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East Shoe Moves Westward, Chinese Shoe Industry Moves Inside To Encounter Three Big Puzzles.

2010/9/3 10:44:00 96

Investment In Shoes

September 3rd, footsteps of shoe industry


As early as 8 years ago, it was the largest in Houjie Town, Dongguan, Guangdong.

Women's Shoes

Huajian group of export enterprises took the lead in moving east shoes to the west, and invested more than three hundred million yuan in Ganzhou, Jiangxi to build production bases.


In September 28, 2003,

footwear industry

Star

AOKANG

The Group invested 1 billion yuan in Bishan, Chongqing, to build "2600 acres" in the West.

Shoes capital

Lay a foundation.

3 years later, a modern industrial park took off and solved the employment of over 5000 people in the poverty-stricken areas of the West.


In May 17, 2006, the Chongqing Red Dragonfly Footwear Company, which covers an area of 5000 mu, total investment of 1 billion yuan, annual output of more than 30 million pairs of leather shoes, providing 20 thousand jobs and achieving annual output value of 1 billion 500 million yuan, has been completed and commissioned by Tongliang Red Dragonfly Footwear Company in Jinlong Industrial Park, Chongqing. This marks the beginning of the two stage of the western footwear industry base and the relocation of the Red Dragonfly Group.


In August 2008, the Xiangfan Guan Liang company, which invested 390 million yuan in the Taiwan crown industrial group, located in Foshan, Guangdong, settled in Xiangfan Taiwan Industrial Park. This move was very fast. In the 3 day, the registration procedures, land acquisition procedures, land demolition and 300 acres of land seven equal one matter were handled.

The company took 2 months from signing the contract to trial production, and refreshed the new record of Xiangfan enterprises.


In November 2008, the world's largest footwear manufacturer, Baocheng international group of Taiwan (hereinafter referred to as Baocheng International), leased factory buildings in Shannan Industrial Park, Huangshi. After a year, it moved to the new factory area of Yangxin North Industrial Zone, which invested 100 million US dollars, and planned to build 28 production lines, with 12 million pairs of shoes per year.


In September 2009, Baocheng international invested 30 million US dollars to start construction of Jiangxi Yutai shoe industry Co., Ltd. in Poyang, Jiangxi. It is reported that the project will become the largest shoe manufacturing base in Jiangxi, and will achieve an annual output of 12 million pairs of sports shoes, with an annual export volume of 70 million US dollars.


In July 2010, Baocheng International Group (Xiangfan) Industrial Park project signing ceremony was held in Xiangfan. Baocheng group will invest 100 million US dollars in Xiangfan, specializing in the production of "Lining" brand sporting goods.


Pain in the shoe industry


Migration is an instinctive act of life. It moves in a regular way along a relatively fixed route.

On the way of migration, the life body will face many unexpected adventures, or it will be killed in the middle of the road, or it will still be in danger if it finds the place to stay.

At present, there are three puzzles in China's shoe industry.


Perplexity 1: when is the pain of logistics?


In the wake of the financial turmoil, Huajian, a forerunner of the footwear industry, plans to move again. One of the important reasons is the lack of supporting manufacturers and lagging logistics.

Most of the raw materials needed for the production of Huajian Jiangxi base need to be shipped from Dongguan.

When the expressway from Ganzhou to Dongguan was not opened, there was a shortage of 8 kilograms of material, and the whole production line might be shut down. The boss could only send cars to Dongguan for the night and then to the factory.

After the completion of the expressway, Jiangxi and Guangdong still need to open 10 trucks each day: pporting raw materials while pporting the shoes to Shenzhen port.


Like Huajian, many domestic shoe companies want to purchase raw materials nearby, but shoe manufacturers are also worried. The relocation of shoe manufacturers is too dispersed. Suppliers need time and manpower and material resources to go to every place. Unlike shoe factories, shoe manufacturers in Wenzhou can supply dozens of factories at the same time.

Conversely, the procurement of shoes by moving enterprises is also more difficult, often because of the lack of supporting manufacturers and pain, virtually increased procurement costs.

Some shoemaking enterprises need to move away from a very long distance. If there are too many stocks, the styles of shoes will change and a lot of raw materials will be scrapped.


Perplexity two: reduced to "sacrificing cage and changing birds"?


The southeast coastal area is a cradle made in China, and also a distributing center for China's footwear industry.

In the new century, with the appreciation of the land, the increase of raw materials and the increase of labor costs, the Guangdong provincial Party committee and the provincial government took the lead in making a series of decisions and plans to promote the pformation and upgrading of the economic "cage changing birds". The shoe enterprises in Dongguan and other places began to scale and move inland. At the same time, Zhejiang and other places began to deploy "cage cage for birds", and for a while, the shoe industry moved into a trend.


Migratory migration is a kind of active behavior on the surface, which is actually forced by reality.

The outward appearance of shoe industry is an independent act, but in fact it is also a kind of persecution.

When the policy of "cage changing birds" is introduced, the land, resources and energy of the coastal areas will become more intense, and the cost of production will increase. The shoe companies will have to choose to move inland. Otherwise, who is willing to toss about?


After the move, some shoe companies could not help sighing: "after their own" dedication ", they have no value of" utilization ", so they are abandoned by the" developed "area. Will the land now move to the" developed "area and will be abandoned after being used?


Unexpectedly, this worry of shoe enterprises was quickly confirmed by the news from the western shoes.

It is reported that Chongqing Bishan is aiming at IT business opportunities to "cage for birds", and has frozen the overdue undeveloped AOKANG area three project with an area of 1000 mu.

Subsequently, the shoe Office of Bishan county was merged into the County Commission, and was relegated to the Department. The special leading group of Bishan Microelectronics Industrial Park was established.

At present, Bishan has issued a new investment policy: the industrial park must conduct investment according to the unified standard, and the enterprises with less than 100 thousand yuan per mu tax revenue each year must not be allowed to enter the park.

According to local shoe companies, "no shoe manufacturer in Bishan can achieve this standard."


After all, the shoe industry is a traditional manufacturing industry with labor-intensive and low added value, and the main way out is foundry and export.

At that time, the Bishan government hoped that AOKANG would take 2600 mu of land as its position and make use of AOKANG's influence in the industry to drive Bishan's small workshops to upgrade their industries and sell their shoes to the European and American markets.

However, the freight cost of raw materials and finished products in the West has pushed up the production cost of the footwear industry. This is very clear to Wang Zhentao. Therefore, he put the production line of the domestic brand "red fire bird" in Bishan, and the other coastal shoe enterprises are not stupid, but tentative.

At this point, the grand goal of Bishan's introduction of AOKANG has been lost. In 5 years, the shoe manufacturers in Bishan county have been rapidly reduced from 2000 to 1000.

In this situation, Bishan has no hesitation in choosing to abandon the shoe industry "cage for birds" to seek high value-added, high-tech IT industry.

At present, the Taiwan whale electronics has settled in Bishan, and about 50 microelectronics enterprises have reached an agreement with intent to invest in Bishan.


Puzzle three: is migration a permanent solution?


Some experts said that the shoe industry moved because the coastal areas after more than 20 years of rapid development, land, resources, energy shortage, so that the shoe industry has no room for development, coupled with the high cost of labor in coastal areas, production costs continue to rise, so that the original "razor" shoe industry can not maintain their livelihood, the footwear industry has to instinctively move.


Internal cause is the fundamental reason for the change and development of things. External causes are only conditions.

If we look at the shoe industry in a dialectical way, we will find that the shoe industry is moving because of the low added value, labor intensive and serious homogenization of the shoe industry. As long as the traditional manufacturing nature of the footwear industry remains unchanged, moving to any place can not be the end point, and will fall into the same predicament as the coastal area.


Huajian, who moved inland, had a good understanding of this.

Before the internal migration, the labor wage in Ganzhou is much cheaper than that of Dongguan. However, because of the opening of the Jiangxi Guangdong Expressway, the labor price difference has rapidly narrowed. At present, the labor cost of Ganzhou has basically no comparative advantage.

The low price of land and hydropower is Ganzhou's advantage, but the water and electricity charges in Ganzhou can only offset pportation costs.

According to the relevant estimates, compared with the eastern coast, the production of a pair of shoes in the west can save 20% of the cost.

However, the export logistics cost of western enterprises accounts for 20% of the total product cost, and the advantage of internal migration is gradually disappearing.


Earlier, as the production cost of Pearl River Delta and Yangtze River Delta increased in recent years, Baocheng international had to plan to move inland.

In order to make use of the advantages of manpower, tax system and public facilities in the Midwest, Baocheng international chose to "run away" again and again.

Baocheng chose Yangxin because Yangxin county is the main exporter of shoemaker in China, and it is said that more than 100 thousand people.

When the project was being built, the Yangxin county government issued a circular on "conscientiously doing a good job in recruiting workers in Baojia shoe factory of Baocheng shoes". According to the plan, Baocheng will recruit the first batch of workers before March 1, 2010: 10300 people, the result is due, and the number of people recruited is far from the plan.

This also makes Baocheng's policymakers wonder why it is not possible to build a factory in a famous working County as well as on the coast.


Practice has proved that it is impossible for the shoe industry to move in and move on. In the Midwest of the rich labor force, there may also be a shortage of migrant workers. Enterprises can not put their lives in the preferential policies of some government investment promotion. The embarrassment of footwear industry in developed areas can also appear anywhere. The shoe enterprises' relocation can only be a first-aid measure for solving the problem. There are still many uncertainties.


Sun Zhongshan, the father of the country, once sighed, "the world tide is vast, and those who shun it are prosperous, and those who turn against them are dead.

Perhaps the shoe industry is a trend of the times, but in the process of the large-scale relocation of the footwear industry in China, we also hear another voice, that is, the song of the wolf - "confusion in moving".


Needless to say, to change the cage for birds.


Don't say this is just a migration.


Is it that the cost is rising and manpower is scarce?


We are going to leave quietly.


Moving inland is not an instinct of wealth.


Moving inland or developing is inevitable.

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