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    China'S Shoe Industry Has Experienced &Nbsp For The Winter, And The Domestic Shoe And Clothing Market Is In Danger.

    2011/7/18 11:41:00 46

    Market Forces For Shoe Companies

    In July, this is a scorching hot summer, and Chinese shoe companies are experiencing an unprecedented cold winter.

    The labor

    Rising costs, rising prices of raw materials, raising land rents and other issues are just like a vicious tiger blocking China.

    Shoe enterprises

    The way out.

    However, at the same time, the major international brands also shifted their downstream labor intensive industries from China to Vietnam and other cheaper Southeast Asian countries.

    For Chinese shoe companies that are caught up in the dark, this is no more than a worsening situation. Chinese shoe companies are facing a worrying situation.


    domestic

    market

    Small and medium sized shoe companies are worried about the crisis.


    With the introduction of the central bank's third policy of raising interest rates, there has been a serious shortage of gold chains for small and medium sized shoes, and many small and medium-sized shoe enterprises have been closed down under the "shortage of money" crisis.

    Even for those big shoe companies that are strong in resisting risks, they are also faced with the pressure of increasing operating costs, increasing interest expenses, and compressing profit margins.


    The continuous increase in interest rates has made many shoe companies go on thin ice.

    However, rising labor costs and rising raw material prices mean greater difficulties for shoe companies.

    The rise of various costs has made shoe enterprises' profits increasingly "thin".

    In recent days, Lining, Anta and other domestic first-rate footwear brands have been trying to raise prices due to the increase of various kinds of costs.

    Such industry signals make many small and medium shoe enterprises even more caught in a dilemma: no price increases, "meager profits" can not maintain the normal operation of enterprises; price increases, most shoe enterprises belong to extensive operation mode, and the brand lacks competitiveness. The consequences of price increase may lead to a sharp decline in sales volume, which is also a nightmare for small and medium-sized enterprises.


    The international market is changing. Export shoe enterprises are in danger.


    With the gradual increase of domestic labor costs, Nike and other major international brands have fled.

    Many foreign trade footwear enterprises, which rely on OEM production and OEM for international brands, are beginning to feel overwhelmed.

    In the past, OEM for international brand was only responsible for production links. Other channels such as channels, sales and publicity were all responsible for brand operators.

    Now, after losing the brand business, these foreign shoe enterprises need to be independent and responsible for their production and sales. This makes the foreign shoe enterprises without relevant experience, such as headless flies, generally bump around, or march into B2C or switch to domestic sales. There is no mature market thinking and strategic planning.


    In the final analysis, shoe companies take their own fruit.


    Since the reform and opening up in 80s of last century, China has vigorously developed labor-intensive industries with low labor prices to attract industrial pfer in developed countries.

    Under such a political and economic background, the domestic footwear industry can be described as a fish in water and has entered the track of rapid development.

    However, after the majority of shoe companies gain huge profits, they think more about building new factories and expanding their production scale to get more profits.

    At that time, it was in line with the requirements of national conditions and the level of development of productive forces.

    However, until now, many shoe companies still remain in this stage of extensive primary production mode, and seldom consider how to optimize and upgrade the production structure.

    Until now, the advantage of cheap labor has been replaced. After the exposure of the dense labor industry, many shoe companies regret it.


    Learn from pain, do not rush into medicine


    After the domestic footwear industry faced a comprehensive crisis, many shoe companies began to "mess up".

    Some choose to find another way of life, and the whole enterprise changes into his own business; some also close down, invest the remaining funds in the hands of real estate and other profiteering industries. There are also high salary employees who employ so-called marketing experts to diagnose the business, and even more directly roll the money away.

    The whole footwear industry is in turmoil.

    But the more chaotic, the bigger the shoe companies need to keep a clear head.


    Although this "cold winter" is slightly cruel and long, every shoe company should calm down and reflect deeply.

    How should China's footwear industry go? Where to go? This is not only a livelihood issue for every Chinese shoe company, but also a deep sense of responsibility for every shoe enterprise.

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