Analysis of the Development Situation of China's Shoe Industry after Comprehensive Reshuffle of Dialysis

The global financial crisis triggered by the US subprime mortgage crisis in 2008 made it difficult for most countries and regions to return to normal economic conditions. Most of China's export-oriented processing companies are in a dilemma.

The economic environment in Europe and the United States has continued to slump. The Middle East and North Africa have been turbulent. The shadow of Japan's nuclear radiation has not gone. Every day in the world’s major media, they see all natural disasters and man-made disasters, casting a thick shadow on the lives of people around the world. Affected by this, the current operating environment of the Chinese footwear industry in 2011 has always been concerned by the industry.

Is the industry moving? How should the industry upgrade in the local transformation? Does China's footwear industry have a "closed, closed down tide"...

Industrial Transfer When a company is constrained by factors such as the local environment, policies, personnel, and customers in one place and the development space is limited, the company transfers some or all of its production from the original production area to other regions. This phenomenon is called industry. Transfer.

At present, China's footwear industry does not have a real sense of industrial transfer. China's six shoe bases (Guangdong, Fujian, Zhejiang, Shandong, Chengdu, and Jiangsu) have not only disappeared, but also have global competitiveness and scale. Continuously expanding, its production capacity, management level and technology have all greatly improved and progressed. Most large and medium-sized shoe enterprises have set up strategies for the future development and adaptation to customers and the current living environment. They have opened in inland provinces and other Asian countries. Processing plant or branch.

Considering that most employees who were born in the 1960s and 1970s had already started their careers, most people had to return home in order to take care of the elderly and children. At present, most new shoe companies in Jiangxi, Hunan, Hubei, Henan, Anhui, and Guangxi are considering this factor, such as Baocheng in Jiangxi, Hunan, Henan, Huajian in Zhangzhou, Xingang in Hunan, and Belle in Anhui, Maisi in Guangxi and so on.

When it comes to industrial transfer, not all companies can transfer or conditionally transfer. The transfer or establishment of a branch factory has a great relationship with the nature of the company. According to the author's observation and statistics, only a certain part of the large-scale shoe companies have the conditions to talk about industrial transfer. To put it directly, it is the shoe size of the company with more than 3,000 employees. Of course, it is also limited by the conditions of the company itself: economics, management, customers, suppliers, etc. The industrial transfer capacity is also related to the scale and strength of the company. A world-class enterprise can be transferred to most countries and regions, and its survival ability is also not a big problem, for example, Baocheng in Guangdong, Jiangxi, Henan, Jiangsu, Hunan, etc. Land, foreign industrial transfer in Vietnam, Indonesia, Bangladesh and other places. A national-level enterprise will not have any difficulties in its ability to survive in a domestic shift, such as Huajian in Ganzhou, Jiangxi, Belle in Suzhou, Anhui, Peak in Jiangxi, O'Connell in Chongqing, etc.

A medium-to-large-scale enterprise, for the sake of future strategy and layout, under the conditions of increasing competitive pressure, share risks, create backup forces, enhance the competitiveness of enterprises, and shift more of the company’s production processes and low-end products to more appropriate The living environment is a wise move for the future development of the company.

As mentioned before, not all companies have the conditions or ability to achieve successful industrial transfer. At the end of the 1990s, Dongguan Houjie Jinfengchang shoe factory had bought a factory in Shicheng, Jiangxi Province. At that time, there were more than 600 factories. In the end, not only did the Jiangxi factory fail to survive, but even the mother plant was forced to close down. In the near future, the Anga shoe factory in Dongguan opened a three or four branch factory in Deyang, Sichuan several years ago. The scale of Qingxi in Dongguan is also relatively large. The factory has also been closed earlier this year. There are many factors that need to be considered for a company to achieve industrial transfer success: such as customer orders, management and technology, economic conditions, whether raw material suppliers support, local people and culture, whether it can reasonably arrange the conflict between production and busyness, business and local With the government's coordination ability and so on, there are problems in every link, and the company's living space will be challenged.

It is suggested that shoe companies that have not yet transferred or are preparing to transfer: Must seriously consider that every aspect and all the conditions are mature and then take action.

The enterprises that I have come into contact with have successfully transferred less than 30% of the shoe companies, and some of them have still been challenged by their survivability.

Industrial Transformation and Upgrading The industrial transformation and upgrading are shifting from low added value to high added value, from high energy consumption and high pollution to low energy consumption and low pollution, and from extensive to intensive upgrades.

The industrial transformation and upgrading should be defined as the advanced industrial structure, that is, it is more conducive to economic and social development. The key to industrial transformation and upgrading is technological advancement. It is based on the introduction of advanced technologies, and it absorbs, researches, improves and innovates, and establishes its own technical system. Industrial restructuring and upgrading must rely on the guidance of government administrative regulations, as well as funding and policy support. It is necessary to combine industrial transformation and upgrading with employee training and reemployment.

Industrial upgrading is not a new word in China's footwear industry. We have talked about industrial upgrading for many years. How many enterprises have achieved industrial upgrading?

According to the author's understanding, most of the enterprises' understanding of industrial upgrading is still incomplete or vague. In particular, shoe factories, most shoe factories believe that the transformation and upgrading of enterprises is to register a brand (trademark), open dozens of shoe stores, is the transformation of the industry to upgrade or create a brand, and even some local governments have misled the phenomenon of the company.

In fact, there is no need for a company to transform and upgrade. Is there capacity for transformation and upgrading? How to turn? How to rise? Where do you turn? Where to go? Where is the talent and where is the market? All need to be carefully considered.

Take the Chuang brand for example. It is not that if you register a trademark in the Trademark Office, it is called a brand. There are still some people who don’t even know what a brand is and what brand names are. At present, 70% of shoe companies in China have already registered one or more trademarks, and some large, medium and small shoe companies have already embarked on the road to branding, and less than 1% of them have already succeeded. %, still working 30%, 20% dead, 40% dead.

If you must create a brand and you are determined not to give up, the spirit is quite commendable. Before that, you must go to the first, second, third, and fourth-tier cities and major commercial streets in China to see how many men's and women's shoes on the market are listed in the malls and roadside street shops. Sports shoes, children's shoes brand, their current living environment and living space how? Where is your brand's market competitiveness and living space?

The author wants to stress one point with you: the manufacturing and marketing channels are two completely different business models. One friend of the shoe factory on the channel is telling the author that it is harder to do the channel ten times or dozens of times than to do the manufacturing.

The road to transformation The long-term industrial upgrading The so-called industrial upgrading mainly refers to the improvement of industrial structure and the improvement of industrial quality and efficiency. Industrial upgrading must rely on technological progress. The improvement of the industrial structure is reflected in the coordinated development of the industry and the improvement of the structure; the improvement of industrial quality and efficiency is reflected in the optimization of the production factors, the level of technology and management, and the improvement of product quality.

Let us look at the road to industrial upgrading of the footwear industry. What is the status of China's footwear industry?

China's current footwear production capacity, new product R&D and design capabilities, management technology capabilities, new materials R&D and production capabilities, shoemaking equipment R&D and manufacturing capabilities, compared with the 20th century, we have at least increased 100% -200%.

Take the shoe factory as an example: In the past, 100% of Dongguan companies were OEM companies. At present, more than 60% of medium-to-large-scale enterprises are already ODM enterprises, and some companies have already had their design and R&D levels synchronized with Italy and Spain. Beyond foreign research and development capabilities, such as Dongguan Xingang, Max, Hua Hong, Qi Sheng and other shoe companies.

In the 1990s, domestic shoemaking equipment was mainly imported from Taiwan and abroad, but now we look at domestic Qifeng shoe machines, Houjun shoe machines, Emma CNC, Huida shoe machines, etc. , And in Dongguan, Wenzhou, Fujian set up a local shoe machine chamber of commerce, in recent years the market has continued to expand, in addition to a prosperous domestic market, many Southeast Asian and North American countries, shoe companies, to order mainland China shoe-making equipment.

On the way of industrial upgrading, Chinese shoe companies have stepped from shoe-making countries to shoe-making powerhouses, especially Dongguan, and will not only become the manufacturing base for high-end shoes in the future, but will also become the fashion capital of the world in the future!

Shoe business "close, closed down tide"

The shadow of the international financial crisis has not yet receded. The footwear industry has just improved in 2010, but it began to suffer from the continuing downturn in Europe and the United States economy, the earthquake and nuclear radiation in Japan, and the destabilizing factors in the Middle East and North Africa at the beginning of this year. Foreign appreciation, domestic devaluation, rising labor costs, rising raw material costs, etc., China's footwear industry's living space has been greatly challenged, currently in some places such as Wenzhou, Fujian, Guangdong, and Chengdu. In order to succeed, even some companies have closed down or closed, and more and more companies will survive in the near future.

The author analyzes that the current status quo mainly has four factors:

A. The global market share has shrunk and excess production capacity has caused vicious competition in the market. Inevitably, the distribution of benefits between customers and companies cannot be agreed. Enterprises are either short of orders or stop orders.

If the current total global shoe market is 16 billion pairs, 30,000 shoe factories are required to produce; but now the global economic downturn and other factors have affected the purchasing power of people. Now the global shoe market has dropped by 20%, 12.8 billion. The total amount of double shoes is still produced by 30,000 shoe factories, which will inevitably lead to increased competition among shoe factories. Eliminating some companies in the competition is an inevitable result of the market economy.

B. Customers delay payment, raw material suppliers are forced, and shoe company's capital chain is broken.

For example: Dongguan has a large shoe company, customers should have paid for the payment within 60 days, but from last year to March this year, dragged 180 days has not been able to pay; the original customer is to place an order six months in advance, by the rising domestic costs and *** Appreciation of the impact, the game between the customer and the shoe factory price, the order became three months ahead of schedule, or even the number of orders decreased, resulting in insufficient factory orders; due to the customer's long delay in payment, the factory can not pay employees on time , causing some employees to sue to the local government; arrears to suppliers of raw materials for too long, the suppliers forced the payment too tight, the bank ** expired can not be repaid on time, the factory funding chain breaks, the results of the government seized the factory, the bank freezes accounts, factories collapse.

C. Intensified living space and market competition. Some shoe companies are afraid of losing their original wealth and thus actively withdraw from market competition.

For example, in the Pearl River Delta there is a large-scale shoe enterprise with a scale of tens of thousands of people. After the financial crisis, the living environment and profit space of enterprises have been continuously squeezed. The past days of easy and lucrative money are gone, and companies have begun to suffer losses. The directors of the Group were afraid that the situation of the business would continue to deteriorate, and the wealth they had earned would have been lost. In the previous two years, several subsidiaries and raw material processing plants had been shut down. In the near future, the entire company was sold to a listed company for logistics.

D. The living environment of enterprises is becoming more and more difficult. Some of the heads of shoe companies are already of high age, and no one succeeds in order to withdraw from the market.

Taiwan has a famous admonition for young people: If you want to exhaust one person, you should give him a shoe factory; if you want to kill a person, give him a magazine.

Affected by this famous statement, most young people born in Taiwan with gold spoons have received higher education abroad and are influenced by Western culture. They have little interest in operating shoe factories, causing some large and medium-sized Taiwan-funded shoe companies to have no successors. At present, in the PRD and Southeast Asian countries, some shoe factories have already closed or are shutting down due to no one succeeding.

At present, the transfer of industries to Southeast Asia is only part of the Taiwan-funded enterprises in order to save labor costs or a last resort by customers. China, as the world's most populous country, has a larger population in Henan than the entire country of Vietnam, while Vietnam currently manufactures shoes. The industry was short of work. To open shoes factories in Vietnam, India, and Bangladesh and Cambodia in particular, just like the original factory opened in Dongguan, China in the late 1980s, all raw materials and equipment were imported, and there was no management or technology. Talents and language communication problems also make many “Taiwan” and “Lugan” people sent to these places have headaches. Transportation, living environment, and cultural exchanges are all problems. The mainland is accustomed to the superior living environment in Dongguan. Taiwan, Hong Kong, or European and American guests, to live in Bangladesh and Cambodia is a test.

The author believes that: China's lack of workers is still an illusion. It is an effective combination of social and labor relations after 80 and 90 years. There are still many fringe provinces and regions in the country waiting for development. The author is convinced that China’s labor resources are still the most abundant and efficient in the world.

Regardless of the extent to which the current market environment will be sluggish, the industry should believe that "the footwear industry is still a sunrise industry." If China currently shuts down 10,000 shoe factories, in China's six major footwear manufacturing bases, as long as the market needs, it will take less than half a year to quickly appear 20,000 new shoe factories.

Our industry can not always rely on the support of the local government to survive. If a company is not competitive in the market, the government's support will only allow the company to die later. Therefore, a viable and competitive company will have more features and shine when the market is bad. For example, the current Yuyuan Group in Dongguan, Huajian Group, Yongmao Group, as well as brand companies such as Belle, Anta, 361 degrees, etc., after the financial crisis in the industry's competitiveness and visibility have steadily increased.

"Tianxingjian, companies should be self-improvement." At present, it is another round of industry reshuffle after the international financial crisis in 2008. Enterprises must be able to continue to operate forever, with the exception of self-improvement and no choice...

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