The Market Is Weak &Nbsp; Jinjiang Brand Domestic Shoe Enterprises Regain Foreign Trade "Old Business"

Is there another way out for the expediency?

Domestic shoe enterprises revisit foreign trade orders

Recently, the press industry learned that many domestic shoe manufacturers in Jinjiang have reduced their production orders in 2012, and have taken part in the enterprises.

"During this time, not only is our company, but many domestic shoe companies are busy accepting foreign merchants' inspection works and preparing for them.

The reporter learned from the Jinjiang Office of Quanzhou inspection and quarantine bureau that recently, the domestic brand shoes enterprises that came to Jinjiang for approval were exported more than before.

It has been revealed that these shoes enterprises that receive foreign trade orders even include some second-line brand shoes enterprises, such as gold lake, Guo Hui and so on.

These shoes enterprises, which have taken up their positions in the domestic market, are also actively taking the initiative to search for more foreign trade orders this year, while the three or four line domestic shoe enterprises seeking foreign trade orders are more common.

It is learnt that even some shoe companies which originally only OEM for domestic brand shoes enterprises have joined the "battle for competition" of foreign trade orders in 2012.

Coping with weak domestic market

I can't see those shoes brand enterprises in Jinjiang who only marry for others. But why do we need to revisit the old business of foreign trade?

In this regard, Wu Xiaoming believes that Shun Chao footwear industry is a strategy in the process of enterprise development.

"In fact, the trend of the Super Cup brand has been rising in recent years, but the slump of the domestic sporting goods market is obvious. The inventory is so serious in the whole market, so how can it be cut down?" Wu Xiaoming said, but in the process of production reduction, it will not abandon the operation of the brand, optimize the channel, or even increase the added value of the product.

In Wu Xiaoming's view, this is an expedient measure for enterprises, that is, to retain these skilled workers with foreign trade orders, and then to see the quasi market ready to go.

"Because brand enterprises must have the inventory process due to inventory problems, this is actually a great damage to the brand.

It's better to wait for some outside orders, keep the old staff, and wait for the opportunity to expand again, which is the real intention of the shoe industry.

Wu Xiaoming said.

In response, Mr. M, the owner of the shoe brand of the M brand, said: "in fact, the profit from foreign trade orders is very small. It is possible that a pair of shoes only earn 2~3 yuan for processing and processing, sometimes not even making money or losing a little bit.

This is very different from making your own brand, even if it is only two or three line brand, when the market is good, the difference between a pair of shoes can earn 10~20 yuan is really huge.

But now, the sporting goods market is weak, and the competition among brands is so fierce. As the two or three line brand, the space has already been compressed.

Mr. Li complained to reporters, but if he halt some production lines hastily, the impact on enterprises is immeasurable.

Therefore, even if the foreign trade list does not make money, it has to maintain workers.

Moreover, domestic sales are blocked, orders are weak, domestic sales terminals are invested heavily, and bad sales will drag down enterprises. While foreign trade is low in profit, it will be able to maintain the cost of terminal investment and advertising fees.

Indeed, for this, Mr. K, a brand shoe manufacturer, also told reporters: "at present, some sports shoes and clothing brand stores in Quanzhou are playing" buy one get one "or even buy one get two" on the market ". It is not unusual to see that there is still room for survival for the three or four line brand, so they have to seek their own way out.

According to Mr. Li, in fact, some domestic shoe enterprises in Jinjiang have always insisted on walking on "two legs" and have not given up all foreign trade orders.

"M company is a" two legged "walking enterprise, in fact, this is also very normal. In the case of insufficient orders, many three or four line brands will pick up some foreign trade orders to support workers.

Just this year, some domestic shoe companies that had already given up, or did not receive foreign orders, began to re pick up foreign trade orders.

Moreover, the number of domestic sales of foreign trade returns is still quite high.

Mr Li said that the profit from foreign trade orders would be even weaker. If this continues, the competition in the foreign trade market will be more tragic next year than before.

Stress avoidance of cargo conflict

However, is it really the only way out for the domestic shoe enterprises? The last week, the reporter obtained a data from the Jinjiang Office of the Quanzhou inspection and Quarantine Bureau: in the fourth quarter of 2011, the number of foreign trade orders in Jinjiang dropped by about 9% compared with the previous year.

In the face of such fierce competition, the declining foreign trade orders have narrowed the "cake" of foreign trade, but there are more and more shoe companies competing for it.

Jinjiang's foreign shoe enterprises' market space is obviously squeezed. What should they do in 2012?

Regarding this, a deputy chief Lin of a foreign trade shoe enterprise told reporters that as a professional foreign trade factory, the company has received enough foreign trade orders, which can be produced until May this year.

"Domestic shoe enterprises compete for foreign trade orders all the time, although this year is more than before, but it will not affect us."

Mr. Lin said that because of the fact that domestic shoe enterprises have to protect their domestic market, there will be no more foreign trade orders.

Since the second half of last year, many small foreign trade factories in Jinjiang have also stopped production because of less competitiveness, which also can support some of the domestic shoe companies.

In this regard, the above Li believes that domestic shoe enterprises receive foreign trade orders, most afraid of the conflict of delivery.

"Domestic shoe companies that have just received foreign trade orders must make good production plans, otherwise they may miss their brand's shipping date and delay the delivery date of foreign trade orders.

The two sides are not pleased. "

Mr. Li shook his head and said that he had delayed the shipment period of his brand because of the delivery date of the foreign trade order.

"At that time, it was really helpless, because for some reasons, the production time of the foreign trade list was insufficient, so we had to stop the production line of our brand to produce the foreign trade list.

Products that reproduce their own brands are missing in season, and goods are piled up in warehouses.

Dealers will not naturally enter the season, so they have to keep them in stock.

Sometimes, if we are afraid of stocks, we will not be able to produce goods in season, and we will miss a selling season directly.

Mr. Li has no choice but to say that walking on two legs has certain requirements for the production management level of the enterprise, otherwise it will only mess up.

Recently, Jinjiang Shun Chao (Super Cup) Footwear Co., Ltd. has been busy docking the inspection works of foreign customers.

Prior to that, Shun Chao footwear industry has been operating on the domestic market with the "Super Cup" brand.

In the past month, like the Shun Chao shoe industry, the domestic shoe market, which has concentrated on the domestic market, now starts to receive foreign trade orders, and is not a minority in Jinjiang.

Reporters learned that, including Wen Ke Wang and other shoe enterprises have begun this practice.

What is the reason for these domestic shoe enterprises to pick up the foreign trade market? It is a helpless action to cope with the weakness of the domestic market, or a major adjustment of the company's development strategy.

Reporter's notes

In the past, the enterprises that made brand domestic sales always looked down on other foreign trade factories which were "married clothes" to others. They felt that foreign trade factories were hard, low profits, no brands, no prospects for development, and they were at a disadvantage at all.

But now these domestic brands have to lay down their feet and revisit the old business of foreign trade.

What is it? Survival!

Why many shoe enterprises in Jinjiang will return to the present situation of fighting for survival only from the high speed development? The reason behind this is worth considering in the industry.

Expediency and frustration, whether internal or external, the essence of the problem is that many Jinjiang entrepreneurs still do not have a clear, focused and determined direction of development.

The relevant person in charge of Peking University consulting company has put forward such a view that Jinjiang enterprises should really settle down and make good use of the weakness of the market.

Although this view is a bit commonplace, how many shoe companies do Jinjiang really achieve? Perhaps this is why Jinjiang shoe enterprises should ask themselves.