Quanzhou Shoe Enterprises Seek Resources Integration

"Compared with the previous two years, the living environment has changed a lot.

What can be done before, but now we must consider what to do, what not to do, and what to do.

At present, the footwear industry in Quanzhou still has obvious advantages, but the integration of future industrial chain complementary advantages will be an inevitable trend.

On the "shoe industry upgrading seminar" organized by the Quanzhou Footwear Industry Association recently, the relevant enterprises from upstream and downstream of the industrial chain issued a common voice on the grim situation currently facing them.

Recently, the rising international oil price has brought about a sustained rise in material costs in the rubber industry, which directly led to the high growth of 38%%-150%% in all kinds of raw and auxiliary materials in the shoemaking industry.

Experts point out that this increase is higher than the average gross profit margin of 10%% on behalf of processing export enterprises, and the footwear industry is facing unprecedented pressure to survive.

Pressure calls for union

With the rising price of raw materials, the shoe material enterprises in the middle part of the industrial chain feel great pressure.

Taking the price of raw materials of rubber soles as an example, compared with the same period last year, the average increase of 50%% was taken as an example. Wu Tianci, general manager of Quanzhou Xintai shoe enterprise, calculated an account. The result is: the cost price of a pair of shoes has risen ten yuan.

Without worrying, he said that at the moment, we should try our best to increase revenue and reduce expenditure and reduce unnecessary waste. We also hope that we can raise the price of the finished shoes appropriately so as to get compensation and reduce losses.

"Now the industry development situation is not optimistic, is caused by the big environmental impact, I think the relevant parties should take measures to continue to support and encourage the development of the footwear industry in Quanzhou."

Ding Youyi, chairman of Jinjiang WorldCom Footwear Co., Ltd. thinks that in the past, the concept of "enterprise alliance" was unrealistic, but now it seems that if the external environment continues this way, we must reconsider the issue of joint response.

He said that joint ventures are not mergers and acquisitions, and joint investment projects can also be done.

In fact, some export oriented footwear enterprises in Quanzhou now no longer undertake the large number of orders with large quantities and low prices.

They often convene the associated enterprises on the upstream and downstream of the industrial chain (mainly those who work with them) to discuss some issues that need to be considered separately, such as "can the order be answered", "whether we have any profits" or whether we can afford the risk.

"Otherwise, enterprises must survive and develop.

If the shoemaking enterprises fail to hold on, the enterprises in the upstream industry chain will have problems.

Now is not the question of how much money the enterprise makes alone, but whether we can go through it and develop it. "

Qiu Zhaoyang, general manager of Shengda shoe industry Co., Ltd., Huian, sighed with emotion.

Final trend of Baotuan

In the face of the current grim situation, Quanzhou shoe enterprises executives are calm and objective in analyzing the problems and exploring the way out. On the one hand, they are also seeing their own advantages while issuing a voice: shoemaking enterprises should develop together and join forces.

"After several years of rapid development, many large shoe manufacturers in Quanzhou have changed the direction of selling shoes from simple to sporting goods, and there are more and more shoe manufacturers that are preparing for listing and financing. This shows that the development prospects of Quanzhou's footwear industry are still very good."

Guo Guo Si, President of the group, believes that Quanzhou is one of the most important footwear production bases in the country. The future development of the industry should have overall planning and guidance, and there should be obvious support in policy.

Zheng Tian, Secretary General of Quanzhou footwear industry association, said that the footwear industry in Quanzhou still has obvious advantages.

On the one hand, Quanzhou has the brand effect of the shoe capital area. The shoe industry chain is more perfect and developed. On the other hand, domestic brands in the domestic market are highly concentrated in Quanzhou.

After the rapid development in recent years, the brand of Quanzhou footwear industry has been promoted rapidly, and the successful listing of Anta and XTEP also shows that the advantages of Quanzhou's capital operation are constantly improving.

"Integration of future industrial chain complementary advantages will be an inevitable trend."

Zheng Tian appealed to the upstream and downstream enterprises of the footwear industry chain to seek the development of Baotuan in the current pformation period.

In this regard, Guo Hui group president Ding Kusi agrees.

He believes that if enterprises embrace overseas markets, the establishment of overseas sales branches in developed countries and regions such as the US and the EU will play a positive role in increasing sales orders of enterprises.

In addition, even if there are problems such as laws and foreign trade disputes, joint efforts should be better than individual enterprises alone. At present, the price of raw materials is high, and the cost of intermediate trade links can be reduced.