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    China'S Shoe Industry Builds Brands, Improves Added Value, And Breaks Through Difficulties

    2010/6/25 14:13:00 22

    Added Value Of Footwear Brand

    Breakthrough path of China's shoe industry: brand building and promotion added value 。


    The export competitiveness advantage still exists, and industrial upgrading is imperative. China's rich raw leather resources and perfect Industrial chain , huge processing capacity, sound sales and market network, political and social stability, and other comprehensive advantages that contribute to the sustainable development of the industry are difficult to replace in a short time for other countries and regions. However, it is undeniable that China's competitive advantage is indeed gradually weakening with the rise of labor costs and the expectation of RMB appreciation. The biggest weakness of China's footwear export industry is its large export volume but low added value. The business strategy of adjusting the industrial structure, improving the added value of products, and shifting the business focus from production and processing to brand value promotion is conducive to the long-term competitiveness of Chinese shoe enterprises.


    Export demand gradually recovered, but the long-term growth slowed down. The US economy is showing a good momentum, and residents' purchasing power is beginning to recover, which is conducive to promoting industry exports. The trend of strong orders of industry export enterprises in the first quarter is expected to continue, but the economic outlook of the euro area is the most uncertain factor, 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 the year.


    The domestic demand market has broad prospects, consumption Upgrading drives retail growth. The continuous increase of residents' income and the upgrading of consumption structure will drive the growth of clothing and footwear retail. Medium and low-end products will benefit from the rapid growth of consumption in third and fourth tier cities, while high-end products will benefit from the growth of the middle class. With the deepening of brand awareness, companies with brand advantages will lead the market, and establishing brands corresponding to the market echelon will become an important factor for enterprises to gain long-term competitiveness.


    Industry investment strategy: the old mode business strategy of manufacturing and processing enterprises in the upper reaches of the industry with large volume and low price is no longer suitable for the long-term development of enterprises. The breakthrough path is to strengthen R&D and innovation capabilities, and enhance product added value and brand value. At the same time, relying on the potential domestic market with a population of 1.3 billion, actively building a strong brand corresponding to the echelon of market demand, and establishing a perfect retail network will be the opening stone to enter the downstream of the industry.


    Industry rating is "synchronous", and companies with high added value and strong brands recommend: Jiuxing Holding, an upstream enterprise, has a solid foundation, technology and brand advantages, and belongs to a high added value enterprise. The prospect of high-end retail business in the mainland is broad, so it can take the opportunity of market callback to buy long-term; Daphne, a downstream enterprise, has great potential in the low-end market of third and fourth tier cities and rural areas. Its brand operation is mature, its market share is high, and its future growth is relatively high compared with that of its peers, but its current valuation is low. This suggests that attention should be paid and it is not rated.

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