How Can China Shoe Industry Go Through This Winter?

"In the next few years, the mainstream brand of China's footwear industry will not exceed 5."

The prediction of Wang Zhentao, vice chairman of China Leather Industry Association and chairman and President of AOKANG group, has been widely recognized by the Chinese shoe and leather industry.

However, this is not alarmist. Recently, thousands of shoe enterprises in Guangdong have gone bankrupt, the implementation of merger plans, the intensification of anti-dumping, and the increase of labor cost in the new labor contract law have shown that China's footwear industry is entering the winter.

Phenomenon 1: Overseas "encirclement and suppression", eight years of ambush in recent years, with the rapid growth of the export of China's shoes products, more and more countries began to "strengthen prevention" for Chinese shoes. A little bit of information is available to understand that in recent years, the international market has carried out anti-dumping measures on Chinese shoes, increasing tariffs and restricting imports, and so on. The export form of China's footwear industry is becoming increasingly severe.

In May 11, 2006, the Italy Footwear Association claimed that 30% of imported Chinese shoes were harmful to health.

In May 22, 2006, Peru conducted anti-dumping investigations on Chinese footwear for one year.

Since the European Union formally announced the anti-dumping investigation of two kinds of labor insurance shoes in June 2005, the shoe industry war between China and Europe has lasted for more than 2 years.

In January 2007, the Brazil COUROMODA exhibition rejected the Chinese shoe and leather exhibitors.

In March 20, 2007, Chinese shoes were cold treated in Ecuador.

At the same time, Bolivia, Uruguay, the United States, Argentina and other countries have also restricted the export of Chinese shoes to varying degrees.

The biggest blow to China's shoe exports is October 7, 2006, when the EU announced a 16.5% anti-dumping duty on Chinese shoe companies for a period of 2 years.

It is understood that the implementation of the EU anti-dumping measures has had a great impact on the export of China's leather shoes industry for a year.

According to the data provided by the China Light Industry Arts and crafts import and export chamber, the number of imports of leather shoes anti-dumping products decreased by 7.76% in the first half of 2007 compared with the same period.

Among them, the number of imports from China was 86 million pairs and the import amount was 943 million US dollars, down 26.37% and 21.36% respectively compared with the same period last year.

Phenomenon two: listing and financing, which is a long time ago. When are you going to go public?

This is probably the hottest topic in the shoe industry in the past 07 years.

"May 23rd is a watershed. It has changed the history of China's footwear industry."

Wang Zhentao, President of AOKANG group, said to everyone.

This day, BELLE International's listing in HKEx is now worth HK $100 billion. It is the largest mainland retail listed company in the HKEx market capitalization.

This news is like a blockbuster, causing a great stir in the shoe industry.

"The wolf is coming!"

The listing of BELLE means that the shoe industry has changed from the industrial economy to the capital economy. It has also greatly stimulated the expansion desire of other domestic shoe brands, and has shocked Wenzhou shoe enterprises.

Recently, 1 billion 600 million yuan acquisition of assets of the group, confirmed that "BELLE although the main women's shoes, but relying on heavy capital will achieve men and women shoes side by side" speculation.

In fact, the threat of BELLE shoes to Wenzhou footwear enterprises will not be so obvious for the time being, but the acquisition of sun Da is the most direct impact on Wenzhou shoe enterprises.

The brand of Wenzhou is famous for its men's shoes, and now it is also clear that it is the same as men's shoes.

The brand of sun Da group, San Da, best picture and good people, has a good reputation in the market, and its quality is already recognized by consumers.

According to data released by China industry and enterprise information center, the sales of China's ten largest shoe products ranked fifth in 2006, and the northern tiger will be more fierce after BELLE's merger and acquisition.

In addition to the risk of takeover, BELLE's plans to add 1000 stores a year also add to the tense atmosphere in the fiercely competitive shoe market.

BELLE said that after listing, about 24% to 25% of its financing will be used to open new stores, including increasing market share and expanding market share in two or three tier cities, from high-end to mid-range, from occupation to leisure, from fashion to sports.

There is speculation in the industry that BELLE will raise funds for 1/3 at least 3 billion yuan!

It is used to acquire enterprises to eliminate competitors and supplementary product categories.

In the age of capital, a new era of shoe industry integration has come.

In the future, Wenzhou shoe enterprises will undertake mergers and acquisitions in the mainland, or go out to buy shoes enterprises in Guangzhou or Chengdu, or Wenzhou's shoe enterprises will be bought by others.

Phenomenon three: closing down business, iceberg is now "labor shortage", "electricity shortage" coupled with "oil shortage" has long plagued the Pearl River Delta and even the Yangtze River Delta shoe making enterprises.

Over the past two years, with the intensification of anti-dumping, the appreciation of the renminbi, the rising cost of labor, the rising price of raw materials, and the adjustment of policies on export rebates and processing trade, many small and medium-sized shoe enterprises have been struggling, and have been phased out in the throes of pformation and upgrading.

Information from the Asian Footwear Association shows that in the first three quarters of this year, there were about 1000 shoe factories and supporting enterprises in Guangdong, which were closed down by various factors or voluntarily closed down, or were sealed up by courts or moved elsewhere.

Li Peng, secretary-general of the footwear association of Asia, said that the main failures were small and medium enterprises. In the last two or three months, four hundred or five hundred small and medium-sized factories in Guangdong have been closed.

A large proportion of these enterprises rely on speculation, low price competition or poorly managed enterprises.

The shortage of labor, the sharp rise in production costs, and the improvement of operational thresholds in the country have greatly affected such enterprises.

In addition, the new labor contract law, which is about to be implemented in January 1st next year, will also have an impact on these irregularities.

Some Wenzhou shoe enterprises bosses told reporters that in recent years, wages have been increasing every year in order to retain workers. Now they are basically over 1000 yuan, plus the continued appreciation of the RMB this year, as well as the intensive macroeconomic regulation and control policies of the state. The cost pressure of enterprises has increased significantly, and the comprehensive cost has increased by more than 10%.

Viewpoint: there is a good opportunity in the shoe industry crisis. "These situations in Guangdong shoe industry may not be a bad thing. After a fittest adjustment, it will be more conducive to the healthy development of the industry and provide a better competitive environment for enterprises with high added value."

In the face of the shoe industry in Guangdong, Li Peng said so.

Similarly, the listing of BELLE's shoe carrier and the acquisition of Sunda have brought domestic shoe companies not only a tough competition environment, but also a hope that shoe enterprises have realized that only by means of capital operation of the listing society can they grow stronger and stronger so that they can continue to survive in the market.

The stubbornness of Wenzhou shoe companies has never been on the market.

AOKANG group delineated 5 of the more than 20 investment banks, and signed a global strategic cooperation agreement with Kearney to set up a "warm up and healthy body" for AOKANG group.

Jordan sports, XTEP sports, 361 degrees, PEAK sports and other sports brands in Jinjiang, the estimated timetable for listing is around 2008.

"Brand needs long-term investment to bring high reputation and rate of return. Capital operation is a powerful backing for capital.

With "catfish effect" shoes listed, it will also bring good publicity and publicity to the brand, and the brand will be upgraded more quickly with the strength of funds.

Facing the opportunities after listing, Wang Zhentao, who has always attached importance to brand building, is optimistic.

In the face of challenges, apart from capital, many enterprises actively seek breakthroughs in brand innovation and technological innovation.

Beijing 2008 Olympic Games leather products supplier AOKANG Group signed the Olympic Games with king Liu Xiang and launched the Olympic Games pot water to truly create world-class brand with the Olympic express.

At the same time, we actively seek breakthroughs in scientific and technological innovation. Hangzhou opened the first shoe free shoe shop, led the foot measuring instrument to lead the consumption trend, and jointly built the first domestic footwear enterprise comprehensive science and Technology Research Institute in China leather and footwear research institute, breaking through the research and development short board, exploring new ways for Chinese shoe enterprises to increase the added value of products and build their own brands.

In the face of EU anti-dumping, in recent years, China's shoe export to Africa is growing rapidly.

China's footwear enterprises headed by Quanzhou have also increased their investment in Africa in recent years, while Zhejiang shoe companies are also unwilling to lag behind. Data show that in the first three quarters of 2006, only Zhejiang province exported to Africa reached 210 million pairs of shoes and exports amounted to 320 million US dollars.

A blessing in disguise is a blessing in disguise.

"It is not a new opportunity to treat trade frictions with a positive attitude.

Enterprises can adjust their product structure, quality and competition strategy, and the whole industry will also greatly improve.

Zhou Shijian, an expert in economic and trade relations, believes that the Chinese shoe enterprises under the predicament should pay more attention to their own competitiveness.