Advantages And Disadvantages Of Domestic Shoe Enterprises' "East Shoes Moving Westward" (1)

Over time, the central bank has decided to terminate the fact that the exchange rate between RMB and the US dollar is in fact linked, and focus on reference to a basket of currencies to enhance RMB exchange rate flexibility.

As the appreciation of RMB has squeezed the profit margins of export footwear enterprises in the southeast coastal areas in different degrees, how to maintain or even increase profits under the situation of weakening the advantage of cheap labor force is a difficult problem faced by every export company.

At this time, "East shoes westward shift" can solve this problem, many smart and good at catching business opportunities.

The wantonly market demand in the Midwest

China's central and western regions have large population base, large and medium-sized cities everywhere, and have excellent potential for developing specialized markets.

However, the shoe market in the mainland has been mixed up for a long time. The product marketing is still in the wholesale era. There are a lot of shoes in the middle and low grades, and there is no brand enterprise that can play a leading role.

The development of the footwear industry is disadvantaged.

With the improvement of people's consumption level along with the door, this way of operation no longer meets people's requirements. People who are affluent become more and more aware of the quality and connotation of shoes.

The Midwest is rich.

In coastal areas, labor costs have risen year by year. Many shoe companies have received orders but can not find workers. In the Midwest, the situation is completely the opposite. The Midwest is full of lots of idle labor resources, which is also an important factor in attracting coastal shoe enterprises to move inland.

Many coastal owners directly invest in shoes factories in the mainland, or under the control of Coastal Corp headquarters, establish a production, supply and marketing one-stop development system in the mainland, directly using local resources and reducing pportation costs. However, the incomplete industrial chain is also a very big problem, which plagued many coastal investors.

Cheap land prices in the Midwest

For the shoe companies moving inland, perhaps the low cost of land in the Midwest cities is the biggest temptation.

After a move to Jiangxi, a new sporting goods manufacturer named Si Microlab has reached about 600000 square meters, which is more than ten times the area of the old factory in Dongguan. Compared with the industrial land price of hundreds of thousands or even millions of acres per mu, the industrial land used by Microlab in Jiujiang is sold at a price of only 40 thousand yuan per mu.

Attractive concession in the Midwest

In order to attract investment and promote the development of local economy, some central and Western governments have thrown olive branches to the Eastern shoe enterprises, and a series of preferential policies have been introduced.

From tax relief to the expropriation of industrial land, or even the supply of human resources.

The products themselves are processed and pported in the western region. When the economic development of the western region reaches a certain level, they can even sell domestic products to the Middle East and Central Asia, and penetrate into their core areas through trade. This will also lay a solid foundation for diplomacy.

However, everything has two sides, and shoe companies are moving in the same way. In the process of migration, there are many problems perplexing shoe companies.