The Future Of Chinese Shoes Is Worrying &Nbsp; Profit Is Everything?

domestic manufacturing industry The price war is booming. Now it is burning abroad: many China. enterprise Low price competition, cannibalism, some enterprises in order to survive, know that there is no profit, or even lose money must also receive orders. It has formed an unfavorable situation of "rising export volume and decreasing economic efficiency", and become another obstacle to restrict Chinese products to the international market after tariff and technical barriers. Experts warn that without cost and without rules, one-sided pursuit of "profits for the market" will not only cause foreign anti-dumping, but also affect the technological innovation of Chinese enterprises and weaken their competitiveness in the international market.

Making shoes is a small profit.

Last year, the annual output of Chinese shoes reached 6 billion pairs, equivalent to that of the whole world. Due to the rapid growth of the number of shoe enterprises, more and more domestic enterprises in the past have launched their products abroad. Enterprises that are crowded on one road see the good selling styles copy each other. The simplest and most effective way to compete is to "bargain" with each other.

Li Linchen, chairman of Wenzhou Ding Feng shoes industry Co., Ltd. said that the cost of making shoes is not based on the cost of shoes itself, but on the market. Products have market, prices can be set higher, otherwise natural prices. Now shoes are already a small profit, the price is not as good as a year. For example, according to the budget, last year we sold 270 yuan for each pair of shoes, and this year we can only sell 200 yuan a pair.

In the annual production of 600 million pairs of shoes. China Shoes Capital "Wenzhou, shoe industry executives talk about this matter, each looks dignified. Wang Zhentao, President of AOKANG Group Limited, said that a few months ago, AOKANG received orders for 1 million 200 thousand pairs of leather shoes from a large foreign company, and the price raised by the other party was 3.2 US dollars per pair. Never thought they could get anywhere else to do 2.9 dollars a pair. Everyone knows that the shoe industry in Wenzhou has undergone tremendous changes after experiencing twists and turns. Nowadays, the scale and strength of the footwear industry is the first in the country, and the quality and brand building are also at the forefront of the whole country, but the price is getting lower and lower.

According to the report of the China Leather Industry Association, China has become the production and processing center and sales center of leather shoes as the focus of world footwear industry has shifted to developing countries. It is estimated that in the next more than 10 years, the good momentum of development of China's leather industry will continue to be maintained. The leather industry in the future will break through in foreign trade and export volume will continue to increase significantly.

Where to go

Many enterprises have pointed out that "freezing three feet is not a cold day." To prevent cannibalism among peers, we must first strengthen the effective regulation and self-discipline of the industry. It has been suggested that a minimum price for export shoes should be defined by trade associations.

But judging from the actual operation, this strategy may not work.

Like the lighter industry in Wenzhou, it had tried in 1994, when the export price of Wenzhou lighters was not even $1, and then the smoking Association developed the "rules", with a minimum price of US $2, which is lower than this price. All accessories enterprises refused to provide the source of supply. However, the good times do not last long. As the "new generation" enterprises continue to emerge, in order to quickly cut into the market, they simply can not attend to the "old rules".

And shoemaking enterprise consistent view is, Chinese shoes must play their own brand, increase the added value of products, enhance the overall image. Entrepreneurs suggest that enterprises can step up step by step in the process of licensing. For example, create regional famous brand, then create domestic brand, and enter the international brand when conditions are ripe. In view of the current situation of the industry, we propose that enterprises with conditional licensing should take responsibility, improve their manufacturing capabilities, and encourage other enterprises to take the road of brand building. For those companies that do not yet have the licensing conditions, they can combine to make the enterprises bigger, or to make processing and developing enterprises for international and domestic brand names first.

According to the planning of China Leather Industry Association, in the next 10-15 years, we need to create 3-5 international famous brands and build the "shoemaking power" into the world's shoe making power.

How to turn over Chinese shoes

As a matter of fact, many Chinese shoe companies have already started efforts to create brand, and have begun looking for an international path. In this process, there are various ways of operation. Some companies buy listed companies, some directly set up factories abroad, and others have powerful agents to open markets through channels.

In 1993, Kangnai group won the title of "China's ten largest footwear industry". In the first half of 2001, the first store opened to Paris, France and New York. In June of the same year, the world shoe capital, Rome, Italy, also had a Kangnai store. In December this year, Losangeles will also open a 200 square meter Kangnai flagship store. So far, Kangnai has set up more than 70 stores in more than 10 countries, and has created the market price of Kangnai shoes exported at an average price of 13 US dollars.

At present, AOKANG group, which sells more than 2000 stores and more than 800 stores in the Chinese market, has registered AOKANG trademark in more than 50 countries and regions such as Italy, the United States and Spain, and has established trade relations with more than 200 foreign businessmen. Recently, AOKANG has signed an agreement with GEOX, the largest shoemaking enterprise in Italy, to jointly develop the world leather shoes market. In addition, AOKANG will build five sales centers around the world and establish 4000 chain stores worldwide.

More and more enterprises understand that brand, especially famous brand, has become a passport to enter the international market. Only by owning its own brand can the enterprise gain a high reputation and reputation, so as to win consumers and stabilize the market. Only by making high-quality brand-name products can Chinese shoes turn over.