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Shoe Industry Shift Forced Chinese Shoes To "Create China" Upgrade

2011/1/20 11:16:00 122

Sports Shoes Columbia Brand

At the beginning of January 20th, at the beginning of the new year, Xiao Zhang decided to set up a set of sports equipment for better physical training.

Famous abroad

Gym shoes

There are many kinds of sports shoes, different styles, functions, specifications and prices.

Xiao Zhang accidentally looked at the origin information of shoes, and found that it was not "MadeinChina" but "MadeinIndonesia (Indonesia)".

Curious, he saw many pairs of shoes in succession, "MadeinVietnam (Vietnam)" and "MadeinBangladesh (Bangladesh)". There were even the names of countries he did not know how to plate.

These "imported shoes" are not expensive, and are even cheaper than the "MadeinChina" of similar styles.


Xiao Zhang asked the cabinet personnel, why the origin is not domestic? The cabinet personnel said: "the origin is not important, we have factories around the world, no matter where the shoes have quality assurance."


Xiao Zhang, who has "broken the spirit of the casserole", has not stopped.

In the next shopping trip, he found that in addition to sports shoes, clothing, accessories, leather shoes, bags and many other products "MadeinChina", there are also Thailand, Philippines, India, Slovakia and so on. Of course, this situation is only appearing on some famous global brands.

Overall, in addition to China, the higher frequency of origin is still in Southeast Asian countries.


Xiao Zhang also found that the prices of these imported products were not high, and many of them were lower than the prices made in China.

With "

Columbia

"Brand" outdoor shoes, for example, a home-made outdoor shoes with waterproof function is priced at 1399 yuan, while Vietnam produces similar outdoor waterproof shoes with a price of 989 yuan, with a difference of 400 yuan.


Do not all say that China's manufacturing is cheap and good? Why do the products sold in China instead of domestic production?


A friend who worked in a sports Brand Company in China told Xiao Zhang many international.

brand

Basically, they are light assets companies, which only have design and marketing, and outsourcing the manufacturing process to the foundry factories according to the order.

For example, Nike's foundry is mainly handed over to Baocheng group and Fengtai group of Taiwan, and Baocheng and Fengtai have factories in many countries and regions all over the world, and of course, they are more concentrated in Southeast Asian countries.

The different origin reflects the allocation of global resources by manufacturers. There is no need to make a fuss about it.


Looking at the law of industrial pfer of global sports shoes, it can be said that there are inextricably linked with costs. Raw material costs, labor costs and investment environment costs have become factors affecting industrial pfer.

In other words, the manufacturers of commanding foundry have the price of "deploying" resources around the world. Profit making nature enables manufacturers to allocate parts of their orders from mainland China to lower cost countries and regions.


In fact, this trend has emerged in the last two years, but in the past two years, the cost of domestic manufacturing has increased markedly.

According to statistics, the average labor cost in mainland China increased by 20%-40% in 2010.

What is more concerned is that even if wages rise, there is still a phenomenon of "no recruitment and no retention". The prices of production factors such as raw materials and auxiliary materials will increase by 30%-100%, and the RMB will continue to appreciate.


Judging from the wage situation of workers, the minimum wage of many coastal cities with labor intensive in China is more than 1100 yuan, or about 166 dollars.

The latest minimum wage in Vietnam is about 1 million Dong Dong, about 51 dollars; the lowest monthly wage of Bangladesh clothing and garment workers is about 42 dollars; the average monthly salary of Indonesia with relatively high wages is about 120 dollars.


While wage growth is increasing, domestic consumption demand is further expanding. The role of China's "world factory" is gradually shifting to the "world market". More and more international brands are gradually putting down their "posture" to cater to the Chinese market consumers at a more affordable price. This is why Xiao Zhang sees so much cheaper imported shoes.

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Although the trend of industrial pfer is inevitable, many experts, including Li Peng, Secretary General of the Asian Footwear Association, pointed out that other rising Southeast Asian countries such as Indonesia should take the place of China's manufacturing power, which is almost impossible in recent years.

At present, orders from China to Southeast Asian countries are not all.

For orders with higher standards, more complicated processes and more skilled workers, the preferred place is "China".

"Made in China" still has considerable advantages: high labor quality, advanced management, complete industrial chain, perfect matching, excipient supply and outsourcing cooperation, low equipment procurement and maintenance costs, and export related supporting procedures are simple, convenient and efficient.


Xiao Zhang also believes that this selective industry pfer is a good thing, which can pform the "made in China" to "China" pformation, and cheap and good imported goods will bring more benefits to domestic consumers.

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