The Cost Is Fierce. Dongguan Shoe Enterprises Export Shoes Earn Only 20 Cents A Pair.

According to statistics, at present, 13 billion pairs of shoes are produced annually in China's shoes, accounting for six or seven of the world's total output, of which nearly 10 billion are exported.

Statistics from the Asian Footwear Association show that in 2010,

When reporters interviewed in Dongguan, they met a family.

Workers and security told reporters that the recent foundry

Jiang Lin, deputy director of the Hong Kong, Macao and Pearl River Delta Research Center of Zhongshan University, said that more of the shoe factories I saw in Dongguan were not bankrupt or bankrupt, but it was called a halt or half business.

There are thirty percent to forty shoe factories belonging to this kind of edge, which is called bankruptcy. There is no application for a legal procedure, strictly speaking in a state of stop production and half stop production.

In addition, most of the shoe factories that shut down and shut down were small shoe factories with poor strength.

Some large shoe enterprises have stable orders and are in good condition.

Zhang Huarong, chairman of the Asia Footwear Association, chairman of Huajian group, said that when the financial crisis or bad economic conditions, there were fewer open businesses. Some of them were normal. Some of them were related to the increase of market factors.

Orders cost less, exports increase, and a pair of shoes earn only 20 cents.

I have a set of data from the Ministry of Commerce. Leather shoes in the US market, in 1976, 53 pairs of 100 pairs were produced in the United States, while in 2006 the United States produced only 1.5 pairs, most of which had been processed in other countries and regions.

It can be said that such a pattern had created the Dongguan footwear industry dominated by the outside oriented industry, but the footwear industry in Dongguan is experiencing another fission now.

Why do shoe companies in Dongguan survive? Let's continue to investigate journalists.

Li Liangsui, general manager of icannon Footwear Co. Ltd., said that since June, orders have basically been shrinking, including the orders received in November October, which are also very low, falling by 30% to 40%.

Including some development, less and less, the whole market can not see development.

An important reason for the decline in orders is the widespread debt crisis prevailing in the United States and Europe. Some customers are very cautious because of the market prospect.

According to statistics from the Asian Footwear Association, conservative estimates of global shoe orders will shrink by 10% this year.

Because the shoemaking industry is a labor-intensive industry, the price of labor in Southeast Asia is low, the comparative advantage of Chinese labor is no longer there, and some Taiwanese shoe enterprises are moving to Vietnam and Kampuchea.

Li Liangsui, general manager of icannon Footwear Co. Ltd., says that a master in China may be three thousand yuan, four thousand yuan or even five thousand yuan. In Kampuchea, Vietnam, it only needs four hundred yuan and five hundred yuan.

Shen Hong, deputy general manager of Dongguan Xin Ruida shoes industry Co., Ltd., said that the large Taiwanese capital has been pformed, to Vietnam, to Burma, and to Southeast Asia's poorer areas.

On the one hand, orders are shrinking. On the other hand, shoe manufacturers are also facing enormous cost pressures.

It is understood that from last year to now, leather materials have risen by 10% to 20%, and labor costs have increased by an average of about 15% annually, and the appreciation of RMB since the reform has reached over 26%.

Multiple factors superimposed on it, more and more shoe companies are struggling to break even.

Li Liangsui, general manager of icannon Footwear Co., Ltd., said that now the US dollar depreciated and the raw materials increased. Basically, there is no profit for export. Basically, the foundry industry we processed is on the verge of cost. Basically, if we keep on working overtime, we can survive.

If there is a weak month, we will face negative growth.

Zhang Huarong, chairman of the Asia Footwear Association, chairman of Huajian group, said that the labor cost could be controlled at 18% the year before last, probably 20% last year and 23% this year.

A shoe company official revealed that the shoe industry was very sensitive to costs because of its small profits. 3 years ago, a pair of leather shoes on their factories could earn about $1, and now only about 20 cents left. At present, the average profit of Dongguan shoe enterprises is only about 5%.

Dongguan shoe enterprises seek upgrading for survival

Shoe companies are moving to Southeast Asia. It seems that the new round of world shoe industry's location shift is in progress. But does this mean that the status of Dongguan shoe manufacturing base is not guaranteed? In Dongguan, our reporter found that shoe companies there are also seeking pformation and upgrading.

Li Liangsui, the boss of Dongguan's icannon shoe industry, has been busy researching the market for her high-end women's shoes and selling their own brands in the past few months.

Li Liangsui, general manager of icannon Footwear Co. Ltd., said, "I find that China is not short of Bank of China's low-grade shoes, no shoes."

In particular, there is no shortage of medium and low grade shoes. The lack of high-end brand shoes is short of some high-end high-end products in Italy, and the handicraft is relatively strong.

Like Li Liangsui, there are many shoe business owners who rely solely on the export market. Enterprises are hard to survive and develop. When they completely abandon the export market, they generally begin to test the water domestic market.

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Shen Hong, deputy general manager of Dongguan Xin Ruida shoes industry Co., Ltd., said that we are going to sell domestically and domestically and abroad together, and domestic sales are growing. Daphne's brand is growing and there are more stores in China, so it needs more.

Industry experts said that from the perspective of the history of the world shoe industry pfer, the world's shoe industry center shifted towards the low labor price area, but the previous shoe industry base would not decline completely.

Thirty years ago, Italy was similar to today's Dongguan. It is the world shoe center, with a large scale. Although the shoemaking base has been pferred to China, its position has not declined.

Although the comparative advantage of Dongguan's labor force is no longer exist, the developed industrial chain and the related modern service industries are temporarily unable to surpass the low labor cost countries.

In addition, China's vast domestic market has not yet been fully excavated.

These advantages give Dongguan shoe industry great room for development.

Zhang Huarong, chairman of the Asia Footwear Association, chairman of Huajian group, said that 80% of the world's traders are in Dongguan. Maybe 35 years later, 60% to 79% designers will come to Dongguan. Dongguan is very dynamic and the footwear industry is very promising.