Dongguan: Processing And Manufacturing "Going Out" R & D Design Remains

At the beginning of this year, "China made awkward Prada factory, Dongguan's shoe industry to stop production" - the news of a Dongguan shoe factory shutting down WeChat's friends circle.

Chen Weidong, a co-founder and founder of Dongguan Zhi Zhi shoe industry technology, revealed that 80% of the production capacity of the footwear industry has been pferred to Southeast Asia two years ago.

With the increasing scarcity of land elements and the increasing cost of human resources, some of them are just as prosperous.

In this way, the foundry enterprises in the international market began to move to Southeast Asia, Africa and other places to seek low cost depressions.

Liu Wei, Secretary General of the footwear industry association, made the comparison: "in Bangladesh, for example, the monthly salary of workers is less than 100 dollars, only 1/5 or 1/8 of Dongguan's labor cost".

Zhai Su Ling, President of the Dongguan Association of Taiwanese businessmen, said: "because of the difficulty of large-scale automation, Dongguan's environment is not suitable for these labor-intensive industries."

According to the statistics of Dongguan Municipal Bureau of statistics, the peak number of enterprises in Dongguan was 857 in 2008, accounting for 7.1% of the total number of foreign-funded enterprises in Dongguan. By 2015, this figure dropped to 362, accounting for 3.3%.

According to Zhai's collar, the order pfer situation of garments and shoemaking is inevitable, but Dongguan's advantage lies in the integrity of the supply chain.

Liu Wei found many in his research.

Transfer processing links to Southeast Asia, and design and research links remain in Dongguan.

"The relocation of enterprises is a kind of market behavior. The relocation of enterprises with high labor costs is a way to seek higher profits, pfer orders, and not pfer profits."

Zhou Wenwu, general manager of Nan Xin Chemical Co., Ltd., a manufacturer of water based adhesive for shoes, told reporters.

Zhou Wenwu's enterprises are also going to set up factories in Southeast Asia, and intend to hire local people for their OEM.

"We set up factories in Southeast Asia to expand rather than pfer."

Zhou Wenwu believes that innovation and R & D in Dongguan enable enterprises to take a lasting advantage and position in the supply chain, which is conducive to further embrace the global market.

Zhu Gaoling, vice president of OPPO, said that they kept up with the market demand and continuously developed new functions, including the most popular beauty self timer and 15 minutes fast charging. After the international mobile phone brand was surrounded, the company sold a blood route. OPPO's sales in the Southeast Asian market ranked third, and it was a local high-end product.

Li Yuan, deputy director of the Institute of enterprise research of Guangdong Academy of Social Sciences, seems to be represented by OPPO and vivo. Private enterprises rooted in the mainland and have independent intellectual property rights and well-known brands are becoming the new leading force in Dongguan's economy.

According to the statistics of Dongguan Municipal Bureau of statistics, in 2015, Dongguan increased the added value of private industrial enterprises by 92 billion 564 million yuan, an increase of 16.7% over 2014, and the increase was 11.4 percentage points faster than the average level of the whole city.