Chongqing Footwear Industry Is Lame And Difficult To Get "Three Hurdles"

The once glorious Chongqing footwear industry is now in the throes of pain: the hand-made workshop with good and bad quality is crowded in the corner of the market by pipeline production enterprises. When it comes to breaking out, it is found that the added value of products is quite different from that of brand shoes.

What puzzles the enterprises is that the foreign trade channels that the local shoe industry depends on is actually a crippled model of congenital deficiency.

If you want to walk out of Chongqing leather shoes, can you cross the "three corners"?

Uneven, some good and some bad

Manual workshop is difficult to assemble.

Chongqing is the weakest in the five major shoemaking bases currently recognized in China.

And 10 years ago, the footwear industry in Chongqing also played a very important role.

According to Jiang Zhaoyi, general manager of Chongqing Jin Hao shoes industry, in the 90s of last century, the footwear industry in Chongqing and Chengdu was quite strong, even with Wenzhou.

In the domestic men's shoes market, it accounts for almost 1/3 share.

After 2000, the footwear industry in Chongqing began to decline.

According to the statistics of that year, only 8 of the more than 700 shoe manufacturing enterprises in Bishan County, one of the shoe making bases in Chongqing, were registered by others.

Many shoemaking enterprises feel the whole process of decline.

Jiang Zhaoyi, who has been engaged in shoe making industry since 1992, told reporters that the development of enterprises in 2005 finally failed to compete with Wenzhou shoes and quit the domestic market.

Wu Guangyun, general manager of Chongqing Guanzhong footwear industry, recently felt that the living space of enterprises was narrower and narrower. The main reason was the impact of cheap shoes of Wenzhou 20 - 30 yuan / pairs, and their prices were even lower than my factory prices.

Wu Guangyun said, "the advantage of Wenzhou is assembly line production.

With the same raw material cost, the labor cost of making high-end shoes in Bishan is 16 yuan / double, the labor cost of the production line is 7 yuan / double, the manual cost of low-grade shoes is 12 yuan / double, and the production line is 6 yuan / double.

Low added value

No brand can only earn a small sum of money.

To Chongqing shoe industry, Jiang Zhaoyi feels deeper is its low added value.

"Because of poor technology, Chongqing shoes are gradually eliminated by the market.

Nowadays, the domestic market of footwear can hardly be seen in Chongqing, and it has shifted more to the underdeveloped areas of foreign markets, which is known as "foreign trade".

Bishan footwear Office official has publicly stated that compared with Guangzhou and Wenzhou's large shoe making enterprises, most of the shoe factories in Bishan are small enterprises, whose production mode is generally ordered type production, mainly by manual operation and low mechanization. The medium scale enterprises use a large number of semi pipelined production processes with manual equipment.

In an interview with reporters, Jiang Chao Yi said frankly, "at present, Chongqing really has few brands in the country.

Mingyue leather shoes and leather shoes are famous in Chongqing, but they also encountered setbacks in the foreign markets.

Take the company as an example, in the past few years, he suffered setbacks in the Northeast market, and then encountered fierce competition in the southwest market. Now the main markets are Chongqing, Chengdu and Guangzhou.

The brand awareness of Chongqing shoes is not high in foreign markets.

Chen Xun, general manager of Chongqing Shuai Mei footwear industry, said without reservation, "although the company has its own registered brand" multi Jun Deng ", but foreign dealers do not recognize it.

Therefore, 70% of enterprises are OEM exports, only 30% of their own brands, their profits are also doubled.

Liu Zhiguo, director of the Bishan Labor Bureau, said that the wholesale price of shoes made in Chongqing is 70 yuan - 90 yuan / double, while the other brands can be sold to 500 yuan a pair.

Poor channels

Competition at home is hard to deal with

Not long ago, Jiang Yuanwu, general manager of Chongqing AOKANG Real Estate Co., Ltd. had made such prediction. "This year will be the year of the war for leather goods sale in China, and the competition among enterprises will become more intense."

With the increasingly fierce competition in the industry, establishing a direct selling network across the country has become a mainstream trend of shoemaking enterprises.

At this point, foreign enterprises are at the forefront, and many enterprises have turned their attention to the Chongqing market.

It is understood that China's 7 famous brand leather products, crown, rookie, love virtue, Paul Lande and Figuel and other 5 leather goods enterprises have plans to Chongqing.

In the face of the coming market war, Chongqing's local shoemaking enterprises are not ready to meet the enemy.

Take Bishan County as an example, "more than 80% of enterprises do not have direct selling channels."

According to Wu Zhenghou, deputy director of the Bishan County Park Management Committee, most enterprises and self-employed households still use the sales way of selling goods on commission and selling their own products without directly facing the consumer market.

Without their direct selling network, enterprises will not be able to understand what customers need in time.

It is also impossible to control all aspects of production to sales.

What is more important is that "the risk of consignment market is bigger than that of direct selling market, and the payment of funds between them is not guaranteed, and products are often overloaded."

If we use the way of sale, half of the profits will be earned by dealers.

In fact, it is not only simple to change their concepts to establish their own domestic marketing channels.

A decent store must invest more than 500 thousand yuan of funds; there are quite a few shops to support an enterprise.

In addition, the establishment of direct selling stores needs a large number of varieties, and a direct selling shop must support hundreds of thousands of varieties.

In the view of Wu Zheng Hou, it is necessary to develop at least one hundred million yuan assets scale and have a strong development capability to establish its own direct selling network.

At present, most shoe manufacturers in Chongqing do not have such strength.

Border trade only

Export has become a "hop".

On the other hand, Chongqing's footwear industry's existing foreign trade channels are also not optimistic.

According to some local shoemaking enterprises, at present, foreign trade products can only be completed through the two level wholesale market.

As described by Dong Yifeng, Party Secretary of Bishan merchants Bureau, "most shoe companies export goods to wholesalers at border trade ports."

So is Wu Guangyun's business.

His frontier trade channel is to deliver goods to border trade ports in Xinjiang, and then export them to the wholesale markets of Central Asian countries through Xinjiang distributors, and purchase them from foreign customers to the wholesale market.

He told reporters, "2/3 exports do not directly face foreign buyers.

Foreign purchasers generally look for orders at the border trade port dealers, and pfer orders to us by dealers at border trade ports. We are only responsible for producing orders.

Wu Zheng Hou said that there are two forms of export, one is direct foreign trade, and the other second is border trade.

In contrast, the direct foreign trade is easy to understand the demand of the international market, at the same time, it can also return the funds in time, and it can also enjoy certain preferential policies to counter taxes.

But the current situation is that most shoe factories in Chongqing are only satisfied with border trade.

That is to set up a sales outlet at a border port, and then negotiate with foreign businessmen.

Because the understanding of the international market is not very sufficient, there are also great risks. Moreover, not all border trade dealers can butt in. If there is any problem with quality, they may not pay the goods in time and in full.

The worries from experts are also obvious.

Recently, Lu Deming, former dean of the school of economics of Fudan University, has expressed the view that the appreciation of the renminbi is still expected, which will make exports of "made in China" products more difficult.

"Influenced by factors such as exchange rate reduction and RMB appreciation, many leather enterprises in Guangdong and Zhejiang have felt that exports are blocked."

Jiang Yuanwu, general manager of Chongqing AOKANG Real Estate Co., confirmed this concern.