"Mid End Advantage" Or Key To Transformation Of Shoe Enterprises

After the European Union formally cancelled the high anti-dumping duty against Chinese leather shoes in March 2011, many Chinese shoe enterprises once dreamed of dreaming that the European market could flourish again.

However, over half a year passed, and the market craze in expectation did not appear. The market information from the 110th China Import and Export Fair held today shows that the demand for footwear products worldwide has not increased significantly. Meanwhile, more and more orders are being transferred to China's neighboring countries and regions as well as Latin America with the transfer of production capacity.

When the high-end market is difficult to achieve overnight and the low-end market competition is weak, the key to the survival of China's labor-intensive industries is to maintain the "middle end advantage", create a brand with certain influence, further strengthen the integrity of the industrial chain, and improve the ability to use science and technology.

From the present perspective, in the middle end industries, the emerging regions represented by Vietnam need to take over at least ten years to replace China's position, because they also need related supporting facilities. "These ten years are important" window periods ". Enterprises either seize the opportunity to transform and upgrade as soon as possible, or they will gradually be eliminated by the cruel market.

BELLE CEO and executive director Sheng Bai Jiao said that BELLE group will still focus on the mid end market in 2011, but plans to increase investment in the low-end mass market. With the growth of men's shoes in recent years faster than women's shoes, BELLE group can increase market share only by increasing investment in research and development of high-end men's shoes products.

Some enterprises believe that the reason why the EU finally gave up anti-dumping is not all because of the WTO ruling, but more importantly, the rising cost has greatly eliminated the competitive advantage of China's ordinary leather shoes. Liu Tao, deputy manager of import and export company of Shandong Golden Monkey Group Footwear Co., Ltd., said that the export of shoes on the surface was still booming since 2011, but the price was mainly achieved by the price increase, but the volume of the shoes did not increase. And this price increase is not the importer's initiative to raise the price, but the domestic cost factors. For example, the price of pig skin has been high this year, which directly affects the cost of the enterprise. Therefore, China's footwear industry has lost its strength in terms of labor, raw materials and other resources. However, in the face of the status quo of China's footwear industry, high-end advantages still need some time to accumulate and grow. Therefore, the key to the development of China's footwear industry is to be able to retain the "middle end advantage" and absorb talents to create characteristics.