Ding Shuibo: Inward migration of shoemaking industry is an inevitable trend

On September 15th, the 2010 Summer Davos New Champions Annual Meeting took place from September 13th to 15th in Tianjin. During this event, Ding Shuibo, President of Xtep (China) Co., Ltd., participated in an exclusive interview with the Financial Community website. In the conversation, he shared insights on the evolution of the footwear industry and its future direction. According to Ding, the industry originally started in Japan, then moved to Taiwan, and later expanded to coastal regions of China. He believes that it is now a natural progression for the industry to move inland again, following a broader trend of economic development. Ding also addressed concerns about rising wages, which have been a topic of significant discussion recently. He stated that Xtep has not been significantly impacted by these trends. While wages have steadily increased over the years, there hasn't been a need for explosive growth. On the issue of labor shortages, Ding described it as a natural trend and a new challenge for labor-intensive industries. He added that improving working conditions and relocating operations to the interior are both key parts of this transition. When discussing the concept of "corporate soft power," Ding emphasized that it refers to a company’s influence and cultural values. To become a leader in the industry, he said, companies must focus on product and technological innovation, overcome previous barriers, and manage associated risks effectively. Being a leader means taking the first step, even if it involves facing certain risks. By staying ahead of competitors, a company can establish itself as a true industry leader. Ding concluded by stating that Xtep has consistently focused on these principles and has worked hard to maintain its position in the market.