Foreign Trade Shoe Enterprises Fall Into The Polarization Of Orders

The new factory of Cheng Chang shoe material has been built and is expected to be put into use in June. Originally, the shoe material of Cheng Chang was prepared for various tricks. Recruit staff Now, these tricks are useless. "Now, now that many companies are laying off workers, there is a sudden increase in the number of workers on the market. These hiring plans are no longer needed, and they save a lot of money." Zhuang Huihuang, deputy general manager of Cheng Chang shoe material company, told reporters.

In addition, reporters learned from the industry, a listed shoe material Q company subsidiary of Jinjiang recently laid off nearly 300 people, causing widespread concern in the industry. With the reporter's in-depth understanding, we found that a lot of shoe companies had layoffs in this period. Not only is this listed shoe material enterprise, many small and medium sized foreign trade shoe enterprises are also constantly laying off workers, which is in sharp contrast to the situation of crazy buying of employees at the beginning of the year. What is the reason for these shoe companies to lay off workers? Reporters interviewed with questions. Industry insiders 。

Shoe orders for foreign trade Polarization

A foreign trade shoe company S company chief General Ding told reporters that Q's layoffs are not actually everyone, so it is to cut off the shoes factory employees, this layoff occurred in its recently acquired subsidiary production shoes enterprises B.

"During this period, the total number of orders for Jinjiang's foreign trade shoe enterprises has been declining, and even the domestic market for sporting goods has also been somewhat flagging. Q shoes material owners originally felt that making shoes for shoes production had made money, so they invested money in purchasing, and now found that the market was not good enough to do so, and they did not want to develop their footwear enterprises, so they decided to cut them off." Ding mentioned his views to reporters.

It is reported that during this period, although many small and medium-sized foreign shoe enterprises have been laying off workers due to the lack of orders, many orders for foreign trade shoe enterprises are on the rise.

Reporters learned that, in the foreign trade footwear enterprises, reputable Calais shoes Plastic Co., Ltd., due to rapid development in recent years, orders surging, the new plant will expand in the year 4~6 production lines, employees will increase from the original more than 1500 to 3000~4000 people. Lin Genghuang, general manager of the Calais League company, told reporters that the move was on the one hand the company's plan for many years, and on the other hand, the company's orders surged this year.

Ding Zong told reporters that the distribution of orders for foreign trade shoe enterprises is now polarizing. Large shoe enterprises are unable to complete orders, production periods are full, while small and medium-sized shoe enterprises are forced to lay off because of no orders.

It is reported that due to the general decline in total orders this year, there has been an embarrassing situation. Under such circumstances, the choice of foreign manufacturers has also become stricter. Most foreign businessmen will choose to place orders under the more stable scale producers, resulting in the polarization of orders.

The consequences of blind expansion

In fact, in the industry's view, although the total volume of orders declined this year, this is not the root cause of polarization. The root cause is the blind expansion of production capacity by shoe companies.

"The orders for shoe enterprises in these 2 years have been flying like snowflakes. Jinjiang's foreign trade companies and foreign trade enterprises have received a lot of orders last year. There is a kind of crazy state that you can take orders as long as you have equipment." A foreign trade shoe business executive deputy chief Lin told reporters that because everyone has a single hand, so that the entire Jinjiang production capacity is naturally insufficient. As a result, many shoe companies are expanding their production lines or paying cash in full. The market at that time was that whoever had enough employees and who had enough production lines could make big money. So, this year, we are crazy to expand recruitment, and think that we are fully prepared to wait for "Dongfeng". However, this year's "Dongfeng" is not coming. "So many shoes produced in the first two years, how can the market be digested?" Mr. Lin shook his head. In his view, this is the inevitable result of blind expansion of shoe enterprises in Jinjiang.

Ding always felt the same way. "That's why I have received so many orders this year, but I still have no intention of expanding the production." Ding told reporters that before expansion, we must know clearly why the large quantities of orders suddenly came from, and whether they are sustainable. If we understand clearly and make further plans, only enterprises can develop stably, and blind expansion may eventually be self searching. In Ding Zong's view, this phenomenon is a cycle. In the first two years, the number of orders is large, and the volume of production is large. Orders will surely decrease this year. This is not the first wave. As long as the development trend of the industry is accurately identified, it will be able to handle well at any time.

Horizontal stagnation restricts the two allocation of capacity

Since the order starts to polarize, why not try to split the order and carry out the two allocation of the capacity?

The above Ding Zong told reporters that although their business orders are very full, they have tried to produce some small and medium sized foreign trade shoes enterprises, but because of the low management level of these small shoe enterprises, the quality of the production is difficult to detect by foreign businessmen, and the final loss is still their own, so now they are gradually giving up cooperation with these small businesses.

"In the fierce market competition, it is too risky to place some orders for small and medium-sized shoe manufacturers. In addition, due to the continuous decline in the volume of orders in the entire market, the requirements for product quality of these foreign businessmen are becoming more and more stringent, and the production capacity of many small and medium-sized shoe enterprises can not reach the standard at all. Ding told reporters.

It is reported that these small and medium-sized enterprises receive redundant orders from large enterprises, earn a little bit of processing costs, or even just to keep workers, so they are not very strict in quality control. And these big enterprises are worried that the materials are provided to these small businesses themselves. The date of shipment is agreed with the foreign businessmen. When the time of delivery, these small businesses often fail to deliver the goods and pay cash or cash. This situation will cause themselves to get into trouble. Worse result is, if the quality of these products is not up to standard, causing their enterprises to default on foreign businesses, they can not earn money without saying that they will pay the penalty for breach of contract. So now these scale shoe companies prefer to work hard to produce their own products, and do not want to place orders outside. After all, this is more secure.

In this regard, Lin Gong Huang said: "in the face of increasingly fierce market competition, the level of production management of every enterprise must be constantly improved so as to cope with the increasingly diversified demand of the market. It is the consensus of enterprises that we should benefit from management and enhance our core competitiveness. It is reported that Calais not only recently chose to cooperate with the boss management company, but also by consulting the company's team strength to enhance the management level and management mechanism of the enterprise so as to lay a solid foundation for its foothold in the market.