Multiple Pressures Push The Spanformation Of Export Shoe Enterprises (Two)

According to the figures released by the world bank, the logistics cost of the United States accounts for about 9% of the total GDP, while China's logistics cost accounts for 25% of the total GDP, accounting for 30% to 40% of the total cost. In addition, the expenses generated by the construction channel are far greater than those for the export oriented enterprises.

For manufacturers who are still sticking to export sales, there are government export tax rebates to ensure that they still have room for profit after lowering prices. The adjustment of export tax rebate policy in 2007 has brought a lot of pressure to Huabao shoe industry. "The tax rebate from 13% to 11% is equal to the lack of subsidies for enterprises to earn foreign exchange through exports." Zhang Huarong said.

In June this year, China adjusted the export tax rebate rate for industries such as steel, nonferrous metals and chemical products, and the textile industry did not make any adjustments. The current rate of shoe material in China is about 15%. "Many shoe factories rely on this survival." Qi Yaochang, chairman of Dongguan Yisheng footwear industry, said that when there is a certain profit margin, they are more willing to export their products abroad, though they have to bear some additional risks.

Over the years, factories that are trying to ensure their profit margins have been supplying goods to WAL-MART.

Vendors or traders can only enter WAL-MART's product monitoring system by paying a certain fee, but most factory owners are unwilling to do so. For them, selling products is the most important thing. "Sometimes the factory may not even know the partners, not to mention where the products will go." Zou Hongjie, regional sales director of Guangzhou Maple Trading Co., Ltd.

Since March, WAL-MART has launched a new round of price fixing promotional activities (Rollback) in the United States. According to Citigroup analyst Deborah Wayans Wei Ge statistics, the initial launch of more than 10000 promotional products price reduction of 20.5%.

The orange logo on sale is increasing continuously, and by June, the total number of products participating in the promotional activities has reached more than 50 thousand. The $8.88 memory sponge pillow dropped to $6, which was enough to buy a super value package at McDonald's, and a 22 inch flat LCD TV for $268 to $198. In addition to Rollback, there are seasonal clothing and footwear. The printed T-shirt has been reduced to 1 dollars, and the python flat bottom shoes have been reduced to 6 dollars.

The long term undervaluation of the renminbi has enabled traders such as WAL-MART to have a strong bargaining power with us dollar pricing. "Moreover, taxes and fees abroad are not as numerous as those in China." Dongguan is now the leather shoes industry Association vice chairman of the silver Sheng footwear industry chairman Qi Yaochang said.

Therefore, although the prices of these commodities are low enough, the profit margins purchased by foreign traders from China are still very high. Take a pair of shoes with a profit margin of 30 dollars as an example: R & D and traders can earn 10 dollars, terminal channels earn 5 dollars, and workers and raw materials can only split the remaining $5.

"The conditions put forward by traders are becoming more and more stringent. When negotiating with trade partners, the price is 10 Fen or even a penny, for example, the ex factory price from $4.3 to $4.4 is pretty good, and rarely mentioned 5 yuan at a time." Qi Yaochang said his shoe factory would negotiate with traders as far as possible without losing money, so as to maintain a good relationship.

"Now there has been a phenomenon that middle traders take the initiative to find factories. This has never happened before." Wen Haibin, manager of the world shoe industry (Asia) headquarters, said that there are now 3 companies that have bought seven or eight million yuan annually to find factories. They used to be factories looking for traders. But their price is still very low, hoping to find a factory with lower unit price, and the factory still can not grasp the pricing power.

These are about half of the earth, and goods on WAL-MART's shelves in Monroe city do not make Mrs. Wallace wonder. As a customer, Mrs. Wallace did not know how many people she paid, and how many people could divide them. When she thought of the products she used in China and produced in China, there would be a hectic look in her mind when the workers were producing clothes one after another on the production line, or when they assembled computers. And what happened before or after is not very clear, nor is it so concerned.

No other store can buy frozen seafood, tire pressure gauge, baseball glove, foot slippers, a full suite of bedroom furniture, a 133 piece electric drill tool set, a three bedroom tent and a phone for ten people, like WAL-MART. Even at half past three in the middle of the night.

"I think what WAL-MART sells is of good quality and much cheaper than many other stores." Francis Rodriguez, who lives in Manhattan, says. She created and maintained an information website called Extacy Empire. When she was still living in Bronx, she even took a 1.5 hour bus ride to White Poon J's WAL-MART shopping with her family. "But the money saved is absolutely worth the trouble." However, with the adjustment of the RMB exchange rate and the increase of China's labor costs, Mrs. Wallace and Francis will probably buy more products from Mexico, Vietnam and other countries and regions, especially clothing shoes and hats.

Some Chinese manufacturers have already had to raise prices. "Two months ago, the price has been gradually adjusted, and the price will not survive if the price is not adjusted. If the order quantity is only a few thousand, even the old customers will raise the price. The minimum rate is 5% now." Zhong Haosen, assistant general manager of Guangdong textiles import and export Limited by Share Ltd, said.

The earliest export of jeans in China was made by the company. At the Canton Fair in May, the old customers still had some bargaining room in Zhong Haosen, but all the new customers would raise their prices. The cost of developing new customers is about 30% higher than that of old customers, and business risk is higher than that of old customers who know their roots. Therefore, he has not given any bargaining power to new customers.

Orders that could not be accepted to raise their prices began to look for alternatives to "made in China", which flow to Southeast Asia and central and South America.

A Chinese in Malaysia has lobbied Gui Mingjun for many times to move the factory from Ningbo to Malaysia. "I have compared the cost of Malaysia to a lot, and if there is no profit in China one day, I have to move." Gui Mingjun said.

In Houjie Town, Dongguan, it seems very easy to meet someone who is related to manufacturing. They may be a factory area. Shoemaking Workers, perhaps the boss of shoebox packaging factories, are more likely to be wholesale merchants in the shoe material market. Because in less than 30 minutes' drive, we can find more than 10 professional shoe material markets in this town: Ho Po shoe material market, far rind material market, Hetian leather market and Hongyun shoe material square. Even if you can't name, passers-by can easily tell you the direction of these professional markets.

But if they go to Southeast Asia, they will need to rebuild the supply system.

To change the current export dependence state, their other choice is to turn to the domestic market. In the middle of the 1980s, the "new growth theory", proposed by a group of economists such as Romer.P and Lucas (Lucas.R), provided a possible development model for some capital intensive enterprises.

Zhang Huarong had suffered losses in the domestic market in the past, but several hundred years ago, hundreds of millions of dollars were invested in several private brands, but the market reaction was not good. He attributed the lack of experience in the domestic market to the export enterprises and the unfamiliarity of channels and distribution. Now in Huabao shoe factory, workers can only find a Warburg private brand shoe shop in the factory area and produce it on another production line in the factory area.

But Zhang Huarong is trying to change the passive state of export enterprises.

In addition to paying attention to the distribution platform on the Internet, the three or four line brand of foreign investment is considered by Zhang Ronghua to be the best way to learn the market operation. "The domestic market is still the most important part of the future development." Zhang Ronghua is unwilling to give up the "Dongguan model". He has invested in a project near the Houjie shoe material market, which is gathered upstream. He hopes to move the shop of "former shop and factory" to Dongguan.

Although it is known that "the effect may take ten years or even longer to see", Zhang Ronghua still optimistic about the prospects of the enterprise. "Traditional manufacturing is always the most powerful sunrise industry." He said.

"My company has been doing brand spanformation recently, and has made a brand sale in Hongkong. This is definitely a trend. The cost of investment in the early stage is also necessary. But one point, how many of these export enterprises can be spanferred to domestic market? How many of them can be successful? Now I see many factories are spanforming to help some enterprises that have already made brands in China, but this is still a minority, but everyone is trying to find a way out, trying to find a way to spanfer to Vietnam, Mexico. Hongkong footwear industry association president Fang Zhigang said.

More capital intensive enterprises are starting to spanform from low value-added to high value-added.

Qi Yaochang, chairman of Yin Sheng shoe industry, said that he was more willing to take out orders from the perspective of efficiency. He only needed production and did not need to bother to sell. Emotionally speaking, he even hoped to make his own brand bigger. He began to practice in the shopping malls all over the country, understand the needs of franchisees, and even went to France and Italy with designers to learn from designers and industry associations there.

The demographic dividend from China has made the world economy a few years of low inflation.

Now, Francis feels that he spent most of his day in the face of all kinds of "made in China": computer monitors are made in China, and 5 flat-panel televisions in his home are made in China, and DV is made in China. The most precious memories of their family are also in a mobile hard disk made in China.

Recently, she is trying out a thin diet called SmartOnes. If there is no Chinese made microwave oven to help her heat the frozen thin meal, "I will definitely not survive!" she said with exaggeration.

The happy American girl has not realized that her life may change.