Dongguan Shoe Enterprises Strike The Alarm Bell For Independent Licensing Of Footwear Industry

At 12:15 noon yesterday, the reporter dialed. Dongguan Liu Daosong, general manager of Anji leather products Co., Ltd., and Ruian people's mobile phone, are sitting in the dining hall of the company for lunch. Referring to the recent closure or relocation of many shoe companies in Dongguan, he said, "there are many things to say to reporters."

OEM is the crux of the problem.

On the evening of August 30th, the CCTV financial channel "economic information network" broadcast a news of "the closure of over 30% of shoe enterprises in Dongguan". Obviously, well-informed Liu Daosong already knows the relevant content. He believes that at present, the footwear industry in Dongguan is "serious, but it should not be closed down."

Dongguan, Guangdong Province, known as the "world factory", is small and medium-sized. enterprise Cradle. According to the relevant data released by the Dongguan Municipal Bureau of statistics, there are 467 thousand and 700 private registration households in Dongguan, of which 99% are small and medium-sized enterprises. According to the relevant data released by China Leather Association, China now produces about 13 billion pairs of shoes annually, accounting for six or seven of the world's total output, of which nearly 10 billion are exported. And Dongguan is the world famous shoe foundry base. Once there were 1 pairs of shoes in the world from Dongguan, 10.

Liu Daosong said, Dongguan shoe enterprises do very little in their own brands, almost all shoe companies are doing OEM (OEM), and rely on orders to survive. This is the main sticking point for Dongguan shoe enterprises to face difficulties at present.

Dongguan Municipal Foreign Trade and Economic Cooperation Bureau announced a set of figures. In 1-6 months of this year, 261 enterprises were closed down in Dongguan, compared with 5 less than the same period last year. In 2008, 865 enterprises were closed down in Dongguan, 657 in 2009 and 585 in 2010. Although the number of shutting down enterprises has been decreasing year by year since the financial crisis in 2008, the footwear industry in recent years, which is an important industry in the city, has occurred in several large and medium-sized enterprises. Shoe enterprises The closure or relocation incidents are of particular concern.

Facing many survival tests

A number of media reports such as CCTV quoted people in the industry as saying that in recent years, Dongguan's large and medium-sized shoe making enterprises such as ANGA shoes, intermodal shoes, and flida shoes have been closed or relocated. Many shoe companies such as Huifeng shoes, mace shoes, Yongsheng shoes and so on are reducing the scale of production in a large scale. The footwear industry in Dongguan is experiencing severe market tests, and many shoe factories are in a halt to semi production.

Liu Daosong analysis, which has been in Dongguan for more than ten years, said that nearly 2000 workers, such as ANGA, went bankrupt, leading to the collapse of some small shoe companies.

In Guangzhou Zhongda Changjiang ingredient city as an excipient business. Wenzhou Zhang Zhonghai, the boss, is also very concerned about the situation in Dongguan. He believes that any pressure is likely to crush OEM enterprises. At present, Dongguan shoe enterprises face at least four major tests. First, foreign trade orders are reduced. Because of this year's European and American economic stumbling, coupled with the Libya war and other factors, Dongguan shoes enterprises relying on OEM are either insufficient or afraid to take orders. Second, the impact of exchange rate will lead to a decline in export profits. Third, because small and medium-sized shoe enterprises have neither collateral nor bank credit, they can only raise money through private high interest loans. The cost of financing often reaches 30%-40%, which makes OEM enterprises unhappy. Fourth, labor costs and raw materials prices soared. Liu Daosong said that the monthly salary of Dongguan's shoe manufacturers is generally between 1500-2000 yuan, and that it is still hard to recruit workers.

Wen Shang business is still good.

The 1 day of each month is the day when Dongguan Three Li Hardware Products Co., Ltd. has a fixed holiday. At noon yesterday, Ye Xinjin, chairman of the company and Yongjia people, ran away to get a haircut.

He told reporters that in his spare time, he rubbed mahjong with a group of Wenzhou bosses in Dongguan. "But lately, they are playing less and everyone is busy with the company." He said that in the voice of "collapse tide" in Dongguan's shoe enterprises, the enterprises in Dongguan have large scale and generally take account of OEM and domestic sales, so they are doing well.

Ye Xinjin, for example, said that a few years ago, Lao Xu, from Yongjia county bridge head office to Dongguan to run shoe factories, used to be a "mahjong" activist, but recently he was busy with AOKANG, Cartier, crocodiles and scarecrows. brand Do OEM, "for a long time did not rub mahjong."

The reporter sent a warm call to Honest's shoe industry, Connie leather, Silver Eagle buckle, Weier leather goods and Bao rabbit dress in Dongguan, and relevant officials said that the company is in good condition.

Liu Daosong admitted that although the company's OEM orders decreased this year, he increased the annual output value and profits of the enterprises by increasing domestic sales and expanding network sales.

The collapse of Dongguan shoe enterprises has also had little impact on Wenzhou's well-known brand shoe companies. Jin Guojun, manager of planning procurement department of AOKANG procurement management center, told reporters that most of Dongguan shoe enterprises' OEM were foreign orders. In recent years, the number of shoes purchased by Wenzhou brand shoes enterprises to Dongguan was not large.

Self creation is the king's way.

The current situation of labor-intensive enterprises, such as financing difficulties, employment difficulties, electricity consumption and rising raw material prices, exists in Dongguan, the "world factory", and also exists in Wenzhou, the "shoe capital of China".

However, there is a striking difference between the two shoemaking industries: the majority of Dongguan shoe enterprises survive on the orders of OEM, while the other 60% Wenzhou shoe enterprises are mainly domestic and have their own sales network.

Statistics from the Asian Footwear Association show that in 2010, there were more than 1600 shoe enterprises in Dongguan, with an annual output value of 63 billion yuan. Wenzhou Shoe Leather Association recently released data show that in 2010, Wenzhou 2573 shoe enterprises, the output value of 78 billion yuan, 60% footwear industry mainly for domestic sales; in the first half of this year, Wenzhou shoes exports 1 billion 990 million U. S. dollars, an increase of 30% over the same period, at present, Wenzhou's key shoe enterprises are still steady ahead.

Xie Rongfang, executive chairman and Secretary General of Wenzhou shoe leather association, said that although this year Wenzhou There are more than 100 shoe factories, but more than 100 of them are closed. "But most of them are small businesses and are eliminated by competition. Wenzhou shoe industry should be better than Guangdong. At least, the brand is superior to Guangdong, which occupies half of China's shoes brand. "China's ten leading leather shoes", Wenzhou shoes accounted for six seats, and China's well-known trademarks have 75. In addition, Wenzhou shoe enterprises are good at holding together, and this is better than Dongguan shoe companies alone.

Facts also seem to prove that the difficulties faced by shoe manufacturers in Dongguan and other places are alarming for Wenzhou counterparts, but there are also unexpected gains. According to Zhou Yaohua, deputy general manager of Dongyi shoes company, yesterday, the company exported about 9 million pairs of shoes to the United States, and the production orders this year increased by 10%. Most of all, he was convinced that the new order was transferred from the shoe factory in Dongguan.