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    The Main Reason For Shoe Enterprises To "Sell Abroad" Is Sales Channels.

    2010/3/8 14:18:00 12

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    The reason why China's sewing machinery industry is "big but not strong" is manifold. There are historical problems left behind, and there are deep contradictions in the current system. However, the lack of innovation ability, especially the lack of technological innovation capability, is the root cause. From the perspective of the evolution of the industry, we examine the current situation of "big but not strong" in the industry.


    1: planned economy


    In the age of planned economy, when sewing machines were heavily overloaded from the "ticket supply and one vote", there were fewer domestic sewing machines. It was not until 1975 that a small number of industrial sewing machines began to be produced in China. At the same time, enterprises with a serious backlog of inventory and serious shortage of production tasks have been waiting, wandering and passively for a long time, and have not seen any concrete actions of product structure adjustment and technological innovation.


    2: the initial stage of reform


    In 1980s, with the gradual development of our national economy, the trend of garment production and industrialization is becoming increasingly obvious. The market demand for industrial sewing machines is urgent. At one time, manufacturers gradually switched to industrial sewing machines, and many military enterprises, agricultural machinery manufacturing plants, general machinery manufacturing and construction machinery manufacturing companies also began to manufacture industrial sewing machines. For a while, there was a phenomenon of you pushing me and carrying people. As industrial sewing machines and household sewing machines differ in many aspects, such as technology, technology, materials and production, they still follow the original production mode. Their products are naturally "congenital deficiencies".


    3: all-round development


    In the middle of 1990s, with the deepening of reform and opening up, and the acceleration of the commercialization of the domestic market, private economy entities began to appear in the field of industrial sewing machines besides "standard", "Tian Gong" and "Shang Gong". Zhejiang's leap, ZOJE, Jack, gemstone and other private sewing machinery manufacturing enterprises were born in this particular historical stage. Taizhou, Zhejiang Province, with the reputation of "China's sewing equipment manufacturing capital", is one of the three parts of the sewing machine manufacturing industry in the whole country.


    Every industry needs the accumulation of necessary infrastructure, which is the key factor of success. In today's Taizhou sewing machine industry and even China's sewing machinery industry, most sewing machine enterprises still have some disadvantages in varying degrees: long term imitation of intermediate and low-end products, serious homogenization and disorderly competition, lack of a clear and forward-looking new product development plan, few new product development management systems and processes that can guarantee effective collaboration, arbitrariness, lack of scientific and fair evaluation and incentive mechanisms, and instability of the basic backbone of technology and management teams.


    Review 4: future goals


    Because of the limited scale, strength and status of the industry in the whole national economy, objectively, it can not enjoy equal support from the state and governments at all levels. So far, there are still no sewing machinery majors in a large number of state-level colleges and institutes in the country, which has led to the technical innovation of sewing machine industry, which takes a long time to familiarize and explore the characteristics of products and industries. The future of the world sewing machinery manufacturing industry is in China; high-speed, automatic, environmental protection, direct drive, intelligent, mechatronics will inevitably be the direction of China's sewing machinery innovation and development in the future.


    Lack of talents, lack of innovation, lack of funds, weak foundation, helplessness and so on are the difficult realities that are difficult to change in the current period. It has a fundamental lag effect on the city's sewing machine industry to fundamentally reverse the "big but not strong" situation.
    In the first quarter of 2010, the year-end statements of major shoe companies came out. The domestic sports shoes market pattern changed dramatically in 2009: the performance of foreign giants represented by Adidas and Nike dropped sharply, while domestic brands such as Anta and Lining were rising rapidly.


    Adidas suffered "Waterloo" in 2009. Net profit in the first quarter was 5 million euros ($6 million 690 thousand), a net profit of 169 million euros in the same period last year, down 97% from the same period last year. Adidas's net profit in the two quarter was 9 million euros ($13 million), a net profit of 116 million euros in the same period last year, down 93% from the same period last year. Adidas's net profit in the three quarter was 213 million euros ($315 million), a net profit of 302 million euros in the same period last year, down 30% from the same period last year. Adidas's net profit in the fourth quarter dropped 64% from 54 million euros in the same period last year to 19 million euros ($26 million), while analysts had expected an average of 25 million euros. Meanwhile, sales in the fourth quarter fell by 5% to 2 billion 460 million euros, or less than 2 billion 510 million euros. Another sporting goods giant Nike is also not optimistic in the Chinese market. In March 2009, Nike closed the factory set up in Taicang, China, which is also the only Nike factory in China. In May of the same year, Nike headquarters announced that it had laid off 1750 people worldwide, accounting for 5% of the total number of employees.


    Looking back at the domestic brands, Anta Sports Products Limited released the latest earnings report, last year, the company's annual turnover grew 27%, to 5 billion 870 million yuan, gross profit margin grew 2.1% to 42.1% over the same period last year. Among them, the income growth in the northern region is 36.6% fastest and the income in the eastern and southern regions is about 20%. The net profit of 09 years increased by 39.8% compared with the same period last year, up to 1 billion 250 million 900 thousand yuan, which exceeded the average profit expected by analysts for nearly 1 billion 130 million yuan, nearly 10%. Li Ning Co's revenue grew 32.4% to 4 billion 52 million yuan in the first half of 2009, and its net profit increased 41.6% to 473 million yuan. In terms of net profit, Li Ning Co first surpassed Adidas, the world's second largest sporting goods company for the first time in 2009.


    In the face of this "ocean retreat state" situation, people in the industry generally believe that on the one hand, some foreign brands are expecting too much of the Olympic Games, and there are too many channels, so the actual market demand is lower than expected, which leads to inventory problems this year. As the market performance of the Olympic Games is lower than expected, the relationship between manufacturers and distributors is more strained, some channels are withdrawn, the pressure of withdrawal and sales pressure are further increased by channel withdrawal. On the other hand, due to the impact of the financial crisis, some imports have been cancelled, and the market share of Adidas and Nike has decreased in the domestic market. Consumers' consumption behavior has also changed, and the overall purchasing power has declined, which requires lower prices, while the price advantage of domestic shoe brands is very obvious. Therefore, it has been praised by the market. Under such circumstances, it is not difficult to understand the "retreat of foreign countries".


    It is easy to find out the reasons for the "foreign retreating countries to enter" except that the objective reason for the international financial crisis is the main reason for the sales channel. Take Nike as an example, only responsible for R & D, brand management, other production, retail and other sectors have been outsourcing, take the "many to many" channel mode, and the relationship between manufacturers and distributors is relatively loose. At present, there is a clear difference between domestic shoe brands and product development and design, raw materials procurement, production and distribution, distribution and logistics, marketing and promotion, retail and so on. It is a single to single relationship, which is more stable in the long run.


    Therefore, domestic shoe enterprises should attach importance to the construction of sales channels. The core is to improve the competitive advantage and profitability of the terminal. This includes two aspects: first, the direction of innovation of the channel structure should be to open up direct branch offices, Direct stores to reduce circulation rings, reduce circulation costs, ease channel inventory pressure, dredge channel goods flow, and promote channel sales capabilities. Two, the optimization of channel management mode. Shoe enterprises need to take up a large amount of capital to set up direct and regional stores. How to effectively and efficiently utilize funds to support policies to promote the efficiency and quality of channel innovation and ensure the safety and effectiveness of funds are the primary topics to ensure the effectiveness of channel structure reform. Among them, the establishment of capital support policy and the control of capital flow are the core and key point of financial support management mode. And the channel management structure is different, so the shoe enterprise management mode must be different. Therefore, shoe companies constantly Refine business models of direct management, agent self shop management, franchisee multi store management, and constantly optimize and improve, promote training and promotion to agents and franchisees, and gradually enhance the capacity of agent self shop expansion and operation, franchisee multi store management and so on.


    In the era of "channel is king", the construction of sales channel system has become the key for domestic shoe enterprises to grasp the market and win the competition. The shoe companies can successfully build up a good sales network system and consolidate the competitive foundation. Anta has made brilliant achievements by adopting an independent distributor system, laying out and managing the national market. But the transformation of AOKANG and red dragonfly to terminal channel is developing towards the direction of scale and centralization.


     

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