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

September 15th, 2010 — The 2010 Summer Davos New Champions Annual Meeting took place from September 13 to 15 in Tianjin. During the event, Ding Shuibo, President of Xtep (China) Co., Ltd., participated in an exclusive interview with the Financial Community website. In the conversation, he shared his insights on the evolution of the footwear industry and its future direction. Ding explained that the shoemaking industry originally started in Japan, then moved to Taiwan, and eventually reached China’s coastal regions. He emphasized that it is now a natural progression for the industry to move inland again, stating that this shift is not only logical but also inevitable as part of broader economic development trends. When asked about the rising wage costs that have been a hot topic in recent years, Ding noted that Xtep has not been significantly impacted. While wages have been gradually increasing each year, there hasn’t been a need for explosive growth. He described the issue of labor shortages as a growing trend and a new challenge for labor-intensive industries. In addition to improving working conditions, he pointed out that the relocation of such industries to inland areas is also becoming a key trend. On the subject of "corporate soft power," Ding highlighted that it refers to a company’s influence and cultural values. He argued that to become a leader, a company must focus on product and technological innovation, overcome previous obstacles, and effectively manage related risks. Being a leader, he said, means taking the first step and being willing to face the uncertainties that come with it. He stressed that staying ahead of competitors requires boldness and a willingness to take calculated risks. Ding concluded by saying that Xtep has remained committed to the industry for many years, continuously striving to improve and innovate. He expressed confidence in the company's long-term vision and its ability to lead in the evolving market landscape.