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Shuffle: The Jungle Rule Of Shoemaking Industry

2008/10/3 0:00:00 52

At present, an unprecedented collapse of the footwear industry is sweeping the Yangtze River Delta, the Pearl River Delta and the Bohai Bay area, such as factory closures, arrears of employers and large layoffs.



Not long ago, German institutions estimated that about 1600 German enterprises invested in China had about 1/5 plans to evacuate, and Adidas was one of them.

Although Adidas said to the outside world that the absolute value of its output in China will not drop, it will only increase the capacity of other parts of the world, mainly near the emerging consumer market.

This means that traditional industries such as footwear industry are shrinking or even shrinking in China.



Because of the particularities of the two characters of foreign capital, the media has cast more eyes on the trend of these enterprises. But this time, the impact of the collapse and migration tide is not only on foreign-funded enterprises, including Hong Kong and Taiwan funded enterprises, but also in the Pearl River Delta and even the whole province of Guangdong.

According to statistics, in 2007, the footwear enterprises in the Pearl River Delta closed down were mainly small and medium-sized enterprises.



It is undeniable that after years of development, the Pearl River Delta, which is the world's manufacturing plant, is undergoing an unprecedented pformation.

At that time, the Pearl River Delta manufacturing industry was rapidly rising, and industries, factories and workers came in. However, in a short span of more than 10 years, the upgrading of the urban functions and the upgrading of policies led to the increase of the opportunity cost of the old industrial structure, and the cities, industries, factories and workers were faced with an interest and cost, and a re choice of morality and integrity.



For foreign-funded enterprises that rely solely on China's cost advantage, moving to countries or regions with lower cost may be the only option.

Slowing global demand has accelerated the collapse of the weakest part of these enterprises.



There is a strong signal that the shoe industry is facing another round of more severe "shuffle", and this "shuffle" has made many of the less powerful bosses feel at risk.

However, for powerful brands, they seem to want to be more violent.



The so-called constant strength of the former, we hope that the real hero of the shoe industry will be proud of the "jungle rule" today.


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