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Export Decline And Labor Force Atrophy Lead To China'S Shoe Industry Going To Pition Junctions.

2011/12/9 10:21:00 13

Encountering Export Problems: Transformation Of Chinese Footwear Industry

According to the voice of the economy, labor-intensive and highly dependent footwear industry, like other traditional manufacturing industries, has encountered problems of declining exports and shrinking labor force.

The third world held in Dongguan, 8 shoes

footwear industry

At the development forum, the China Leather Industry Association issued the call to change the previous situation of purely OEM labor and extend the industrial chain to fight its own brand.


Wu Deguo, chairman of Chengdu's yemran shoe industry, has been a bit annoyed lately.

Since August, his US partner orders have shrunk by 60%, which is too bad for the company that produces OEM shoes and 80% of its products depend on exports.

Wu Deguo said that the export decline of export footwear enterprises is very common in Chengdu.


Wu Deguo: about 30%, basically underemployment, or even stop production. If the order is insufficient, it will not only cover this proportion.


According to Su Chaoying, director of China Leather Association, in 2010, China produced 13 billion pairs of shoes and exported 10 billion pairs. The footwear industry is highly dependent on exports, and the export of leather shoes this year.

decline

Seven or eight percentage points.


In addition to the shortage of orders, the bigger problem for shoemaking enterprises is that they can not recruit workers.

Profits are too thin and hard work, the footwear industry is losing its appeal, and workers begin to flow to other labor-intensive industries such as electronics.


Wu Deguo: the workers are still missing. The statistics in the last two years are approximate.

Loss

15%.

Recruitment in Sichuan, a labor-intensive place, is also bad.


While wages and prices of raw materials are rising, the price of factory orders remains at a low level.

Wu Germany calculated the profit of a shoe produced by his factory for only one dollar, and this shoe sold for three hundred or four hundred US dollars in Europe and America.


Zhang Huarong, chairman of Dongguan Huajian group, who also manufactures OEM shoes, pointed out that the long-term production mode of grabbing orders for OEM enterprises has led to vicious competition in excess capacity.


Zhang Huarong: we are very used to manufacturing enterprises. With orders, the price is cheaper and the scale is more. Foreigners are accustomed to placing orders in China than the unit price.

production

Mode (difficult to continue), in fact, enterprises must have a mathematical model.


Wu Deguo, chairman of Chengdu's Yi pan LAN shoes industry, also believes that the development of independent brands is equivalent to being left behind.


Wu Deguo: when the economy is at peace, it seems that there is no risk; but when the economy fluctuates slightly, the first (damaged) is the OEM enterprise; because the OEM enterprises do not have their own terminals, your orders depend entirely on the market of others. When other markets are not good, your orders will be directly affected and the corners will be difficult to turn. This lesson is still very deep for us.


The shoe industry is now turning its attention to the domestic market, but what is the way to take the independent brand?

easily

It takes at least ten years to develop.

Su Chaoying, director of China Leather Association, said that the "12th Five-Year plan" of leather industry is the most important part of the pformation and extension of the footwear industry.


Su Chaoying: during the "12th Five-Year" period, we need to create 3-5 internationally renowned brands, and at the same time focus on supporting a number of brands with a certain scale and strength.

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