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    Analysis Of Wenling Shoe Enterprises' Dilemma

    2012/8/16 11:29:00 64

    Wenling Shoe EnterprisesFinancial CrisisForeign Trade Footwear Industry

    In the afternoon of August 13th, the workers are busy producing the workshop of Zhejiang Tianyi shoe industry Co., Ltd.

    Under the impact of the European debt crisis, Zhejiang Tianyi Qi Shoes Co., Ltd. broke through the traditional thinking, excavated foreign fashionable styles, and broke the products into the UK, Germany and other markets. The production orders had been placed in October, and now they produce 120 thousand pairs of footwear products such as riding boots.


    Recently, the Wenling shoe and Leather Industry Association conducted a survey on shoe production in the first half of the year.


    In the survey, the chairman of the Taizhou shoe shoe industry said, "Wenling shoe industry has gone through 2008.

    financial crisis

    And then suffered the global economic downturn since the second half of last year.

    Since the beginning of this year, the situation of production and sales is very serious. If we do not take measures, the industry will be unable to survive. "


    So, what problems did Wenling shoe industry encounter?


    According to statistics, in the first half of 2012, there were about 5966 shoemaking enterprises in Wenling. The total industrial output value was 13 billion 263 million yuan, 4.3% lower than that of the same period last year, and 412 of the above scale shoe-making enterprises (5 million or more), 8% lower than that of the same period last year. The total industrial output value of 5 billion 401 million yuan has been reduced by 2.23% over the same period last year.

    Footwear exports amounted to US $683 million, an increase of 9% over the same period last year.

    Taking account of exchange rate and inflation factors, the export volume of footwear is basically the same as that of the same period last year.


    From the statistical data, the production situation of Wenling footwear industry fluctuated little in the first half of this year, but the truth behind the plain data is worrying.


    This year,

    Wenling

    Shoe industry has been in the most difficult year since the financial crisis. The whole industry has been declining in the struggle, and the development situation is very grim.

    Total output value and sales volume showed negative growth for the first time in thirty years. Small and micro enterprises were closed down and the business situation was serious. The industry as a whole showed gloomy domestic sales situation, and foreign trade was difficult.


    According to the survey, more than 10 small and medium-sized shoe enterprises in the six shoe gathering areas of the city have gone bankrupt, and about 1500 of the production units are closed down, accounting for 25.3% of the total number of households in the city.

    Of these closed businesses, small and micro enterprises account for more than 95%.


    30 families surveyed

    Shoe enterprises

    In the first half of the year, sales increased by 8 compared with the same period last year, accounting for 26% of the survey enterprises, and sales increased by 22.8% over the same period last year. 14 of the 14 surveyed accounted for 48% of the survey enterprises, and sales decreased by 24.3% compared with the same period last year.


    Orders are not enough, and enterprises are the main producing areas of the footwear industry in Wenling, with the "small single" supporting workers' East, North and Hengfeng.


    In the past, the bustling Hengfeng Heng Shi Road area is now cold and clear.

    More than 1/3 of the shoe manufacturers have been left empty, and 1/3 have closed down, and 1/3 have been left behind.


    How do you do business this year? Lishui's Li Jing shoe industry has suffered a lot of pain: "business is the most difficult business this year. In the first half of the year, I had more than 10000 pairs of inventory products, the cost price was 11 yuan / double, and finally the 3 yuan / double disposal, plus labor costs and other expenses, a loss of about one hundred thousand yuan.

    80% of the domestic shoe companies in the region suffered losses, 10% were flat, and 10% were slightly profitable.

    If I can get through this year, if I fail again next year, I will close the door and go home. "


    In recent years, the profit rate of foreign trade footwear industry has dropped sharply, generally 7%-8%, and the profit space is being further compressed. Taking orders or not receiving orders is a painful choice for foreign trade enterprises.


    "There are more than 100 employees in the factory. If they are on vacation, they will not be able to come back. If they do not have a holiday, they will have to pay several hundred thousand yuan a year for the minimum wage.

    No way, as long as there is a single, even if only a few hundred pairs of small single, also have to pick up.

    This is a small order that has not been seen in the past years, and the competition among enterprises is also becoming more and more competitive. The unit price is lower and lower, and there is no profit margin.

    Chen, general manager of Bo Tian children's sporting goods, has expressed the frustration of most foreign trade shoe companies that are struggling to support it.


    To cope with the predicament, Wenling shoe enterprises have their own way now, the failure of small and micro shoe enterprises has released certain production factors and orders, which is a good thing for high quality enterprises.

    They seize these opportunities, adjust their business ideas and seize the market.


    This year, Zhejiang green apple sporting goods Co., Ltd., which has been exporting overseas, invested about 90000000 yuan to build a new factory area, and the production line was expanded to three (after the year plan increased by two). In a timely manner, the management idea was adjusted, the development strategy of both internal and external sales was started, and the foreign trade orders from Fujian, Guangdong and other places were started to be pferred from Wenling.

    In the first half of this year, the output value of green apple shoes increased by 30% over the same period last year.


    Taizhou sprint shoe industry has adjusted its enterprise development plan four or five years ago because of the foresight of the helmsman Shi Baofu, so as to ensure that the annual growth rate has been gratifying in recent years.


    "In the past, we only pursued production and made low price Middle East and African markets.

    Later, I adjusted the strategy to improve the added value and expand the profit space with quality and grade.

    We spent a lot of money and energy on international certification and enterprise assessment to enter the international large supermarket chains.

    Shi Baofu said.


    The domestic market enterprise Taizhou Mei Debao shoe industry has increased its own development power, and has put dozens of new varieties into the market every quarter, at the same time, it has also intensified its brand building efforts.


    This year, they spent a lot of money to invite the "Spring Festival Doll" Deng Ming he as spokesperson for the 2012 Spring Festival Gala. They launched the two private brands of "Bnidi" and "rabbit rabbit eggplant". The famous brand of domestic shoes, Jiangsu Beibei, came to hear the news and took the initiative to find the door and cooperate with the United States.


    According to the Swiss bank, China's consumption of footwear 2 billion 257 million pairs has surpassed 21.33 of the United States last year, ranking first in the world.

    It is estimated that in the next 10 years, per capita consumption in Asia will probably exceed 3.5 pairs, and Asia will become the main battlefield of world footwear consumption.

    Therefore, the next ten years will be a great opportunity for the development of China's footwear industry.


    Eyes are still looking good.


    As a daily necessities, the footwear industry is still a sunrise industry in the long run, but it needs to pform the traditional development mode of footwear industry through pformation and upgrading.

    Enterprises can not wait passively to wait for the recovery of the global economy. They should take the initiative to break through the difficulties.


    First, we must open up new markets. Two, we need to adjust the product mix, three we need to build the core brand, and the four is to implement management innovation.

    At the same time, the government should intensify its efforts to crack down on non-standard enterprises such as unlicensed, unlicensed and three in one factories, to rectify market order and create a fair competition environment for enterprises.

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