Dongguan Shoe Enterprises Urgently Need To Pform And Upgrade &Nbsp, And Develop Their Own Brands.

June 9th hearing

"The escalation of this upgrade indicates the urgency of upgrading. After more than 20% years of rapid development in Dongguan over the past 20 years, the industrial system and development mode dominated by labor-intensive manufacturing industry has reached the" growth limit ". The process of primitive accumulation based on Hong Kong, Macao and Taiwan capital has ended.

Wang Xianqing, director of the Institute of circulation economics, Guangdong University of Business, told reporters in Nandu.

In his view, from the recent initiatives in Dongguan's pformation, enterprises have begun to change the old mode of "only producing, not circulating", and began to fight for "control of circulation channels" and "the leading power of commodity prices".

The world's largest

Liang Yaowen, director of the Guangdong Provincial Department of foreign trade and economic cooperation, said that the number of employees in Guangdong footwear industry reached over 2 million, and the annual output of footwear industry reached 5 billion pairs, accounting for 1/3 of the world and 1/2 of the whole country.

"But Guangdong is far from being a strong province of footwear industry. The international competitiveness of Guangdong footwear industry is still at a relatively low level. With the participation of international competition in the depth and breadth, it will face greater pressure and challenges."

Liang Yaowen said.

The footwear industry in Dongguan is a microcosm of Guangdong.

According to the latest survey conducted by the world footwear headquarters base in 2011, Dongguan has more than 1500 footwear enterprises, more than 2000 supporting enterprises, more than 1500 related traders and purchasers, and is currently the world's largest shoe manufacturing base. About 60% of the world's high-end shoes or shoes are from Dongguan.

However, related research shows that over 60% of Dongguan's shoe enterprises do not have registered brands or registered brands are not functioning, of which 48% are unregistered brands, while 13% are registered brands.

Industrial pformation is the general trend of the development of footwear industry in Dongguan.

Leng Xiaoming, vice mayor of Dongguan, stressed that the world shoe industry headquarters base is an important move for Dongguan footwear industry to pform its development mode. It will promote Dongguan's footwear industry towards specialization, high-end and branding.

According to the introduction, the world shoe industry headquarters base is a high-end service platform for pformation and upgrading of footwear industry, which integrates R & D, trade, logistics and brand incubation.

The project covers an area of 180 thousand square meters, with a planned construction area of 480 thousand square meters, and is divided into three phases.

The whole project will invest 1 billion 600 million yuan.

After the project is completed, it can accommodate nearly 10000 merchants.

"The base will become a platform for the world's footwear industry to enter into China, import and export trade platform for China's footwear industry to the world, and a high-speed service platform for the world footwear industry, industry and trade."

Zhang Huarong, chairman of world shoe base, said.

Zhang Hong, deputy general manager of the world footwear base, told reporters that compared with Zhejiang, Wenzhou and Fujian Jinjiang, the footwear industry in Dongguan is mainly export oriented, with high-end manufacturing as the main concern. Therefore, an important mission of the world footwear headquarters base is to drive exports to domestic markets, and seek local brands in the high-end footwear market through technology R & D and trade display platforms.

Transformation needs to bear short-term profit pressure

In fact, after the impact of the 2008 financial crisis, the footwear industry in Dongguan is actively exploring the pformation path of export to domestic sales channels, brand creation and e-commerce.

Zhang Hong, deputy general manager of the world shoe base, told reporters in Nandu that at present, Dongguan footwear brand "Carver", "Di Bao", "new tiger", "CHCH", "Betta" of the shoe industry and Ba-Ba of Baba children all have good performances in the domestic market.

At the same time, the world shoe industry headquarters base and the Dongguan leather shoes Association, the Asian Footwear Association, the Hongkong footwear industry association, the Dongguan international shoe exhibition, shoe machine exhibition and other industry organizations and institutions, through the preparation of the "Dongguan footwear brand alliance", strive to hatch a number of well-known brands in the domestic market in 3~5 years, and promote the Dongguan footwear industry from "Dongguan manufacturing" to "Dongguan creation".

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However, at present, there are not many famous domestic brands in Dongguan's footwear industry. Dongguan's local brand shoes are difficult to enter the shopping mall counters in the first tier cities.

Insiders say that one of the reasons hindering their own brands is that Dongguan shoe enterprises are accustomed to mass production of standardized production lines because of long-term orders from foreign trade orders. Many shoe business owners will not choose to put most of their capital and manpower into domestic research and development and brand building unless they are forced to do so.

In Dongguan, Wang Wei, a Hong Kong businessman who has a shoe factory in Bejing, told reporters that in 2002, he decided to pform from export to domestic sales. Now it has been pformed for nearly 9 years, and domestic sales, brand, price and channels are in his own hands. The long-term profit space is several times higher than that of export processing, but we should hold on to short-term profit pressure.

A person in charge of the shoe factory told reporters in Nandu that in the past few years, shell shoes had been sold domestically for 20%, and now increased to 30%.

"The tallest building in Dongguan"

In addition, Houjie town also plans to build 102 storey skyscrapers. After completion, it is expected to become the new "Dongguan tallest building". Its floor is only next to the 103 tier Guangdong financial building in Southern China.

The design of the outer Bo building has been completed and is waiting for approval and approval with the exhibition hall.

Houjie has more than 30 exhibitions every year, and receives about 2000000 professional spectators per year. However, the indoor exhibition area is only 120 thousand square meters, which is difficult to meet the needs of more international exhibitions.

Especially when the Expo is permanently settled in Houjie, it is even more urgent to expand the new pavilion.

To enhance the hardware conditions of Houjie exhibition industry, another consideration is the new opportunities brought by the "high-speed rail era".

At present, BaiSha Railway Station, the only station in Dongguan, has entered the final stage of the project and is expected to open to traffic in August 8th.

BaiSha Railway Station will be connected with Guangzhou Guangzhou Shenzhen inter city light rail Houjie station and Dongguan light rail R2 line beside the Guangdong Modern International Exhibition Center, which also indicates that the Houjie exhibition industry is expected to achieve a new leap forward development in the "high-speed rail era".

In the view of Jiang Huai, chief executive officer of Guangdong Modern Exhibition Management Co., Ltd., although Houjie is not in the central city, convenient pportation makes it occupy seven central cities in the "one hour economic circle", providing abundant resources for marketing professional large-scale exhibitions.

The key to pformation of enterprises in Dongguan: access to circulation channels and price leadership

Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, believes that an important feature of the "Dongguan model" is that "two ends are outside the factory, and the factories are behind the shops." the core of this model is "to engage in production only, not to circulate", and to abandon the "control over the flow of channels" and "the predominance of commodity prices".

Under the new development conditions, the pformation and upgrading of Dongguan enterprises are faced with five major changes: first, the large-scale industrial surplus in the latter stage of industrialization; two, the fierce competition in the domestic market under the overall buyer market condition; three, the international market atrophy caused by the US financial crisis; four, the channel reconstruction caused by China's expanding domestic demand strategy; and five, the construction of a service oriented economic society in the Pearl River Delta region.

Wang Xianqing believes that the pformation and upgrading of enterprises in any country or region are three ways: first, to introduce new products or new technologies, to eliminate or pfer backward production capacity; the two is to pform enterprise functions and business models, namely, to withdraw from processing and manufacturing links, turn to channel management, technological research and development, brand promotion, and take the headquarters economy as the main force; three, the merger, reorganization and integration of enterprises or enterprises, and merge the first two paths to make enterprises reborn.

"From the current practice, most enterprises in Dongguan choose the first path, compared with the latter two routes, though relatively simple, the actual effect is the least obvious.

Because the process of product and technological innovation is never ending, and even the introduction of one or two new products or technologies will not play a fundamental role in the pformation and upgrading of enterprises.

As for the second path, there should be only a small part of the existing enterprises in Dongguan, which can really upgrade to the headquarters economy.

Wang Xianqing said.

It considers the "third way", that is, large-scale merger, reorganization and integration between enterprises and enterprises, and at the same time promoting cooperation and alliance among enterprises in the region.