The Rise and Fall of Dongguan's Manufacturing: A Decade of Glory and Silence

The Rise and Fall of Dongguan's Manufacturing: A Decade of Glory and SilenceDongguan, once hailed as the "World's Factory," witnessed the rise and transformation of China's manufacturing industry. In the past, countless factories thrived on this land, supplying a steady stream of goods to the global market

The Rise and Fall of Dongguan's Manufacturing: A Decade of Glory and Silence

Dongguan, once hailed as the "World's Factory," witnessed the rise and transformation of China's manufacturing industry. In the past, countless factories thrived on this land, supplying a steady stream of goods to the global market. However, as time went by, the former glory gradually faded, and factories began to face difficulties, even shutting down and closing. This article will review the rise and fall of Dongguan's manufacturing industry through ten typical cases, exploring the underlying reasons behind it.

1. Nokia's Dongguan Factory: The Decline in the Age of Smartphones

The Nokia Dongguan factory was built in 1995, when Nokia was a global mobile phone giant. Its factory had advanced equipment, mature management, produced high-quality phones with stable signals, and was a global hit. The factory occupied approximately 50,000 square meters and had over ten modern production lines. At its peak, it employed over 3,000 people and had an annual capacity of 4 million phones. However, with the rise of smartphones, Nokia failed to keep up with the times, falling behind in mobile phone operating systems and design. Its market share declined sharply. Meanwhile, Chinese domestic mobile phone brands such as Huawei and Xiaomi emerged, rapidly capturing market share with technological innovation and marketing advantages, pushing Nokia out of the competition. Nokia's Dongguan factory saw a sharp decline in orders, a significant reduction in employees, and was eventually forced to shut down.

2. Samsung Dongguan Factory: Global Industry Layout Adjustment and Intensified Domestic Competition

Samsung Dongguan Factory was established in 1993 and was an important production base for Samsung in Dongguan. It was known for its advanced technology and high quality. The factory mainly produced mobile phones, display screens, and other electronic products. It occupied approximately 80,000 square meters and had over 5,000 employees at its peak, producing 3 million phones and 20 million display screens annually. However, Samsung adjusted its global industrial layout, shifting some production orders to Southeast Asia to reduce labor costs. At the same time, competition within China's electronics industry intensified, with brands like Huawei, OPPO, and Vivo gaining market share in the mobile phone market, putting immense pressure on Samsung. Samsung Dongguan Factory's phone production gradually decreased, and its employee count also declined. The market share of display screens was also squeezed by domestic competitors, with annual production capacity falling to around 15 million screens.

3. Some Workshops of Delta Electronics Dongguan Factory: Challenges of Industry Upgrading and Market Demand Changes

Some workshops of Delta Electronics Dongguan Factory were established in 1992. It is a leading global provider of power management and thermal solutions, holding a significant position in the industry. The factory boasts advanced R&D capabilities and production technologies, providing high-quality power and thermal products for various electronic devices. The factory occupies approximately 100,000 square meters, featuring numerous automated production lines. At its peak, it employed thousands of people, producing 20 million power supplies and 5 million thermal products annually. However, industry upgrading and corporate strategic adjustments have led to ever-rising labor costs in Dongguan, increasing operating costs for businesses. Meanwhile, the trend towards miniaturization and intelligence in electronic products has changed requirements for power supplies and thermal products, demanding businesses to invest more in developing new products to meet market demands. Some workshops of Delta Electronics Dongguan Factory saw a decline in power supply production to around 15 million units annually, with employee numbers reduced to a few hundred. The annual production capacity of thermal products also decreased to around 4 million units.

4. Yue Yuen Shoe Factory: The Impact of Rising Labor Costs and Industry Relocation

Yue Yuen Shoe Factory was established in 1988 and is one of the largest footwear manufacturers globally. Its Dongguan factory was once massive, equipped with a complete production process and a strict quality control system, undertaking OEM production of sports shoes and casual shoes for numerous international brands. The factory occupied approximately 200,000 square meters, featuring numerous production lines and employees. At its peak, it employed tens of thousands of people, producing over 30 million pairs of shoes annually. However, with continuously rising labor costs, the company's expenses increased. Footwear manufacturers in Southeast Asia offered lower labor costs and enjoyed favorable policies, taking away some of the orders. Additionally, consumer demands for footwear have changed, emphasizing brand, style, and quality. Yue Yuen Shoe Factory failed to keep up with these changes in product innovation and brand building, resulting in a reduction of employees to a few thousand, a decrease in annual shoe production to a few million pairs, and idle production lines.

5. Hejun Toy Factory: The Double Blow of the Financial Crisis and Industry Competition

Hejun Toy Factory was established in 2006. It was once a large-scale toy manufacturing company in Dongguan with a certain reputation and market share in toy manufacturing. The factory had a professional design team and production equipment, capable of producing various toys, including plush toys, plastic toys, electronic toys, and more. The factory occupied approximately 50,000 square meters and had thousands of employees at its peak, producing over 5 million toys annually. However, the outbreak of the financial crisis led to a significant decline in global toy market demand, causing a sharp drop in Hejun Toy Factory's orders. Additionally, the company encountered management issues, poor cost control, and financial constraints, resulting in products lacking competitiveness and hindering normal operations. Furthermore, the toy industry faced intense competition, with the emergence of new toy companies. Hejun Toy Factory failed to keep pace with product innovation and market expansion, eventually leading to a financial breakdown and the closure of the company.

6. Jin Woniu Industry: The Double Pressure of Poor Management and Market Competition

Jin Woniu Industry was established in 1992, primarily producing barbecue grills and other outdoor products. It held a certain position in the outdoor products market. The factory had production scale and technical capabilities, and its products gained some international recognition. The factory occupied approximately 30,000 square meters and had hundreds of employees at its peak, producing over 200,000 barbecue grills and other outdoor products annually. However, the company suffered from poor management, inadequate market expansion capabilities, and narrow product distribution channels, leading to poor product sales. Meanwhile, the outdoor products market faced intense competition, with numerous similar products. Jin Woniu Industry lacked investment in product innovation and brand building, making it difficult to stand out in the market. Ultimately, the company encountered difficulties, reducing annual production of barbecue grills and other outdoor products to tens of thousands, with employee numbers dwindling to dozens. Sales declined sharply, profits were meager, and the company was forced to shut down.

7. Fuan Textile Printing and Dyeing Factory: The Double Challenge of Environmental Pressure and Market Competition

Fuan Textile Printing and Dyeing Factory was established in 1991. It was a large-scale textile printing and dyeing company with high recognition and market share in the field. The factory possessed advanced production equipment and technological processes, capable of producing various high-quality textiles, including cotton fabrics, synthetic fabrics, silk, and other materials, widely used in clothing, home furnishings, and other areas. The factory occupied approximately 150,000 square meters, featured numerous advanced printing and dyeing production lines, and employed a large number of workers. At its peak, it employed thousands of people, producing over 50 million meters of textile fabrics annually. However, with increasing environmental protection requirements, the textile printing and dyeing industry became a highly polluting industry, requiring businesses to invest heavily in environmental protection facilities, leading to significant cost increases. Meanwhile, competition in the textile printing and dyeing industry was fierce, and market demands changed rapidly. The company failed to keep up with product innovation and market expansion, resulting in a decrease in order volume. Ultimately, Fuan Textile Printing and Dyeing Factory's annual textile fabric production fell to tens of millions of meters, with employees reduced to a few hundred, further squeezing profit margins.

8. VTech Electronics Factory: The Difficulties of Market Demand Changes and Intensified Industry Competition

VTech Electronics Factory was established in 1987. It is a globally recognized manufacturer of electronic educational toys, holding a significant position in this field. The factory possesses strong R&D capabilities and advanced production technologies, and its products are favored by consumers. The factory occupies approximately 80,000 square meters, featuring modern production facilities and a professional technical team. At its

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])