Jinjiang Sports Shoes Enterprises Expand Their Products Collectively: Is Pie Or Trap?

Before March 2nd, the domestic leader

In the latest stage, the expansion of production lines not only took place on these listed large enterprises, but also Jinjiang's growth brands such as golden apple, climbing climbing, champion bird and so on all made decisions on expanding capacity this year.

In the view of these enterprises, the expansion of production lines can undoubtedly improve their own production capacity and further improve the threshold of the whole shoe production process so as to achieve the goal of throwing away the opponent.

For the largest expansion of the footwear industry in Jinjiang since 2003, the views of the industry are quite different.

A positive attitude has taken up a large proportion. In the eyes of this group, the market demand for sports shoes began to rise in the second half of last year after the first two years of downturn. This year's trend is definitely more obvious.

However, there are still some business owners who are more cautious. In the eyes of some people, the concentrated expansion will result in only one result in the future: overcapacity.

Big brands look ahead to potential market.

At present, the annual output value of sports industry in China accounts for less than 1% of GDP, which is nearly 10 times that of developed countries in Europe and the United States.

For Anta, which is closely related to sports industry, this also means great opportunities.

In Anta's 2010 annual report and 361 degree 2010 half year earnings report, we can easily find that domestic sports brands headed by Anta and 361 degrees are very optimistic about the trend of the future sporting goods industry, and have expanded capacity to promote multi category development.

In China, "public awareness of health and urbanization will lead to income and economic growth, which is conducive to the development of the sporting goods market". After the annual report is published, Ding Shizhong, chairman of Anta's board of directors, said, "with the accelerated pace of the integration of sporting goods market, the growth of leading sporting goods brands will be greater and greater market share can be obtained.

We will continue to enhance our competitive edge and strategically grasp the needs of the high growth sporting goods market segment, and strive to enhance our overall performance, brand advantage and distribution network, so that Anta can achieve a balance between sustained growth and healthy development.

The 361 degree also holds hope for the sporting goods market.

According to its financial report, by the end of 2010, the company had 20 footwear production lines with 17 million pairs of shoes in the five Li Industrial Park production base and Chai Tai production base, an increase of 1 over the end of June 2010.

No one can be sure what this round of collective expansion means for Jinjiang shoe companies.

Growth brand

Increase categories to curb share consumption

For the small and medium-sized sports brands, the past 2010 days were not easy. The price sinking policies of several major sporting goods in China almost absorbed all the profits of the small and medium sized brands, but also devoured their original market share without mercy. The original sports market share gradually shrank, which is an indisputable fact that the small and medium-sized brands in Jinjiang have to face.

In the past two years, Jinjiang's small and medium-sized sports brands have been frequently attacked by prices from several major shoe producing areas such as Baoding, Guangzhou, Zhejiang and so on. The homogenization of products makes Jinjiang sports shoes unable to get the top spot in the market. This kind of internal and external troubles has also made them a common understanding: by upgrading the production line, improving the threshold of the production process of sports shoes and throwing away their opponents, in other words, the small and medium-sized sports brands in Jinjiang want to grab more market share by adding new product lines.

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This is the recognition of the deputy general manager of Fujian Jinjiang shoe shoe Co., Ltd., which is approved by Changchun. This year, the new pipeline has also increased two lines, but it is a series of production lines for vulcanized shoes and outdoor mountaineering.

According to the introduction, the new production line has greatly improved in the production process of needles, high frequency and so on compared with the original assembly line.

With the same view in Changchun, Zhang Jiameng, deputy general manager of Fujian hi climbing sporting goods Co., Ltd.

Last year's strong demand for football shoe market enabled hi climbing company to expand a fast assembly line this year for the production of domestic football shoes.

Last year, hi climbing achieved good results in both export and domestic sales, which gave Zhang Jiameng a more adequate base to expand production.

There are many ways to expand the production line directly, such as pie, climbing, golden apple and so on. Many growth brands have chosen another mode of expansion: rectify the original production line and adopt a more efficient and fast production line.

This approach will undoubtedly improve the production capacity of these companies.

The reporter learned that enterprises such as quality and champion birds have increased more advanced machine equipment this year to produce their own high-end brands.

The reason is not difficult to explain. "Although the market share that we can occupy is shrinking, we are all doing sports shoes, and we can not give up straight away. It is better to rely on sports shoes for production and development base, and to increase some new products to seize some new market share according to the market demand changes.

For enterprises, like today's outdoor market, children's shoes market is a good choice.

Champion bird related official told reporters.

Industry perspective

Pie or trap?

Every boss has his own way of talking about expanding production. But when so many companies are expanding their products, how much impact can they bring to the market?

Although many people are optimistic about this behavior, many people are more cautious.

"A line of normal production in one year is about 700 thousand pairs.

Although there is no way to figure out how many pipelines will be added to Jinjiang this year, from the current data, Jinjiang shoe enterprises have more than 20 new pipeline lines this year, which does not include those with intent but not yet started.

This also means that if production is normal, Jinjiang's new shoe production will reach at least 15 million pairs this year.

The actual data will be much larger than this number. "

A person familiar with the situation of the sports shoe industry in Jinjiang estimated this data to reporters.

Compared with the production capacity of over 1 billion pairs of sports shoes in Jinjiang, 15 million pairs may not be a very attractive figure. However, in the cautious industry, it may trigger a new round of large-scale expansion of Jinjiang shoes.

"If you expand production, I will also expand production, which will eventually result in overcapacity."

When it comes to this phenomenon, Ding Sien, deputy general manager of Mao Tai (Fujian) shoes material Co., Ltd.

"From the second half of 2009, the market for sports shoes has gradually recovered, and the growth rate has been astonishing last year, but this growth is built on the basis of the whole market downturn in the first half of 2008 and the first half of 2009. It is a replenishment process, and it is not as strong as the whole market demand before and after 2003."

For this round of expansion of downstream shoe enterprises, Ding Sien thinks that we need to treat calmly.

After editing

The expansion of Jinjiang shoe enterprises is reminiscent of another wave of expansion that took place eight years ago.

At that time, hundreds of shoe companies in Jinjiang shouted slogans for expansion of production at the same time, and the scene was in full swing.

Perhaps this round of capacity expansion can not be compared with 2003, but editors believe that the expansion of production in early 2011 should be more cautious.

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Different market demand, different employment environment, different raw material supply...

The same is the expansion of production, but the expansion and expansion at that time are more different because of this series of differences.

We have no objection to shoe manufacturers' expansion of this round.

Just to wake up in good faith, do you compare the above differences in your decision to expand production?