Dongguan Foundry Shoe Enterprises To Slow Down The Pace Of Moving To Southeast Asia, Some Shoe Companies Choose To Return To The Local Market.

As early as in the past few years, due to the rapid rise in labor costs in Dongguan, the foundry enterprises that had already had a low profit margin had to find new "price depression". A wave of movement from the Pearl River Delta to Southeast Asian countries is gradually emerging in the foundry enterprises. shoes The industry is particularly prominent. From 2008 to now, according to incomplete statistics, the number of Taiwan funded shoe enterprises in the Pearl River Delta has decreased by more than 1000, and 1/3 of them have moved to Southeast Asia.

However, the momentum of relocation has slowed down recently, and some OEM owners who once had the idea of relocation have decided not to transfer after visiting Southeast Asia. Why is this? Our correspondent has conducted an investigation in Dongguan, the most concentrated shoe manufacturer.

　　 Dongguan: shoe companies move to Southeast Asia to slow down some of the choice of backflow

From Dongguan to Southeast Asia, the OEM shoemaking enterprises are mainly Taiwanese investors, and the destinations are mostly Vietnam, Kampuchea and other countries, because the labor cost there is much lower than that in China. Wang Xinghua, a Taiwanese businessman who has been engaged in shoemaking for more than 30 years, invested and built factories in the mainland in early 90 of last century. He had many foundry enterprises, and like other Taiwanese businessmen, he once wanted to move the factory to Southeast Asia. But after a field trip, he dismissed the idea.

Wang Xinghua, chairman of Taiwan Footwear Association, said that after I visited several countries, I chose to stay in the motherland. I did not like several factors in Southeast Asia. The main factor was low wages but poor efficiency.

As a labor-intensive industry, shoemaking has always been characterized by cheap labor. Over the past 30 years, many Shoemaking enterprises Under the traction of labor costs, from the developed countries such as Europe and the United States to China gradually, they settled in the Pearl River Delta region represented by Dongguan. However, since the beginning of 2008, attracted by the lower labor cost, foreign shoe enterprises began to move to Southeast Asia, and the financial crisis directly exacerbated this trend, which is becoming more and more intensified. But in recent years, this trend has slowed down considerably.

Wang Xinghua, chairman of Taiwan Footwear Association, said that from the chat in our industry, they continued to move forward in Southeast Asia. There were many reasons for the cancellation, but the momentum should be gone.

Chen Zhenghua, who specializes in the production of shoe materials, tried to persuade the factory to move the factory to Vietnam to do the supporting services for the relocation of shoe manufacturers. However, after some investigation, he found that such relocation is not cost-effective.

Chen Zhenghua, manager of Dongguan Tian Jun shoe material factory, said that at the time, the cost of transporting my guests to Vietnam was relatively high. I hope I set up a factory in Vietnam, and later found that the market share was limited.

Due to the lack of industry support and the limited local market, some outsourcing enterprises found that it is not easy to have a firm foothold in Southeast Asian countries, so some enterprises have been relocated to Dongguan.

Wan Zhuopei, mayor of Houjie Town, Dongguan, said that regardless of their own innovation and even expanding the market, they can find a good configuration in our area. So these advantages make the original manufacturing enterprise (shoe industry) originally transferred out, and finally choose to return to Houjie.

　　 Survival survey of OEM Enterprises

Wage increase is difficult to manage, and the cost advantage of Southeast Asia is weakened.

Whether the OEM enterprises choose to move out or stay behind is only one factor in the final analysis, that is profit, and labor cost is only one of the many factors that affect the efficiency. Therefore, it appears that despite the fact that Southeast Asian countries have lower labor costs, they still choose to stay at home. Many foundries told our reporters that the reason why they no longer moved to Southeast Asia is that the industrial chain is not perfect and infrastructure is also a key factor in addition to the weakening of labor costs in Southeast Asian countries.

According to incomplete statistics, before 2008, there were about more than 3000 Taiwanese funded shoe enterprises in the Pearl River Delta region. Due to the shutting down and relocation, there are still more than 2000 Taiwan funded shoe enterprises in the Pearl River Delta region, with a decrease of nearly 1/3, of which about more than 300 have moved to Southeast Asia. However, due to the continuous rising of labor costs in Vietnam and other places in recent years, the advantages of "low wage" in Southeast Asian countries are being reduced or even lost.

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Wang Xinghua, director of the Taiwan Footwear Association, said that their labor cost has reached 1/2 in China today, and even the cost of some countries close to the mainland has reached two hundred yuan and three hundred US dollars, as the labor cost of these countries is very close to that of the mainland.

In addition, due to cultural differences, how to communicate effectively with local workers has become a problem that many enterprises have to face. If communication is not good, the operation efficiency of enterprises will be greatly affected.

Wang Xinghua, director of the Taiwan Footwear Association, said that the strike of some countries was particularly prosperous. On the eve of your shipment, the whole factory came and went all the way, resulting in management problems. The most serious problem was the loss of the self-esteem of the operators.

In addition to rising wages and increased management difficulties, the lag of infrastructure in Southeast Asian countries is also an important reason for many shoe companies to give up relocation.

Chen Zhenghua, manager of Dongguan Tian Jun shoe material factory, said that its infrastructure works, such as road repair, cause great difficulties. If transportation is not normal, its development prospects must be limited.

Compared with China Footwear industry chain It is highly developed, and the upstream and downstream industry chains of Southeast Asian countries are still very imperfect. Some shoe factories have moved away, but many raw materials and accessories are still being purchased from Dongguan. This will undoubtedly increase the transportation cost of enterprises, thereby weakening the allure of low labor force.

Wan Zhuopei, mayor of Houjie Town, Dongguan, said: (Dongguan) Houjie industry is complete and complete. From the aspect of industrial supply chain, our cost is lower than that of other places. I do not need to go far to find out the resources allocation of all links.

　　 Survival survey of OEM Enterprises

　　 It is still difficult to solve the labor problem in shoe enterprises.

Many manufacturers of the foundry industry in the Pearl River Delta have abandoned the move, hoping to transfer their factories from the southeast coast to the central and western regions by way of domestic transfer, so as to reduce costs and ease labor shortage. But to their surprise, because of the large number of transfers and the lack of advantages compared with other industries, the shift still needs to face the bottleneck of labor shortage.

After many years of shoe manufacturing in the Pearl River Delta, Wang Xinghua has removed the idea of emigrating to Southeast Asia. He has chosen to transfer his business from the east to the central and western regions. Besides the lower labor cost, he thinks it will be easier to recruit workers there, but the result is beyond his expectation.

Wang Xinghua, chairman of Taiwan Footwear Association, said, "this year, we spent hundreds of millions of dollars investing in a city in the mainland. Originally, the local government helped us find ten thousand workers, and then moved out of Foxconn's index enterprises, giving priority to the supply of labour, and sacrificing our traditional industries.

Because of the large number of enterprises migrating to China, especially the labor-intensive enterprises, the central and western regions where labor resources are relatively abundant are frequently in short supply, and traditional industries such as shoemaking are often in a weak position in competition with other industries such as electronics manufacturing.

Wang Xinghua, chairman of the Taiwan Footwear Association, said that the biggest problem we encountered was the shortage of labour and the rise in exchange rate wages. When we moved to Henan, Hubei, Hunan, Guangxi and Anhui, we often encountered workers occupying the index industry like the electronics industry, such as Foxconn.

Wang Xinghua told reporters that at present, many OEM shoe companies are in a dilemma of being unable to move inside or outside. Therefore, improving the level of enterprise management and making profits from management is the wise move to get rid of the difficulties.