China's Shoe Enterprises Are Heading For Opportunities And Risks Coexisting Abroad.

A few days ago, the sixth world leather Footwear Development Forum Held in Dongguan, Guangdong, the forum takes "made in China out" as the theme to explore the issue of "going out" of China's manufacturing industry and industrial transformation and upgrading.

In recent years, with the rising cost of raw materials and labor in China, many enterprises are trying to reduce costs by "going out" strategy, especially in the manufacturing industry at the bottom of the industrial chain.

In fact, "going out" is no longer a new topic for the shoe industry. As early as the financial crisis in 2008, China's textile shoes enterprises, which suffered economic shocks, proposed a "going out" strategy, trying to reduce costs through industrial transfer. In recent years, with the harmonious development of Sino African relations, the government has also strongly encouraged enterprises to invest in Africa to set up factories and implement a series of preferential measures.

During his visit to Africa, Premier Li Keqiang said that China would like to give priority to the transfer of suitable and needed labor-intensive industries and advantageous capacity to Africa, enhance local self-development capacity, create more jobs, and make China Africa achieve mutual benefit and win-win situation.

In addition to the strong support of the domestic government, African countries have issued a series of preferential policies for foreign investment. African countries regard tax preferences as a powerful means to attract investment. In addition to tax incentives, countries have different measures to support foreign investment: Zimbabwe will give certain financial subsidies to enterprises with specific investment patterns; Morocco set up special funds to encourage and support investment in textile and leather industries; Ethiopia has implemented preferential policies for enterprises in specific industrial parks, such as: 4~7 years' tax exemption for income tax, and 30% for foreign exchange reserves.

With policy support, there are enterprises who dare to be the first to eat crabs. Wenzhou and Dongguan, the manufacturing bases, are the first to go out. Many local enterprises try to relocate their factories to Southeast Asia and Africa. According to Wang Jingceng, President of Dongguan shoe machine Association, there are 41 investment projects transferred from Guangdong to China since 2012, of which 15 and 13 have been transferred to Malaysia and Vietnam. Textile and clothing Shoes and hats.

It is gratifying for shoe companies to "go out" successfully, but we should not ignore the obstacles encountered in "going out". Some analysts say that due to the market development level and the strength of enterprises, the overseas investment of Chinese enterprises is still in the initial stage of development.

It is reported that some domestic enterprises investing in Africa and Southeast Asia do not understand the local culture and laws, and do not know deeply about local ecological folklore. They intentionally make some behaviors that cause local people's disgust, thus causing business difficulties. In addition, the quality and attitude of employees also make many business owners headache. Because there is no overtime culture abroad, employees in western countries often complain about resisting overtime.

There is an old saying in China: orange is Huainan, orange is born, Huaibei is trifoliate orange. Although the geographical environment has little impact on shoe enterprises, there are great differences in culture, workers' educational background and management methods in different regions. While seeing huge profits, enterprises need to think about their own economic strength, the fit degree between enterprises and local culture, and so on. In short, "going global" opportunities and risks coexist. Shoe enterprises You must think before you leap.