Dongguan Million Shoe Enterprises Thin Body Pformation Swept Through

When the large-scale foundry shoe factories have shifted, closed or compressed the scale, a group of small and small shoe enterprises suddenly gushed out, connecting the Internet era with the new mode, which is gradually forming the new normal of Dongguan's most important shoe making base in the world.

Li Peng, secretary-general of the footwear association of Asia, has been frequently involved in the shoe industry in Dongguan recently. He was surprised to find that although the number of shoemaking workers in Dongguan still showed a decreasing trend, the number of shoe enterprises did not decrease but increased.

Li Peng recently told the first Financial Daily reporters that in the past, thousands of people were making shoes factories in Dongguan, but now there are few shoe factories with more than ten thousand people.

In some factories that have been reduced or collapsed, they have evolved into 35 or even hundreds or even dozens of small shoe factories. It looks like a small industrial area. Orders are directly linked to new retail outlets such as Taobao and micro stores.

The shoe industry in Dongguan is not a sad one. Instead, it shows some vitality. The shoe industry is in constant pformation and upgrading.

With no apparent recovery in external demand and increasing labor costs, China's footwear export orders have not improved significantly.

According to the latest data released by the General Administration of customs, China exported 1 million 760 thousand tons of footwear in 1~5 months in 2015, down 4.7% from the same period last year, with an export value of US $20 billion 716 million, a slight increase of 0.7% over the same period last year.

Reporters recently interviewed in Dongguan, a number of shoe enterprises generally reflect the operating costs are still growing, due to the rise in the price, resulting in a reduction in the number of orders, profits are still showing a downward trend.

The world's largest

The operation of Taiwan Baocheng group released by the manufacturer also shows that the net profit of shoe-making business is getting thinner and thinner.

Baoji group's combined revenue in the first quarter of 2015 was NT $62 billion 252 million, an increase of 11.6% over the same period last year.

The proportion of the shoe making business accounts for 70.4% of the consolidated revenue.

Although the consolidated revenue growth in the first quarter of 2015 continued to grow, only the capacity pfer and scheduling of matching orders with the brand customers affected the operating efficiency of the shoemaking business. In addition, the channel business actively expanded the sales base, which resulted in an increase in the relative selling costs compared with the same period in 2014, resulting in the combined gross operating rate and consolidated net operating interest rate of Baocheng group in the first quarter of 2015, respectively, 22.9% and 3.6%, compared with 23.4% and 4.8% in the first quarter of 2014.

Among them, the consolidated net profit of Baoji group in the first quarter of 2015 was NT $2 billion 225 million, which was 16.2% lower than the 2 billion 656 million net profit of NT $2 billion 656 million in the same period in 2014.

In order to reduce manufacturing costs, Baocheng group has gradually reduced its production line in mainland China in recent years, and accelerated its pfer to Vietnam and Indonesia.

According to the insiders who contacted with Baocheng group, the factory of Yuyuan Industrial Company in Yugao Town, Dongguan, has reached a peak of 100 thousand people, and has been reduced to thirty thousand or forty thousand people so far.

Even the net interest rate of Baocheng group, a shoemaking giant, has dropped to 5% of the normal boundary of the industry. Other shoe making factories are also having a hard time.

The shoe factory moved from Taiwan in the middle of 90s to the middle of last century.

Yang Yong, a Taiwanese businessman in Houjie, recently accepted the interview with the first Financial Daily reporter that more than 10 years ago, a pair of shoes with an export price of 5~6 dollars could earn about 2~3 dollars, which could earn about 1 dollars five or six years ago. Now, because of the rising cost, the export of a pair of shoes of 15 dollars can not even earn 1 yuan, the profit margin is only about 1%, and some orders will be lost.

According to the statistics of the Asian Association survey, since the outbreak of the financial crisis in 2008,

The cost is rising steadily. At present, Southeast Asian footwear industry has taken 30% of China's orders.

Because of the rising cost and the loss of orders, Dongguan footwear industry, which once made up of 1/10 in the global market, has been quickening adjustment in recent years. ANGA shoes, flinda shoes, intermodal shoes, Huahong shoes factory, and famous shoe factory have been relocated or closed. These factories are thousands of people or even tens of thousands of people, and Huajian group, oasis shoe industry and other large factories with over 10000 people are also reducing the size of Dongguan shoemaking base.

"As a global shoe making base, although many large shoe factories have moved or reduced their size in Dongguan, the low end orders have been diverted.

At present, there are two major trends in the footwear industry in Dongguan.

Large scale production has gradually lost its advantages. Large shoe factories will continue to migrate some production lines to Southeast Asia and to Jiangxi, Hunan, Guizhou and other places. However, many factories are still staying in Dongguan with high value-added links such as R & D, design, orders and trade, and international purchasers, raw materials and high-end shoemaking talents are still gathering in Dongguan. Dongguan has gradually formed the headquarters of these shoe enterprises. On the other hand, the Internet is promoting the accelerated development of domestic sales, and the domestic orders for the design and processing of shoes products are growing at an unprecedented rate. With the help of Dongguan for decades of establishing a perfect industrial chain for international OEM, Dongguan micro shoe enterprises are growing rapidly and may gradually develop into the mainstream. On the one hand, the cost is rising.

Li Peng thinks so.