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Wenzhou shoe leather own life again

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by Paul Stevenson

Article by liumingliang

Wenzhou, a shoe factory production lines busy, the boss implies steady stream.

Wenzhou shoes to do the history, the earliest can be traced back to the Southern Song Dynasty. However, they now fear that the industry in Wenzhou, in the future will be history.

1 External and internal time is come in the gross value of industrial production accounted for nearly a quarter of Wenzhou industry. Shoes from the local industry association data, said last year, the cost of Wenzhou shoes continue to rise by 20%, while the endless anti-dumping and international trade disputes, is like a big hand to slowly pinch tight to their throats.

It is no exaggeration to say that this is a troubled industry. It Zengzaoyuguo many crises, almost every time can be described as a “disaster.” However, we have to admire the tenacity of these Wenzhou bosses, who in a crisis, often play a “self-revolution” role, they are their own “white knight.”

They did not lose confidence, but also claimed to make the industry output growth rate of 8% or so, planning next year’s output reached 900 billion.

This figure is close to the total GDP last year, Qinghai Province, to know most of them, selling just less than 200 yuan per pair of shoes and even more cheap.

Status:

6000 only 2000 shoe

“Chinese shoes” is the letter of the city of migratory birds.

Migrant workers from across the country, in the end of all inundate receded, in the new year comes and like tidal general flock here.

There have been over for nearly 6000 shoe leather enterprises, hundreds of thousands of workers here, endless day and night to produce shoes. Early spring is its busiest time, start of firecrackers and a growing number of new faces, shed here’s prosperity.

But now, there is only left more than 2000 enterprises. Although the establishment of new enterprises, but at least two-thirds of the enterprises, became the shoes of the “missing persons.”

Even worse is that even if this is the survival of more than 2,000 enterprises, also varies greatly, which has its own brand and sales network in more than only 10.

“At present, China’s shoe industry has entered a shuffle stage, Wenzhou shoe industry faces the same challenges.” Wenzhou Shoes Industry Secretary-General, Xie Rong-fang.

Microcosm:

One unable to retain workers in small factories

An embarrassing reality is that traditional industries as shoe leather industry, the conditions are because of local constraints facing can not continue to survive the situation in Wenzhou.

Chen Gang’s rise shoe factory is a microcosm of the sea.

Chen Gang, Wenzhou, another early big shoe sales salesman. “In this industry so long, is very natural to want to develop themselves.”

In the Wenzhou people’s character, the ubiquitous “I would rather be beheaded, not for Pteris” thinking. This is also why there are so many SMEs in Wenzhou, one of the reasons.

Chen Gang, who is very proud of their own choice. He was set up in 2002, when the sea rose shoe factory, business is small, only 1.5 million registered capital, followed a number of trade orders, processing and women’s shoes.

In the shoes, like the Gang such enterprises, the less time there are 2,000. At that time, however, it is Wenzhou shoe industry, a “golden period.”

“Basically can do it year round, order not finish.” Gang recalls.

This time, Chen Gang, thought to expand production scale, may be worse, simply do not have this condition. “It places the cost too high, and is also unable to get money.”

Chen Gang, another way disturbed is. He found himself increasingly unable to retain workers in the factory, and is always in the production season, when there will be workers disappeared.

One day, he went to inquire about other enterprises go before we know to the “Poor workers” out of the security at the end of 1000 the monthly wage, there were no competitive edge.

“I also wanted to give multiple-point salaries of workers, but I only so points of profit.”

Chen Gang, still able to think on how to solve this problem, the financial crisis coming. There is no suspense, the Gang was forced to turning off their own small factories.

Try every means to save costs

1. Shoe factories relocated to central and western provinces

“Wenzhou local development space is becoming more narrow, the enterprise’s living conditions had deteriorated.” Another company who is familiar with the situation of Wenzhou, Wenzhou, president of weeks German SME Development Association, said. In his view, this is the number of Wenzhou shoe enterprises to quickly reduce a major cause.

Last year, in June, Jian-Guo Ye opened his 14 years in Wenzhou shoe factories moved to Chongqing Bishan.

“There are a lot of Wenzhou people park here to do the yard, there are shoes, shoe soles, shoe line, packing a set of industrial chain, with the Wenzhou almost, but not such a big scale.”

According to Jian-Guo Ye said that as early as in 2007, when a number of small and medium Wenzhou shoe enterprises of the boss, you’ll discuss in the central and western provinces, “transplant” Wenzhou model, so far, Sichuan, Chongqing, and even Russia have established production bases in Wenzhou shoe.

“Corporate relocation impact is that for the development of Wenzhou, the local industrial clusters, causing a certain degree of damage, while the relocation of local enterprises, but also increased the level of the local shoe industry, to cultivate a portion of its competitors. “Zhou said in German.

2. To move overseas, to avoid anti-dumping duty

In addition to the cost of the pain, the long and helpless trade friction, but also let some of Wenzhou shoe enterprises have chosen to move overseas.

“Almost all export shoes enterprises in the past few years, are subject to the anti-dumping and other trade frictions impact.” Xie Rong-fang.

The latest round from the European Union’s anti-dumping trade dispute began four years ago.

At that time the European Union to China’s leather shoes, the collection of up to 16.5% of the anti-dumping duties. The impact of this decision is that of Wenzhou shoes annually in overseas sales, to nearly 20% of the rate of decline.

And the profit is not a businessman trying to find fault. A fact is that, if the factory moved to Russia, the tariff reduces the cost of at least 70%.

This statement from the Group General Manager of Bell puming Kangnai now Cornell has been invested in Russia has opened an industrial park dedicated to accept the relocation of the past from Wenzhou shoe enterprises.

Accordance with the clock puming claims to formal customs clearance basis, the pair of semi-finished products of export tariffs on leather shoes only 5%, while the tariffs of up to 15% of the finished shoes, if the “gray customs clearance” to enter Russia, from Wenzhou to St. Petersburg to be more than 3 months, and may be tax police force to face the possibility of pulling goods.

However, if semi-finished shoes enterprises in Russia to complete assembly can be marked with “MADE IN RUS-SIA” (Russian-made), not only can be safely sold in Russia, but also can be sent to the European Union the main market without having to worry about such as “anti-dumping “The type of problems. Such a broad basis, a pair of shoes sold in Russia for at least the cost of the tariff reduction by 70%.

I am a professional editor from China Product,
and my work is to promote a free onl










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Posted by: admin | 01-17-2012 | 04:01 AM
Posted in: Shoes

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