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    Expert Opinion: Leather Industry Urgently Needs To Adjust Its Industrial Structure, And Create Its Own Brand Is The Key.

    2012/5/23 15:08:00 20

    Leather IndustryIndustrial StructurePrivate Brand

     

    Facing the unprecedented international financial crisis, China implemented a proactive fiscal policy and a loose monetary policy, successfully overcome all the difficulties brought about by the crisis and realized the sustained growth of the national economy.

    But facing the uncertainty of the world economy in the post financial crisis era, it is a must to adjust the economic structure to maintain the healthy development of the economy.


    At the two sessions this year, adjustments

    industrial structure

    Changing the mode of economic growth has become one of the hot topics of delegates and committee members.


    The irrational economic structure has always been a major bottleneck that plagued the development of our economy to a higher level. Although under the dual function of the system and policies, the economy has not been hit hard in the financial crisis, or even taken the lead in stabilizing the situation.

    However, contradictions in the irrational economic structure have also been exposed more fully and prominently in the financial crisis.


    From the perspective of coping with the financial crisis, the Chinese economy may have gone through the most difficult time. However, considering the sustained, rapid, stable and coordinated development of China's economy, if we can not achieve the goal of economic restructuring in a relatively short period of time, we should realize the pformation of the mode of economic growth and enhance the ability of economic and social coordination. Then, the Chinese economy will become more and more difficult and more risky if it wants to continue to maintain a relatively fast pace of development and achieve a virtuous circle.


      

    Leather industry

    Similarly, as a traditional labor intensive industry, after more than 30 years of development, China has become a great leather producing country in the world. It can be said that in the past 30 years, China's leather industry has accelerated the rapid development of the industry by virtue of low cost and increase in export volume, and lacks competitiveness in its own brand, product innovation and marketing.

    With the development of economy, this kind of low level competitive advantage has been gradually lost.

    When the international financial crisis hit, the development of the industry encountered unprecedented challenges. The decline in exports and the decline in production growth, many enterprises shutting down business, the industry's ability to resist risks needs to be improved.


    After the Spring Festival this year, the shortage of laborers in the southeast coastal areas has also made a wake-up call for the restructuring of the leather industry. China's leather production areas are mostly concentrated in Guangdong, Fujian, Zhejiang and other places. Many enterprises are unable to recruit workers for orders, an important reason is the low wages of workers.

    The leather industry as a labor-intensive industry, many enterprises are processing products for international brands, the profit is very thin, that is, rely on low labor costs to support.

    When the economic environment changes and labor costs increase, enterprises are powerless.


    All these illustrate a problem. If the leather industry wants to continue to develop, we must change the way of development and speed up the readjustment of the industrial structure.


    To adjust the industrial structure, first of all, we must change the concept of development. The key is to renew our concept, resolutely abandon the competitive strategy of quantity accumulation and low price win, and enhance the competitive advantage of core competitiveness with core technology, intellectual property, product brand and standard formulation as the core.

    Specifically, six changes must be made in real terms: first, we must conscientiously change from the pursuit of output and scale to the pursuit of high technology content, high quality and high added value; two, we must pform from low price competition to high quality, famous brand and excellent service; three, we must pform from heavy market development to heavy technology development and new product development; four, we should change from "export earning to export" to "export profit making" and "export brand creation"; five, we must effectively change from paying attention to single market to realizing international and domestic market; and six, we must conscientiously change the economic benefits of heavy enterprises to the harmonious unification of heavy social benefits, environmental benefits and economic benefits.



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    Adjust the industrial structure and improve the capability of independent innovation.

    Leather goods, whether shoes, leather or bags, are popular products.

    Its consumer groups are mostly young people. The overall characteristics of their consumer groups are the pursuit of challenges, unique personality, consumption ahead and fashion.

    Innovation is the source of fashion, and innovation can bring about leaps and bounds.

    Only by relying on independent innovation and acting as fashion creator can an enterprise lead the fashion and create the market.


    Cai Fang, director of the National People's Congress and director of the Institute of population and labor economics of the Chinese Academy of Social Sciences, said: "the pformation of China's industrial structure should be an organic integration process including three aspects of industrial upgrading, pfer and acceptance."

    Specifically, the adjustment of the industrial structure should include three aspects: first, the industrial upgrading of coastal areas, from labor-intensive industries to technology and capital intensive industries.

    Second, the pfer of industries in coastal areas, how to pfer the industry correctly and at the same time do not leave China, which requires third aspects, namely, the industrial undertaking in the central and western regions.

    Therefore, the three processes of upgrading, pferring and undertaking have been organically combined to form a unique way of industrial restructuring in China.


    This is also the way to adjust the structure of leather industry. In recent years, many provinces and cities in central and Western China have actively established industrial parks to effectively accept the leather enterprises in coastal areas and have achieved good results.

    AOKANG group has invested more than 1300 enterprises and merchants in the western footwear capital invested by the AOKANG group in Bishan, Chongqing, to undertake the pfer - the Chinese leather tanning demonstration base. Fuxin is also accelerating construction efforts, actively absorbing tanneries, and Sichuan, Jiangxi and other places.


    Of course, the leather industry is a polluting industry, especially the leather industry, which has a great impact on the environment. In the process of industrial pfer and upgrading, the central and western regions must not follow the old path of first pollution.

    At the same time, when undertaking leather industry in coastal areas, it is necessary to form an overall pfer. Only when enterprises get together can they benefit. The overall pfer of upstream and downstream industrial chains needs to be formed to achieve economies of scale.


    When it comes to industrial pformation and upgrading, people often think of high-tech enterprises. In fact, the upgrading of leather enterprises in coastal areas is not the only way to pform high-tech industries.

    Some experts pointed out that these enterprises can rise from the low-end manufacturing industry to the high-end level with independent brands and marketing channels, and increase the added value of products.

    This requires that those enterprises based on Foundry should set up departments such as marketing and brand building. Meanwhile, they should actively go out, expand overseas markets, and change the order based living conditions.


    It can be said that there are

    Independent brand

    The enterprises of marketing channel can face calmly and deal with the situation, either in the face of financial crisis or shortage of migrant workers.

    BELLE, Kangnai, Anta and other brand enterprises have attached importance to brand building for a long time, and have built up a huge marketing network, which has sustained and healthy development in production and operation, and has a strong ability to resist risks.

    And this should be the goal of leather enterprise learning beyond pformation and upgrading.


    From a series of important meetings held recently by the central government, we can clearly see that economic restructuring has become one of the main lines of China's economic pformation and a new step and a new step forward. The two sessions also set the keynote for economic restructuring, further clarified the objectives and direction of economic restructuring, and put forward solutions and measures to solve the problem of irrational economic structure.

    The leather industry should seize the opportunity and take advantage of the trend and make new achievements under the guidance of the policy of adjusting the structure and ensuring growth, laying a good foundation for the sustained and healthy development of the industry, and realizing the dream of China's leather power as soon as possible.



     

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