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    Raw Material Change Induces Jinjiang Shoe Industry To Plunge Into Price Vortex

    2011/7/28 14:50:00 50

    Price Rise Of Raw Materials And Footwear Industry

    July 28th, according to the Fujian inspection and Quarantine Bureau issued a statistics: 1-5 months in 2011, Jinjiang port Exit The 173 million pairs of shoes and shoes, the value of $830 million, grew by 6.16% and 26.17% compared with the same period last year, of which 45 million pairs of shoes and shoes were exported in May, and the value of goods was 240 million US dollars. The annulus ratio increased by 14.72% and 30.12% respectively, up 15.46% and 43.16% respectively over the same period.


    Since then, the Fujian inspection and Quarantine Bureau has issued another statistics: in 2011, 1-5 months, 373 tons, 26957.4 tons and 70 million 568 thousand dollars of salted cowhide imported from Jinjiang port increased 9.4%, 21.5% and 171.6%, respectively. Other ports did not enter the salted hide. It is reported that salted cattle hide mainly from the United States, Australia and other countries and regions.


    Roughly speaking, there seems to be a "paradox" between the two official figures: the growth of export footwear is low, but the value of exports increases. At the same time, the export volume of shoes and boots is reduced, but the import of salted raw hide of footwear raw materials is increasing. What is the "contradiction"? Is there a change in the foreign trade market or a new trend in the domestic market?


      Foreign trade: shift from low to middle grade


    During the visit, reporters learned that due to the declining demand in the international market, Jinjiang's foreign trade footwear orders were generally scarce this year, and many small foreign shoe enterprises in Jinjiang even closed due to lack of orders. However, it is gratifying to note that the unit price of Jinjiang's foreign trade shoe enterprises has been changing quietly. According to Ding Zisen, general manager of Sen Yu shoes and Garments Co., Ltd., the unit price of Jinjiang's foreign trade footwear industry has risen from 3~4 US $10 a year ago to six or seven US dollars per pair in the previous two years, up to today's 9~10 dollar per pair.


    "It is precisely because of the reduction in orders, Jinjiang. Shoe enterprises Orders will be more biased towards high-end. Gym shoes Like Mori Ha, the latest single price is above $10. The improvement of the unit price of foreign trade enterprises is an inevitable choice for the development of enterprises. On the one hand, the supply of goods is more expensive, and on the other hand, it is also due to the increase in costs of raw materials and labor. " Ding Zisen told reporters that the original low-end goods have been gradually flowing to Hebei and Wenzhou and other production bases. Now the unit price of orders for Jinjiang's foreign trade shoe enterprises has been generally rising. In such a fierce market environment, only the development and production of high-end products can go on for long.


    According to Cheng Lirong, a marketing personage of Bo Si business management company, it is precisely because these foreign trade sources are coming closer to the middle and high end that there are also some changes in the raw materials of the products. "In the production and development of high-end products, most shoe companies choose to add more leather materials to the original sneaker design as a way to improve the product quality, while the trend of Jinjiang's foreign trade supply is changing from low to middle to high-end. In a single enterprise, it may be only a slight change, but it has caused changes in the raw material market in Jinjiang." Cheng Lirong said.


    "In recent years, the style of outdoor casual shoes seems to be more popular among businessmen, including mountaineering shoes, rock climbing shoes and other special styles, which are most popular with European and American businessmen." Deputy General Xu Shu long, deputy director of Hualong sporting goods Co., Ltd., in an interview with reporters, said that such outdoor high-end products have higher profits and higher requirements for production capacity, which is the development trend of many foreign trade enterprises.


    This reporter has learned that many foreign shoe enterprises in Jinjiang have begun to expand in order selection. It is reported that more and more shoe enterprises have been derived from the original order of only sports shoes, and have begun to accept more and more orders for outdoor products based on mountaineering boots, so as to expand the production capacity and scope of enterprises.


      Domestic sales: product transformation leads to raw material change


    It is difficult to trigger a change in the raw material market because of the change in the supply of foreign shoe enterprises. The transformation of domestic products is another pushing force for such changes. {page_break}


    The reporter learned from the visit that the domestic brand of Jinjiang footwear industry has occupied a large part of the sales of raw materials. Cheng Lirong analysis shows that in recent years, many brands in Jinjiang have changed their product positioning, which is one of the fundamental reasons for the increase in the import of leather raw materials.


    It is learnt that recently, the famous sports products Co., Ltd., in order to expand the market, has continuously launched the concept of "leisure sunlight" and launched the first series of products of the series of industrial boots to capture the market share of leisure products. Even the Yi Jiabao Industrial Co., Ltd., which originally only made cotton shoes, has also opened the product diversification strategy. The products are derived from cotton shoes, which are derived from the series of shoes, series of classics, fashion series, outdoor series and other shoes and clothing series. The new positioning of the "city outdoor life" of Yi Jiabao brand has been released. In addition, the footwear products of the alligator group have changed from body products to leisure business shoes. Fujian Shoes Co., Ltd. has launched an outdoor brand "Tian pun Lun". Since Anta, 361 degree, XTEP and other second-line sporting goods enterprises continue to occupy all kinds of sports resources, sports goods market competition has become very tragic. Under such circumstances, only by seeking the differentiation of brand and product and market can we occupy our place. Therefore, the sporting goods industry in Jinjiang has been changing to the orientation of leisure business and so on.


    "The change of positioning results in the transformation of R & D and design, and ultimately leads to a change in the demand for raw materials." It is reported that not long ago, Jinjiang and Shishi port main importers Fujian Xingye leather company and Fujian Guan Xing leather company also imported a lot of salted cowhide. According to Luo Fengxu, general manager of Guan Xing leather company, according to the positive situation of raw leather trade, the company is continuing to increase plant area, update equipment and expand production capacity, vigorously introduce advanced production technology, and set up Guan Xing leather research institute and academician workstation. "Scientific research capabilities and production and marketing capabilities have been further improved, and the demand for imported salted cattle skin has also risen." Luo Fengxu said that Guan Xing company currently has the largest and most complete leather production base in Asia with an area of 345 mu.

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