How Can You Survive In Guangdong Shoe Enterprises?

Related events: in the first three quarters of this year, there were about 1000 shoe factories and related supporting enterprises in Guangdong, which were closed down by various factors or voluntarily closed down, or were sealed up by courts or moved elsewhere.

In the development of the world footwear industry, the footwear industry in Guangdong has dominated the industry for many years.

But in recent years, "labor shortage", "electricity shortage" and "oil shortage" have followed. Bottlenecks in land, labor and energy allocation have led to the development of the footwear industry in Guangdong into a high cost era.

Guangdong's shoe makers also worry about the continued appreciation of the renminbi appreciation and the processing trade policy.

So, in addition to some companies choosing to close in desperation, others began to try to move to less expensive areas.

In Guangdong, shoe companies are mainly concentrated in cities such as Huizhou, Dongguan, Guangzhou, Heshan and Zhongshan, with a total of five thousand or six thousand.

Data from the Asian Footwear Association show that there are about 1000 shoe companies in Guangdong.

Among the more than 3000 shoe companies in Huizhou, the current situation is not optimistic. In the recent two or three months, small and medium-sized factories have closed four hundred or five hundred.

The impact of export tax rebates should not be ignored.

Global exporters have full tax rebates.

Since July 1st this year, the export tax rebate rate of the footwear industry has been reduced from 13% to 11%.

If the trade surplus is high, the export tax rebate rate will be further reduced.

This basically depends on export tax rebates to obtain small profits, and even some enterprises are completely dependent on export tax rebate to maintain the survival of the footwear industry will have a major impact.

In addition to the above factors, Chinese shoe companies are also facing a severe test of foreign anti-dumping.

In October 2006, the EU imposed a 16.5% high anti-dumping duty on Chinese leather shoes enterprises for two years.

In June 2007, Taiwan also imposed 43.5% anti-dumping duties on 6 types of footwear products in the mainland.

"If the euro appreciates faster against the renminbi this year, domestic shoe companies may suffer.

The labor contract law, which will be implemented from January 1st next year, will become the last straw in the thousands of shoe enterprises in Guangdong. According to the new regulation, some shoemaking enterprises must invest a large amount of capital, which is no doubt exacerbated by labor-intensive shoemaking enterprises, so some enterprises simply switch production or even stop production and go bankrupt.

In fact, the north of the shoe industry is a microcosm of the big migration of Guangdong's processing and manufacturing enterprises.

Is pfer the only way out?

Is pfer really able to revive the manufacturing enterprises in crisis?

At present, China is already the world's largest footwear producer, exporter and consumer country, occupying 68% of the world's market share, but not yet 68% of its weight, and its pricing power is in the hands of foreign investors.

In the future, we should gradually gain the right to speak and gain the respect of the world.

Not only is the shoe industry, but for many of the processing enterprises in Guangdong, there is only one way out for the future.

That is, "only technology development is the way out for enterprises. No technology is always controlled by others".

We must take market demand as the orientation, technological innovation as the driving force, speed up the strategic pformation, and strive to improve the technological content and added value of shoes products, and pform to technological advantage.

The crisis in Guangdong reflects the status quo of China's manufacturing industry, that is, labor-intensive manufacturing enterprises with low cost, low profit and lack of independent brand and technological content have no core competitiveness. Once the low cost comparative advantage is lost, the crisis is not simply a production crisis, but a survival crisis.

To solve these problems, we need not only to enhance brand awareness and increase R & D investment, but also to upgrade local industries.