Where Is The Way Out For China'S Foreign Trade Shoe Enterprises?

Living environment of shoe enterprises

Since the financial crisis, the order situation of enterprises has been recovering slowly, while the operating costs are increasing.

The first is the obvious increase in labor costs caused by "shortage of migrant workers".

"In Shenzhen, the basic salary of general practitioners has increased from 700 yuan 3 years ago to more than 1000 yuan now. Overtime pay has risen from 4 yuan to 6 yuan per hour, which is undoubtedly a huge additional cost for factories with thousands of people."

Mr. Yang, foreign trade manager of Shenzhen Golden Harvest Electronics Industry Co., Ltd., told reporters that the proportion of the total labor cost of the company increased by more than 5%.

And the cost of raw materials is rising.

According to the data released by the National Bureau of statistics in March 11th, the ex factory prices of manufactured goods rose by 4.3% in January, and PPI rose by 5.4% in February, higher than market expectations.

PPI is expected to grow by 7.1% over the same period in March.

The purchase price of raw materials, fuel and power increased a lot.

The general manager of a shoe company in Guangzhou says that the cost of labor is high and can be compensated by the purchase of automated equipment.

The cost of raw materials is difficult to grasp, which will directly affect the profits of enterprises.

The RMB appreciation and export rebate rate are the biggest profit influence of enterprises.

Where is the way out for China's foreign trade shoe enterprises?

In China, the vast majority of shoe enterprises are export oriented, and OEM shoe companies are far from enough.

According to the latest international Monetary Fund's forecast of economic growth in 2010, 8.4% of Asian developing countries' GDP growth rate is almost 4 times that of the world's developed economies, of which China is at a leading position of 10% growth.

But behind the glory, the majority of shoe companies are already feeling the crisis. In the face of changes in the economic environment at home and abroad, the past era of resource advantage scenery has disappeared, so the pformation and upgrading of shoe enterprises is imminent.

Next, we will explore the direction of future development according to the international economic situation and shoe manufacturers.

This year's two sessions put forward the "green recovery: the realistic choice for sustainable development in Asia" is also the steady recovery of the global economy, but when the financial crisis is not yet dispersed, the elites of Asia combine to look forward to the future and make a new round of reflection on the Asian Development Model.

To a certain extent, it seems that the dream of Rebuilding New Asia from business management to business win win, from economic growth mode to mode innovation, from regional cooperation to integrated development seems to be clearer.

Reflection on Asian Development Model

The export oriented economic growth mode is a competitive strategy chosen by Asian countries in the relatively backward economic development: with the help of foreign capital and Western labor intensive industries, they earn foreign exchange through export and accumulate capital for their own economy.

After China's reform and opening up in 1978, it also drew on the Asian model in the economic development strategy, and realized the economic take-off in just a few decades.

However, this growth pattern has been overly dependent on foreign capital from the beginning.

During the Asian financial [3.050.00%] turmoil in 1997, some foreign exchange markets and stock markets plummeted, and banks and finance were on the verge of collapse.

Since then, Asian countries have begun to increase their foreign exchange reserves based on US dollar as well as eliminating the ills of the banking and financial systems.

At present, the total foreign exchange reserves of Asian countries are close to US $4 trillion, which enhances the ability of the system to resist risks.

In the global financial crisis in 2008, Asian countries also experienced depreciation of their currencies, but the whole financial system was not seriously affected, and did not fall into the currency crisis.

However, the overall contraction of the European and American markets has seriously damaged the export oriented Asian growth model.

Under the new pattern of US President Obama's clamour for global economic rebalancing, Asian emerging industrial nations have to reflect on whether the economic growth mode that has brought many years of glory to Asia is still sustainable.

   　　 实现全球经济平衡

Although Asia has taken the lead in this round of crisis recovery, some drawbacks have also been exposed.

Stephen Hroch, chairman of Morgan Stanley Asia, questioned the pattern of Asia's over reliance on exports and investment to boost economic growth.

The proportion of Asian emerging industrial countries has increased from 35% to over 45% in the past 10 years, while the domestic consumption ratio dropped to a record low of 45% in 2008.

Roach believes that if Asia wants to assume the leading role in the global economy, it must reduce its dependence on exports and rely more on the domestic demand market for economic growth.

After the financial crisis, the consumption habits of the United States began to change quietly. The Americans who used to be in debt consumption began to advocate moderate consumption, and the US savings rate was also close to 5%.

In the next 3 to 5 years, the growth rate of consumer demand in the US will be as high as half that between 1995 and 2007.

Reducing trade deficit and rebalancing the global economy has become an important demand of Obama's economic policy. He has proposed an ambitious export revitalization plan to alleviate the high pressure of the current unemployment rate of 9.7%.

This means that after the crisis, the European and American consumer market may not be the driving force for the growth of new Asian industrial countries, and Asia must find another way out.

We must change the economic mode of high export, high external reserves and low consumption, and seize the good opportunity of structural defects in global economic governance to promote the improvement and development of Asian models.

It has further enabled Asia to get rid of dependency development and become the source of growth and the source of demand.

Promoting regional cooperation for reference

Looking for new export markets outside Europe and the United States and decentralization of export channels have gradually become the general consensus of Asian countries.

The practical issues facing Asia are: how to make the current development, from economic structure to growth mode, more sustainable and more robust; how ASEAN, Japan and the United States balance their relations with the rapidly rising China in this region; and how China, Japan and the United States compete well in the region.

The call for building a regional common market is also more and more loud in this round of crisis.

During the meeting of leaders of China, Japan and South Korea in 2009, the idea of building the East Asian community has been discussed many times.

To sum up, under the circumstances of changing economic environment, shoemaking enterprises should gradually move towards "green recovery", pform business ideas, devote more energy to enhance R & D capabilities of enterprises, enhance core competitiveness of enterprises, constantly explore new ideas, strengthen cooperation and achieve a total win.