Fujian Shoe Enterprises Under Cost Pressures

According to the survey data from Fujian chamber of Commerce for footwear and footwear import and Export Association, since last year, the total cost of shoe enterprises has increased by 10% - 15% due to factors such as export tax rebate rate and RMB appreciation.

"Many small businesses are now facing the situation of survival of the fittest, reorganization and integration, and the profits of large scale enterprises are also greatly reduced."

Recently, Wang Jian, Secretary General of Fujian footwear industry association, made the above remarks.

The profits of small and medium-sized enterprises have been squeezed recently. Under the influence of 2 percentage points of the tax rebate rate adjustment and the subprime mortgage crisis in the United States, the footwear industry as one of the main export industries in Guangdong is quietly retreating.

In the first two months of this year, the export of footwear industry in Guangdong decreased by 20% compared with the same period last year, while the enterprises in the Pearl River Delta region also dropped to 1512, which was 1855 less than the same period last year, less than half of the same period last year.

What is the situation of shoe industry in Fujian?

According to the data provided by the Fujian inspection and Quarantine Bureau, from January 2008 to March 26th, the export and footwear of Fujian exported to Xiamen (excluding Xiamen) were 53010 batches and 1 billion 201 million 380 thousand dollars, respectively, up by -5.4% and 6.7% respectively.

On the face of it, the situation of Fujian shoe enterprises is not as bad as that of Guangdong. The overall export is still growing, but it still has a decrease compared with the increase of last year. At the very least, export batches showed negative growth.

"Under the combined pressure of export tax rebate rate and RMB appreciation, the production cost of enterprises has increased by at least 10% to 15%.

Coupled with the continuous improvement of raw material prices, the low-end products simply can not afford it, which has really brought greater challenges to our footwear enterprises.

According to Pan Yangzheng, Deputy Secretary General of the Fujian footwear and import and Export Chamber of Commerce, the profits of some small and medium-sized enterprises are likely to be squeezed out of the superposition effect of the above policies.

An industry insider's statement corroborated Pan Yangzheng's statement. "Under the combined pressure, taking women's boots as an example, the cost of labor alone is 30 yuan per person this year, an increase of more than 50% compared with 5 years ago."

Zheng Liuhe, chairman of Quanzhou Baofeng Footwear Co., Ltd., who has been engaged in shoes industry for 19 years, has also felt the pressure that he never had before. He admitted: "over 90% of our products are exported to the United States, and every year, 20 million pairs of slippers are exported to the United States, and one in ten Americans wears our company's slippers.

We used to be proud of it, but now our exports are facing an almost zero profit embarrassment.

Wang Jian's remarks are much the same as those of Pan Yangzheng. "When the export tax rebate rate falls and the RMB appreciates, many enterprises are afraid to sign foreign orders. This is because the exchange rate changes are too big, and companies that fail to sign contracts can not afford to lose.

Now the shoe market is basically a buyer's market, and the buyer has the initiative to take the initiative in the market.

This is mainly in the shoe market, in addition to the domestic market competition pressure, is also facing Vietnam, Philippines and other neighboring countries' competition.

Wang Jian emphasized at the same time that "after the introduction of the new labor law, it is necessary to protect the fundamental interests of workers, but at the same time, the labor cost of enterprise employment has increased, and many enterprises are unable to adapt to it in the short term."

All in all, the survival situation of Fujian shoe enterprises is "hard" in Wang Jian's words.

It's hard! "

Under the pressure of brand capacity upgrading, Fujian footwear enterprises have become the focus of the industry.

In Wang Jian's view, shoes enterprises have no choice but to start with adjusting the product structure and creating brands, improving the technological content and added value of products, increasing the variety of products, developing functional and personalized products, subdividing consumer groups, thereby enhancing the competitiveness of enterprises.

"Nowadays, many consumers recognize brands when they buy goods.

There are three thousand or four thousand shoe companies in Fujian.

Moreover, those famous brands have spent a lot of time and money building, creating brands is not so easy! "

According to Wang Jian, "in such a situation, small businesses have to go on the path of OEM for large enterprises, which is the inevitable result of social division of labor.

If you can not handle other people's OEM, you can only take the middle and low end of the rural market.

However, the rural market is now gradually demanding quality and brand. "

Stress is sometimes a driving force.

Pan Yangzheng is optimistic about the future of shoe enterprises. He feels that everything has two sides. The pressure at the moment is also an opportunity for upgrading and pformation of footwear enterprises. "A company with long-term vision will work hard to strengthen management, enhance brand and increase added value, and those enterprises that are not standardized and can not keep up with the times will be eliminated in competition. This is not a bad thing for the whole industry. This survival of the fittest will encourage our footwear enterprises to learn from foreign experience, such as high value-added products and business management concepts, so as to enhance the viability of enterprises and enhance the brand of enterprises."

This kind of light industrial product is mainly rely on quantity to win. If the enterprise fails to achieve a certain amount of production, it can not survive in the market.

To this end, at the beginning of the new year, Quanzhou, the most important industry in the footwear industry of Fujian Province, has already had a strong upsurge in capacity upgrading. A number of famous sports brands such as PEAK have launched one after another, completing the foundation or expansion of the new industrial park, providing conditions for the new round of competition and reserve strength.

Among them, some of the factory buildings of PEAK South Huian Industrial Park, which were newly built by PEAK group, have been completed and put into trial production; some 331 degree (China) Co., Ltd. invested 5 hundred million of the science and Technology Industrial Park, some of which are expected to be put into operation this year; Fujian Gold Lake sporting goods company has completed the relocation of the Gold Lake Industrial Park; the modern industrial park, which cost 390 million yuan, has also completed the relocation; the Hongxing Erke group has also completed the relocation of the new factory building in the hi tech electronic information park.

Wang Jian disclosed the latest development trend of the leading enterprises in Fujian footwear industry.