was easy to recruit. Export a pair of 4 dollars of women's shoes, can earn about 2 dollars, the profit margin is about 100%, "Bei Youping told reporters." and today is simply spending time, the export price of a pair of shoes is twenty or thirty dollars, but the average monthly salary of the factory is 2800 yuan, the manager's monthly salary is 16 thousand yuan, the cost rise and RMB appreciation, even 1% profit margins are difficult. "


Now, Bei Youping, general manager of Bei Hui shoe industry, gets out of bed when he is overwhelmed by heavy burdens. He can hide himself in the building next to the factory, and the house full of antiques can soothe his depressed mood. Palace, leafy rosewood furniture, Tang tri coloured, blue and white porcelain... These antiques, which were bought and bought on the basis of the OEM, have been sold hundreds of thousands of times, and selling them one by one is enough to provide for the aged. But at the age of 56, he does not want to rest.


"When we first arrived in Dongguan, we felt that we were the lucky ones. The government gave preferential policies to taxation and so on. But for the time being, we can't close the factory. Some workers have been following them for more than 20 years, and it is hard to give up. Bei Youping is trying to figure out how to transform and upgrade. The shoe industry is too bitter. Bei Youping never wants his son to inherit his father's career. {page_break}


  Three cents for 10 cents.


At present, the three big economies of the United States, Europe and Japan are all in debt crisis. The consumption of the market is weak, and the European guests who always pay attention to design and details, and "rich" are becoming "calculating". And the American consumers who most like to buy shoes also tighten their belts. Li Peng, Secretary General of the Asian Footwear Association, said that the average annual consumption of more than 10 pairs of shoes, such as basketball shoes, volleyball shoes, tennis shoes and so on, was now consumed by Americans. Conservative estimates of global shoe orders shrink by 10% this year.


Guo Xiaoping, chairman of Dongguan Huahong shoes industry, was recently laughed by an e-mail from his client. "We read the price list and found that some of the styles were too expensive to sell," wrote MENBUR, who is responsible for the Spanish brand. Compared with last year, all prices have gone up. Last year we were quoted as 15.10~22.30 dollars, and this year it was 18.90~31.40 dollars. But the European economy has not improved, or even worse. I understand that prices are rising in all aspects of China, but if we give a better price, our competitiveness in the market will rise and the order will increase. There is a shoe, if there is no decoration such as beads, the price should be reduced a lot. Please tell me the price of the buckle.


The mail also specifically wrote: "you add the MENBUR packing fee, do you charge the shoes bag for 1.2 dollars? This is too expensive, we have changed to a $0.25 bag."


Yang Yongqing spent 10 cents in his factory shortly before. He raised a price of 10 cents to each pair of shoes, and the customer threatened to change the order immediately. At 12 o'clock that evening, the customer called again, and Yang Mingque told the other party not to raise prices. As a result, the customer flew to Dongguan from abroad for second days.


"I was shocked when I received the phone call. I never had a customer who went to the door without saying hello. The customer directly went to the factory and randomly checked all kinds of costs. After verification, we found that we had almost no profit and finally reluctantly accepted the price increase.


Even Zhang Huarong, chairman of Huajian group, China's largest women's shoes manufacturing and exporting company, even sighed "difficulties" in an interview with our reporter in August 3rd. The group is mainly NINE WEST and other international brand shoes foundry.


"The price has increased by about 15% this year, and the total export volume is expected to be 15 million double this year. The volume of exports will be unchanged from last year. Customers will transfer about 10% new orders to Southeast Asia," Zhang Huarong said. "Labor costs in the first quarter of this year have increased by 20%. We must keep a close eye on profits and profit margins, and no longer pursue expansion of scale." Despite the scale advantage, Huajian's current profit margin is only 3%~4%, with an annual export of about 300 million US dollars (nearly 2 billion yuan), and the monthly salary paid to 22 thousand employees is about 48000000 yuan, which is nearly 600 million yuan a year.


  3000 yuan versus 300 yuan.


At present, the monthly salary of Houjie shoemaker is generally 2000~3000 yuan. The loss of labor cost advantage has been a pain in the bosses of shoe makers in Dongguan, but what makes them even more sad is that they are far less motivated than before.


"The most urgent task is to establish an effective management system and cultivate professional and efficient industrial workers. The workers' efficiency appreciation space is still 40%, and the monthly salary can rise to 4000 yuan. The rise of labor costs is inevitable. The problem is that the overall quality of workers is not up to date, which restricts industrial transformation and upgrading. New generation of workers do not love the footwear industry and increase management pressure. Zhang Huarong complained that migrant workers "live and work in peace and contentment" depends on the efforts of society and enterprises.


In the early days of reform and opening up, migrant workers cut six jobs after five passes in order to work in Guangdong. Now, the recruitment threshold of Guangdong foundries is dropping. The new generation of migrant workers has more choices and stronger mobility. "How much is the salary? Is there an air conditioner?" instead, they choose a factory.


At present, China's footwear industry accounts for six or seven of the world's total, with 13 billion pairs of shoes per year, of which nearly 10 billion are exported. Statistics from the Asian Association show that in 2010, there were more than 1600 shoe enterprises in Dongguan, with an annual output value of 63 billion yuan. The export oriented footwear structure in Dongguan is undergoing a fission.


After entering the twenty-first Century, some shoe companies moved to other Asian countries such as Vietnam, India and Bangladesh. "Workers in Bangladesh have a monthly salary of only RMB 100 yuan. With the arrival of Baocheng, it has risen to more than 300 yuan at a time, and the number of workers there has reached 50 thousand people." Shoe companies reflect.


There are also some internal movements, such as "South shoes go up north, East shoes move westward." Brazil international trader, Monte Monte has transferred half of Dongguan's business to Sichuan and Qingdao, and has also built a shoe production line in Chongqing.


Zhou Shijian, a commentate expert of the Ministry of Commerce, interviewed the newspaper reporters and described the fate of Guangdong's foundry as a "helpless flower". He thinks that processing trade has completed its historical mission, and primary processing is doomed to be eliminated.


"The world's industrial transfer will not stop. The leather shoes in the US market, in 1976, 53 pairs of 100 pairs were produced in the United States, while in 2006 only 1.5 pairs were left. The footwear industry basically" euthanasia ". China's low-end footwear industry is also difficult to escape this fate, the world's shoe making pattern is highly concentrated in China and gradually diverted to Southeast Asia and other regions. Zhou Shijian said that transformation and upgrading of enterprises is imperative.


As night fell, all the streets of Dongguan were lit up. Many shoe makers and workers were still burning the midnight oil. In this brand of "wasteland", some shoe companies are trying to get out of the manufacturing "depression", to the smiling curve R & D design and the breakthrough of brand channel ends. However, in this tortuous arc Road, we may not be able to walk smoothly.

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