Chengdu Shoe Enterprises: Poor Management Has Become A Shackle Of Development

Encountering Waterloo, "it seems that we have just waited for spring, and then we have another winter". Some people describe the shoe market in China in recent two years.

Indeed, for China's footwear industry, 2006 and 2007 were eventful.

First, a big anti-dumping stick from the European Union has made Chinese shoe enterprises confused.

Next is Russia's move.

According to a decree signed by Russian President Putin in November 2006, from January 15, 2007 to April 1st, the number of foreigners engaging in retail business in stalls, markets and places outside shops should be limited to 40% of the total number of retail businesses.

From April 1, 2007 to December 31st, foreigners will be prohibited from engaging in retail business.

"We reluctantly returned hundreds of thousands of goods after emptying them.

It's hard to say that the Chinese businessmen are losing their blood money and trying hard to sell them.

Mr. Wei, who has been doing business in Russia for many years, said.

At the same time, the concentration of the domestic market is higher and higher, the stronger the stronger, the smaller the market space of the small and medium-sized enterprises, and the small and medium-sized leather shoes enterprises are facing great challenges.

RMB appreciation, shortage of migrant workers, energy shortage, rising land costs, rising raw material costs, and so on, let the entire small and medium-sized leather shoes enterprises in anxiety.

For the Chengdu in the big environment, the development of the shoe market is even more worrying.

Although Chengdu is one of the four largest shoe production bases in the country, there are not many brands that can be heard. There are not many competitive advantages in the country. Therefore, under the competition rule of the stronger, the footwear industry of Chengdu is destined to face the situation of internal and external difficulties.

It is understood that more than 700 of Chengdu's footwear industry 90% of the products are exported to Russia, after Russia's adjustment and implementation of the new policy, it has been hard hit.

In the development of shackles, "enterprises are run by people, and business consciousness directly determines the speed and quality of the development of enterprises."

Sichuan Leather Industry Association footwear industry secretary Xu Bo said.

He believes that 60% of the problems currently facing the footwear industry in Chengdu are poorly managed.

"Management issues are directly related to business awareness. The footwear industry is an extensive type, that is, labor-intensive industries. This does not involve high technology, and the key to winning is management.

Management is good, enterprises are developed, and management is not good. Enterprises always linger. "He said," at present, the lack of shoes in Chengdu is precisely the management mentality, that is, the sense of management. "

Looking at the history of shoe industry in Chengdu, it is almost a history of industrial change.

According to Xu Bo, Chengdu shoe enterprises have experienced 4 relocation so far.

Every relocation will cause a lot of burden to enterprises. Based on this problem, the government has begun to create "one capital and two gardens" to create a favorable environment for the development of footwear industry in Chengdu.

"Unfortunately, the government's intentions can not be fully understood by shoe companies. Many of them are unwilling to move to the industrial parks built by the government because of their personal interests. This not only brings trouble to the government's future guidance, but also is not conducive to the development of shoe enterprises themselves".

Xu Bo believes that in addition to management problems, there is another problem in Chengdu shoe enterprises, which is product design.

The consciousness of the manager determines his behavior. Many enterprises are willing to copy or copy the design and style of others, which is a shortcut.

"It is not that plagiarism is wrong, but we should pay attention to innovation.

Today's sporting goods boss Nike has just started to develop and relied on copying Adidas's marketing experience, but today Nike has made such a success, relying on innovative ideas.

It seems to be a common practice for many small and medium-sized leather shoes enterprises in Chengdu. Counterfeiting seems to be the practice of many enterprises. To a certain extent, this imitation method can really support the development of enterprises, but this may only be an effective strategy in a certain period of enterprise development or in a certain stage of the market.

Xu Bo believes that as the market continues to change, the new market environment begins to torture business operators' vision and management strategy. If the enterprise still stays in the copy stage, the road ahead will no longer be flowers and applause.

From the perspective of the market, the current consumption of leather shoes has shown the tendency of personalization, fashion, leisure, avantgarde, fashion and nationalization. Currently, the popular market of custom shoes, casual shoes, breathing boots, Arctic boots and California shoes has been widely favored by consumers, which illustrates this point.

All these information have already indicated that brand personalization is a strategy that enterprises must implement, and it should be regarded as a strategic height of an enterprise.

"Changing the traditional way of thinking and creating personalized products may be a good choice for Chengdu shoe companies," Xu Bo said.

In fact, many shoemaking enterprises have proved the feasibility of this road with their own experience.

In order to adapt to the development trend of modern market economy, the leather shoes changed the previous strategy of using single brand to fight the world, and began to implement the brand tier strategy instead.

Brand name "Renault" has been introduced, brand name "vantage", "fashionable" brand "best picture", popular brand "good people", avant-garde fashion brand "elegant wave Flute" and a series of brands, with different brand personality, different design styles, different price positioning, to meet different consumer groups.

At the same time, at the same time, the characteristics of the polarization of consumers are becoming more and more obvious. Some people are turning to high-end leather shoes because of their economic growth. Another group of people are turning to buy low-grade leather shoes and even cloth shoes because of lower economic income.

Apart from the polarized population, there are still quite a few middle income earners.

Many enterprises, when positioning, invariably aim at the middle end market and create a battle of "a thousand armed forces across a single timber bridge".

Xu Bo believes that this phenomenon will inevitably bring a lot of "casualties".

Xu Bo believes that because of the diversion of mid-range consumer products to high-end consumption and low-end consumption, low-end product brands have not yet formed outstanding brands.

Therefore, there is a greater chance of forming strong brands in low-end products.

In addition, the high-end leather shoes market has always been occupied by foreign brands.

However, this pattern is being broken, and AOKANG has begun to enter the high-end market. It launched the beautiful beauty brand, specially invited Italy designers to design, adopt imported leather, ready to build high-end women shoes brand.

The company has also launched the high-end brand "Renault" to compete with foreign high-end women's shoes.

Therefore, it is one of the strategies to get rid of the market competition dilemma by finding out the accurate positioning of the brand and extending it up or down appropriately.

A lot of people agree with the idea of "making chicken heads instead of Phoenix tailed".

"In my opinion, no matter whether the chicken head is good or the phoenix tail, whether big brand or small brand, whether it is a big battlefield or a small battlefield, if it can be unique, it will become a winner."

Xu Bo said.

Xu Bo, who is a big fish in a small pond, said that China has a vast territory, and the characteristics of many regions are very obvious. However, there are various features in the foot type: Wenzhou is thin and thin; Shandong feet are fat; Guangdong feet are narrow; the northwest foot is thick; the Northeast foot is long.

Therefore, in the case of obvious regional characteristics, enterprises should focus on building regional brands.

Local folk milk is a local brand in Cangzhou, Hebei, but it faces national competition.

Because its rivals are not only local products and brands in Cangzhou, but also powerful Wahaha and robust.

After thorough research, it is found that Cangzhou is one of the most serious areas of high fluorine in China. Its water source contains excessive fluoride, which seriously endangers the health of the people in the area. Therefore, the rhymes have launched the "folk song lowering fluoride milk" for the high fluorine hazard. The unique location has made the rural rumour succeed at one stroke.

Also, the key is that the differentiated market found by folk songs milk is small enough, so that the strong players such as Wahaha and love are not interested in competing with you.

The folk milk succeeded in making a big fish in a small pond.

In the shoe market, "red hat" in the Shaanxi market, "expensive faction" in the Gansu market to build a strong regional brand.

Paul Knight shoes industry pioneered the strategy of regional new protagonist brand atmosphere breakthrough.

The so-called new regional protagonist is to choose a region first, and then the company to integrate all resources, to make the brand in the region to achieve absolute superiority, similar to the Big Mac, so that competitors can give up the competition for the first place, so that the brand of Paul Knights will become the "boss" of the footwear market in the region.

"Every brand has to fight differently."

It is natural to make big fish in the pond, but after all, it is only a few brands of pleasure.

If you can't make a big fish in a big pond, you might as well make a big fish in a small pond.

Xu Bo suggested so.

As a labor-intensive industry, many enterprises will experience such a stage in their development: Wholesale system (extensive production and marketing separation), joint venture system of enterprises, franchised stores and franchising.

Nowadays, many small and medium sized shoe enterprises give their market fate to agents, or expand blindly in the whole country, but they often use the telephone or cell phone to control the market in their own way. The operation of such a way, of course, is not deep enough for enterprises to get close to the market, resulting in poor returns and poor quality of network construction.

"How to change passivity into initiative and change management concept is an urgent problem for Chengdu shoe enterprises", Xu Bo thinks.

"The healthy development of an industry or enterprise requires the joint efforts of the government, enterprises and society.

Therefore, as an industry association, we appeal: first, the government should have the support of relevant policies and coordinate with the national economic and environmental development; two, we should strengthen international exchanges and promote the formation of a harmonious trading environment; three, the government should encourage enterprises to bring forth new ideas, implement the "science and education to promote leather and create new enterprises"; four, we should continue to advocate good faith management and establish a good corporate atmosphere.

Xu Bo said.