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    The "Running" Speed Of RMB Is Unprecedented. Shoe Price War Is Over.

    2008/4/18 0:00:00 61

    Last Thursday, the central parity of the RMB against the US dollar broke 7 for the first time. The appreciation of the renminbi has become the "black hole" of labor-intensive export enterprises.

    As the export champion of light industry, footwear products are highly dependent on foreign trade.

    On the one hand, the profit brought by the appreciation of RMB has been shrinking. On the other hand, the cost of rising raw material prices has continued to rise. Since the first quarter, the shoe market in Wenzhou and Chengdu has been sluggish.



    In this environment of "appreciation tiger" and "cost wolf", our reporter interviewed the shoe manufacturers in the mainland recently, and visited the production line of shoe factories on the spot. He felt that the shoe companies in the mainland could no longer win at a low price. They must create higher added value, attach importance to quality and go to the road of creating their own brands.



    Competition is not a bad thing.



    Since the first quarter, from Wenzhou, Wuhan, Dongguan and other shoe-making industries heavily moved enterprises, closed public opinion, like the rapid spread of cold wind.

    Coupled with the appreciation of the renminbi, the price rise of raw materials and the increase in the cost of employing people, the development prospect of the footwear industry in the mainland has once again become a hot topic.



    Contrary to the atmosphere of panic, Yang Jingming, President of Jiaxing FED Footwear Co., Ltd., which exports to Europe, Japan and Australia every year, appears calm when it comes to crisis.

    The subprime crisis and the US recession will surely have an impact on us, but not much.

    "Yang Jingming revealed that in the first quarter, the company's performance continued to grow and its profits remained unchanged.



    On the one hand, the export of Yitai shoes mainly depends on the European and Japanese markets, and it does not export to the US. On the one hand, it is closely related to its "early response".

    In terms of labor cost, the labor cost of some Southeast Asian countries has been lower than that of our country. Yitai used to export the shoe factories in Vietnam two years ago. At present, two domestic enterprises are only responsible for the domestic sales channels. In terms of product design, Yitai specially invited the European Exclusive Designer, and the two designers only designed for FED brand in the Asian market. In terms of corporate culture, they insisted on creating a good production environment and humanized management. Compared with the turnover rate of some manufacturers as high as 50%, the annual turnover rate of Yitai was less than 4%.



    Yang Jingming said that as China's economy continues to move forward, we have removed the "cheap labor force" hat, which is certainly a good thing.

    For domestic shoe enterprises, we should consider keeping pace with the times: what should we do when we have reached a level of macro-economy?



    After completing military service in Taiwan, he became the inspector of the footwear industry association. Yang Jingming, who has decades of experience in the industry and walked through the crisis, realized that complaints are useless and enterprises must help themselves.

    He analyzed the reasons for the failure of some enterprises: because of unclear objectives, lack of funds and lack of planning, blind orders, mass production and extensive operation, enterprises that rely on tax evasion and labor wage reduction will naturally be eliminated.



    Yang Jingming said that the price war between shoemaking enterprises will not help to improve the current survival state. The price is low, and the risk must be large. The result of vicious competition is the sole benefit of customers.

    "Enterprises must grow up in crisis. At present, the industry's natural survival of the fittest is not a good thing.

    "

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