The Formation of Wenzhou Footwear Clusters: How Were the Entry Barriers Overcome?



Table 1 Annual Output and Export of the Wfenzhou Footwear Industry

Year

Annual output value
( billion???)

Growth rate

( %)

Export value
( US$ million)

Growth rate

( %)

2001

249

-

462

-

2002

263

5.62

667

44.37

2003

307

16.73

837

25.49

2004

346

12.70

1149

37.28

It is interesting to observe that the footwear cluster formed in Wenzhou where, despite having
neither a legal nor a financial system which is well developed by existing standards, private
enterprises have mushroomed in the last two and a half decades. To address the questions
mentioned in Section 1, the International Food Policy Research Institute (IFPRI) and Zhejiang
University conducted a joint survey in Wenzhou.

The investigation work was conducted by collecting related literatures and documents andby
interviewing numerous individuals including as key persons in the local societies, competent
government authorities as well as some senior predecessors and insiders. Concurrently, we
conducted further informal interviews with managers of some middle-small enterprises of the
footwear cluster to design and pretest our questionnair es and then finished them. From July to
October 2005, we conducted the formal field survey, covering the key footwear production bases,
including the first phase and second phase “Footwear City of China” industrial park in the
Lucheng district of Wenzhou City, the Shuangyu Industrial Park of Lucheng District, the Oubei
Township of Yongjia County and the Shenting Township of Ruian City and so on. We randomly
selected our investigation targets from the list provided by local government or administrative
departments of the industrial parks, and send one investigator to talk to the key responsible people
face to face and to finally fill in the questionnaire according to the information obtained. We
surveyed 140 existing footwear enterprises 6 including enterprises producing finished products or
parts of supplies, which account for 2.77% of the total enterprises of Wenzhou footwear cluster.
Table 2 presents the summary statistics of the survey.

Table 2 Statistics summary of the survey

Types of products

Number of
samples

Total
numberof
enterprises

Sample/ total

Minimum**

Maximum**

Mean**

Std

**
Deviation

Final products*

121

4000

3.03%

3

3500

459

547

Footwear sole

4

380

1.05%

30

1100

570

612

Footwear last

2

168

1.19%

10

80

45

49

Leather

4

200

2.00%

8

170

62

74

Accessories &

7

100

7.00%

30

200

75

66

ornamental Materials

Footwear Machinery

2

200

1.00%

90

500

295

290

6 We also attempt to investigate those founders of footwear enterprises who have vanished or changed their
businesses or had to give up due to the difficulty.



More intriguing information

1. Hemmnisse für die Vernetzungen von Wissenschaft und Wirtschaft abbauen
2. On Dictatorship, Economic Development and Stability
3. The name is absent
4. Sector Switching: An Unexplored Dimension of Firm Dynamics in Developing Countries
5. An alternative way to model merit good arguments
6. From Communication to Presence: Cognition, Emotions and Culture towards the Ultimate Communicative Experience. Festschrift in honor of Luigi Anolli
7. Inflation and Inflation Uncertainty in the Euro Area
8. Publication of Foreign Exchange Statistics by the Central Bank of Chile
9. Exchange Rate Uncertainty and Trade Growth - A Comparison of Linear and Nonlinear (Forecasting) Models
10. Opciones de política económica en el Perú 2011-2015