Factors Restricting The Development Of Footwear Industry In Jinjiang

Congenital deficiency, restricting development

Fujian was originally a mountainous area with three sides surrounded by mountains and a sea on its back.

There are only three airports in Fujian Province, namely, Fuzhou airport, Xiamen airport and Quanzhou (Jinjiang) Airport.

In terms of railway pportation, there are only two routes for Fujian to exit provinces: namely, the Xiamen Xiamen railway and the national railway network; Fujian Nanping - Jiangxi Hengfeng has been put into operation.

Highway pportation has 5 national roads and 4 provinces.

Therefore, it is not easy to control product outward pportation, pportation time and pportation cost in Jinjiang area.

Lack of talent and lack of vitality

When Jinjiang develops from a processing base to a brand base and from a single shoe industry to a comprehensive sports industry, the bottleneck of talent shortage is becoming increasingly severe.

From the survey of the International Trade Department of Xiamen University, we can see that in Jinjiang sports industry, the educational level of the junior workers and junior middle school workers in the sports industry accounts for 70.69% of the total staff, 22.41% of the high school education level, and only 6.9% of the senior middle school students.

Most of the middle managers and top managers are high school students, and only 1 or 3 of them are highly educated.

At the same time, most of the shoe enterprises in Jinjiang have developed from family businesses, so the top management of enterprises is their relatives or friends, and they do not accept the trust of foreign talents.

Perhaps the middle-level management cadres of many enterprises are mainly promoted directly from skilled workers, who are quite familiar with the production process but lack scientific expertise, and lack of understanding and understanding of modern enterprise management and modern marketing theory.

Therefore, the management and technological research and development of Jinjiang enterprises mostly adopt the way of external employment and purchase (refers to scientific research achievements). This also causes the problems of large turnover of personnel, lack of cohesive force, similar R & D results and insufficient vitality of enterprises in Jinjiang sports enterprises.

Poor research and development, single product

Due to Limited talents and technology, Jinjiang sports enterprises have always been in a weak position in product research and development.

Most manufacturers of sporting goods rely on cheap labor, raw material resources and OEM sales to make profits. Export products are mostly low tech mainland goods, and high grade sports goods account for a small share of the international market.

Due to the poor ability of research and development, Jinjiang's enterprises are mostly confined to the production of low-end products in sports and sports industry products.

According to statistics, about 72% of Jinjiang's sports enterprises are mainly middle and low-grade products, and about 22% of them produce relatively high grade products.

The characteristics and problems of the sports industry in Jinjiang are the lack of functionality, the differentiation of products, the low degree of specialization and the low technology content.

Disorderly competition and waste of resources.

According to statistics, the sports shoe manufacturers in Jinjiang produced 16 advertisements on CCTV's five "sports channels" in 2000, reaching 44 by 2003.

However, there is no corresponding increase in market sales.

According to the survey, about 30% of the sports enterprises in Jinjiang do not have their own brands, and the other 70% have their own brands, most of which are produced according to the requirements of customers. Some enterprises even fake other well-known brands.

Guan Jian's marketing network is actually shared by brand marketing, because there are several large agents developed locally, and some of the first tier cities are controlled by agents, while the control of agents is relatively weak, so that the phenomenon of selling more than one enterprise in the same counter or the same store is relatively weak.

Because of the large number of brands, the price competition is also very fierce. Some of the best quality shoes are hit by the "same type" shoes, but they can only be sold at a low price.

In the international market, Jinjiang footwear industry is also facing the same rules of the game: even if your things are better, but consumers do not know you or do not believe you, you can only sell low.

Imitation is too much, property right is hard to protect.

Jinjiang shoe enterprises are dense and duplicated.

Liang, general manager of a shoe factory, said that Chen Dai town had more than 1600 finished shoes and supporting factories, and there were more than 600 storefronts in the shoe material market, and more than 80 thousand local people. About 200000 workers were recruited during the peak period of production, and merchants from all over the world continued to come in an endless stream.

In this "tiny place", everywhere is full of competitive "gunpowder flavor".

Which shoe factory has developed new products, everyone has been counterfeiting, intellectual property protection is very difficult.

For example, he said that the factory had just developed a new product, which could be counterfeited by a shoe factory in three days, and the result of negotiations was often ignored.

Everyone here thinks that litigation is too tiring.

General manager of Liang said: when an enterprise develops to a certain scale, it will face a turning point.

If enterprises do not have new strategic ideas to guide, adjust and innovate, they will enter a recession.

In the past 3 years, hundreds of shoe factories have been canceled or closed down in Jinjiang, and hundreds of new shoe factories have joined the competition.

Some enterprises that do not have large-scale production and have no brand, or fail or retreat to help others to process, can only do some supporting production.

The export is blocked, and it is difficult to make progress.

Faced with anti-dumping investigations and trade specific guarantees, Jinjiang shoes are struggling in the international market.

A few days ago, the EU anti-dumping investigation against Chinese shoe enterprises intensified.

As the world's shoe production base, the footwear industry in Jinjiang has repeatedly run profit margins under the EU's "restricted" storm.

The number of famous international brands is small, made in China "occupies 65% of the world sporting goods market", but at present, domestic sporting goods rarely succeed in the international market brand, even domestic famous brands are hard to match with international brands such as "Adidas" and "Nike".

The lack of national brands has become a bottleneck restricting the integration of China's sports industry and international standards.

Serious infringement is also one of the reasons that restrict the export of China's sports industry.

Although China has been increasing its efforts to crack down on intellectual property rights for many years, it has repeatedly banned it.

In May this year, the EU REACH regulation stipulates that no textile and footwear items without registration, assessment, authorization and restriction (REACH) will be allowed to enter EU countries since July 1, 2009.

This is a big blow for Jinjiang shoe enterprises.

Jinjiang inspection and Quarantine Bureau National footwear inspection center found in the relevant testing process, Jinjiang footwear enterprises in shoe manufacturing raw materials such as heavy metal nickel, chromium, cadmium and other content is exceeding the safety performance testing, as well as resistance value, withstand voltage, flame retardancy and other chemical performance testing often incompatible.

Competitiveness is low and risk is low.

For a long time, due to the relative closure of the product market and financial market, plus tariff protection, the seller's market formed by the domestic long term shortage economy has made 80% of the enterprises in Jinjiang shoe enterprises not really scale, and the management level and economic benefits have not reached the stage.

With the traditional consciousness of "better for the head and not for Phoenix Tail", many shoe enterprises still have "congenital deficiency", and the products are seriously single. The consequence is that the anti risk ability of the footwear industry in Jinjiang is very low.

According to the insiders, under the circumstances of global economic integration, Jinjiang footwear industry must enhance its market competitiveness and stabilize its existing market share if it wants to take a firm foothold in the domestic and foreign markets. It will truly integrate itself into the international market in terms of product quality, shoe material selection, process reelection, product development and application of new technologies.