After The Cost Advantage Of Wenling Shoe Industry Is Lost

Pan Kecheng, Secretary General of Wenling shoe leather industry association, will never forget one thing.

On the day of 2007, the leaders of more than 200 enterprises attended the Wenling shoe industry improvement conference.

The host said, "please raise your hand in Wenling shoes."

Only two people raised their hands.

"Why don't you wear your own product?

Because the quality is too poor, the grade is too low! "

Pan Kecheng sighed with his wrist.

3 years later, if the host wants to raise his hand in Wenling shoes again, I don't know how many people will be there.

"But there must be more than two people."

Pan Kecheng said.

Because now people often find Laopan "open the back door", directly to the factory to buy several pairs of factory shoes Wenling shoes.

From the opening door, Lao pan has come to the conclusion that the quality and grade of Wenling shoes are improving.

Everything begins with recruitment difficulties.

"It's hard to recruit workers every year, but one year is more difficult than a year."

In the first half of this year, the footwear industry in Wenling has set a record high of more than 70 thousand workers.

In order to recruit people, business owners have made all the moves, and always take temporary measures.

It is hard to recruit workers here, and enterprises there are constantly expanding their production scale.

Since the threshold for entering the shoe manufacturing industry is relatively low, the number of shoe factories in Wenling has increased by more than 300 annually since 2001, which aggravated recruitment difficulties.

The difficulty of recruiting workers is increasing labor disputes and rising wage.

In the first half of the year, there were hundreds of labor disputes in Da Xi Town. The monthly minimum wage increased from 900 yuan in 2008 to more than 1500 yuan now.

With the increase of cost, the shoe companies with lower profit margins are more vulnerable.

Coupled with the rising footwear industry in Henan, Hebei, Shandong and other places, it has a more obvious cost advantage than the Wenling shoe industry. Where does the latter develop?

"We can only increase the per capita output value by management tapping the potential and improving the technological level. This is the solution and the only way to cure this problem."

Sheng Jianyong, chairman of Zhejiang Zhuo Ling Shoes Co., Ltd.

Zhuo Ling company has more than 1100 employees in the first two years. Now it has been reduced to more than 900, but the annual output value remains unchanged, which depends on these two strokes.

In recent years, the company has reduced its staff by nearly 50%, while its annual output has increased slightly.

Because most of the managers of Wenling shoe enterprises come from abroad, they are inextricably linked to ordinary workers. At present, some shoe companies have launched management practices to encourage managers to stabilize their workforce.

Sheng Jianyong believes that this management mode is likely to be popularized in Wenling shoe enterprises.

Moreover, some enterprises have intensified the adjustment of product mix.

The production of glove production, the shoe industry of Taijiang and the Taiyuan shoes industry broke through the manufacturing field of artificial leather shoes, and tried to produce genuine leather shoes with a view to increasing the per capita output value.

The debate between customer orientation and brand orientation

"Why are the shoes of quality, style and comfort similar to those sold for thousands of pieces?

Pan Kecheng said, "the answer is two words: brand."

Pan Kecheng believes that the nature of labor-intensive industry determines that the ultimate competition of shoe industry is not in technology content, but in cost and brand.

According to this logic, brand management is the only way to save itself after the cost advantage of Wenling shoe industry is declining.

The truth is far from being so simple.

As early as the 90s of last century, the footwear industry in Wenling put forward the development thinking of brand management.

Over the past decade, the footwear industry in Wenling has emerged 1 national export inspection free enterprises (PO lett), 4 well-known trademarks in China, 4 famous brand products in Zhejiang, and 7 well-known trademarks in Zhejiang, but overall, it still shows a pattern of "small, low and scattered".

"Every industry has agglomeration effect. Wenling shoes are mostly low-grade shoes, attracting customers to purchase low-grade shoes.

You suddenly do high-end shoes, first, without this technical atmosphere, another customer who purchases high-end shoes rarely comes to you.

Sheng Jianyong analyzed this way.

In 2006, a famous shoe manufacturer in Wenling went on the production of Ma Zhen leather shoes.

A year later, the project ended without any reason. It was said that the sale was bad.

Zhuo Ling is the chairman of Wenling shoe leather industry association, and one of the leading enterprises in Wenling footwear industry.

"Enterprise development must have a realistic orientation.

We are not the elite of brand development. What we can do is the elites of production, do our products well, let more companies buy your products, then paste their brands.

Sheng Jianyong said.

But there are many enterprises that challenge this view.

Starting in 2008, Qi Jiang, Taiyuan and other shoe enterprises have gradually launched the production of genuine leather shoes, and supply exceeds demand, and sales prices have been rising again and again.

With the production of genuine leather shoes, why did the famous shoe manufacturer fail before that, and Qi Jiang and Taiyuan would succeed?

Pan Kecheng believes that the main problem lies in the timing: "in recent years, enterprises have been trying to produce real leather shoes, and gradually formed a gathering effect. It is much easier for enterprises to put on the real leather shoes."

At the same time, foderon, which produces children's shoes, has spent 5 million yuan on brand advertising, and has opened 7 stores nationwide. Its products are in short supply and the retail price is even sold to 100 yuan.

"Why can it be so expensive?

Because the shoe materials are high-end, style design.

The most important thing is that the product has initially formed a brand effect. "

Zhu Fude, chairman of the company, said.

Shoe building carries the dream of upgrading

People passing through Wenling city's wan chang road can see the majestic appearance of Wenling shoe building.

The investment of 200 million yuan of high-rise buildings has now reached its peak and will be put into operation at the latest.

As the R & D base of Wenling footwear industry and the headquarters of Wenling shoe enterprise headquarters, the office buildings of the buildings have long been sold out.

It is worth mentioning that some shoe industry supporting enterprises will also enter the shoe industry building.

"We are upgrading with finished shoe manufacturers."

The head of East Asian Company said.

East Asian Company is one of the largest professional sole manufacturers in China, and its products are sold to Wenling market 80%.

From the two rubber to PVC material, rubber and plastic synthesis, polyurethane, and finally to the bottom of EVA, the changes of the sole materials of East Asian Company reflect the development of Wenling footwear industry.

It is understood that East Asian Company currently EVA shoes account for half of the company's total output.

"This shows that EVA soles are getting more and more popular in Wenling, and indirectly reflect the pace of pformation and upgrading of Wenling footwear industry is accelerating."

The person in charge said.