Are Chinese Footwear Enterprises Crazy Or Modest? Reflection After Setbacks

After years of accumulation and development, especially since the 90s of last century, China's footwear industry has grown rapidly and expanded.

China's shoe making industry accounts for more than half of the world's output and is the world's largest shoe manufacturer.

The output and export volume of footwear products have ranked the highest in the world.

Judging from the quantity and market capacity of consumption, nearly 2 billion pairs of shoes have been consumed each year in recent years, which has exceeded 1 billion 600 million pairs in the United States, ranking first in the world, and will further expand, and there is a trend of continuous improvement.

From the perspective of production capacity and product quantity, there are 1.8 shoe making enterprises in China and 3 million 500 thousand employees. In 2005, they produced 100 billion pairs, exported 6 billion 900 million pairs, generated 18 billion 400 million dollars, and 3800 Enterprises above designated size.

Among them, there are more than 9000 leather shoes enterprises and 1 million 350 thousand employees. In 2005, they produced 2 billion 520 million pairs, exported 1 billion 360 million pairs, earned about 8000000000 dollars, and 2400 Enterprises above designated size.

However, from the perspective of product mix and product grade, China's footwear products are basically at the stage of imitation or copying, or a simple low-level design which is far away from the consumption demand of footwear products.

Coupled with the lack of technology and materials, the products appear in the international market with the appearance of "big goods" and low-grade goods. Chinese shoes become synonymous with "low-grade" and "stall shoes", even lower than those of India, Indonesia and Vietnam.

Crazy or modest?

After the setbacks, from the perspective of China's footwear production and development mode, China's shoe making industry is a big shoe industry rather than a powerful country in the world's footwear industry.

China's footwear industry is at the bottom of the industrial chain. Only by using quantity and price to win the market, without the real world brand, the comparative advantage of China's footwear industry has not been pformed into a competitive advantage.

It is worth pondering over the future of China's footwear industry.

Capital driven, the base shift footwear industry as a labor-intensive enterprise, follows the market rule from the high labor cost area to the low labor cost area.

The footwear industry in Europe and the United States began to shift to Southeast Asia from the 60~70 era in the last century. China's southeastern coastal provinces such as Guangdong, Zhejiang and Fujian seize the opportunity to become an important production base for the footwear industry in the world.

In recent years, it has begun to shift to Western and northern parts of China.

Repeated investment, lack of innovation of domestic main self created brands, and self created channels, the enterprises with their own design no longer focus on "multi input and large quantity", while many small and medium enterprises and OEM processing companies are still investing heavily in low-grade products.

Price competition, quantity expansion, shoemaking industry have weak capability of independent research and development, lack of private brand, low product quality and export growth mainly depend on price competition and quantity expansion.

So far, our country does not yet have an internationally famous shoe brand, and its design is weak. The export expansion of footwear has not changed.

Overall, prices are still low, and export growth is showing a trend of quantitative expansion.

From the perspective of the macro environment of China's footwear industry, China's footwear industry has not changed its position in the world as a whole, and is at the bottom of the industrial chain, and has been repeatedly subjected to anti-dumping sanctions by the European Union and other places.

From the perspective of enterprise's micro management activities, the input of enterprises is increasing, the cost of land, labor and capital is rising, production is increased, but profits are getting thinner and thinner, and the remuneration or efficiency of such investment is decreasing.

Therefore, the overall growth mode of China's footwear industry is investment driven for a long time. With the development of resource-saving and environment-friendly society in our country, this growth mode and its diminishing efficiency and difficulty in maintaining are inevitable.

Modest and demanding!

From big to strong, China should move from a big shoemaking country to a powerful shoemaking country. Enterprises, industries and governments should consider the following three aspects systematically and systematically.

We should give full play to the leverage of capital, raise the level of capital, leverage, and enhance the concentration of industries.

From the characteristics of shoemaking industry, the mode of "division of labor and cooperation" between Italy shoe factories has obvious advantages.

A company specializing in production, production and production of shoes is a chain. Under the premise of ensuring the quality of products, we should cooperate with each other and develop together.

With the power of capital, the "East shoes should be orderly and westward".

While the global shoemaking industry has shifted to Asia and fixed to China, China's footwear industry has also shifted from east to west.

According to the survey, domestic shoe making brands such as red dragonfly, AOKANG, double star, and sun Da set up factories in the central and western parts of China several years ago.

We should attach importance to talents, train capital and technology.

Although China's foreign investment ranks first in the world, it has not been able to effectively enhance the quality of the labor-intensive manufacturing industry in China. The core technology and design are mostly controlled by pnational corporations, resulting in the real technical holes.

Digestion and absorption, people-oriented.

China's footwear industry lacks high-quality compound talents, and many talents are hired from abroad.

Many well-known shoe manufacturers in China are active in a group of highly paid Italy designers. They are highly skilled, experienced, active in ideas and thinking, and are responsible for all the work from product development to quality supervision of finished shoes.

Technology application, training ability, communication and cooperation.

The technical line of China's shoemaking industry should be a combination of independent research and development and the introduction of advanced foreign technologies.

Opening wider to the outside world, strengthening international scientific and technological exchanges and cooperation, actively introducing advanced technology from abroad, and taking advantage of all kinds of advantages are our effective ways to speed up China's technological upgrading and economic development.

Independent innovation and ability to accumulate.

While actively introducing foreign advanced technology and doing well in digestion and absorption of imported technology, we should increase investment in independent innovation, improve our capability of independent innovation, and gradually increase the proportion of technology and products independently developed.

Taking innovation as the core driving force, improving the market adaptability and management ability of products, it is the key to pform the big shoemaking countries into a powerful country and improve the ability of product design and development.

At the same time, we should create brands, develop brands, improve product quality, improve the industrial chain, achieve industrial agglomeration, and promote the development of footwear industry to a higher level.

Industrial upgrading, brand first, brand equity, wealth bank.

Brand can become an important intangible asset of an enterprise and bring great commercial value.

Nike, the world's sports shoe brand, has achieved enormous economic benefits through the successful implementation of its brand strategy.

The implementation of brand strategy in the footwear industry not only enables enterprises to get higher economic benefits at that time, but also can continuously create new value and stabilize the market price of their products. It is precisely because the brand can bring more benefits.

Brand strategy and industrial upgrading.

The implementation of brand strategy is an important way to promote the pformation of labor-intensive industries to technology intensive industries.

For enterprises, the ultimate goal of implementing brand strategy is to make consumers more aware of their products so as to achieve a substantial increase in sales revenue.

Shoemaking enterprises should change the way of export growth, pform from quantity scale to quality brand, and brand.

It is everyone's duty to create famous brands.

There should be a big environment.

The state competent departments and research institutions, including enterprises, should strengthen research on creating world famous brands. As a major project, they should achieve common understanding and avoid detours.

Government departments should formulate corresponding policies, support enterprises to create famous brands, especially support enterprises to create international brand names.

Design marketing, go hand in hand, product design, competition sword.

In the current world footwear product brand layout, known as the world footwear industry hall - Italy in Europe, Spain firmly grasps the "design" of the most competitive "sword" and entrenched in the high-end.

The design and development of products has become the key to China's shoemaking industry to take off again.

Every operation link and ultimate goal of shoemaking enterprises or shoe companies must be carried out and implemented around products. Shoemaking enterprises or shoe companies should spare no effort to design and develop new products.

The enterprise should realize that the product innovation design is the basic of the enterprise development, the necessary condition for the product to obtain the high added value, and also the important guarantee of the enterprise's lasting development and expansion.

Design is foundation, marketing is stone.

Nike, Adidas, Reebok and other world famous brand development mode is such.

They do not set up factories for the production and processing of footwear products at home. Instead, they set up a new product design and development center. The new products will be sent to the processing factories around the world in order form to produce OEM, and then they will gain high profits through advanced marketing concepts and marketing methods, as well as brand value and popularity.

To pay close attention to quality and strengthen quality is the key problem to be solved in China's footwear industry. The number of footwear complaints has remained high for many years, which has become a major problem for businesses and consumers.

The main reason for the unqualified product quality is the lack of quality awareness and necessary inspection methods, and the lax inspection of raw and auxiliary materials and the factory inspection.

To improve the quality of footwear, we must conform to the international standards and strictly follow the requirements of the ISO9000 series.

ISO9000 series is a complete system, not a one or two index, so the quality of products can be guaranteed through ISO9000 series certification.

Only by allowing more shoe manufacturers and related enterprises to get the ISO9000 certification, can the quality of China's footwear products jump to a new level on the whole level.

Culture is the key to the development of China's footwear industry.

As the world's largest shoemaking country, five major footwear production centers have been established in Guangdong, Fujian, Wenzhou, Chengdu and Chongqing.

However, in our country that produces 6 billion pairs of shoes annually, the shoe industry has not yet had a platform to communicate with its international counterparts in shoe technology, shoes fashion and shoes brand. So far, there is no professional platform for the domestic footwear industry to exchange production technology, shoes fashion culture and shoes brand business philosophy.

The advanced equipment and excellent product quality of our shoemaking enterprises make many international brands set China as their own brand shoe processing workshop. However, because of the few opportunities to communicate with counterparts at home and abroad, little is known about the popular information and brand management in the industry. The shoe buyers who need shoes in China's shoe making industry need to build up shoes and fashion culture.

While undertaking responsibility and protecting property rights, enterprises should shoulder social responsibilities, encourage and protect products with independent intellectual property rights to the international market, encourage qualified enterprises to participate in the formulation of international standards, and enhance the position of China's shoemaking industry in the world.

With information technology as the platform, reducing paction costs and improving management level, shoemaking enterprises should establish a relatively complete information system and implement enterprise informatization construction.

Promoting industrialization with information technology, promoting informatization by industrialization, taking the road of new industrialization, and realizing the industrial development road of high technology content, good economic returns, low resource consumption, less environmental pollution and full utilization of human resources, and carrying out the "two pioneering work" to drive the footwear industry to become stronger.

Information technology is applied to the whole process of product design, manufacture, management and sale.

Its long-term goal is to achieve the so-called "5 digitization", namely digital design, digital production, digital management, digital equipment and digital enterprises.

The purpose is to improve the market adaptability and competitiveness of enterprises, and enhance the stamina of enterprise development, in the final analysis, in order to obtain a larger market share continuously.

Government led, enterprise oriented footwear industry informatization is a complex systematic project.

In order to effectively implement it, in addition to the understanding of entrepreneurs, government departments should create a good information environment, establish policy support and incentive mechanism, do propaganda, guidance, coordination and management, and give full play to the leading role of government departments.

Enterprise information training can be carried out in a planned way, according to local conditions, classified guidance and step by step.

Enterprises are the main investors, main implementers and main beneficiaries of the footwear industry informatization, and are the main body of informatization.

Only when the entrepreneur pays enough attention to information technology, knows the right place, and is willing to invest and make up his mind to implement, can the informatization work of the enterprise be done well.

The promotion of enterprise informatization can be combined with technological pformation or innovation, internal management reform and enterprise culture construction to promote each other.