Cost rises OEM shoe companies fall into multiple predicaments

"Dongguan can have several factories dared to set their own shoes for more than 10 US dollars for the production price?" Has been a shoe industry in Houjie, Dongguan, Dongguan, a few years of international trade, said Mr. Xiao, "International high-end footwear brand to China Orders are concentrated in a number of large factories, a large number of small and medium-scale plants mainly for Asia, Africa, South America and other emerging markets OEM production of two or three US dollars a pair of rubber or plastic shoes, profit margins are scary, after the outbreak of the financial crisis, foreign high The price of shoes is reduced, and the number of low-cost orders is increasing. However, the customer's asking price is very demanding. These orders are accepted, and it is possible for the company to make a loss of business. If not, it will leave the workers with nothing.”

Companies with the same troubles as Mr. Xiao are eager to count, especially for Dongguan, a long-term focus on intermediate manufacturing, over-reliance on the development mode of the international market, low level of industrial structure, weak international competitiveness, and weak independent innovation capability. At the same time, in recent years, with the rise in the cost of talents, OEM footwear companies are under increasing pressure.

China has always been called the “world factory” by the world. Whether it is clothing, shoes, IT and electronic products, there are OEM factories, many of whom are doing OEM work for top companies in the world. The shoe-making industry is a labor-intensive industry. Chinese shoe companies are based on cheap labor and promote the economic development of the world's brand shoe companies. However, they themselves can not get rid of the fate of the foundry. International brand shoe enterprises put manufacturing into the development of small and medium-sized shoe companies, thereby avoiding the waste of resources, put more energy on product design and promotion, they obtained 90% of the total profit, but OEM shoes Enterprises are wasting huge amounts of human and material resources, but only enjoy 10% of profits. And more international brands have increased the working hours of foundry workers in pursuit of production volume. Workers cannot enjoy certain social benefits. Can such "corporate culture" make employees feel happy and proud? The results can be imagined, Foxconn's "jumping door" is the most powerful evidence.