Quanzhou Shoe Industry Explores The Best Way To Eliminate Costs

The 2008 Olympic Games brought strong impetus to the private sector of the economy. The sporting goods industry expects a lot of benefits this year. The Quanzhou footwear industry, which mainly produces sports shoes, also has high hopes for 2008.

However, opportunities and challenges coexist. After entering the 2008, the cost of oil, raw materials, workers and wages continues to rise, and shoe industry is facing unprecedented cost pressures.

At the same time, the foreign trade environment of shoemaking industry is also not optimistic.

In the context of the continued depreciation of the US dollar, the EU may extend the implementation period of the "anti-dumping measures", and the restrictions on foreign technical barriers have repeatedly been raised or improved, so that the Quanzhou footwear industry, which accounts for about half the proportion of domestic and foreign sales, will usher in a Development Gateway.

This is not the best time, nor is it the worst one. How can the footwear industry in Quanzhou before the adjustment and upgrading of industry go to the cost pressure?

How to deal with the resistance of export market?

How should enterprises develop jointly on the road of industrial upgrading?

In order to untie the current confusion and find out the best way to develop, the seminar on "upgrading of footwear industry in Quanzhou" organized by the Quanzhou footwear industry association was held in Quanzhou on the 21 th of this month. The Quanzhou shoemaking enterprises and associated enterprises from the upstream and downstream of the industrial chain were gathered together to make in-depth analysis and communication on the deep-seated causes and solutions of the current cost increase, and discuss how the future enterprises should identify the location and meet the new challenges.

[part I]

Stress test

The rising of international oil prices has brought the cost of materials in rubber industry up, so the price of raw and auxiliary materials in shoe making industry has increased a lot, and the situation is not optimistic.

This increase is higher than the gross profit margin of the average 10%% of OEM export enterprises.

A big test of cost pressure is coming.

Three factors pull costs soaring

Hua Bilin, general manager of Huaxiang Chemical Trading Co., Ltd. believes that soaring crude oil prices are one of the factors that increase the cost of raw materials. In addition, the closure of supply and demand has been one of the reasons for the recent closure of upstream enterprises.

He said that due to the promotion of the Beijing Olympic Games, the relevant parties paid more and more attention to environmental protection, and small scale illegal enterprises were asked to close.

In particular, the closure of many small chemical enterprises in Beijing, Shandong, Hebei and Henan has resulted in a change in market supply and demand, which indirectly affects the prices of raw materials.

Hua Lin Lin predicted that this imbalance between supply and demand may return to normal after the Beijing Olympic Games.

He thinks, because the price rise of chemical raw materials is caused by imbalance between supply and demand, the long-term impact on the industry is not very large, while the price of rubber on the sole of the main material has a relatively large impact on the cost of shoes.

For the balance of supply and demand factors, Shengda Footwear Co., Ltd. Qiu Yang has another explanation.

For example, he said that after the recent rise in domestic oil prices, the impact on international oil prices was due to the expected market price rise, which would lead to a decrease in demand. When the demand was low, the market price would naturally drop.

He said: "there are more and more shoe factories in China, and Vietnam, Bangladesh and other countries have also set up many shoe factories. When the demand of the international market is not large, customers will lower the price. If you do not do this price, others will do it, so that the enterprise can only be" bleeding "and can not earn money.

In addition to two factors, the imbalance between supply and demand and the price of crude oil, some enterprises believe that there are third factors in stimulating the soaring cost of shoemaking, that is, the "dug" behavior between enterprises and the excessive flow of labor.

Ding Shishui, general manager of Fu Shi Lai shoe industry Co., Ltd., believes that how to avoid the vicious dig incident among enterprises is a big problem.

"Now workers have an abnormal job hopping phenomenon of" walking circles and changing ten thousand ". The abnormal frequent flow of employees between enterprises has greatly increased the cost.

As long as we can avoid the problem of "unhealthy" job hopping among enterprises, we can save billions of dollars in one year.

In fact, our advantage is the advantage of labor, but the labor mechanism has been adjusted and the cost has increased. "

He said.

Guo Kui, general manager of Guo Hui shoes industry Co., Ltd. believes that there are many talents available and many ways to use them. Enterprises can cultivate talents in many ways and ways.

"For example, in designing talents, we have recruited many new design talents from several universities in the United Nations, and they are also quick to get started."

Ding Guosi believes that malicious digging will form a virtual high labor price, enterprises can try new ways, do not spend 300 thousand yuan, 500 thousand yuan to dig people.

Shoe sole raw material price rises

The rising price of raw materials makes the shoe material enterprises in the middle part of the industrial chain more stressed.

Shoe materials companies sigh for losses. The only way to do this is to reduce production, make less purchases and wait for opportunities to improve.

Wu Tianci, general manager of Quanzhou Xintai Shoes Co., Ltd., who mainly produces sole, calculated an account. The price of the main raw materials of rubber soles was compared with that of the same period last year.

In addition to rising costs, some enterprises are closing down, resulting in enterprises' arrears.

Wu Tianci said that at present, we should try our best to cut down unnecessary waste from the management, and hope that we can raise the price of the finished shoe factory to get compensation.

[novella]

Decompression exploration

The law of industry development is established. The price rise of raw materials and the change of development environment bring pressure to every enterprise in the industry, so the key to enterprise competition is how to discover value.

Export market is difficult to resolve pressure

In the face of the call for raising prices in the intermediate links of the industrial chain, the manufacturers of finished shoes introduced the difficult situation of difficulty in digesting and pferring the pressure of rising prices.

Ding Youyi, chairman of Jinjiang WorldCom Footwear Co., Ltd. believes that the development of this industry is related to the international environment and domestic macro regulation and control.

He said, if the shoe material is raised, the shoe manufacturers can not find the outlet to pfer pressure, which will also cause business difficulties for export enterprises.

For example, he said, at the beginning of this year, the rise in raw material prices led some domestic manufacturers to raise the price requirements to foreign buyers such as WAL-MART, but the WAL-MART aspect.