Home >

In The Face Of The Huge Increase In Labor And Cost &Nbsp, Where Should Shoe Enterprises Go?

2010/10/8 11:44:00 76

October 8th, a report said that China's low-end labor force

market

The structural turning point changes from the traditional "Survival Wage pricing law" to "the rule of market bargaining under the reservation of wages".

This means that the whole country has started the overall situation.

wages

Changes in the formation mechanism, at the same time, change will determine the enterprises in the future will face a continuous acceleration of wage increases in the market, allowing enterprises to feel the cost pressure obviously. However, the substantial increase in labor costs will prompt enterprises to upgrade or pform, and where should shoe enterprises go?

Strategy 1: fully exploit our competitive edge

As we all know, low

cost

It has always been the only competitive advantage of the traditional manufacturing industry in China, and this is also the reason why it is difficult for enterprises to have great development in the future.

With the increase of labor prices, enterprises will make greater breakthroughs in upgrading the industrial level and adjusting the industrial structure. If we fully tap the potential of productivity, technology, innovation and system, the development of enterprises will win new space.

Take Jinjiang shoe enterprises for example, and some shoe making enterprises in Jinjiang are

Management

In the early days, most of them started from the foundry industry, and they saw the advantages of low labor cost and created a group of shoe pioneers.

However, with the change of the market, the cost of labor is rising and the advantage has been gradually disappearing. Many shoe enterprises begin to excavate competitive advantage gradually by reducing the risks brought by market and operation. Through the introduction of equipment, technological pformation, mastery of sales channels and brand pformation, the original production capacity is pformed into brand management and the primitive accumulation of capital is completed.

It is Jinjiang shoe enterprises that actively adjust the industrial structure, gain greater profit margins, and create greater industrial advantages, rather than just limited to cost advantages.

Strategy two: reserve talents and enhance competitiveness

Enterprise development needs continuous replenishment of fresh blood and gradually forms a virtuous circle of human resource replacement.

Therefore, to supplement the talents needed for the development of enterprises is another hidden factor to cope with the rising cost.

The development and expansion of enterprises need to introduce new ideas and new methods and supplement development potential. If there is no reserve force and there is no reasonable echelon of talents, it is difficult for enterprises to face challenges.

Before the introduction of reserve talents, shoemaking enterprises must formulate a reserve plan to set the target positions for talents and recruit them according to their positions.

When the reserve personnel enter the factory, they should first familiarise themselves with all aspects of the production, operation and management of the enterprise, clarify their salary and related welfare benefits, and conduct all-round training for them.

The way to reserve talents has become an ascending channel for employees, and at the same time, it helps to make the best use of talents.

Strategy three: create "decent work" and cultivate employee loyalty.

The so-called "decent work" is to create superior living conditions and working environment for employees, as well as arrange the study and growth environment for the next generation of employees as much as possible so as to ensure that employees and even their family members can ensure that they earn decent work and earn decent life with their own efforts.

And shoes enterprises create "decent work" is also an important measure for employees to be loyal to enterprises.

Not long ago, Jordan, a shoe maker, launched a series of "decent work" for the rest of the industry to exercise and decompress. Jordan's head of marketing operations said, "only when employees grow continuously, can enterprises get more rapid growth in these growth. Therefore, caring for employees and doing things for employees is the most popular corporate culture of Jordan company."

Admittedly, Jordan's "decent work" is a strong evidence to enhance the cohesion and competitiveness of the enterprise and ensure the healthy development of the market economy.

We are also pleased to see that Jordan has not been under the pressure of rising costs. On the contrary, it has shown us a thriving scene.

In spite of the negative impact of wage increases on some of our traditional manufacturing industries, generally speaking, wage increases will not affect the overall competitive advantage of China's manufacturing industry, and wage increases will also provide new opportunities for industrial upgrading, and will enhance the competitiveness of these industries to a certain extent.