How Should Chinese Shoe Enterprises Cope With The Attack Of "Meng Shoes"?

According to the Ministry of commerce website, Bangladesh is famous. Shoemaking West Germany, President of the company's leading footwear industry, has recently interviewed that the competitive advantage and expansion capability of the Chinese shoe companies are no longer available due to the shortage of labor and wage increases. The demand for shoes in the Chinese market will double in the next five years, so that the shoe-making enterprises in Bangladesh should seize the opportunity to occupy the Chinese footwear market.

At home, the high-end footwear market has been firmly occupied by international brands such as Nike, Adidas, KAPPA, PUMA and so on, while most domestic footwear brands mainly locate the middle end market such as 234 tier cities. There are also some brand names, such as the low-end market, the unlicensed footwear enterprises, and the lack of sound brand marketing and good scientific research and development, production and design capabilities of such shoe enterprises, often relying on low price means to survive.

Due to the wide market prospect and strong demand of domestic footwear industry, many international top brands have been optimistic about the development prospects of the domestic high end market. According to recent news, Nike plans to develop shoes with relatively low price in recent years, preparing to enter the low-end market of the domestic two or three line market, and expand the market depth of the brand. The move of Nike will trigger more international brands to enter the high end market of the domestic footwear industry, which will trigger a new round of fierce competition, and the brand of the domestic shoe industry will suffer a severe run.

Due to the quality and technology content of products and the influence of product service and brand, the brand of domestic footwear is slightly inferior to that of international brands. Coupled with the current domestic labor costs and the rising prices of raw materials, domestic brands will lose the biggest advantage in price to the international first-line brands. In the face of the upcoming international brand launch of low-cost routes, domestic shoe enterprises will be worried.

Misfortunes never come alone. While domestic brands are being run by international high-end brands, foreign low-end footwear industry is also eager to get a share in China's big market. Compared with China, Southeast Asia, Bangladesh and Africa at this stage will have more advantages in terms of cost: they have cheaper labor, land rents and raw materials. In terms of price, these countries will be more competitive than China. This means that if these international shoe businesses enter China, they will go home. Low-end The domestic brands of the market line will be devastating. Faced with this "double attack", Chinese shoe enterprises will usher in the footwear industry "2012".

In the face of such a dangerous situation, "before the strong enemy, after the pursuit of troops", China's shoe enterprises have no way out. According to scientific data analysis, China's fertility rate has been below the replacement level for 20 years, and now it has dropped to below 1.5. (some people think it is 1.8). The reduction in the number of labour force after 2015 will drag on the growth of GDP. In turn, the aging population is expanding rapidly. This means that the advantage of China's cheap labor will no longer exist. In the face of the impact of the lower labor force of foreign shoe companies, Chinese shoe enterprises can only give up the domestic low-end market with reluctantly, and choose to fight with international brands to win the domestic high end market.

At this stage, domestic shoe enterprises are still relatively weak in terms of independent innovation ability in science and technology, and many high-end technologies are still in large shoe enterprises abroad. In terms of brand marketing and business management concepts, most domestic shoe enterprises follow the foreign shoe companies step by step and lack independent thinking and innovation. Many enterprises are not hard to become a famous brand in China. It is easy to do so by imitating the business ideas and concepts of big brands. And to create an international brand is not something that Chinese shoe companies can learn. They can do more than imitate.

To achieve an international brand, not one. Shoe enterprises Alone can do it, it needs good breeding soil, and more needs the whole industry's joint efforts. After shouting "China creation" for so many years, the state has rarely been able to put it into practice, and the protection of intellectual property rights is even weaker. Only when the state can truly create a favorable policy environment, increase the protection of brand intellectual property rights and encourage independent innovation, can the fertile brand of the shoe industry be cultivated.

For this footwear industry, We must actively promote the optimization and upgrading of the whole industry, transform the intensive production mode, and change the backward and extensive production mode. Enhance the capability of independent innovation, increase the R & D intensity of products, increase the technological content of products, and enhance the added value of science and technology and the added value of design. At the same time, we should strengthen the integration of the footwear industry, change the backward and decentralized mode of operation, and enhance the overall competitiveness and cohesion of the footwear industry.

To create an international brand is not only a long way to go for Chinese shoe enterprises, but also a matter of great urgency. The future and destiny of Chinese shoe enterprises can be said to be a struggle.