China's Shoe Brand Needs To Be Improved.

　　 China's shoe industry breakout path: brand building to enhance value-added.

Export competitive advantage is still in existence and industrial upgrading is imperative. China's rich raw material resources, perfect industrial chain, huge processing capacity, sound sales and market network, political and social stability, and other advantages that contribute to the sustained development of the industry are difficult to replace in other countries and regions in a short time. But it is undeniable that with the rise of labor costs and the expectation of RMB appreciation, China's competitive advantage is gradually weakening. The largest export volume but low added value is the biggest weakness of China's footwear export industry. Adjusting the industrial structure and enhancing the added value of products, the business strategy that focuses on shifting the business focus from production and processing to leading brand value will help the long-term competitiveness of Chinese shoe enterprises.

Export demand has gradually recovered, but long-term growth has slowed down. The US economy has shown a good momentum, and the purchasing power of residents has begun to resume, which helps to promote the export of industries. The trend of orders for industrial export enterprises in the first quarter is expected to continue. However, the euro area economic outlook is the biggest uncertainty, bringing certain risks to the recovery of the export market. We predict that the export growth of footwear products to the EU will slow to 5-10% in the second half of this year.

The domestic demand market has broad prospects, and consumption promotion promotes retail sales growth. The continuous increase of residents' income and the upgrading of consumption structure will lead to the growth of clothing and footwear retail sales. The middle and low end products will benefit from the rapid growth of consumption in the three or four tier cities, while the high-end products will benefit from the growth of the middle class group. With the deepening of brand awareness, companies with brand advantages will lead the market, and the establishment of brands corresponding to market echelons will become an important factor for enterprises to gain long-term competitiveness.

Industry investment strategy: the upstream mode of manufacturing and processing enterprises in the upper reaches of the industry is based on the old mode of large quantity and low price, which is no longer suitable for the long-term development of enterprises. Strengthening the R & D capability and enhancing the added value and brand value of products are the way to break through. At the same time, relying on the potential domestic market with a population of one billion and three hundred million, actively building a strong brand corresponding to the market demand, and establishing a perfect retail network will be the opening stone for the downstream industry.

Industry rating "synchronization", with high added value and strong Brand Company recommendation: upstream enterprises nine Hing Holdings, firm foundation, strong technology and brand advantages, high value-added enterprises, the prospect of high-end retail business in the mainland is broad, and the market will buy long lines through the market callbacks; downstream enterprises Daphne has great potential in three or four tier cities and rural low-end market, brand operation is mature, market share is high, relative industry growth in the future is higher, but the current valuation is low, indicating concern, not rating.