International Shoe Giants Are Turning Their Production Lines Out Of China.

With the appreciation of the renminbi and the rising cost of domestic labor and raw materials, a large number of shoe manufacturers in China have shifted their production bases.

Recently, Adidas and Nike have said that some production enterprises will be pferred from China to India and other Southeast Asian countries.

And Clacks, K-Swiss, Bakers and other international shoe giants have increased production lines in Vietnam and Indonesia.

In the view of some Chinese local shoemaker, the international shoe giants are shifting their production bases in China, but are helpless choices in the current environment.

The rise of costs is forced to shift. The rising cost of these manufacturers is the main reason why they abandon the Chinese manufacturing market.

The cost of manpower, raw materials, land and environmental protection increased rapidly from 2007 to 2008.

Data released by the National Bureau of statistics on 28 may show that in the first half of this year, the average wage of the employees in the urban units was 12964 yuan, an increase of 18% over the same period last year.

Insiders say that the increase of production cost has become the top factor of industrial pfer.

According to the latest survey by the Zhou Footwear Association, the cost of Vietnamese labor is currently 3.14 US dollars / day, slightly lower than India's 3.5 US dollars / day and 5 US dollars / day in Dongguan, China.

Excluding the labor cost, the shoe enterprises in China will also face many unfavorable situations.

With the appreciation of the renminbi, shoemaking enterprises must spend more money on raw materials.

The rising cost of land and the official policy of replacing enterprises with low added value with low pollution and high quality of labor force have made international shoe companies in China hit hard.

China's advantage is still that although Southeast Asia is increasingly attracted by the international footwear giants, Secretary General of the Asian Footwear Association, Li Peng, says Southeast Asia is not a low-cost paradise imaginable.

Compared with India, Vietnam and other Southeast Asian countries, China still has its advantages.

Although manpower cost is an important reason for the shift of shoe companies in China, insiders say that the actual labor cost of Southeast Asian countries is not much lower than that of China, compared with the skilled labor force in China.

According to the survey of the Asian Footwear Association, the minimum wage in Thailand is 200 baht, about 45 yuan per day, which is equivalent to that of China. However, foreign enterprises in Thailand reflect that "Thailand workers are very slow in work, and two or three Chinese workers in Thailand."

Besides, China's footwear industry has better matching capability than some Southeast Asian countries.

An industry insider said that opening a shoe factory in Dongguan could complete the preparatory work of shoemaking equipment, raw materials and workers in less than a week, and 100% of the low-end raw materials could be bought in Dongguan.

To build a shoe factory in India and Vietnam, we must prepare tens of millions of dollars in capital, and most of them will be invested in supporting industrial facilities.

In the view of China's local shoemaker, the international shoe giants are shifting their production base in China just under the current circumstances.

Faced with the relocation of some international shoe giants, China's manufacturing industry is also reflecting itself. Industrial restructuring has become an urgent task.

However, experts believe that outward migration is not a universal remedy for all diseases. Besides cost and careful calculation, it should also consider many factors such as industry matching, marketing logistics facilities, local industrial policies, customs, customs and so on.