After The Storm: Chinese Shoe Companies Did Not Move Abroad In Large Scale.

"Although the average cost of labor in Vietnam is only 3/5 of that in China, considering all factors, I think it is the most powerful Chinese shoe maker at present."

Zhang Huarong, chairman of Huajian group, said.

To pfer production to the mainland, in order to deal with anti-dumping duties on Chinese shoes in the EU and other places, and to request the international buyers to decentralization production risks to suppliers, Huajian group chose to set up factories in Vietnam.

In the past few years, the production base of Huajian Vietnam still has two production lines and seventy thousand or eighty thousand pairs of shoes.

Zhang Huarong said that Vietnam's shoe making facilities are far less than the PRD, and many raw materials need to be supplied from Guangdong.

In addition, production efficiency is relatively slow, workers are less proficient than China, and management is basically dispatched from China, and in the process of familiarity with local laws and regulations, they also need to spend a certain amount of manpower and material resources.

Judging from the comprehensive cost, the cost of production in Vietnam has not been reduced, and has been persisting mainly in order to avoid trade friction.

At the same time, the production base invested by Huajian group to Ganzhou, Jiangxi, has developed rapidly.

Aware of the fact that the production costs in Dongguan are gradually rising and may be short of labor shortage and land tension, Zhang Huarong invested heavily in Jiangxi in January 2002 to build Ganzhou Huajian international shoe city.

At present, the capacity of Ganzhou is approaching the capacity of Dongguan in Guangdong. The two production bases of Huajian group have more than 10 thousand employees, and Ganzhou produces 8 million pairs of shoes annually, while Dongguan produces about 10 million pairs of shoes annually.

"The labor cost in Ganzhou is more than 10% lower than that in Dongguan, and more importantly, the workers here are relatively stable.

Over the past few years, we have gradually improved the shoe making equipment in Ganzhou, and now some of the raw materials or accessories are supplied from Guangdong.

Because of the developed logistics in Guangdong, the shoes products produced in Jiangxi are mainly exported to Guangdong for export overseas.

Zhang Huarong said.

Zhang Huarong reflected that with the advantage of low production cost in Ganzhou, Huajian group is pushing forward the industrial gradient pfer smoothly, pferring large quantities of low price shoes to Jiangxi, and processing high-grade shoes with small quantity, difficulty and high added value in Dongguan. In the future, Huajian group will accelerate the development strategy.

Due to early adjustment of production layout, Huajian group has initially tasted sweetness, which is less affected by the new deal in processing trade last year.

Although the process has been well done, Zhang Huarong has become increasingly aware of the crisis. He has made great efforts to extend from manufacturing to high profit R & D, brand design and sales in the industrial chain.

Recently, he invested 40 million to 50 million yuan to build a world shoe industry (Asia) headquarters base in Houjie, Dongguan, locating the base as R & D, trade, brand incubation, logistics Asia headquarters, developing new materials, new products and developing new markets.

Zhang Huarong believes that the future development trend of Huajian group should be processing, producing and processing in Dongguan.

The Pearl River Delta industrial gradient pfer due to high production costs, and lack of labor, electricity shortages and land resources shortage, the Pearl River Delta and other places gradually appear some labor intensive enterprises by adjusting the layout of production to reduce costs.

Hongkong's famous underwear brand, an Li Fang, is one of them. Following the investment in the two production bases in Shenzhen, Guangdong and Changzhou, the third industrial base of the third production base, which was invested by the company in the mainland, was officially put into operation recently.

In 1987, an Li Fang set up an Li Fang (China) Garments Co., Ltd. in Shenzhen, now its headquarters in the mainland.

Kong Xianjie, executive director and deputy general manager of an Li Fang Holdings Limited, said that at present, there are about 1000 workers in the Shenzhen factory. The production cost of the Pearl River Delta and the Yangtze River Delta has been increasing rapidly in recent years, and it is also difficult to recruit workers. If the large-scale expansion of the original production base is very difficult, the choice of investing in Shandong will take advantage of the production base to radiate the northern market of the company in addition to considering the low production cost and the perfect matching of textile production.

"We do not exclude the possibility that some products will be designed by Shenzhen and manufactured by Shandong."

Kong Xianjie said.

Zhang Yongshi, deputy director of Investment Promotion Bureau of Ming Shui Economic Development Zone, Zhangqiu, Shandong, said that 243 enterprises such as Fang Li Fang and Kang Shifu have been introduced into the area.

Compared with the Pearl River Delta, the Yangtze River Delta and other regions, Shandong's land and other resources are relatively adequate, the supply of electricity and water will not be tight, and the labor force is relatively adequate. The monthly wages of workers are generally two hundred or three hundred yuan lower than the Pearl River Delta, hoping to attract some enterprises in Guangdong to invest here.

Wang Tao, director of the processing trade department of the Guangdong provincial foreign trade and Economic Cooperation Department, said that since the 30 years of reform and opening up, Guangdong's processing trade has been undergoing constant pformation and upgrading. The traditional export products such as textiles, clothing, shoes, toys and so on accounted for over 80% of Guangdong's export volume. Now the situation has changed, and the electrical and hi-tech products account for more than 80%, while the mechanical and electrical products only account for less than 20%.