Guangdong OEM shoe companies choose to migrate

Chen Xiaoming, chairman of Jiahe Footwear Group, is busy planning to invest and build factories in Jiangxi Province. As a foundry company, his factory has suffered losses almost every month since 2008. Compared to the coast, labor costs in the Mainland are not much cheaper.

How can the cost of coastal OEMs be reduced to the Mainland? Liu Weidong, deputy secretary-general of the Shenzhen Leather Industry Association, said that at least 10% to 15% is very attractive to OEM companies. He pointed out that the "wages of salary increase" has nothing to do with the relocation of enterprises in the leather industry. As a traditional labor-intensive industry, the hard cost of the leather industry is very high, and it has started to move inwards and continues to this day.

Wang Hao, dean of the Institute of Advanced Social Science at Sun Yat-sen University, believes that the promotion of land prices is the main factor in this round of industrial transfer. Although Guangdong has already proposed the upgrading of industries, the gap between the land prices in the Mainland and China is not particularly large, and the incentive for companies to move actively is not strong. After this round of financial crisis, land prices in the first-tier cities caused by excess liquidity have soared, which has squeezed out manufacturing companies with large land demand.