The International Pricing Power Of The Pearl River Delta

With the warmer international orders, the once cool world shoe making base, Dongguan Houjie, has become more and more lively. Especially now that it is entering the peak period of Christmas goods production, the shoemaking factories are very busy.

Many shoe factory bosses are upset by the orders in hand, and a pair of shoes worn by overseas customers can not rise tens of cents. With the increase of raw materials and labor costs, profits are not as good as they were last year, but they are still unable to recruit workers.

A pair of high heel shoes sold to 99 dollars, which is the goal of Guo Xiaoping, chairman of Dongguan Hua Hong Shoe Company Limited.

The export price of a pair of women's shoes in Dongguan is also just a few dollars, even 10% of the price increase is very difficult.

"If you only stay in the manufacturing process, you really have no say in the price, but if you keep on talking about it,"

"After taking the initiative in designing and branding, we have a relatively good grasp of the initiative in product pricing. For example, the factory price of a pair of high heeled women shoes can be raised from $seven or eight to about $15 and skipping over overseas buyers. We are sending goods directly to European retailers through their own trade logistics system, and the price of these shoes has reached about 40 dollars in this link."

Guo Xiaoping told reporters that he has extended from the production to the retail terminal, only to build a terminal channel overseas. This time, we will be ready to set up a retail terminal in Italy. The retail price of a pair of women's shoes can reach US $99.

6 years ago, Guo Xiaoping registered GOLDEN PARTY in Spain. Now, about 1 million 800 thousand pairs of Chinese women's shoes exported to Huahong shoe industry have entered the European market with their own brands such as GOLDEN PARTY and so on.

In the Italy market, Guo Xiaoping established eight major shoe sales areas in Italy by Salvatore, a local shoe maker. By Salvatore unification, he ordered the order of hundreds of retailers in the eight sales areas, and Guo Xiaoping shipped the order again.

In Russia, the mode of the market is different. The Russian terminal retailers are directly sending the remittances to Guo Xiaoping after the sample is selected online.

Guo Xiaoping unified the current operation mode as retail support, which is actually a small batch of diversified production and supply. Besides the price of the retail terminal, the pricing power of other links is basically controlled by him.

Unlike previous orders for tens of thousands of overseas buyers,

More than 300 employees of Huahong shoe industry, more than 300, are members of the professional design and development team. Under the leadership of Errol Arendz and Paco Bernabeu two international design masters, the pformation from scale production to scale customization has been achieved.

In the product development department of the enterprise, the reporters saw that the skilled workers were not the scale operation of the assembly line, but each person according to the design of the designer, picking out the necessary parts from thousands of raw materials and completing the production of one pair of shoes separately. There are dozens of new shoes produced every day on average, and about 20000 designs are developed in one year. After repeated modification and selection, 6000~10000 will eventually be pushed into the international market.

Guo Xiaoping said: "it is not difficult to enter the European market with its own brand, especially those fashionable shoes and clothing. European consumers will unknowingly accept new brands after the recognition of product design and quality. We believe that the annual R & D cost of 20 million yuan is worth it."

Overseas stores

"It's not a foreigner to be a designer, you are internationalized". Guo Xiaoping's ridicule of Chinese enterprises is impressive. Internationalization is an arduous and complicated process, and cannot be accomplished overnight.

However, with the help of international designers, it is a shortcut to grasp the foreign consumption fashions quickly. In order to make the foreigners master the technology, they must learn to optimize the allocation of resources as well as the European and American enterprises. Guo Xiaoping hired the European and American designer leaders outside the design and research links of the industrial chain, and appointed the Japanese as the director of quality control in the design and research links of the industrial chain. After finishing the integration of these processes, he is now thinking about how to expand the terminal channels, and plans to open three stores in Italy as a window to understand the European consumption habits. As for the retail terminal in Europe, it has not yet been decided by Guo Xiaoping.

With the gradual loss of manufacturing cost advantage in China, more and more domestic enterprises are accelerating pformation and upgrading, and are setting off a wave of overseas outlets to expand terminal channels.

Chen Lingmei, chairman of Shenzhen winner Clothing Co., Ltd. is also having this idea.

She once had the experience of failing to run a garment factory. At that time, a garment factory in Shenzhen founded a garment factory to produce orders for export garments, and did not rush to deliver goods overnight. As a result, the last little profit was often taken into account because of some small problems.

After the painful experience, Chen Lingmei began to turn his attention to build a brand. Up to now, the winner clothing company owns four brands and has 482 stores in the country, with annual sales of over 1 billion yuan.

After gaining a firm foothold in the domestic brand market, Chen Lingmei is preparing to open up international brands in foreign countries.

"We have invested in the establishment of a company in Italy. Now there are offices in Italy, from design director, marketing to store design. All the staff are foreigners. Some of them have worked in European luxury brands. I have dug them up with a high salary. I expect to open a special store in the European market in the next year, and the 70% product will be supplied by domestic production.

The whole pricing power is in our hands. The price of the same clothing, European stores and domestic prices is the same, a set of clothing sells for about 5000 yuan, and some custom made dress even tens of thousands of yuan.

Chen Lingmei said.

Create global layout Online

With the popularity of the Internet, building brand in the international market and expanding terminal retailing are not only the way to open real stores.

In April this year, Alibaba invested $100 million to build a small single foreign trade wholesale platform, providing Chinese manufacturing enterprises with channels to bypass foreign retail giants, and directly selling personalized products to small end retailers, to a certain extent, to help Chinese manufacturing enterprises to solve the pricing problem.

The global market group is exploring the global direct selling platform to create the "M2C" mode. Through innovative network sales mode and one-stop "whole supply chain management service", Chinese manufacturers (Manufacturer) skip middlemen to provide products directly produced to consumers (Consumer), while manufacturers are pricing in direct selling process.

A manufacturer of Guangdong Jiangmen hardware manufactures OEM for foreign brands. The price of a barbecue oven is less than 700 US dollars, while the overseas retailer sells for 3999 US dollars. Although the terminal price is several times higher than the factory price, it is very difficult to raise 10 dollars to overseas buyers.

Not long ago, the manufacturer took part in the global market group's "M2C" global direct selling platform trial, and set the factory price to $970, plus all kinds of logistics costs. The product was supplied to the seller of the global market group cooperation website eBay at a wholesale price of $1699, and then sold to consumers by the eBay seller at a retail price of around $2000. The first batch of barbecues that were sent to the United States had been sold recently.

Hu Weiquan, general manager of the global market group, said in an interview with our reporter that because it is still running in the various stages of the previous stages, this is actually a form of M2B2C, and the manufacturer's products need to go through overseas small retailers.

At present, we are working with eBay, PayPal net, etc. to start a deep cooperation. We plan to set up a perfect after-sale network within 1 years, and the retail products are running in all aspects such as logistics pportation, customs clearance, export tax rebate, freight pportation, customs clearance, tax return, warehousing and distribution.

In his view, the realization of M2C's business model through the Internet is just around the corner.