2012 China Shoe Machine Industry Trend Forecast And Enterprise Analysis

Every quarter, "down stairs" negative growth.

Wang Shoumin, President of Dongguan shoe maker Association of Guangdong, looks at the negative growth of shoe sales in every season in 2011.

President Wang's business not only sells shoe machine products, but also involves supplying parts to most shoe machine enterprises. His views are very representative.

Reappearance of the "ice age" after the financial turmoil.

China's shoemaking industry has been developing for twenty or thirty years. From the rise, expansion and rapid development to the ice age after the 2008 financial turmoil, and then to the adjustment of industrial upgrading, it will usher in the spring of the 2009-2010 recovery, but the good days will not last. After the peak of the first quarter of 2011, it will gradually enter the "second glacial period" in history.

Most shoe makers say that these days are rather tough.

At the end of the year, a "cut throat price war" was staged.

Why is the "cut throat price war"? According to the analysis of Emma NC CEO Wang Guo Quan: in the financial turmoil that year, the real difficulty period of the shoe machine industry is probably seven or eight months. In the first half of the year, all the speeches and reports are spreading seriously everywhere. The government and industry are paying close attention to it and giving macro regulation and control. Therefore, the shoe machine enterprises have already made preparations to reduce sales expectations, reduce surplus personnel, reduce output, adjust internal structure, do not blindly expand, and have positive measures for sales, and the enterprises that are really affected are relatively few.

Looking back on the "downstairs" sales predicament which started last year, sales in the first quarter started to rise, especially in April last year, reaching a sales peak. Many companies appeared optimistic and overexpected when they made the 2012 sales plan.

Unexpectedly, the second quarter of the peak, and began to appear signs of decline, in 5 and June obvious performance, but some enterprises are still not willing to face the reality, think that the market partial and short-term adjustment, still for the performance growth of active expansion, save strength, reserve personnel, stocking, inventory, with a view to the next third seasons (7, 8, September) - the traditional shoe season, to achieve the order growth.

However, the third quarter has been very unoptimistic, not only without big orders or worse than the second quarter, but shoe manufacturers have experienced five or six months of consumption, and the capital chain has been very tight: material procurement, expansion of personnel, inventory backlog, poor sales and arrears of funds, resulting in the return of funds can not be timely.

In the fourth quarter to the lunar new year, shoe machine enterprises staged a "cut throat price war". The so-called cutting throat means no profit or even a small loss. As far as possible, the stock that has been done for half a year turns into cash. Otherwise, by the end of the year, personnel salaries, next year's factory rent, suppliers' payment and enterprises' New Year's expenses can't be guaranteed, and the financing of small and medium-sized enterprises will be difficult. So, some of the shoe enterprises in the media reported last September will run away, which is just the tip of the iceberg.

In the absence of too many equipment demand for shoe companies, to cash in cash, we can only choose price wars, not profit or loss, and even the price of products will be directly reduced by 20-40%.

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2012 shoe machine industry forecast: three trends

Survival depends on difference.

In the new year, the shoe machine market is bittersweet.

The so-called hardship continues to rise in the yuan, labor costs, raw materials, comprehensive costs rise, external demand is uncertain (European debt crisis, the United States economic recovery is slow, emerging countries need time to expand), enterprise competition appears more intense, without big demand stimulation, to maintain performance and achieve growth is indeed more difficult.

If an enterprise wants to survive, it must have differentiated technologies, services and products with its competitors.

What is the demand for new equipment, such as Anta's Anhui Industrial Park put into operation, the opening of new PEAK factories, the investment of Taiwanese enterprises to neighboring countries (Vietnam, Burma, Indonesia, Bangladesh, etc.), and the growth of equipment demand by domestic enterprises such as Huajian group and Ethiopia branch.

Development depends on technology.

As China's footwear industry has entered the era of high cost, many shoe enterprises will put forward new requirements for the original shoemaking enterprises in the fields of cost saving, energy saving, environmental protection, high efficiency, automation, high quality and so on, especially for rigid requirements such as automation, digitalization, intelligent technology and flexible production.

For traditional shoe machine enterprises, to adapt to the changing demand of shoe enterprises, we can only increase R & D investment, develop and produce higher technology equipment to meet the needs of customers' production, so that we can get greater development.

Therefore, 2012 shoe machine industry can get a big development of enterprises, still have to rely on science and technology support.

Growth depends on overseas.

On the whole, there are more than twenty more shoe base in China now, and the quantity and quality of these base enterprises have reached the relative saturation.

In the shoe machine industry, where there are no factories to increase new production lines in these areas, they can only achieve partial small scope and small increase. To achieve great growth, they must rely on overseas markets.

In recent years, with the neighboring neighbouring countries and some newly developed countries making shoemaking industry or beginning to develop, they have released strong demand for Chinese shoe machine equipment, such as Vietnam, Indonesia, Thailand, Burma, Bangladesh, Syria, Iran, Turkey, the United Arab Emirates and Pakistan in the Middle East, Uruguay, Paraguay, Ecuador, Peru, Chile, Argentina, Eastern Europe, Japan, Tunisia, etc.

If China's shoe-making enterprises can expand their exports to these countries and markets, it is expected to achieve great growth.

2012, three kinds of shoe-making enterprises are rather sad.