The dilemma and transformation of the "World Factory" OEM shoe factory

"The profit of less than 10 points can make the company live very moist, and the large number of overseas orders that are stable is the largest guarantee for most enterprises in Dongguan to maintain stable profits." When the President of Huajian Group recalled the situation several years ago, Still can not stop. The group is the leading shoe-making foundry company in Dongguan. Among the top 50 world-renowned shoe brands in the world, there are 15 brands of women's shoes manufactured by the group's shoe factories.

In the wake of the wave of salary increase, appreciation of the renminbi, and export tax rebate policy, the foundry companies in Dongguan are on the verge of death, and “transition” has become the only choice for the city.
Dongguan used to be a “factory of the world” and is now trapped by this name. Especially under the impact of this round of financial crisis, the inherent defects of Dongguan's industrial structure and traditional development methods were exposed.

In the past, the “world factory” was trying to find a transition path that suits itself.

Once the scenery breeds dark diseases

"World factory? NO!"

This term that once brought pride and accomplishment to the city is now a sensitive vocabulary Dongguan reluctantly mentions in public.

Despite this, Dongguan is still a "world factory."

Here are concentrated all kinds of large and small brands: Nokia, Nestle, Nike, Adidas, Samsung, Duracell, Xu Fuji ... These famous world brands are produced in Dongguan this powerful "world factory."

At the Hongri Handbags Factory in Wangniudun Town, Dongguan City, the “CSGG” common in the Brazilian market is placed in the sample display window on the first floor, and the “PUMA” sports bag can also be seen inside. "Do not look at these world famous brand is placed in the spotlight is infinite, in fact, they are ordinary workers stitched out a stitch." Handbag factory owner Yuan Bojiang inadvertently a word with a bit of pride.

No one can tell exactly how many ordinary factories in Dongguan are manufacturing day and night for the world-famous big names. Even the world-famous "PRADA" branded as "Italian production" was also exposed by the media from the Xingxiong shoe factory in Overseas Chinese Industrial City, Dalingshan Town, Dongguan City.
Since the reform and opening up, Dongguan relied on the advantages of geographical advantage and cheap labor force adjacent to Hong Kong and Macao to start from “three to one supplements” and to actively develop the export-oriented economy through the introduction of foreign capital, and took a shortcut to industrialization. However, in this seemingly prosperous "world factory", anxious dark diseases are slowly growing.

A guide index explosion "soft ribs"

"From 2006 to 2008, the unit price of a pair of ordinary women's shoes in our factory was maintained at between US$15 and US$16.2. Although the gross profit of a pair of shoes was only between US$0.7 and US$1.1, it was less than that. The profit of 10 points can make the company live very moist, because Americans can consume 7-8 pairs of women's shoes a year, and Europeans can consume 5-6 pairs.” Zhang Huarong, president of Dongguan Huajian Group, recalled that the situation a few years ago still Unstoppable, “it can be said that the large number of overseas orders that are stable is the largest guarantee for most enterprises in Dongguan to maintain stable profits.” This company located near the Guangzhou-Shenzhen Expressway exit is the most important shoe-making foundry company in Dongguan City. In one of the world’s top 50 internationally renowned shoe brands, 15 brands of women’s shoes have given orders to shoe factories under the group.

However, the trend is shifting at any time. With decades of development, the inherent defects of Dongguan's industrial structure and development methods have been exposed.