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    Domestic Shoe Enterprises Face Pformation Again

    2010/11/6 14:40:00 70

    Domestic Shoe Enterprises Pformation

    European and American shoe market orders recovery is slow, and

    RMB appreciation

    And multiple factors such as rising prices of raw materials,

    Domestic shoe enterprises

    Once again faced with pformation.


      

    Dongguan

    Chen Zheyang, the business director of Cheng Cheng Feng Machinery Co., Ltd., said that more than 10 years ago, when the Taiwan shoe enterprises moved to Dongguan, the customers were basically foreign shoe factories which were exported by OEM. Now there have been obvious changes, labor costs have risen rapidly, and many export shoe factories have accelerated their migration to Southeast Asia.

    At the same time, domestic sales of private shoe industry customers are gradually increasing. Now these two customer groups basically account for half.


    Zhu Yulun, chairman of the Dongguan Exhibition Service Co., Ltd. also said that although the export of shoes products in the first half of the year showed an explosive growth in Dongguan, it was mainly because European and American customers had sold almost the same amount of stock in the previous period. The temporary replenishment order is likely to be a rebound rather than a reversal, and the export prices of shoes will continue to fall.


    "The shoe market is changing, and the European and American markets are relatively saturated, while domestic and emerging markets are growing rapidly, and the ASEAN market has doubled in the last one or two years.

    And China's domestic market is also very large. Europe and the United States consume about 7 pairs of shoes per person per year, while China has only about 2.8 pairs. If the average annual per capita increase is one pair, it will increase more than 1 billion 300 million pairs.

    Although it is difficult for small and medium-sized enterprises to expand domestic sales channels, it is very important to take this step.

    Zhu Yulun said.


    In Dongguan, there is a widely known saying: over 60% of the world's high-end shoes or shoes are from Dongguan, and light sports shoes account for 1/4 of the world's sports shoes.

    However, these enterprises encountered many difficulties when they turned to seize the domestic market.

    Dongguan shoe enterprises have been engaged in export sales for a long time. They lack experience in the operation of domestic brands, and they do not know much about domestic sales channels. Moreover, export brands are not well-known in China, nor are they familiar with mainstream domestic sales channels.

    In many enterprises that export to domestic market, weak brand operation ability and weak channel construction are the important obstacles that restrict the pformation of enterprises.


    At present, the domestic market has basically been carved up by BELLE, Lining and other domestic brand shoe enterprises. China's export shoe enterprises are turning to domestic sales, not only to face these "strong enemies", but also to attack the foreign brands.

    Portuguese shoe brand TATUAGGI business executives said that the European market was depressed over the past two years due to the financial crisis, so the company began to test the water market in China. All raw materials were imported from Italy. The wholesale price of leather shoes made in Portugal was between $30 to $60 per pair, and the price was not expensive. With the appreciation of the renminbi and the reduction of procurement costs, the expansion of the market in China was relatively smooth.


    Chu Xiuqi, President of China general merchandise business association, said that domestic and foreign shoe factories have competitive advantages in manufacturing, independent design, research and development, but they are weak in brand and channel.

    There is a difference between domestic and international styles, marketing methods and price. These export-oriented shoe companies need to identify the brand positioning and make corresponding adjustments to the production mode. The association is also advocating department store innovation, considering the recruitment of some export oriented enterprises to avoid homogenization competition in the department stores.

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