[shoes news] Why are Chinese reluctant to return to Africa? Listen to the African textile boss

Release time:2020-04-17 source:Dongguan Houjie Youli shoe machine trade

When it comes to Africa, people may first think of poverty, hunger and war. But why do more and more Chinese choose to go to Africa? Why do so many people not want to leave when they go to Africa? They stay for ten, twenty, or even a lifetime?

African market potential
"The market here is like China 30 or 40 years ago, with more business opportunities." Yu Yichao, a Yiwu native of the post-80s generation in Ghana, a western African country, told reporters. It is understood that, like Yu Yichao, more and more "post-80s" Yiwu people are keen to go to the distant African continent for business and entrepreneurship.

Copyright of the original author
When a commodity is exported from Yiwu to other countries, factories, market operators, foreign trade companies and purchasers should make profits in the circulation. However, at present, many Yiwu commodities are faced with increasingly fierce competition in the same industry, rising prices of raw materials, rising wages of manufacturing workers, exchange rate fluctuations and other problems, and the profit space has been squeezed again and again.
Many of the "post-80s" began to think that if they lived in foreign countries to do business and reduced the circulation links, their profits might increase again.
Many of them think of going to Africa. This is not only because China Africa relations are better at the diplomatic level, but also because the economic strength of African countries has been increasing in recent years, and the consumption capacity of residents has been increasing. Yiwu small commodities are sold directly there, and the profits are much higher than those sold locally.
Africa is full of hope, because there is a great chance before things are qualitative. And people need more, there is no modern efficiency. You can easily engage in a business that meets the needs of the local people, and you can even become a business leader.
In China, tycoons make rules. Unless you have a good idea, you know what your whole life is like from the age of 20.
Low labor cost in Africa
The local labor force is also very cheap. According to reliable statistics, the unemployment rate in Africa is 80%, which means that 80% of the people are unemployed and can support themselves without work. At this time, if the labor force can be provided to them, then as long as the money is given, these Africans will be willing to work.
For Chinese businessmen, it's very low cost and good management to hire Africans to work for themselves, so that's why Chinese like to open factories and businesses in Africa, and it also drives the local economy, so we have to say that Chinese are still very smart.
Chinese in Africa
Many Chinese who go to Africa to do business have made a fortune in Africa and live a well-off life.

▲ the picture above shows a group photo of a family of three in Africa. They have bought a luxury house after making a fortune in local business and have a comfortable life.

▲ the Chinese in the picture have opened a wood factory in Africa. The business is good. The workers in the factory are all local Africans. Although their work is not as good as that of Chinese workers, they are already good workers in Africa.

The Chinese technicians in the picture are assigning jobs to African workers. The workers listen respectfully and respect the Chinese people very much.

The picture above shows the Chinese boss and his female partner in Africa. Chinese men are very popular with African women in Africa, but Chinese men rarely want to be with African women.
It's hard to get used to going back to China
The reason why some Chinese have always insisted on staying in Africa is that Chinese people are too skilled to go back to work in China. What are we going to do? All the Chinese we will do, and they will do. We won't. Every time I go back home, what I don't know is my hometown. On the contrary, I feel familiar when I go back to Africa.
Chinese people are increasingly in contact with African society, so they have unconsciously accepted their views. If China does not accept this view, it may not be able to live.
The Chinese who do not want to return to China have basically done their business in Africa and have formed a certain scale. The main thing is that these people have become rich and can live a very good life in Africa. They are not only rich, but also have a very high social status.
These two points are also the goals that many of us Chinese pursue in life. So many Chinese businessmen are more willing to live in Africa, and the operation of the company can not be separated from themselves. If they return home, the industry in Africa will cause huge economic losses, so Chinese businessmen are more willing to live in Africa.

Real case: I sell home textile in Angola, Africa
Here is a wholesale market in Angola, busy streets, high and uneven buildings, simple pavements Apart from weekends and holidays, it is bustling here every day. Angola is a country rich in land and resources, located in the southwest of Africa, with a time difference of seven hours.
Not long ago, one belt, one road in Angola, was built by the twenty Railway Bureau of China Railway. Benguela railway, with the promotion of "one belt and one road" in Africa, has a large number of people from all over the world to Angola for development. This includes the boss of Jiangsu.

When it comes to why he wants to do business in such a far place in Africa, boss he said that he was also with a group of people who were doing home textile in Nantong Dieshiqiao. At first, he was only doing business in Yungui river. Later, when he heard from friends that Africa made money, he passed.
"When I first went there, I was scared. I ran so far for the first time. I was not familiar with the place of my life and the key language was not available. I started to compare and draw at first. However, I found that many black people can speak one or two sentences of Chinese. Although there are not many, the basic work exchange is enough."
In sum, boss he has only been in Angola for two and a half years, and he is also young among the group of Chinese doing business in Africa. But surprisingly, within two and a half years, he had his own shop and factory in Africa, "the shop has a certificate, and then he rents a piece of land, builds a larger factory, looks for some black processing, produces and sells by himself." Boss he has a little pride in his voice.
There are many overseas Chinese like boss he in Angola, "there are many foreigners in this place, India, Turkey and so on, but they are still obvious to Chinese people and can be recognized at a glance," boss he joked, "there are a lot of Chinese in this local market, which are divided into three categories: one is from Fujian, which comes early and mainly makes clothes, shoes and hats; the second is from Zhejiang, which makes some Small commodities and so on; the third category is Jiangsu people, with Nantong people living more, mainly for home textile bedding. "
The people who come here from China have a unified operation, which not only creates a good business environment for the Chinese, but also facilitates the centralized management of the non-government. "The store opening mode here is the same as that in China, there is a centralized wholesale market. Generally, black people will set up stalls in the wholesale market, as well as the city of China, which is the concentration of Chinese people. Almost all of the stores are opened by Chinese people, including food, use, and so on They are full of clothes and covers. "
"Most of the people are processed in China and sold directly here. There are few people like me who distribute raw materials from China and process and make finished products here." When it comes to processing, due to regional differences, there are still many differences between Africa and China in terms of costs such as black wages.
"There is the issue of exchange rate here. There are two types of exchange rate: white market and black market: white market remits money through the Central Bank of the government. Because the general people can't go through the national exchange control, it's very troublesome. Then those who can't get the money from the central bank exchange it for Kwanzaa through the black market. If it's based on the white market, black people's wages are higher. If it's based on the black market, the wages will be several hundred yuan a month, which is very cheap compared with the domestic price. "
Angola, in addition to its rich land resources and cheap labor force, has its own unique local customs. I remember the first time I chatted with boss he, he just had a drink. "The black people here like to celebrate. They have to get together for a meal and a drink to celebrate something."
The living conditions in Africa are not good. There are deserts everywhere. Green plants are rarely seen. Black people run on the ground naked. "It's not as exaggerated as you said." boss he retorted, "like other countries, rich people have a good life. Those who don't have money are just so. The general living conditions for opening stores here are good. However, the medical and health conditions here are really poor. General hospital equipment is not very good. Better hospital prices are very expensive. The public security is quite poor. It's common for news like being robbed, so we don't go out alone for nothing. "
"There are not all deserts here. There are baobab trees and beaches. The scenery is good. There are night markets here. Just like in China, you can go out at night and eat at night. Although there are few, they are very satisfied." The tone of boss he is full of happiness, which has obviously been integrated into this place. Angola has become his second hometown.
"Two and a half years, it's not long, it's not short. Fortunately, now we have our own factory and shop. Although the process is very hard, it's better to do our best within the scope of ability."
Africa: the next textile value depression
Africa is the second largest continent in the world, with an area of 30.2 million square kilometers, more than three times of China's land area. Its GDP ranks fourth among the six continents in the world, with rich cotton and oil resources and huge economic development potential. Africa also has cheap manufacturing costs, a young population structure, rapid economic growth, and strong emerging market demand, which is more suitable for the development of textile industry with more employment.
However, Africa has not yet formed a complete textile industry chain. Although some countries are rich in cotton and other raw materials, most African countries have to import a large number of textile surface accessories for the production and processing of clothing and other finished products, resulting in a long manufacturing cycle, which can not meet the strict requirements of rapid response orders. At the same time, the added value of textile products in Africa is low, which also shows the weak textile industry capacity in Africa.
In recent years, the textile trade between China and Africa has been growing due to the huge industrial complementarity. According to statistics, from 2010 to 2017, China's textile and clothing exports to Africa increased from US $11.097 billion to US $18.365 billion, with an average annual growth rate of 7.46%.
Africa's share of China's total textile and garment imports increased from 0.5% in 2010 to about 1% in 2017, and the import amount in the same period increased from US $100 million to US $260 million. Garment import accounts for more than 90%.

In analyzing the comparative advantages and practical challenges of developing the textile industry in Africa, Xu Yingxin, vice president of China Textile Industry Federation and executive vice president of textile industry branch of China Council for the promotion of international trade, pointed out that in terms of comparative advantages, the average age of Africa is only 20 years old, and the labor price is low. It is estimated that by 2025 Africa will have 200 million young people between 15 and 24 years old;
Good foreign trade environment, preferential market access policy for European and American exports;
In terms of export incentive measures, we have implemented a number of incentive policies, such as export tax rebate, free exchange of foreign exchange, tax preference, and convenient financing;
In addition, the growth of African middle class is fast, and the consumption expenditure in Africa is expected to reach US $1.4 trillion by 2020.
There are great opportunities and challenges. In Xu Yingxin's view, Africa's industrial base is weak, its textile industry chain development and supporting facilities are not perfect, its product delivery cycle is long, it can't meet the response demand of fast orders, skilled labor force is lack, and workers' wages are growing rapidly, and the political and social environment is unstable.
Ethiopia, located in the horn of Africa, has become a hot spot for Chinese textile enterprises to invest. Why is Ethiopia so popular? In addition to the obvious comparative advantages of the country, Mr. adamn, Vice Consul General of the Ethiopian Consulate General in Shanghai, mentioned in particular that Ethiopia's political stability and textile industry investment have become the preferred industries supported by the government.

In terms of industrial policy, Ethiopia's national industrial policy focuses on export-oriented and gives priority to the development of import substitution industries. The government takes the lead in the development of Textile Industrial Park to attract enterprises to stay. In terms of market, it is also an important consideration to enter the United States, the European Union, Japan and other countries to exempt tariffs and quotas.
The Ethiopian government has also issued a development plan for the textile industry, with the goal of reaching US $779 million in exports by 2020, attracting 174000 jobs and ranking among the top five African exporters. To this end, the government has also set up a textile industry development research institute, which is dedicated to the research and development of textile technology. Adamn said that comprehensive textile factories, spinning, weaving, printing and dyeing, and ready-made clothing are the most potential areas for investment.

This article comes from the network, which is organized and released by the heat transfer press, the insole molding machine, Unilever shoes machine Co., Ltd. hotline: 13592760466

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