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    Ding Shuibo: China'S Footwear Industry Enters The Post Licensing Era

    2007/12/27 0:00:00 10358

    Ding Shui Bo

    Start: the opportunity of international industrial pfer: Quanzhou shoe industry has only 20 years of history, but has developed into an industry with tens of billions of output value annually.

    What is the main factor for president Ding to promote development?

    Ding Shuibo (hereinafter referred to as Ding): more than 20 years ago, the footwear industry in Jinjiang dominated Quanzhou took the opportunity of international industrial pfer and relied on the abundant labor resources in the region, creating a legend of rapid development of the industry.

    At present, the footwear industry in Quanzhou has maintained steady and steady development.

    Among them, the total output of tourism and sports shoes account for 40% of the whole country and 20% of the world's total, and products 60% enter the international market and sell to more than 80 countries and regions in the world.

    In 2006, Quanzhou reported 903 million pairs of shoes and 2 billion 313 million dollars worth of exports.

    The unique geographical conditions, cultural advantages and the pioneering spirit of daring to forge ahead are the achievements of the footwear industry in Quanzhou today.

    Of course, this is inseparable from the strong support of the government.

    Development: guerrilla to regular Corps: how do you view the future development of sports products market?

    Ding: from the development stage, the footwear industry in Quanzhou experienced the extensive family workshop in the last century 80s and the stage of enlarging production capacity in 90s. After 2000, it entered the third stage of licensing.

    In twenty-first Century, the brand became the main orientation of consumption value. The Quanzhou people with quick sense of smell soon realized that brand is a sharp weapon for the industry to occupy the market.

    The awakening of brand awareness has spawned brand creation in Quanzhou footwear industry, and some powerful and discerning enterprises have focused their efforts on building their own brands.

    Quanzhou has emerged dozens of state-level brands, becoming the leading brand in the country.

    At present, the whole industry has nearly 50 well-known trademarks in China, 12 Chinese brands, 50 national inspection free products and 2 export exemption products.

    With the approaching of the 2008 Beijing Olympic Games, the footwear industry in Quanzhou is entering the post licensing era.

    The post licensing era includes two aspects: the marketing upgrading of enterprises and the upgrading of industrial structure.

    For enterprises, the original "advertising + star" brand building formula has been unable to adapt to the current market competition. On the one hand, consumers are becoming more individualized due to continuous maturity and diversification. On the other hand, with the entry of many international brands, the arms of market competition and competition are not only manifested as advertising and stars, but also the integration of enterprise marketing resources superiority, including brand positioning, terminal construction and channel upgrading.

    If the guerrilla group was initially established, then it is now the Corps operation of the regular army, testing the comprehensive management ability of the enterprise from the market front to the logistic production.

    In addition, sports brand is not only sports equipment such as shoes, clothing, etc.

    As a "shoe capital", Quanzhou Jinjiang should upgrade and pform the "sports goods capital".

    As far as the industrial structure is concerned, the shoe industry in Quanzhou is changing from "quantity regulation model" to "quality benefit type".

    In the past, enterprises often asked each other: "how many pairs have you produced this year and how many pairs will you sell next year?"

    Now that has changed completely, we are concerned about how much output the enterprise will accomplish this year, what the profit margin is and how much output it will plan next year.

    In addition, the shoe brands of Quanzhou used to be "many stars, but they are all one by one, no sun". In fact, with the upgrading of market competition, there is no possibility of dozens of brands in one area, and only ten or eight brands left behind. This is normal.

    Innovation: domestic market and foreign trade pressure: Quanzhou is now investing heavily in research, and the shoe Fair is also the first in Italy.

    Does this mean that the whole industry will take this opportunity to embark on a high quality and efficient way of innovation and development?

    Ding: at present, in the domestic market, we are facing the increasingly changeable demand of consumers for product styles and functions. In the export market, we will not only encounter anti-dumping barriers, but also encounter various technical barriers.

    All these require enterprises to continuously increase R & D innovation.

    Many brands in Quanzhou have been actively involved in scientific research and investment in high-tech equipment.

    Recently, the footwear industry association also plans to do industry research. The main topic is how to pform and upgrade the footwear industry in Quanzhou by using high technology.

    Internationalization: independent brand entry: Quanzhou sports brand has been on the road of internationalization in the past two years. How does chairman Ding look at the trend of the next few years?

    Besides Southeast Asia, which countries and regions overseas are the markets that Quanzhou brand can focus on?

    Ding: after some anti dumping cases last year, many enterprises realized that the era of small profits and quick turnover has passed. Only by creating brands and improving the technological content and added value of products can they enhance their competitiveness.

    At present, many foreign brands have entered China. Many people feel that the comfort of foreign products is better than ours.

    In fact, 70% - 80% of foreign brands are produced domestically.

    Our independent brand can enter the international market, and the quality is completely cleared.

    We can also develop overseas markets with our own brand.

    Quanzhou has several sports brands with its own brand to enter the overseas market. I believe that in the next few years, the overseas market of Quanzhou brand will also be like the OEM order all over the world.

    Difficulties: competition pressure: Quanzhou's footwear industry is bound to have some problems. What do you think the industry needs to overcome?

    Ding: the footwear industry in Quanzhou is doing well and developing rapidly, but at the same time, it faces many difficulties.

    There are many problems in the production process, such as rising raw materials, rising labor costs and rising wages. On the regional competition, the development of footwear industry in other areas has caused pressure on our regional competition. In the past two years, the footwear industry in the central and western regions has been developing very fast. Chongqing, Chengdu, Wenling and Baoding are making use of abundant resources and relatively low labor cost advantages to constantly occupy the middle and low end product market.

    In terms of international competition, countries with low labour force such as Vietnam and India will compete with us for the international market.

    The EU's anti-dumping, RMB appreciation and export tax rebate policy adjustment have great impact on export enterprises.

    In my opinion, only a strong individual can form the strength of the whole industrial cluster, and its own strength must be emphasized from four aspects, that is, to enhance the capability of product R & D and development, strictly control product quality, implement brand strategy, and understand the operation rules of international market.

    Seizing these four points is half the success, and the other half looks at how to innovate and forge ahead.

    In addition, enterprises should attach importance to the strategic reserve of talents, and work hard on how to attract talents, retain talents and create talents.

    The core of modern enterprise competition is technology and service, but in the final analysis, it is the competition of talents.

    Therefore, in addition to attaching importance to the cultivation of professionals, enterprises should also attach importance to the introduction of talents and improve the environment of employing people.

    Exhibition: go all out to assist Ji: what role do you think has played in the development of shoe industry in Quanzhou during the eight shoe fair?

    Ding: the shoe fair set up a bridge and link between production, supply, marketing and research, promoted industrial upgrading, and enabled more enterprises to integrate the trend of international shoe making, and then to promote the linkage development of other industries with the development of shoe industry.

    Therefore, every shoe Expo is a new starting point for enterprises to expand the market at home and abroad.

    In addition, as a platform for international trade and exchanges, the shoe fair also provides a broader opportunity for the development of "harmonious competition".

    Therefore, our chamber of Commerce has taken the assistance of the government to manage the shoe fair as an important task, and has gone all out to build a bridge between the domestic and foreign trade organizations to Quanzhou.

    Olympic Games: the enterprises can become partners: China will soon usher in the 2008 Beijing Olympic Games. Does this mean opportunities for many sporting goods brands in Quanzhou?

    Ding: it is predicted that by 2008, the output value of China's sporting goods will reach 300 billion yuan.

    It can be seen that with the development of sports and the improvement of people's quality of life, the sporting goods industry of the whole people will usher in unprecedented opportunities for development.

    The Beijing Olympics is a rare opportunity for the Quanzhou sports brand to pition to the comprehensive sporting goods industry.

    Reporter: the sponsorship of the Chinese Olympic Committee has been obtained by Adidas. Quanzhou has already sponsored foreign Olympic delegation. Is there any other way to intervene?

    Ding: the Beijing Olympic Games contains tremendous business opportunities, but domestic brands can not reach the scale of sponsorship.

    Adidas is an old brand that has lasted for fifty or sixty years. Nike is also a brand for nearly thirty years, and Quanzhou brand has truly entered the sporting goods industry for less than 10 years.

    Brand needs to be honed and needs a process.

    However, for domestic enterprises, although they can not become Olympic partners, they can do a lot of promotional activities as well.

    With the development of Quanzhou sporting goods brand, I believe that one day, local brands will surely become partners in the Olympic Games.

    Related news XTEP wants to open 500 new Disney stores. Last year, XTEP (China) Co., Ltd. signed a cooperation agreement with Walter Disney, the world's top seventh brand. This year, Disney sports products will be launched to enter the domestic market.

    Recently, XTEP also proposed that the Disney Sports Plan in China is to open 800 stores in 2 years, and this year we will strive to achieve 500 goals.

    According to the introduction, according to the cooperation agreement, XTEP has obtained the right to use all the cartoon characters including Disney, Mickey Mouse and Donald Duck in the Chinese mainland, including sports shoes, sportswear, hats and other sporting goods products. XTEP will be responsible for the research, production and sales of Disney brand products; Disney will focus on product quality supervision. Apart from sending special quality inspectors to XTEP, they will also conduct spot checks on Disney brand products in the domestic market. In addition, Disney is also involved in product R & D and design. According to the latest international trend, designers are sent to assist XTEP in the research and development of new products.

    Ding Shuibo, President of XTEP, said that Disney's positioning is a family entertainment brand, while XTEP is a fashion sport brand.

    "Cooperation with Disney enables XTEP to learn from the marketing and management experience of large international companies and further enhance the international vision of XTEP team."

    He said.

    On the other hand, The Walt Disney Company, as the world's largest international brand value ranked seventh, has rich experience and marketing resources in the world, which will provide a good help for the internationalization of XTEP brand.

    In order to better demonstrate the brand connotation of XTEP, XTEP has been sponsoring the X Game from its brand spirit in 2007, becoming the top partner of CX (National extreme sports elite competition).

    In addition, XTEP has also sponsored the WCBA (Chinese women's Basketball League A), NBL (National Basketball League) and CBO (Chinese amateur basketball open), becoming the top three national basketball match partners in China.

    In addition, XTEP has signed agreements with the three major delegations of China's sixth urban games and Wuhan, Fuzhou and Xiamen to establish a strategic partnership.

    According to introduction, the contract period between XTEP and CX, WCBA and NBL will be more than three years.

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