Transformation Of China's Footwear Industry

In the tide of social pformation, shoemaking industry is no exception, every corner is permeated with the taste of pformation.

Originally the main export OEM shoes processing enterprises began to pform into domestic sales, the original shoe material accessories suppliers have also boldly integrated into the strategic pformation as a shoe business owner.

At the same time, those shoe companies that are fighting for the Quartet in the domestic shoe market are also busy with their own positioning pformation, from the more primitive products suppliers to the high standard and high demand brand service providers.

For all shoe makers who are at the core of the pformation storm, pformation is an important means for them to get out of their predicament and explore their way out.

For them, whether the war of pformation can win or even whether they can survive.

Since 2007, the three major events in the field of foreign trade, like the three heavy hammer, have stunned almost all export oriented shoe companies, forcing them to put the "dust covered" domestic market development plan hidden in drawers on the table.

The value of the renminbi to the US dollar has finally dropped in 2007.

The practice of international trade is settled in US dollars, and foreign businessmen sign contracts with us dollars and foreign shoe manufacturers.

As a result, the same $5 shoe could have been cashed at 40 yuan, and now it has turned into 37 yuan, which has lost nearly 10% profits on the ground. The export tax rebate policy adjustment is the second heavy hammer on the export shoe enterprises. The 2 point lowers the profit expectation of the export shoe enterprises to a naught, and the last little profit has been completely eliminated. Inflation is the third heavy hammer that the export shoes enterprises bear, and the rising of raw materials and the soaring cost of personnel have greatly deepened the cost burden of the export shoe enterprises.

The overburdened export shoes enterprises are finally forced to take the first step of pformation, from export sales to domestic trade.

If the export to domestic market is more or less passive by the environment, the pformation of the shoe material manufacturers will seem more active.

Most of the raw materials manufacturers have been pformed into brand dealers directly into the domestic shoe market, because they have spotted the current wide market opportunities.

The footwear industry has been basically shaped and fairly stable through the vigorous development and training of the whole industry.

More importantly, a large number of leading brands suffer from widespread mistakes due to lack of sufficient experience. They have to compress the front line or withdraw from the market, leaving behind a huge market space and immeasurable channels.

With strong capital entering the market at this time, we can maximize the resources of products and talents with the least cost, and take a large initial entry cost for the takeover of front-line resources such as market and channel.

With the sharp reduction of cost and the large concentration of advantageous resources, raw materials suppliers have reason to believe that their pformation will win the battle.

In addition, the pformation from raw material manufacturers to brand dealers has also become the business wisdom of raw materials traders to avoid the current situation of increasingly delinquent payments.

Based on the general tightening of market capital chain, shoe companies began to collectively default on the payment of shoes suppliers, and the period of arrears was extended from 3 months to 6 months, 9 months or even 12 months.

The raw materials traders secretly thought that huge funds and their shoe companies were in arrears, becoming the capital with the lowest turnover rate. It would be better to enter the market directly into the market channel for arrears, or, as a shoe receivable, the turnover rate and yield should be much higher than that of shoe material.

Under the double threat of shoe manufacturers and export enterprises, the shoe companies who are already in the forefront of the market have to fight for more severe challenges by fighting for twelve points.

At first, when the market was booming, the shoe companies did not completely perform the division of labor among the shoe enterprises, but only assumed the most basic product supply function. As for the channel development, marketing support, brand building, terminal services and many other functions, most of them were pferred from shoes enterprises to agents.

Shoe companies take a very small part of their functions, but they seem to have gained a large part of their interests. The dissatisfaction of the market links has been a long time. These dissatisfaction will not get any trouble when the manufacturers are strong. Now the competition is becoming more and more intense. The backward brands are covetous, and the bargaining power of the channel traders is getting stronger and stronger. A little careless market may fail.

Shoemaking enterprises began to set up huge market service teams and provide personal service in various markets, put enough advertisements to mold the advantages of brands, and perfect the regional management mechanism of agents so as to face severe market competition.

In short, in addition to the original high quality products, shoe manufacturers also began to provide a continuous service, including a comprehensive market development plan, feasible regional support measures, global and local brand value added strategies, etc., to fulfill a variety of functions of a mature market operator, all of which are only to preserve and further enhance the market.