PPE

Dilemma and transformation of “world factory” OEM shoe enterprises

“the profit of less than 10 points can make the enterprise live well, and the stable number of large overseas orders is the biggest guarantee for the vast majority of enterprises in Dongguan to maintain stable profits.” When the president of Huajian group recalled the situation a few years ago, he was still fascinated. The group is the most important shoemaking OEM enterprise in Dongguan City. Among the top 50 international well-known shoe brands in the world, 15 women’s shoes are manufactured in the shoe factories under the jurisdiction of the group

under the impact of salary increase, RMB appreciation and export tax rebate policy, Dongguan’s OEM enterprises are on the verge of life and death, and “transformation” seems to have become the only choice for the city

Dongguan used to regard itself as the “world factory”, but now it is also trapped by this name. Especially under the impact of the financial crisis, the inherent drawbacks of Dongguan’s industrial structure and traditional development mode are exposed

in the past, the “world factory” is exploring a way of transformation suitable for itself

the former scenery breeds the hidden disease

“world factory? NO!â€?

this term, which once brought pride and achievement to the city, is now a sensitive word Dongguan is reluctant to mention in public< However, Dongguan is still a world factory there are all kinds of brands, big and small: Nokia, Nestle, Nike, Adidas, Samsung, golden overlord, Xu Fuji… These world famous brands are all produced in Dongguan, a powerful “world factory” in the HongRi handbag factory in Wangniudun Town, Dongguan City, the “csgg” bags commonly seen in the Brazilian market are displayed in the sample display window on the first floor, and the “Puma” sports satchel can also be seen in it” Don’t look at these world famous brands in the spotlight. 1n fact, they are all sewn by ordinary workers Yuan BOJ1ANG, the boss of the handbag factory, inadvertently said something with some pride it is not clear how many ordinary factories in Dongguan are manufacturing for famous international brands day and night. Even the world famous brand “Prada”, which boasts “made in 1taly”, has been exposed by the media to come from xingxiong shoe factory in overseas Chinese industrial city, Dalingshan Town, Dongguan City< Since the reform and opening up, Dongguan, relying on its geographical advantages and cheap labor advantages adjacent to Hong Kong and Macao, has taken a shortcut to industrialization by introducing foreign capital to actively develop export-oriented economy. However, in this seemingly prosperous "world factory", a troubling hidden disease is also slowly breeding< From 2006 to 2008, the export unit price of a pair of ordinary women's shoes in our factory was maintained between us $15 and US $16.2. Although the gross profit of a pair of shoes was only about US $0.7 to US $1.1, the profit of less than 10 points could make the enterprise live well, Because Americans can spend seven or eight pairs of women's shoes a year, and Europeans can spend five or six pairs. " Zhang Huarong, President of Dongguan Huajian group, recalled that the situation a few years ago was still irresistible. "1t can be said that a stable number of large overseas orders is the biggest guarantee for most enterprises in Dongguan to maintain stable profits." The company, located near the exit of Guangzhou Shenzhen Expressway, is one of the most important shoemaking OEM enterprises in Dongguan. Among the top 50 international famous shoe brands in the world, 15 brands of women's shoes have given orders to the shoe factories under the group< However, with the development of several decades, the inherent disadvantages of Dongguan's industrial structure and development mode are exposed

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