Dialysis The Development Situation Of China's Footwear Industry After A Comprehensive Reshuffle

The global financial crisis of 2008 triggered by the subprime mortgage crisis in the United States has made it possible for most countries and regions. Economics It is difficult to return to normal today. Trade Most of the enterprises are in a dilemma.

The economic environment in Europe and the United States continues to slump, the Middle East and North Africa have been constantly turbulent, and Japan's nuclear radiation is not going to disappear. In the world's major media, natural disasters and man-made disasters are seen every day, which has cast a thick shadow on people's lives in the world. Influenced by this, how the current operating environment of the 2011 shoe industry in China has been concerned by the industry.

Is the industry transferred? How can it be transformed locally? industry How should we upgrade China's footwear industry?

Industrial transfer

When an enterprise is restricted by factors such as local environment, policies, personnel, customers and so on, when the development space is limited, enterprises will transfer part or all of their production from original production area to other areas. This phenomenon is called industrial transfer.

At present, China's footwear industry has no real industrial transfer. China's six shoe industry bases (Guangdong, Fujian, Zhejiang, Shandong, Chengdu and Jiangsu) have not disappeared at present, and the competitiveness and scale of the world are expanding. Their production capacity, management level and technology have been greatly improved and improved. Most large and medium-sized shoe enterprises have set up processing plants or sub factories in the inland provinces and other Asian countries for future development strategies and to meet the needs of customers and the existing environment.

Considering that most of the staff cadres born in the 60s and 70s of last century have been married, most people have to return to their homes in order to educate the elderly and children. Most of the newly opened shoe enterprises in Jiangxi, Hunan, Hubei, Henan, Anhui and Guangxi are considering this factor, such as Baocheng in Jiangxi, Hunan, Henan, Huajian in Ganzhou, Xing Xing in Ganzhou, BELLE in the Ganzhou, mace in the middle and so on.

When it comes to industrial transfer, not all enterprises can transfer or conditionally transfer. Enterprises transfer or set up branch factories have great relations with the nature of enterprises. According to the author's observation and statistics, only a large part of the shoe enterprises in a certain part can talk about the industrial transfer. Directly speaking, it is the size of the enterprise that has more than 3000 people's shoes. Of course, it is also limited by the conditions of the enterprise itself, such as economy, management, customers, suppliers and so on. The ability of industrial transfer is also related to the scale and strength of enterprises. A world-class enterprise can transfer to most countries and regions, and its viability is not much. For example, Baocheng's industrial transfer in Vietnam, Indonesia, Bangladesh and other places in Guangdong, Jiangxi, Henan, Jiangsu, Hunan and other places in China. A state-level enterprise will not be able to survive in a domestic market, and its viability will not be difficult. For example, Huajian is in Ganzhou, Jiangxi, BELLE is in Anhui Suzhou, PEAK is in Jiangxi, AOKANG is in Bishan, Chongqing, etc.

A large and medium-sized enterprise, in order to the future strategy and layout, under the conditions of increasing competition, sharing risks, creating reserve forces and enhancing the competitiveness of enterprises, transferring part of the production links and medium and low end products to a more suitable living environment is a wise move for the future development of enterprises.

As mentioned before, not all enterprises have conditions or capabilities to realize the successful transfer of industries. In the late 90s of last century, Jin Feng Chang shoe factory in Houjie, Dongguan, built a factory in Shicheng, Jiangxi. At that time, there were more than 600 people in the factory. Eventually, not only the Jiangxi factory could not survive, but also the mother factory was forced to go bankrupt. Looking at the ANGA shoe factory in Dongguan recently, three or four branches were opened in Deyang, Sichuan, a few years ago, and the scale of Qingxi in Dongguan is relatively large. At present, the factory has been closed early this year. To achieve the success of industrial transfer, a company needs to consider many factors: for example, customer orders, management and technology, economic conditions, raw material suppliers' support, local folk culture and culture, reasonable arrangement of time conflicts between production and busy farming, and coordination ability between enterprises and local governments. Every link has problems, and the survival space of enterprises will be challenged. {page_break}

It is suggested that there is no shoe company that has transferred or is ready to transfer at present. We must carefully consider every link and all the conditions are ripe before taking action.

The enterprises that I have contacted have transferred less than 30% successful footwear enterprises, and some of them are still being challenged.

Industrial transformation and upgrading

Industrial transformation and upgrading is shifting from low value-added to high value-added upgrading, from high energy consumption and high pollution to low energy consumption and low pollution upgrading, from extensive to intensive upgrading.

Industrial transformation and upgrading should be defined as the upgrading of industrial structure, that is, to develop more conducive to economic and social development. The key to industrial transformation and upgrading is technological progress. Based on the introduction of advanced technology, digestion and absorption, and research, improvement and innovation, establish its own technological system. The transformation and upgrading of industries must rely on the guidance of government administrative regulations and the support of funds and policies. It is necessary to combine industrial transformation and upgrading with staff training and re employment.

Industrial upgrading is no longer a new word in China's footwear industry. We have talked about industrial upgrading for many years, and how many enterprises have achieved industrial upgrading?

According to the author's understanding, most enterprises' understanding of industrial upgrading is still incomplete or vague. Especially in shoe factories, most shoe factories believe that the transformation and upgrading of enterprises is to register a brand (trademark), opening dozens of shoe stores, that is, industrial transformation and upgrading or creating brands, and even some local governments have misleading enterprises.

In fact, is it necessary for an enterprise to transform and upgrade, do we have the ability to transform and upgrade? How to turn? How to go? Where to go? Where to go? Where is the talent? Where is the market?

Let's take a brand name as an example. It's not that you have registered a trademark in the Trademark Office, it's called the brand, and some people even don't know what brand is and what is a famous brand. At present, 70% of shoe companies in China have registered one or more trademarks, and a large number of large, medium and small shoe enterprises have embarked on the road of brand creation, but less than 1% have been successful, 5% of them are on the road to success, 30% are still struggling, 20% are dying, 40% have died.

If you must create a brand and be determined not to give up, its spirit is quite commendable. But before that, you must go to the one or two, three or four tier cities and main commercial streets in China to see how many men's shoes, women's shoes, sports shoes and children's shoes are listed on the mall and roadside street. What's their current living environment and living space? Where is your brand's market competitiveness and living space?

I want to emphasize with you: manufacturing and marketing channels are two completely different business models. A friend of shoe factories who are on the way to the market tells me that it is difficult to do ten times or dozens of times for manufacturing channels.

A long road to transformation and upgrading of industries

The so-called industrial upgrading mainly refers to the improvement of industrial structure and the improvement of industrial quality and efficiency. Industrial upgrading must rely on technological progress. The improvement of industrial structure is manifested in the coordinated development of industry and the upgrading of structure. The improvement of industrial quality and efficiency is manifested in the optimization combination of production factors, the level of technology and management, and the improvement of product quality.

Let's look at the way of upgrading the footwear industry. What is the status quo of China's shoemaking industry?

At present, China's footwear production capacity, new product development and design capabilities, management technology capabilities, new materials research and development capacity, shoemaking equipment R & D and manufacturing capabilities, compared with twentieth Century, we at least increased by 100%-200%. {page_break}

Take shoe factories for example: before, 100% of Dongguan's enterprises were OEM enterprises, and now more than 60% of large and medium-sized enterprises are already ODM enterprises, and some of them have been designed and developed in the same way as Italy and Spain. They have already surpassed foreign R & D capabilities in the domestic market, such as Dongguan's Xing, Max, Huahong, Qisheng and other shoe enterprises.

Also, in 1990s, domestic shoe making equipment was mainly imported from Taiwan and abroad, but now we look at the domestic Qifeng shoes machine, thick shoe machine, Emma CNC, Huida shoe machine, etc., and set up a local shoe machine chamber in Dongguan, Wenzhou and Fujian. In recent years, the market has been expanding. Besides the domestic market, many Southeast Asian and North American shoe companies are ordering local shoe making equipment in mainland China.

On the way of industrial upgrading, China's shoe enterprises have already leaped from the big shoemaking countries to the ranks of shoemaking powerhouses, especially Dongguan, not only the manufacturing base of high-end shoes in the future, but also will become the fashion capital of the world in the future.

Shoe enterprises' closures and closures

The shadow of the international financial crisis has not yet receded. The shoemaking industry has just improved in 2010. But at the beginning of this year, the European and American economic downturn, Japan's earthquake and nuclear radiation, the unstable factors in the Middle East and North Africa, the appreciation of RMB, domestic depreciation, the rising cost of labor, the cost of raw materials and so on, the survival space of China's shoe making industry has been greatly challenged. At present, some enterprises in Wenzhou, Fujian, Guangdong and Chengdu have not been able to continue. Even some enterprises have closed down or closed down, and more and more enterprises will be threatened.

The author analyzes that there are four main factors in the current situation.

A, global market share narrowed, overcapacity, resulting in vicious competition in the market intensified, the interests of customers and enterprises can not be reached between the distribution of enterprises, missing or stopped.

If the total number of shoes in the world is now 16 billion pairs, thirty thousand shoe factories are needed to produce them. But now, affected by the global economic downturn and so on, people's purchasing power will drop. Now the global shoe market is down by 20%, and the total number of 12 billion 800 million pairs of shoes will still be produced by three shoe factories. The elimination of some enterprises in competition is the inevitable result of market economy.

B, the customer delays the payment, the raw material supplier is forced, the shoe enterprise gold chain breaks.

Large shoe enterprises, customers should have paid the goods within 60 days, but from last year to March this year, they have not been able to pay for 180 days. The original customers were ordered six months in advance, the cost of the domestic price and the appreciation of the renminbi were affected, the orders between the customers and the shoe factories were reduced, and even the order quantity was reduced, resulting in the shortage of factory orders. Due to the long delay of customers' arrears, the factories could not pay wages on time as scheduled, causing some employees to sue to the local government; the time owed to the suppliers of raw materials was too long, the suppliers forced the goods to be too tight, the bank loans could not be repaid at the expiration of the loans, and the factory capital chain was broken, so that the government closed up the factories, the banks closed the accounts, and the factories closed down. For example, there is one in Dongguan.

C, survival space and market competition are intensifying. Some shoe companies are afraid of losing their original wealth and thus voluntarily withdraw from the market competition.

For example, the Pearl River Delta has a large shoe enterprise with tens of thousands of people. After this financial crisis, the survival environment and profit margins of enterprises have been constantly squeezed. The days of making money in the past are gone forever. Enterprises are beginning to lose money. The directors of the group are afraid that the business condition will continue to deteriorate, and the loss of their original wealth will be lost. Then several branches and raw material processing plants will be shut down in the first two years, and the whole enterprise will be sold to a listed company for logistics in the near future. {page_break}

D, the survival environment of enterprises is becoming more and more difficult. Some shoe manufacturers are in charge of their age, and have no successors to quit the market.

There is a famous saying in Taiwan that young people are told that if they want to kill a person, they will run a shoe factory for him. If he wants to kill a man, he will run a magazine for him.

Influenced by this well-known saying, most young people born in Taiwan with gold spoons have received higher education abroad. Influenced by western culture, they are not very interested in shoe factories. At present, in the Pearl River Delta and Southeast Asian countries, some shoe factories have been closed or are being shut down because of their successors.

As a result, China is the most populous country in the world. A Henan province is bigger than Vietnam's entire population. Vietnam's footwear industry is short of labor, and now it is opening up factories in Vietnam, India, especially Bangladesh and Kampuchea. As at the end of 1980s, factories in Dongguan, China, all raw materials and equipment rely on imports. There is no management and technical personnel. The problem of language communication has also caused many headaches to the "Taiwan stem" and "Lu Gan" currently sent to these places. Traffic, living environment, cultural exchanges and so on are all problems. At present, the industry is transferring to Southeast Asia, but some Taiwan funded enterprises can not save labor costs or customers' demands.

The author thinks that China's lack of labor is still a false impression, which is an effective running in of social labor relations after 80 or 90 years, and how many marginal provinces and mountainous areas are waiting for development. I firmly believe that China's labor resources are still the most abundant and efficient in the world.

No matter how low the market environment will be, the industry should believe that shoemaking industry is always a sunrise industry. If China now closes 10000 shoe factories, it will soon be able to produce two new shoe factories as soon as it needs half a year in China's six largest shoe making industry base.

Our industry can not always rely on the support of the local government. If a market is not competitive, the support of the government will only make the enterprise die later. Therefore, a viable and competitive enterprise will be more distinctive and brilliant when the market is not good. For example, Dongguan's Yuyuan group, Huajian group, Yung Mao Group, and brand enterprises such as BELLE, Anta, and 31st degree, etc., have been rising in the industry's competitiveness and popularity after the financial crisis.

"Heaven is strong, enterprises should strive for self-improvement." At present, another round of industry reshuffle after the international financial crisis in 2008, enterprises have no choice but to strive for sustainable development.