Is innovation activity in your business or not?

Dr Eric Thun, lecturer in Chinese Business Studies at the University Of Oxford China Center, believes current labor cost pressures could be a catalyst for change in China.

"One of the problems that China historically has faced is that it has never been pushed into innovation-based activities because of this excess supply of labor," he said.

"Pushing manufacturing into high value-added activity is very much what the government wants. This kind of cost pressure stimulates upgrading."

So as for shoes business, there must be something special with core system, otherwise, the investment may not be resulted in a good profit.