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    Cotton Prices Remain High &Nbsp; OEM Shoe Companies Turn To Brand Operation.

    2010/11/3 9:23:00 41

    Cotton Price Shoe Enterprises Pformation

    According to relevant data, China's cotton price index has risen from 18002 yuan / ton in early September to 20236 yuan / ton, or up to 12.41%., which was deeply worried by manpower and logistics costs.


    "Continuing to do OEM can only be a dead end. There may still be a chance to make a brand."

    A person who has just turned to the brand operation from the foundry said to reporters.

    He also told reporters that at present, many local enterprises have begun to pform themselves from the foundry to the management brand.


    The profits of the foundry enterprises were very low. In recent years, with the sharp rise in wages and utilities, shoe manufacturers are suffering. Recently, the price of cotton is so crazy that many foundry shoe enterprises have been unable to sustain it.

    "Profits have been severely compressed, so we have to do business at a loss."

    Compared with the foundry enterprise, because of the brand strategy, the high added value is mainly reflected in the design, research and development, and the connotation of the enterprise culture.

    Raw material

    The proportion of clothing cost is relatively low, which is less affected by cost changes.


    This has led to longtime (Xiamen) Industrial Co., Ltd., which has been a foundry for a long time.

    A few days ago, the company officially ended the history of the German ULTRASONIC brand OEM, operated the brand in the form of joint venture, and positioned high-end casual shoes and clothing in an attempt to attack the mainland market in a big way.

    Yesterday, the company moved its brand operation headquarters in China to Guanyin Mountain, Xiamen.


    Not long ago, Fujian Peggy Garments Co., Ltd. invested 210 million yuan in the production workshop, and became another production owner.

    brand

    Fashion models.


     

    According to the insiders, not all garment manufacturers are ready to take the road of brand operation. The key is to look at the opportunity and strength.

    market

    The exploration and layout of consumer groups, product positioning, and sales channels will also be a trend in the future and the turning of Fujian's foundry enterprises.

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