Fujian Footwear Industry Plans Output Of Industrial Chain

Recently, the exchange forum on shoes and leather industry held in Quanzhou and Guangdong revealed a trend: Fujian, especially the shoe manufacturers in Quanzhou, is now planning to set up factories in Southeast Asia or central and South America, hoping to form a new competitive advantage through the output of the whole industry chain, including shoes, shoes, shoes and other links, so as to open up a new channel to expand the international market.

The footwear industry association of Fujian has taken the lead in organizing the investigation.

Target channel: developing countries, according to the relevant person in charge of the footwear industry association of Fujian Province, Quanzhou's shoes and sports shoes account for a large share of the world shoe market. However, due to changes in the international market and rising domestic production costs, the export profits of shoe companies have been continuously compressed, and more and more shoe enterprises in Quanzhou are facing more severe challenges.

"On the other hand, some developing countries in Southeast Asia, central and South America have great advantages in terms of market demand, land and labor resources.

Therefore, after a long period of research and investigation, we find that expanding to these countries, directly setting up factories in the local area, and then selling them in the local market, or even selling products to other countries, will help enterprises to cope with the current international trade situation and go out of an international road.

After investigation and investigation, our target is basically locked in some countries in Southeast Asia, such as Vietnam, Kampuchea, and some countries in central and South America.

The person in charge said.

He said that earlier, there were some cases in which Quanzhou's single enterprises invested in factories in these areas. However, as a single enterprise in a "unfamiliar" place, it was very thin, and there were not many bargaining chips with the local counterparts in many aspects.

"Under such circumstances, some enterprises began to form the idea of" joint going out ".

On the one hand, the strength of Corporate Alliance will be stronger and more attractive to those developing countries. The relative party may give better conditions for the successful investment. On the other hand, when the enterprises are united, they can communicate with the local government by the relevant government departments and trade associations, and sign relevant cooperation agreements. Both sides cooperate under the framework of pre negotiation.

In this way, the uncertainties that may be faced by enterprises going abroad will be reduced. "

He said.

Expand the train of thought: the development of the industrial chain output enterprises needs the overall support of the industrial chain.

Shoemaking enterprises to expand factories in developing countries, if there is no support for the upstream industry, such as shoe materials, leather and other raw materials, shoes and other production equipment, if the cost of land and labor is reduced, the cost of procurement will rise sharply.

The reporter understands, when this Fujian shoe industry plans to join together to attack, the problem of upstream supply of industry has been taken into account.

It is reported that many industries in these developing countries are still in the initial stage of development. Not only the scale of the industry is small, but also the industrial chain is not perfect. Therefore, in this plan, the synchronized "going out" of the upper supply enterprises such as shoes and shoes machines has also been emphasized.

If the plan is implemented successfully, there will be not only Quanzhou's leading shoe enterprises, but also a lot of small and medium-sized shoe enterprises, and some more powerful shoe and shoe enterprises.

Some business leaders believe that if you can successfully open up a new channel to expand the international market, then the R & D center of all products will remain in the local area, because after a long period of development, the industrial cluster effect of Fujian, especially the footwear industry in Quanzhou has been very obvious, and there are more design talents.

"Later, we may also consider exporting semi-finished products from Quanzhou to foreign branches."

The head of an enterprise said.

Lessons learned: Cantonese shoes stationed in Southeast Asia in Guangdong and Fujian shoes and leather industry exchange forum, Wang Jianxin, director of Guangdong Leather Association, said that Guangdong has many shoe companies to invest in Vietnam and other places to set up factories.

At present, the Pearl River Delta has begun to restrict the development of labor-intensive industries, and the relevant departments in Guangdong encourage shoe enterprises to expand to western Guangdong and northern Guangdong. However, most enterprises choose to set up some production bases in Vietnam and other countries, especially some Hong Kong funded and Taiwan funded enterprises.

At the same time, most enterprises' R & D centers, marketing centers and other headquarters remain in the locality.

Wang Jianxin said.

He said that for the local shoe companies in Guangdong, in fact, they realized a business pformation. Most enterprises took the way to set up factories in Southeast Asian countries, then separated some of their capacity, made arrangements for producing them in these countries, or exported semi-finished products from abroad to factories outside the country, and then sold them to all parts of the world.

Expert opinion: overseas expansion should be cautious. Reporters understand that many Quanzhou shoe companies are preparing or expanding overseas production bases. For example, Feng an (China) Leather Co., Ltd. invested and built factories in Vietnam. Baofeng company started to visit Philippines, Vietnam and Indonesia two years ago, and intends to set up overseas factories in Indonesia. Jinjiang Guo Hui Shoes Co., Ltd. has also set up factories in Vietnam.

At the same time, some Southeast Asian and central and South American countries also found this trend, sent business representatives to Quanzhou for inspection, such as Philippines and Vietnam had previously organized and sent business representatives to Quanzhou, in central and South America, Honduras and Venezuela and other markets also sent a wave of autumn.

According to expert analysis, Quanzhou shoe enterprises should be cautious in setting up factories overseas, and should consider comprehensively whether they are conducive to reducing costs, whether it is conducive to other areas of radiation, whether the investment environment is stable, and whether the cost of labor is low or not.

Experts believe that it is a good way to expand the international market by setting up factories in Quanzhou shoe enterprises to set up factories overseas. On the one hand, they can promote the visibility of regional brands in the international market, and on the other hand, facilitate the mutual reference between enterprises and form the advantage of group cooperation.

Fujian footwear industry plans to export shoes enterprises to build factories overseas, and open up new channels to expand the international market.