Analysis Of Jinjiang Shoe Enterprises In Internal And External Troubles

In recent years, Ding Sien, deputy general manager of Mao Tai (Fujian) shoes materials Co., Ltd., after opening his office every day, opened the computer to see whether the price of raw materials such as CIS and natural rubber had changed again. "Since last October, the prices of these raw materials have gone up like crazy, and the prices of many materials have reached the highest point in history. If we go on like this, we can't do the rubber soles. " Mentioned these, Ding Sien is helpless.

The headache for Jinjiang rubber sole manufacturers is not only the rising price of raw materials, but also a phenomenon that has attracted more and more attention from them: some shoe makers, including Hebei and Shandong, have begun to enter the Jinjiang market. Under the internal and external troubles, Jinjiang sole enterprises feel pressure.

Predicament: raw material prices skyrocketing

Sitting in the office, Ding Sien counted on the reporters: Taking Shun Ding, the main raw material of rubber soles, for example, in the latter half of last year, the price of every ton was about 14000 yuan, while at present it kept fluctuating at 22000 yuan, or nearly 50%. This is a great blow to Mao Tai, whose main product is rubber soles.

"Every month we use hundreds of tons of light, that is to say, compared to the second half of last year, we have to spend millions of dollars on every moonlight. This is only part of the raw material of rubber soles. If you add natural rubber and other materials, this number is even more amazing. Ding Sien admits that whenever he calculates these figures, his head is bigger.

For sole factories, the pressure on the price of raw materials can only be borne by them in the short term, which is the most troublesome thing for them. "We must pay cash to buy materials, or no one wants to sell it to you; while selling shoes, most shoe factories promise only how much time they will pay. This part of the financial pressure is a great burden for many enterprises. If the price of raw materials keeps rising, it is estimated that many shoe factories can only be closed. A sole business owner told reporters.

For such a predicament, Jinjiang's sole enterprises have not thought of passing the pressure of rising costs through raising product prices. "But the problem is that from the sole factory to the production and then the products to the shoe companies, there is a need for a very small cycle. In this case, raw material prices are rising every day, and we can only collect money from customers in accordance with the provisions of the original contract. In the production cycle, the pressure on the price of raw materials will still be borne by us alone. Ding Sien told reporters. The pressure of raw material prices has no place to shift, so that shoe manufacturers will complain incessantly.

　 Dilemma two: the "snatch" of foreign households

If the price of raw materials directly cut off the profits of Jinjiang sole enterprises, then the shoe factories of Hebei and Shandong would feel more pressure on the Jinjiang market. Inside Ding Sien's office, a pair of EVA was shot out of the sole and sole material with TPR material. On the top of these shoes, the words "Jinxin shoe material company Jinjiang office" are printed, and a specific telephone number is attached.

"The salesman told me that the pair of shoes would only quote 8.5 yuan, and the same product would be more than 10 yuan in any shoe factory in Jinjiang." Ding Sien said, "when I heard the offer for the first time, I thought I was wrong."

It was not only one of the people who met the same situation. Wu Qingan, general manager of shoe materials in Tengda, told reporters that when she visited Qinhuangdao in Hebei a few years ago, she felt that the local shoe manufacturers might bring pressure to Jinjiang market in the future. "At that time, when we went to investigate, although the technology of the other side was not yet mature, the quality of the products we produced was far inferior to ours. But the problem is, the price of their products is too low. When the technical problems are solved, they are fully capable of advancing to other shoe producing areas such as Jinjiang and Guangdong.

"We certainly can't do the same price as the other party. There are various reasons, but the cost of manpower is a big determinant. With the development of inland areas, more and more people will definitely choose to work around their hometown instead of going to the coastal areas as before. This will be a great blow to the shoe sole labor intensive industry. It is no exaggeration to say that Mao Tai is now at the most difficult stage of development. Ding Sien said.

　 Way out: advance to high-end shoe material Market

Under the internal and external troubles, Mao Tai's choice is to advance to the two high-end MD shoes. Since the beginning of this year, Mao Tai has begun to produce two MD soles in a large number of orders. In Ding Sien's view, this is a better way to relieve the current pressure. "Compared with the traditional rubber soles, the threshold of the two MD soles is higher, and it requires more for all aspects of the enterprise. For example, we need to have rubber, MD, laminating and other processes in the production workshop. For most of the sole enterprises, this is still hard to do. Ding Sien is quite confident about this.

It is not only one of the people who share the same view. Li Huafeng, general manager of Wei Er shoe material, told reporters that most of the soles produced by their company this year will also be dominated by two times MD. "This is the inevitability of market development. With the improvement of consumer's ability to consume, products will also put forward higher requirements. Maybe the two time MD is a high-end product, but in another ten years, it may become a very popular product, just like the rubber sole of the past. If we can get into this field earlier, we will surely take a more favorable position. " For such a predicament, Jinjiang's sole enterprises have not thought of passing the pressure of rising costs through raising product prices. "But the problem is that from the sole factory to the production and then the products to the shoe companies, there is a need for a very small cycle. In this case, raw material prices are rising every day, and we can only collect money from customers in accordance with the provisions of the original contract. In the production cycle, the pressure on the price of raw materials will still be borne by us alone. Ding Sien told reporters. The pressure of raw material prices has no place to shift, so that shoe manufacturers will complain incessantly.

Dilemma two: the "snatch" of foreign households

If the price of raw materials directly cut off the profits of Jinjiang sole enterprises, then the shoe factories of Hebei and Shandong would feel more pressure on the Jinjiang market.

Inside Ding Sien's office, a pair of EVA was shot out of the sole and sole material with TPR material. On the top of these shoes, the words "Jinxin shoe material company Jinjiang office" are printed, and a specific telephone number is attached. "The salesman told me that the pair of shoes would only quote 8.5 yuan, and the same product would be more than 10 yuan in any shoe factory in Jinjiang." Ding Sien said, "when I heard the offer for the first time, I thought I was wrong."

It was not only one of the people who met the same situation. Wu Qingan, general manager of shoe materials in Tengda, told reporters that when she visited Qinhuangdao in Hebei a few years ago, she felt that the local shoe manufacturers might bring pressure to Jinjiang market in the future. "At that time, when we went to investigate, although the technology of the other side was not yet mature, the quality of the products we produced was far inferior to ours. But the problem is, the price of their products is too low. When the technical problems are solved, they are fully capable of advancing to other shoe producing areas such as Jinjiang and Guangdong.

"We certainly can't do the same price as the other party. There are various reasons, but the cost of manpower is a big determinant. With the development of inland areas, more and more people will definitely choose to work around their hometown instead of going to the coastal areas as before. This will be a great blow to the shoe sole labor intensive industry. It is no exaggeration to say that Mao Tai is now at the most difficult stage of development. Ding Sien said.

　　 Way out: advance to high-end shoe material Market

Under the internal and external troubles, Mao Tai's choice is to advance to the two high-end MD shoes. Since the beginning of this year, Mao Tai has begun to produce two MD soles in a large number of orders. In Ding Sien's view, this is a better way to relieve the current pressure. "Compared with the traditional rubber soles, the threshold of the two MD soles is higher, and it requires more for all aspects of the enterprise. For example, we need to have rubber, MD, laminating and other processes in the production workshop. For most of the sole enterprises, this is still hard to do. Ding Sien is quite confident about this.

It is not only one of the people who share the same view. Li Huafeng, general manager of Wei Er shoe material, told reporters that most of the soles produced by their company this year will also be dominated by two times MD. "This is the inevitability of market development. With the improvement of consumer's ability to consume, products will also put forward higher requirements. Maybe the two time MD is a high-end product, but in another ten years, it may become a very popular product, just like the rubber sole of the past. If we can get into this field earlier, we will surely take a more favorable position. "