Domestic Shoe Companies Launched The Takeover Offensive, &Nbsp, And Turned To Counter OEM Breakout.

November 3rd news continues to rise

Wang Zhentao, chairman and chief executive of AOKANG group, said that the European shoe market is still in the doldrums over the past two years.

This year, the domestic footwear industry can be described as "ten years of Hedong, ten years of Hexi", some of which have been European shoe manufacturers for many years, and should not turn to cooperate with foreign brands, or to acquire the ownership of Chinese trademarks.

At the beginning of the year, after the Wenzhou brand company acquired the trademark rights of four brands such as Pierre Kadan and French brand Pierre Cardan shoes, AOKANG Group acquired the trademark and patent rights of Italy footwear brand Wanli wade in May this year at a price of less than 22 million US dollars in 37 million.

After the acquisition, AOKANG set up an international R & D center and procurement center at Wanli head headquarters in Italy. Wanwade provided necessary equipment, production personnel and technical guidance for the two centers, and AOKANG provided design and procurement personnel.

The two sides cooperate to complete the initial design and production, and batch production is placed in AOKANG's domestic production base.

In addition, Guangzhou Tian Chong Footwear Co., Ltd. has established a company in Beijing with its Spanish Patricia brand, which has more than 80 years of history. Its brand management right in the Chinese market has also been orthogonal to the Tian Chong shoe industry recently.

Domestic shoes turn to counter OEM breakout

According to customs statistics, this year 1~9 months, the national footwear exports 20 billion 890 million US dollars, down 5.6% compared with the same period last year, while Guangdong exports 1 billion 690 million pairs of shoes in, an increase of 33.8% over the same period, but the average export price is 2.8 US dollars, down 13%.

In addition, Brazil, Argentina, Canada and other countries are dumping anti-dumping on Chinese shoes this year. Under the circumstance of unclear international trade environment, the prospect of footwear export is not optimistic.

Qi Zhijian, deputy general manager of the world's children's shoes world at the west road shoe wholesale business circle, said the shoe factory is in an awkward position in the industrial chain, and the core parts of R & D, brand design and market are all in the hands of others. If we do not break through the core value, the road will only get narrower and narrower.

He said that 10 years ago, the profit of shoes was about 6%, and now it has generally fallen to 1%~2%. With the rising cost of raw materials and labor and the appreciation of the renminbi, this part of the profits have also been squeezed out.

He pointed out that at present, some shoe enterprises in China are facing two pformations. One is to strengthen independent innovation and create their own brands and turn to the domestic market; the two is to shift cooperation with foreign brands of old employers to jointly develop domestic and foreign markets, some powerful enterprises or acquire domestic trademark rights.

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Liang Yaohua, chairman of Guangzhou Tian Chong footwear industry, also pointed out that Tian Chong has been working closely with several design studios in Europe to integrate European fashion design style into its own shoes.

However, it is still not possible to learn the exquisite craft of European shoemaking.

So, in 2008, Tian Chong founded a company in Beijing with Patricia brand in Spain, and 75% stake in Tian Chong.

Liang Yaohua said that the European and American consumer market has been sluggish over the past two years. Many European brands have been eyeing the Chinese market. Patricia brand has recently handed over the 30 years' brand management rights to Tian Chong company in the Chinese market.

In addition, he also commissioned some orders from other brands such as KISSCAT.

"You have me, I have you.

The shoe industry in China is gradually standing side by side with Chinese and western shoe companies, and Chinese shoe companies are no longer crabbed in the low-lying areas of manufacturing.

However, Liang also pointed out that commissioned the production of shoes factories in Europe is only a stage action, not a trend. At this stage, we learn from Europe's shoe making technology, design and get popular information from it, and further enhance the competitive advantage of shoemaking through cooperation.

Increase revenue and reduce expenditure to cope with cost pressures

In addition to the dual pressure of the price increase of raw materials and the appreciation of the renminbi, some of the shoes in addition to the above two ways of upgrading and pformation, the Pearl River Delta enterprises also reduce costs and increase profits through strengthening management, increasing revenue and reducing expenditure.

During the interview, most shoe companies said that the cost of labor increased by nearly 28% this year, and the cost of the increase was spread to each pair of shoes to raise the price.

According to Mr. Cheng, a shoe factory owner in Chaozhou, Guangdong, in August of this year, they received a production order of 60 thousand pairs of leather shoes in South America, and took 60 days' letter of credit as the settlement procedure.

In recent months, the Yuan's rise has made the company lose 80 thousand yuan.

At this point, he agreed with some European and Australian businessmen that the settlement was changed from the previous US dollar settlement to euro and Australian dollar settlement.

Gao Zhu, chairman of Hongkong Jin Yuan shoes manufacturing Co., Ltd., said that the profit of shoemaking industry has been low and competition is fierce.

At present, the main markets such as Europe and the United States have not yet been restored, and many enterprises have adopted small profits but quick turnover strategies in order to fight for orders, which has also led to a reduction in inventory saturation in the export market.

A shoe manufacturer in Dongguan said that because the domestic consumer market is becoming stronger and stronger, this year's business has been converted from full export to partial domestic sales, and the profit from domestic sales is also higher than that of export. There is a gap of 2~3 times, but domestic marketing will raise higher requirements for enterprise brand.