The Sorrow Of Chengdu Shoe Industry

As early as last year, Chengdu was honored as "the capital of women's shoes in China".

But the real problem is that up to now, there is not a large number of brands in Chengdu, and the footwear industry in Chengdu and even in China will not be able to get rid of the pronoun of low-grade in the world shoe market, and it is even more difficult to have an equal dialogue with the world shoe industry.

OEM has become an unspeakable pain for the footwear industry in Chengdu.

3 yuan profit space

August 26, 2007, Shuangfeng Village, Jinhua Town, Chengdu.

Large and small leather shoes and leather factories can be seen everywhere. There are many advertising posts on the roadside covered with shoes factories, and all kinds of posters for shoe training and equipment sales can be seen everywhere.

The owner of a local leather shoe factory is named Gao.

He said that only in Jinhua Town, there were nearly 200 newly built leather shoes factories, and more than 50% were formed by self financing funds of migrant workers.

Most of the leather shoes factories set up by the workers are rented out of the local houses for processing workshops, and even if the villagers in the villages are not clear, a shoemaking factory will emerge overnight.

According to Gao boss, such a factory should be called a workshop, and its ability to resist risks is very poor. There are only a few thousand dollars in the working capital. During this period, several factories have been closed, but many new ones have been opened.

"It is easy to run a leather shoes factory here," he said. "Hundreds of thousands of dollars of money and dozens of workers can be recruited to run a small factory.

But bankruptcy is also a common thing. Local villagers are not surprised at this.

The local shoe salesman Wang said: "only a large number of shoe factories appear, mainly to meet the needs of OEM. These workshops only need to invest a small amount of money to get the necessary equipment for making shoes, and then start the work on a single basis. After the delivery, the money will not be invested.

Some of the more famous companies in Chengdu shoe companies are often OEM owners, let alone those little shops that are "unknown".

Wang's shoe factory is also OEM.

He said that the leather shoes they produced were of good quality, but because the brand was not heard, it was difficult to get consumers' recognition in the market and had to be exploited for sale.

"To give people OEM, a pair of 40 yuan four seasons shoes, OEM enterprises only 3 yuan profit margins.

But if these shoes are sold to the US market, they will cost US $more than 20, and we will earn a lot of money if we sell their own brands.

$900 million sticker

An anonymous person from the China Women's shoes capital committee said: "workshop shoe factories are numerous in Wuhou District, accounting for 2/3 of all footwear enterprises, while their output value is only 1/3.

Many people believe that the footwear industry in Chengdu is bigger, and we should increase brand research and development and get rid of the vicious circle of low cost, low price and low grade.

At present, a lot of "made in Chengdu" is still made by hand workshop, rather than market.

Shoe factory bosses only treat leather shoes as a single business, rather than a growth industry. Therefore, small factories have been closed down, and small factories have been built up.

When many enterprises do not have a clear understanding of this, and when the cheap foreign trade is still booming, the government that is committed to making the shoe industry bigger and stronger must step up and guide it in order to avoid more social resources from vanish in the black hole. "

The personage thinks, the main difference between Chengdu shoe product and coastal shoe product is that capital and production scale are small, especially the lag of brand management.

Compared with the footwear industry in Wenzhou, there are few leading brand enterprises in Chengdu shoe industry that are strong and influential in the industry to promote the overall development of the industry.

Provincial business office statistics show that in 2005, Sichuan footwear exports for the first time exceeded $100 million, but Peng Jun, the chairman of the western shoe Capital Co., Ltd., Sichuan, did not approve the data.

He said that the footwear industry in Chengdu had reached an export volume of US $1 billion.

Peng Jun said the reason for the 900 million dollar gap is that most of the Sichuan shoes are labeled with the East shoe.

According to Peng Jun, 70% of Chengdu shoes are exported mainly through border trade and OEM OEM in Guangzhou, Beijing, Xinjiang and other places, while Sichuan shoes are mostly exported to Guangzhou and other ports.

AOKANG, BELLE, Daphne and many other well-known fashion women's shoes are all made in Chengdu. The number of fashionable women's shoes made in Sichuan is 50% to 60% of the total volume of women's shoes in China.

Especially for women's boots, almost 100% of the famous brand women's boots with genuine leather are from Sichuan.

This is confirmed in the data provided by China Leather Association.

Collective sorrow

In fact, since the development of Chengdu footwear industry, OEM enterprises have always been predominant.

The large scale of the OEM enterprises has led the shoe industry in Chengdu to tilt to the OEM.

In terms of the size of the enterprise, the shoe factories with independent brands are mostly factories of hundreds of people. These big shoe factories are strong enough, but the investment risk is huge.

In contrast, OEM is more popular.

In the past two years, with the continuous growth of the world economy, people's consumption power has been increasing, and the demand for shoes has been rising steadily. Recently, reporters have learned from various aspects that the large and medium-sized OEM enterprises in Chengdu have varying degrees of plant expansion, purchase of production lines and machinery and equipment, and large numbers of workers. This proves that the effectiveness of OEM enterprises continues to rise. These living examples are just like a textbook, attracting later followers to continue to join.

Reporters visited hundreds of large and medium size shoe factories in Chengdu. Apart from several independent brand enterprises, even though they still have a large number of OEM products, most enterprises believe that the external processing is not required to operate as a whole.

In particular, the high cost of brand operation makes them unable to extricate themselves from the traditional concept of quick profits.

Most of the owners of these enterprises still maintain the status quo, do not do their own brand, only do OEM production; a few people think that they can consider, but still retain OEM. Only a few people believe that the independent brand is the foundation of survival and long-term development.

Despite the increasing competition in the footwear industry, the production of shoes has entered a meager profit era. The shoe industry needs new ways to develop. The only way is to build its own brand.

However, many Chengdu shoe companies believe that although OEM production is lower, it can take a lot of money, so that the income is relatively stable.

Experience tells us that entrepreneurs born in a specific economic mode are hard to generate autonomous breakthroughs and fundamental conceptual changes because of their limitations and knowledge structure.

Even if we have the dream of creating our own brand, we are always unable to achieve self breakthroughs.

This concept can not be said to be the collective sorrow of the footwear industry in Chengdu.

Ran Lichun, President of Sichuan commercial chain investment Association, believes that with the arrival of the era of brand management, whether or not an enterprise has its own brand will become the decisive factor of its success or failure.

According to ran Chun's understanding, if the shoe industry in Chengdu does not develop its own brand as soon as possible, it will be difficult to guarantee how long the current Brilliance will last.