Innovation Has Become A Life-Saving Straw &Nbsp For Shoe Enterprises; The Pearl River Delta Shoe Enterprises Are Creating A Market With Innovation.

January 27th hearing

Shoe enterprises dilemma

China's footwear industry has been pushed to the cusp.

All the reports related to the industrial upgrading of the PRD are without exception mentioning the shoe making industry.

Collapse, stop production, change production, move...

One story was excavated by the media.

The pain of the pformation of China's shoe enterprises, the fate of the road affects millions of people's hearts.

Recently, the dispute over the collapse of enterprises in the Pearl River Delta is fierce.

Regardless of whether the enterprises in the Pearl River Delta have gone bankrupt or move out, there are many enterprises that have been pferred to us. We do see many real cases of shoe factories being closed or pferring to the mainland and Southeast Asia.

Rising labor costs, tight supply of water and electricity, rising prices of raw materials, appreciation of the renminbi, changes in foreign trade policies, and new labor laws.

These are all true.

Shoe companies in China, especially in the PRD, face unprecedented pressure and difficulties.

At present, the factory property rental market in the PRD is relatively low, and there is a vacant factory building everywhere.

Compared to the busy and bustling scene of previous years, the major industrial areas are obviously deserted this year.

The Baiyun District in Dongguan and Guangzhou is a relatively concentrated place in the Pearl River Delta, where journalists can often hear the owners of the factory say, "here was a shoe factory, and it just moved away soon."

How can the Chinese shoe enterprises find their way out?

Strange shoe factory

The reporter accidentally received a phone call from a shoe factory owner who asked the reporters about the rental plant and the factory building.

Out of habitual thinking, reporters thought the shoe factory had to move to the mainland.

Only later did I know that the shoe factory had to expand its production to find larger factories, because the orders were too many, and the current factory buildings could no longer meet the production needs.

In the bleak shoes of all the shoe companies, they heard the voice.

This shoe factory may give some inspiration to Chinese shoe enterprises.

He Jinchang, chairman of Guangzhou Changfeng shoes industry Co., Ltd. is calling him.

From the data point of view, He Jinchang shoe industry is not a big factory.

There are thousands of employees, and about 2000000 pairs of shoes are produced annually. Compared to the large scale foundries with eighteen thousand employees, He Jinchang shoes industry is regarded as a small business.

In view of the current situation of China's shoe enterprises, the ability to resist risks is the worst, and the most easily bankrupt or relocation is the shoe enterprises with thousands of people.

Then why is the shoe industry in Jinchang not only able to live well, but also needs to expand its orders, and where is the secret?

Small creative big market

It turns out that He Jinchang shoes are not ordinary shoes, but men's shoes.

These shoes are not different from ordinary shoes on the outside, but they can be increased by 5 centimeters by adding an inner pad.

It is this seemingly simple idea that has led He Jinchang shoe industry to a bright road and also made He Jinchang himself the king of shoes in China.

However, this idea is not simple.

He Jinchang said: "China's height is below 1.7 meter, and the age of men aged 18 to 50 is about 100 million, all of whom are target consumers with increased shoes.

Moreover, the consumer loyalty of the inside heightened shoes is very high. Once they are put on, they can not be separated from their whole lives. "

He Jinchang's market statistics show that customer turnover rate is above 95%.

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"In the past few years, all kinds of drugs increased and products were flying all over the world.

At that time, we did have a great impact on us, but now it seems that it has helped us.

Because the increase in drugs is basically a lie, and when a lie is finally destroyed, people now understand the hoax of drug increase and begin to understand that only physical increase is the most realistic and effective.

He Jinchang said.

"It can be said that this idea is not complicated, but do you dare say that its market is small?"

Our annual output is only 2 million pairs. At present, the total output in China is less than 3 million in one year, and even one percent of the market has not been developed. "

Entrepreneurship is innovation

"How did you think of making shoes for men?" asked the reporter curiously.

"Because I'm short, I know a lot about men's longing for height.

I am wearing He Jinchang shoes, you see.

He Jinchang raised his trouser legs, a simple smile.

15 years ago, He Jinchang came to Shenzhen to start his own business. After two years of hard work, he accumulated over a million yuan of original funds.

"My entrepreneurial process is an innovative process.

In fact, not just me, our generation of bosses in that era basically came this way.

Unfortunately, many people are very daring to try and dare to innovate when they start their own business. Once they start a factory or an enterprise, they will become very conservative and dare not innovate.

After a period of thinking, He Jinchang decided to start an enterprise. He wanted to do a big thing. He thought of running a shoe factory.

"At that time, shoe factories were built up, and people who did not have enough money or experience to enter the footwear industry would not have competitive advantage.

So I think if we want to do it, we must not do the same with others.

So He Jinchang thought of raising shoes, and he invented the patented technology himself for 12 years.

In the past 12 years, the shoe market has increased from scratch, and the shoe industry of Jinchang has experienced difficulties and dangers.

Shoe enterprises must innovate

"If I had chosen to work as an OEM for ordinary shoes, I might have made more money. My company will be larger now, but I will face the same problem with other shoe companies today.

Although our road to innovation has been very difficult, we have persisted.

Today we have proved that our innovation and our insistence are right.

He Jinchang sighed.

For the plight of the Pearl River Delta shoe enterprises, He Jinchang has his own view.

He Jinchang witnessed the collapse of several shoe factories around him, and some of his shoe factories moved to the mainland.

He acknowledged that the current market environment of the PRD is very severe for ordinary foundry factories, but he does not think this is the root cause of the crisis.

"The root cause is that shoes enterprises do not know how to innovate, but do not know how to manage them.

These shoe factories can act as OEM for international brand names, indicating that their own manufacturing processes are good, but they are too secure in the status quo, too conservative, have no sense of crisis, and dare not innovate.

Do these bosses' owners do not know if they will come sooner or later? They know, but they just muddle along and wait for death.

He Jinchang said.

He told reporters about the story of two shoe factories.

One is a shoe factory that he has just closed down, and the boss is a friend he knows.

On the face of it, the reasons for the closure are reduced orders, difficult recruitment and high labor costs.

"His company's management is in a mess, the quality is not enough, the order is naturally less." it's natural for employees to pay no attention to their jobs and to increase their wages gradually. "

The owner of another shoe factory is his fellow townsman. He moved to the mainland last year and is now closed down.

First, no one can be recruited, no matter whether it is a skilled worker or a management talent. They can not be recruited. Later, they recruited a group from the Pearl River Delta.

Two is the information is not smooth, out of the environment, there is no customer.

The three is the inconvenience of pportation. Any raw material will be pported from the Pearl River Delta, and the cost will be high.

"If we can't live in the Pearl River Delta, where can we find a way to live?"

He Jinchang's words really deserve our deep thought.

Every day shouting outside pressure, why do not you think about how you do? The external environment is changing rapidly, there are good and bad, is shopping malls.

The most important thing is our ability and methods to cope with changes in the external environment.

This method is absolutely not complaining and sighing.

Perhaps the PRD shoe companies used to be so comfortable that they forgot the crisis.

Asked about the way out for PRD footwear companies, He Jinchang said: "it's better to be a brand.

However, compared with the shoe companies in the Yangtze River Delta, shoe companies in the Pearl River Delta have missed that opportunity.

In the current market environment, these factories in the PRD and small shoe factories must innovate if they want to survive. "