China Shoe Market: Survival Or Extinction

According to the data, currently about 16000000000 pairs of shoes made in China, accounting for 60% of the total world footwear, are the world's largest footwear manufacturing base, accounting for more than 53% of the world's total exports.

At the same time, China is also the second largest footwear consumer market in the world, accounting for 22% of the world's total consumption, second only to the United States.

However, behind this group of seemingly huge data, China's more than 20000 leather enterprises and 4 million employees do not seem to have taken up any big advantage.

The huge market not only failed to produce super rich and its own super brands, but also left some shoe companies on the verge of survival.

Observers say that the root cause of this phenomenon is that 85% of the total domestic footwear is low and medium grade, while most of the middle and high grade shoes are imported from abroad.

A well-known secret is that medium and high class shoes are the focus of profits.

Narrow roads survive from August 2001 to January 2002.

For many people, this period is just a passing time, but it is a nightmare for Wenzhou shoe makers.

At that time, Russia seized Chinese goods and Wenzhou shoes were involved.

The whole incident led to a loss of about 300 million yuan by Zhejiang businessmen and the loss of individual enterprises to tens of millions of yuan.

Grief did not end there.

In winter, the footwear products of more than 20 Wenzhou enterprises were burned in Rome, Italy. In the early hours of September 17, 2004, Chinese shoes were burned in Spain, and a Chinese container and a warehouse full of local sales of Chinese shoes were burned out, resulting in an economic loss of about 8 million yuan. In 2005, more than 11 hours in March 12th 2005, a large number of "police in Russia's tax department against economic crimes" suddenly arrived at the Sarda Voight flower and bird market, which was 14 kilometers away from the southern city of Moscow. They had taken away about 82000000 yuan worth of shoes in the Chinese shoe container depot stored in the Sarda Voight flower and bird market, of which about 60000000 yuan were produced in Wenzhou, involving 22 enterprises, and 2006 began to trade barriers for Chinese leather shoes. 2003

In fact, in recent years, several major footwear production bases in China, especially in Wenzhou, have been resisted to varying degrees in exports, because all kinds of accidents have caused huge losses to manufacturers, and the foreign trade of Chinese shoes has been severely damaged.

This is just the beginning of the internationalization of China's footwear industry.

With the acceleration of global economic integration, other developing countries in the world have joined the footwear manufacturing industry, such as Brazil.

The Brazil government has formulated the "cattle to shoe" industrial chain development plan, starting from the source, improving the quality of leather shoes, improving the design of leather shoes in Brazil, and actively creating their own brands.

As the world's third largest shoe producer after China and India, Brazil produces about 650 million pairs of shoes each year, 30% of which are exported.

The United States, as a close neighbor of Brazil, attracts about 70% of Brazil's shoe exports annually.

Brazil has become China's most competitive rival in the US market.

For a time, the situation of Chinese shoes is worse.

A series of strikes have made many poorly prepared domestic manufacturers unprepared, and have adopted a low price strategy to stabilize the existing market share of Chinese shoes.

Wang Zhentao of AOKANG group once said that AOKANG received orders from a large foreign enterprise, and the other party offered a price of 3.2 US dollars per pair.

They must lose their calculations.

So I gave up such an order. Unexpectedly, there was an enterprise in China that took the order and the price was 2.9 US dollars per pair.

In fact, AOKANG met more than just a special case.

Data show that in 2006, 7 billion 800 million pairs of Chinese shoes were exported, amounting to $21 billion 800 million, with an average price of only $2.8.

Among them, about 2000000000 pairs of shoes exported to the United States amount to 7 billion 600 million US dollars, accounting for 34.9% of the total export volume of footwear in the country.

Shoes exported to the US are mainly low and medium priced, with an average price less than 1/3 of Italy's shoes.

In the first half of this year, 4 billion 400 million pairs of Chinese shoes were exported, with an amount of US $12 billion, and the average unit price decreased slightly.

More and more facts have proved that many domestic enterprises are still trying to win profits by replacing orders with profits in order to win orders.

No one knows, this strategy itself is a mistake.

The absence of a brand with 1 billion 300 million people in China is the envy of many enterprises.

After all, the consumer market composed of 1 billion 300 million people is not allowed to be small, and so is the shoe industry.

But what does exist does not mean that it is owned.

To be precise, China's footwear industry has entered the market integration period.

As a labor-intensive traditional industry, private enterprises accounted for the overwhelming majority of China's footwear manufacturers. Early oversupply led to a period of super profits, which attracted many investors to swarm into the market and tried to get a share.

In just a few years' development, more than 20 thousand shoemaking enterprises have been formed in the whole country, with about 4000000 employees and 16 billion large pairs of shoes each year.

Behind such a group of data is that there is not a brand that can be heard around the world. What is ironic is that the high-end brands currently active in China's shoe market are all foreign brands.

It is true that China's huge market not only attracts the attention of domestic capital, but also has long coveted foreign capital. They constantly organize the power to collect information in the Chinese market, according to Chinese preferences and feet.

With the opening of the national gate, they have advanced management experience, abundant capital, good reputation and excellent technology to land in China.

The United States, with its strong economic strength, is the first country to step out of this step. They have created one myth after another, Nike (Nike) and Adidas (Adidas).

Famous brands all over the world have appeared in China and quickly occupied the high-end market.

It has been said that the success of Nike and Adidas is due to its propaganda strategy, and it has been cited for many times to invite celebrity endorsement advertisements as evidence.

But in the eyes of Nike and Adidas, advertising is just a way of publicity, a tool for brand maintenance rather than a way to create brand.

Domestic brand Xi long long has paid great attention to inviting Aaron Kwok, who is a hot spot for a time, as the brand spokesman.

With Guo Chao's popularity, the sale of Xi Long lung suddenly made the operator laugh.

But two months later, there were many consumers' reactions. After the shoes were bought back, they just went bad for a long time, and for a while, people expressed their dissatisfaction.

Its sales have plummeted.

From this, we can see that the most important thing of a brand's success is "gold content in technology". The quality and comfort of shoes are the main basis for people to choose products.

Nike's boss has admitted that in this line, every 6 months there is a new life, everything is short.

We have to show consumers a new face every 6 months, otherwise we will be left behind.

It is precisely with this belief that Nike is constantly innovating, developing various kinds of extended styles, such as basketball shoes, tennis shoes, etc., and constantly innovating in the style, color and performance of shoes. The shockproof system with shockproof air cushion is first invented by Nike.

Thanks to its technological advantages, Nike has stepped up its shopping malls and Nike's unique way of operation.

Nike itself spends a lot of money on investment and factories. They use the cheap labor force in the world to produce goods for themselves, reduce costs, and popularize Nike to the whole world.

Most shoe makers in China are unwilling to invest manpower, material resources and financial resources in the research and development of shoes.

Finally, the reality is: About 10000000000 pairs of shoes made in China, 60% of the world's total footwear, 85% of which are low and medium grade, while most of them are imported from abroad.

The awakening of "big industry" and "small brands" will die out; small industries and big brands will flourish.

What is the development of enterprises?

By creating a strong, dynamic, charismatic brand of value and status, enterprises without brands will eventually die out.

Only the industry with many strong brands is the real big industry.

As long as big brands are created, small industries will surely win glory for the country.

Although China's modern footwear industry has a history of over 100 years, it has no Chinese position in the world's well-known footwear brands.

China has 2 billion 400 million pairs of leather shoes exported abroad every year, but there are no brands that can really be heard in the world.

This passage is from the mouth of Zhu Xianggui, chairman of the group.

Zhu Xianggui said: "in today's economic globalization, the creation of national brands is facing unprecedented challenges.

It is gratifying to note that the downturn in China's footwear industry has made many people sober up, and more and more Zhu's understanding has gradually come into force.

China's footwear industry is beginning to see a trend of building up "Chinese brand" together, and gradually abandoning the old road that goes down the middle.

At present, there are 13 Chinese famous brands and seven well-known trademarks in China. At the same time, large and medium-sized enterprises in China have also begun to cooperate with international brands to find their own shortcomings from their rivals, improve their management and skills, and integrate advanced fashion elements into the design.

The famous brands of China, including BELLE, AOKANG, Kangnai and so on, have set up R & D centers abroad, employing world-class designers to introduce fashionable footwear and keep up with the trend and direction of the world.

So far, Kangnai has established its own stores in more than 10 countries, and AOKANG group has registered AOKANG trademark in 50 countries and regions such as Italy, the United States, Spain and other countries, and has signed an agreement with GEOX, the largest shoe manufacturer in Italy, to jointly develop the world leather shoes market.

In addition, AOKANG has built five major sales centers all over the world, and has set up 4000 chain stores.

It has invested 600 million yuan in Shanghai to build up the export leather shoes production base with the highest degree of modernization and internationalization in China. It has established a cooperative relationship with more than 1000 international shoe manufacturers in more than 40 countries. After that, it invested about 10000000 yuan in cooperation with Canada's Jie Ya company, and established a ERP management system in 3 years to ensure that the production and marketing system of about 10000000 pairs of shoes sold in the world is fully and effectively followed up. Information flow controls logistics and capital flow, shortens the space-time distance in operation, saves and controls costs, and integrates more funds into product research and development to achieve the upgrading of shoe design and manufacturing processes.

Chengdu chose August 17th, according to sources from China Leather Association. At present, the global shoe industry has an annual production scale of about 16 billion pairs, while Chengdu produces 160 million pairs of shoes a year, accounting for one percent of the output of the global footwear industry.

According to the news, in 2006, there were about 2000 shoe making enterprises in Sichuan, of which nearly 1700 were in Chengdu, and Wuhou District, which was the center of Chengdu footwear industry, gathered 80% of Sichuan's shoemaking enterprises and 90% of the supporting enterprises.

At present, the footwear industry in Chengdu has formed nearly 150 thousand employees, with an annual output of 160 million pairs of leather shoes and an annual production value of 15 billion yuan.

Chengdu footwear is dominated by women's shoes, and there are about 1300 women's shoes manufacturers in the city, with an annual output of 140 million pairs.

These achievements seem to be worthy of the title of "China Women's shoes city" awarded by Wuhou District Light Industry Federation and China Leather Association in 2006.

In fact, Chengdu can compete in the footwear industry.