International Perspectives: How can China's footwear industry achieve transformation?

Some people say that in the future global economy, China will still be indispensable. Made in China, when this English phrase evolved into an economic phenomenon, Chinese manufacturing has taken its place in the world. On the outside, Chinese manufacturing is not only a synonym for cheap and good, but also has the embarrassment of the king of the cottage. Inside, some of the reality that China made in China even more expensive than foreign countries, leaving the entire industry face no light.

For example, the shoe-making industry, which is an important pillar industry in China, is now facing the pressure of export reduction and transformation, and internal and external difficulties. The related “backflow” policies introduced by the United States and the advantages of the cost of OEMs in Southeast Asia in the past few years have also led to the withdrawal of some internationally branded footwear OEMs from China. Whether China’s footwear industry has become “edge” or “hollowing” Dangerous situation? At this point, crisis and breakthroughs have become the first issues that must be considered. Can transformation and upgrading save the footwear industry...

In 2008, since the outbreak of the global financial crisis caused by the US financial crisis, it has not come out of the trough. Although there are many positive news circulating during the period, the world economy has repeatedly tried to rebound, but ultimately it is because of lack of stamina and inability to return. day. Today, as an important new force in the global economy, China has also had to slow down the pace of progress. In the second quarter, China's economic growth rate fell to 7.5%, and the situation in the third quarter was not optimistic. It may continue to be around 7.5%. It is still unknown whether the whole year will be guaranteed.

At present, the footwear industry has encountered a variety of development bottlenecks: First, the economic downturn in Europe and the United States, the global economic growth is weak, coupled with Europe and the United States shoe industry back again, China's footwear industry export situation is very grim. It is expected that the growth of foreign trade will be about 10% this year, compared with 22.5% last year. In 2011, China’s total exports accounted for 10.4% of the total global exports, ranking first in the world. This year, due to the global economic contraction, the overall foreign trade situation is not optimistic. It is expected that China will still be able to stabilize this pattern. The second is the appreciation of ***, macroeconomic regulation and control, rising raw material prices, and rising labor costs, resulting in the continuous superposition of Chinese shoe-making industry costs and the loss or closure of some companies. The third is that the extensive economic development model has come to an end. The adjustment of industrial structure requires more shoe-making enterprises to accelerate the elimination of backward production capacity and increase new investment.

Of course, the internal environment of China's footwear industry this year is not worse than in previous years. Many rules of the “Twelfth Five-Year Plan” have been introduced one after another, which should have brought about a new round of economic growth in China, but in the context of the continuous deterioration of the external environment, This series of favorable policies did not provoke a big wave. In the past few years, China's shoemaking industry also faced many difficulties, mainly based on the pressure of resources and the environment, eliminating the pressure of backward production capacity and the appreciation of the currency. The international export situation is basically not as sudden and concentrated as this year. The "back-flowing foreign-funded enterprises" policy launched by Europe and the United States has also made some companies more fearful in their confidence.

This year, there is also a phenomenon worthy of attention: the withdrawal of foreign-funded enterprises. Many people have asked whether China's investment environment is deteriorating or whether China's labor costs have risen too fast before it is transferred to other countries. Or there is a conspiracy to short the “Chinese footwear industry”...

After the global financial crisis in 2008, European and American countries re-recognized the important role of the real economy and successively put forward the slogan of “returning to the era of manufacturing”. This is mainly due to the sharp decline in the proportion of shoes and other manufacturing in Europe and the United States, such as a large number of shoe-making enterprises. The establishment of factories and R&D bases overseas has resulted in a large number of industrial workers losing their jobs, and the volume of business matching the footwear industry has also been greatly reduced, and the “shoe-making industry hollow” trend is clear.

At the same time, it is worth mentioning that due to the economic downturn in western countries, the importance attached to the development of the footwear industry has shifted to the notion of not only votes but more importantly the needs of their own national interests. The past “de-industrialization” seems to be a failure. Decision-making. In order to reduce unemployment, increase taxes, stabilize the economy, and enhance core competitiveness, it is still inseparable from traditional industries such as shoes.

However, the statement that foreign-funded enterprises have withdrawn from China is in fact not accurate. At present, it is only an example and it is not a common phenomenon. Some labor-intensive enterprises, after rising labor costs in China, have diversified their profits and turned to countries with lower labor costs such as Vietnam, Malaysia, and Indonesia. For example, Nike shoes has gradually moved three factories in Jinjiang and other places out of China. Adidas will close its direct factory in Suzhou this year and relocate to Myanmar.

At present, the cost of labor in Southeast Asian countries is only equivalent to about one-fifth of the income of Chinese workers today. China’s labor costs are about one-tenth that of Europe and the United States. The difficulties and pressures faced by China's footwear industry are, on the outside, caused by the deterioration of the external environment. In fact, it reveals the insufficiency of the Chinese shoe industry's own strength. It is only exposed by the external environment. After all, China’s industrialization started relatively late and it is developing rapidly. However, many basic things need to be supplemented. Especially the high-end and international innovative talents supporting the rapid development of the shoe-making industry are still lacking, and the innovation atmosphere of the industry has yet to be improved.

Faced with the current complex international situation, what is the way out for China's footwear industry? How can we get out of the predicament? That is the transformation and upgrading. China's footwear industry can only promote the "strategy for technological innovation" and further consolidate the industrial base, fundamentally change the extensive development model, in order to promote the new footwear industry to achieve a new breakthrough and better walk on the international new stage .