The Rise Of China'S Footwear Industry Is Booming (Two)

From a purely foreign trade enterprise to today, the proportion of domestic sales has increased to nearly 40%. Xu Yunxu said: "in the future, our development should be a smooth state of internal and external sales."

Dongguan has experienced the same "encounter" with Wenzhou.

General trade accounts for only 1.2% of Dongguan, and the rest of processing trade is accelerating from OEM to brand creation. In 2009, 988 processing trade enterprises in Dongguan had their own brands (parent company or Dongguan brand), an increase of 163 compared to 2008, an increase of 288 over 2007.

"You can't hear the sound of throwing money in!"

It's easy to register a brand. To the Trademark Office, it takes 1000 yuan to solve it. But it is harder for consumers to know the brand.

Shortly after the initial domestic market, Teng Xingbiao was surprised to find that he was the most familiar stranger in the market.

Compared with the Chinese market, the channel of European and American market is simpler. However, foreign trade enterprises that are accustomed to dealing with foreign clients have found themselves in a domestic market only when they are transferred to the domestic market. All year long, relying on outside orders, they have already lost their ability to fight at home. Facing the complex domestic market, they have become a localized Chinese company.

"Mainly because the domestic market is immature." Teng Xingbiao analyzed the difficulties in the transformation of domestic and foreign markets.

In terms of funds, domestic wholesalers are in arrears with the payment of loans. "Deposit is also given, but after delivery, all funds are in place for 4-5 months. There are few such problems in export. Letters of credit are basically available in two months.

Backlog is also a big problem. Exporter usually makes orders in advance to ensure his supply in his home market. Unlike in China, a product sells well, giving you only one week's production time. When you could not produce enough, there were other factories that mimic the alternatives. In this case, it is necessary to produce more products and sell them all at once, resulting in a backlog of inventory.

"The competition in the domestic market is so intense that I have organized a domestic trader's order in China, which is useless at all." Teng Xingbiao said.

do brand We must directly face consumers.

China's market is too big, the difference between East and West is too great, and the demand is different. As for shoes, the North needs long hairs, and the south is short hairs, all of them are cotton shoes, which adds a lot of trouble to the shoemaking process.

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According to the different brand positioning, often choose different grades of business circle to expand brand awareness. Each store has entry fee, guarantee fee and transfer fee. Nothing is seen and money is to be taken out.

This is doomed to do foundry and make brand is the two way of thinking: to do foundry consider more is how to save money, but to make brand, but should consider how to spend money.

"The thinking of doing factory is like this. If I have profit from the order, I will take it. I will not take it without profit, but making a brand is sure to fight for money." Teng Xingbiao said that one of the most recent words he heard from his friends was that "millions and ten million fell down and saw nothing."

He said, recently, there are great differences in the foreign trade departments of their own enterprises. Colleagues from the export sector are all saying: "money is what we earn. What benefits does the group bring to the company in addition to spending money?"

"Some people succeed" vs "overcapacity"

In these self created brand It seems that the domestic market is full of huge and sustainable business opportunities, and foreign trade enterprises should seize at the same time rather than give up this "fleeting" business opportunity when the export situation improves.

However, Huang Fajing, chairman of Wenzhou sun Feng lighter Co. Ltd., emphasized that transformation, upgrading and brand building are different from different industries and enterprises, and are not suitable for every enterprise.

"Now clothing and footwear industry, including the lighters industry, is a surplus industry in China, so everyone rushing in like this, and the result is not necessarily good. Enterprises should analyze their strength and characteristics clearly and invest again." Huang Fajing said, "in fact, the factory itself can also form its own brand, that is, when foreign buyers come to order, they will recognize your factory's reputation in the industry. For example, to make a lighter will think of looking for the Japanese foundry. Some enterprises with less strength can go through this stage first. "

On the one hand, the idea of "someone will succeed" motivates everyone who is full of energy.

On the other hand, has anyone ever wondered why Foxconn's Terry Gou would rather command 800 thousand workers than face consumers? Maybe he knows his strength well.