Cost Rise Stimulates Domestic Shoe Factories To Seek New Breakthroughs

Improving cost Price makes many systems shoes Manufacturers are very worried. The current cost increase has reached 20%, and these shoemakers are also looking for new production sites.

But where on earth? In order to find the most suitable place, Footwear News held a dialogue with shoemaking associations in Brazil, Ethiopia, Indonesia, Mexico, Vietnam and other regions, hoping to know what measures the governments of these regions have promulgated to attract foreign investment.

Of course, for many people, China is still the best place to make shoes. Last year, China produced 12 billion pairs of shoes shoes It has more than 20000 shoe factories. In addition, China's resources and transportation system are also very comprehensive.

But the times have changed. Labor costs are rising. Many shoe factories in China have also quit the shoe industry to seek more profitable industries. Most shoe factories have also started to move to inland and northern China.

The good news is that many other countries attach great importance to the footwear market. Mexico, because of its proximity to the United States, has recently introduced a quality assurance system, which is bound to become the only choice for the American footwear industry. Indonesia is also making every effort to attract foreign capital.

The following is an introduction to the specific operating cost requirements of these countries.

Brazil:

Number of factories: 8200

Average hourly salary: $3.18

Production scope: men's shoes, women's shoes, children's shoes

Brazil has a self-sufficient production chain and is rich in raw materials. It does not need to be imported completely. In addition, Brazil has the world's largest herd, which can provide a large number of animal skins. Brazil's shoemaking technology is also very advanced, and the government has also introduced many measures to support the development of the shoemaking industry.

Ethiopia: Number of factories: 1150

Average hourly salary: 15 cents - 1.5 dollars

Production scope: casual shoes, evening shoes, etc

Ethiopia can provide the best shoe making raw materials in the world, and the labor cost is only one eighth of that of China. The government has established industrial zones and roads in various regions of the country to improve the supply system of power and other resources.

Indonesia

Number of factories: the exact number is not clear, 12 new factories have just been established

Average hourly salary: 70 cents - 1.2 dollars

Production scope: sports shoes, slippers, casual shoes, etc

Indonesia has a long history of shoe making, and workers are very amazing in shoe making. The government and the business sector have introduced many measures to improve the country's infrastructure, including transportation, highways, electricity, and so on.

Mexico:

Number of factories: 11000

Average hourly salary: $3.03

Production scope: men's shoes, women's shoes, children's shoes

Mexico's geographical position is very favorable, it is very close to the United States and does not need tariffs.

At the same time, the governments of the United States and Mexico signed a long-term agreement allowing businessmen from both countries to trade for a long time.

Vietnam: Number of factories: 600

Average hourly salary: $1-1.2

Production scope: sports shoes, slippers, etc

The labor cost of Vietnam is lower than that of China, the Philippines, Malaysia, and Thailand. Vietnam's labor law and large shoe companies such as Nike, Adidas, Clark are all in compliance.