Dongguan footwear industry can maintain at least 20 years

“Dongguan's shoemaking industry is undergoing profound changes. In the next 20 years, Dongguan shoe industry is still in the leading position in the world. The outflow of shoe factories shows that the effect of industrial transfer upgrades is becoming more prominent.” The topic of Dongguan's batch shoe factory shutting down production or moving away. Zhang Ronghua, Honorary Chairman of Dongguan Leather Shoes Association and Hua Jian Group Chairman, said in an interview with reporters that there is not much space for the production of leather shoes in Dongguan. In the future development, trade, settlement, research and development, materials trading and certification, and talent training are Dongguan shoe industry space. "The world footwear Silicon Valley is in Dongguan."

Honorary President of Dongguan Leather Shoes Association and Zhang Ronghua, President of Huajian Shoes Industry:

"Dongguan shoe industry will continue to maintain its leading position."

Zhang Ronghua, Honorary President of Dongguan Leather Shoes Association and President of Huajian Shoes Industry, accepted an interview with this reporter yesterday. He believes that the current situation of the shoe factory transfer shows that Dongguan manufacturing is undergoing profound changes. “Our comprehensive analysis of the changes in the manufacturing industry has been down the road from labor-intensive to integrated R&D, automation, to trade, talent training, and new materials research and development. Labor-intensive factories always go to low-wage areas. But the results of trade, talent training, and new material research and development that have already formed will not disappear."

Zhang Ronghua believes that the development of the world leather shoes industry, first from Europe and the United States to Hong Kong in China, and later to Dongguan, has now formed a worldwide production base. Dongguan has developed from the original low-end manufacturing to the high-end R&D, which is beginning to take shape today. Mechanical design and manufacturing. Therefore, although low-end production lines have begun to leave Southeast Asia and the interior, there is no problem in mid-to-high-end R&D, trade, and material manufacturing in Dongguan for 20 years.

For the future trend of Dongguan footwear industry, Zhang Ronghua and Zhang Hong, deputy general director of the Dongguan World Footwear Headquarters, believe that trade, R&D and talent training will be based in Dongguan. Dongguan footwear industry in the future development will be settled, trade, circulation, materials trading as the main features.

People in the industry generally believe that in the face of the actual problem of labor shortage, Dongguan has no room to open production. The production of leather shoes will develop in a balanced manner throughout the country and Southeast Asia in a short period of time. 30% of Dongguan's output will be transferred to Southeast Asia. For the whole country, there is a 15% increase in output, because the mainland's labor force will also have a relatively large space development. In the long run, there will be a balanced distribution of low-end, mid-end and high-end footwear products in China, and there will be fewer and fewer shoe factories in Dongguan.

“In the future, the production line will be mainly automated and functionalized. The factory of 5,000 people will reach the current output of 10,000 people and the internal management benefits will be improved. Zhang Ronghua revealed that starting from 2008, the production of low-end shoes in Dongguan is showing 20 per year. The decline in % will be followed by a downward trend."

Data: Decline in the export volume of leather shoes The increase in transaction volume from the Customs shows that the number of leather shoe exports in Dongguan fell by 7.8% in the first half of this year, but the transaction amount has increased by 20%. This shows that although the cost has increased, but the price of export shoes has been improved, for the shoe factory, there has been no anxiety about volume and price fluctuations, very rare.

Zhang Ronghua believes that at present, the suspension of production of many large and medium-sized Taiwan-funded enterprises is a major factor in reducing export volume. Most children of first-generation Taiwanese businessmen are reluctant to inherit this kind of labor-intensive industry, and therefore have turned, closed or retired.

"Shoe factory is mainly concentrated in the low-end manufacturing industry. There is no such situation in R&D." Zhang Ronghua believes that Dongguan's shoe R&D strength has not only not weakened, but has steadily increased.

For some shoe factories relocated to Southeast Asia, Zhang Ronghua disclosed that in these places, there are situations where investors cannot overcome in a short period of time. Cultural issues, legal issues and labor rights issues need to be digested. Vietnam may be better. select. In fact, most shoe factories in Dongguan have reached Vietnam, but there are also problems of high costs and shortage of labor force. Therefore, the realization of mechanization is the biggest problem faced by the industry, and it is also a long-term solution.

Response: Established "World Footwear Headquarters Base"

At present, 30% of high-end footwear brands are developed and manufactured in Dongguan, while Italy accounts for 60% of the market. To this end, Dongguan approved the establishment of the "World Footwear Headquarters Base." This huge project of research and development of materials, high-end brand design, talent training, certification system and new materials trading has begun to take shape. Zhang Hong, head of the ABP, told the reporter that the orientation of the ABP is to be developed in the future, and the current production process “moves away” from the Dongguan trend and will not affect the ABP. The development of the base will be a five-year-long development of the market, not a development. Manufacturing industry, but the development of technology, trade, fashion, to provide consulting, personnel, exchanges, exhibitions, culture, certification and other service industries. The project is the platform for the world's footwear technology to enter China's upgrade, China's footwear industry to the world's import and export trade platform, the world's footwear industry, trade and high-speed service platform.

Many people in the shoe industry believe that Dongguan has turned its former manufacturing base into a high value-added economic and trade base.

Experts: Hollow development is most beneficial to shoe enterprises. For the “hollowing out” phenomenon of the Dongguan shoe industry, Professor Lin Jiang, director of the Department of Finance and Taxation at Lingnan College of Zhongshan University and a contributing researcher in Dongguan City, believes that there are many reasons for this phenomenon. For enterprises, they do not want to completely give up Dongguan. Compared with other regions or cities, Dongguan has a unique advantage. Its export-oriented economy is developed, and it is connected with Shenzhen and Hong Kong. The geographical advantages are obvious.

Lin Jiang believes that the headquarters location does not make much sense for processing trade companies. Instead, they care more about saving costs. "If the Dongguan shoe company's headquarters is not solid, perhaps the Southeast Asian region will gradually develop its headquarters economy." Lin Jiang said that this kind of hollowing out pattern is most beneficial to enterprises.

For many enterprises in Dongguan, “run away” or reduce the scale of production and the phenomenon of bankruptcy, Lin Jiang believes that this is the inevitable result of the transformation of shoe enterprises. In the absence of orders, the reversal of the international economic situation, the decline in consumer spending power, and the appreciation of the environment, shoe companies are facing a difficult integration stage.

Lin Jiang explained that currently there are several phenomena in Dongguan shoe companies. Before they completely exported, they now do export and domestic demand. The production line has begun to make adjustments and increase the domestic demand brand. He believes that at present, the footwear industry is reshuffled and is in a relatively difficult integration stage.

News link Dongguan shoe-making pattern is undergoing a fission At present, China's footwear accounts for 67.0 percent of the world's annual output of 13 billion pairs of shoes, of which nearly 10 billion pairs of exports. According to relevant data, in 2010, there were more than 1600 shoe companies in Dongguan with an annual output value of 63 billion yuan. The outward-oriented type of shoe making in Dongguan is undergoing a fission.

After entering the 21st century, some shoe companies moved to Vietnam, India, Bangladesh and other Asian countries. At the same time, the phenomenon of inward migration of shoe factories “southern shoes and north shoes and east shoes moving west” also showed an upward trend. Brazil’s international trade business, Panomon, has transferred half of its operations in Dongguan and other places to Sichuan and Qingdao, and has also built a shoe production line in Chongqing.

Zhou Shiyi, an expert in business affairs evaluation, described the destiny of the foundry in Guangdong as “do nothing”. He believes that processing trade has now completed its historical mission and that primary processing is doomed to be eliminated.

“The world’s industrial transfer will not stop. The world’s shoemaking pattern is being highly concentrated in China and gradually diverted to Southeast Asia and other regions.” Zhou Shizhen said.

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