| | 
 |
| | Model HK-HQ003 from Jinjiang Huakai is a pair of two-tone flip-flops made of molded EVA. Priced at $1.60, the product comes in sizes 36 to 41. |
 |
This province’s strengths include up-to-date facilities and a convenient transport system.A mature footwear industry and a reliable infrastructure have made the southeast coastal province of Fujian an important production center for women’s flip-flops in China. Total exports in the line reached $1.8 billion in 2007. The hub’s history in shoemaking started with homebased slipper or sandal workshops, and then extended to casual and sports shoes. Small and midsize factories with 100 to 300 workers still outnumber large enterprises. The proliferation of footwear companies, however, has led to the development of a network of auxiliary industries. Wholesale centers for raw materials, components, machinery and finished products are present in Fujian. Some examples are the Putian and Chendai shoe material markets. Related specialists for printing and mold making also abound. In addition, makers have up-to-date facilities, including foaming and plastic-injection machines. These are used to process different polymers into their own flip-flop parts. China Fuzhou Zhongchengxin Shoes Co. Ltd, an ISO 9001:2000-certified manufacturer interviewed for this report, is among those with plastic-injection machines. Suppliers such as Opinion Enterprises Co. Ltd even have their own silk-screening and heat-transfer printing equipment. The labor shortage plaguing many China provinces is also a reality in Fujian. Despite this, the workers who makers rely on need relatively little training because of previously acquired experience in the industry. In terms of infrastructure, the hub has five ports in the cities of Xiamen, Fuzhou, Putian, Quanzhou and Zhangzhou. Collectively, they can handle 45 million tons in a year. There are also four airports. Two nuclear power plants will start construction this year. The plants will have 10 1-kilowatt generating units combined. The first unit will go online in 2012, with the rest opening in 2013-14. The province has about 700 slipper suppliers, 80 of which are trading companies. They are found mostly in Xiamen, Jinjiang and Fuzhou. The strong presence of trading companies in Fujian offers buyers a way to communicate easily during the purchasing process. Product diversity and smooth logistics are other benefits. Conversely, dealers do not offer the lowest prices or the quickest sampling times. Quality is addressed through in-house QC teams. Another measure is to source from ISO 9001:2000-certified suppliers. Two featured trading companies, Jinjiang Huakai Shoes and Garments Co. Ltd and High Spirit Ltd, practice this. The majority of flip-flops from the hub are considered low-end and midrange. Models are typically made of synthetic materials such as PVC, PU and EVA in foam, leather or molded forms. Almost all designs are flat, but elevated wedge varieties are becoming popular. Ornamentation is the R&D focus of most makers. Footbeds usually have graphic prints, while straps are embellished with beads, sequins and artificial flowers. The bulk of suppliers, including all of those featured in this article, are able to provide azo-free models. Material safety data sheets are required when purchasing components, and then forwarded to buyers. Competition comes mainly from suppliers in Zhejiang province that offer similar products at lower prices. They focus more on leather shoes, however, and export mostly low-end designs. OEM orders represent 80 percent of Fujian’s exports, which go mainly to the US and the EU. Manufacturers in the hub, however, are directing their marketing efforts toward building in-house brands for overseas markets. They are currently cultivating clients in Asia and Africa to strengthen OBM business. Of the companies interviewed, only two do not have in-house brands. At Letsgo Shoes and Plastic Co. Ltd and Fujian New Leader Co. Ltd, OBM orders make up 20 percent of shipments. Fifteen percent of High Spirit’s exported women’s flip-flops carry the in-house In Spirit brand. Men’s and children’s varieties are trademarked Hi Spirit and Be Spirit, respectively. Jinjiang Huakai markets its Veilisr brand to clients in Japan and South Korea. Ten percent of shipments are on an OBM basis.
|