Sports Products Industry To Eliminate Inventory Finished Shoes For Sale "Discount"

Recently, the "2012 Hurun real estate rich list" released, the list of rich wealth average shrank by 5%, compared to five years ago when the real estate peak wealth fell 17.4%.

This year, prices rose, oil prices rose, raw materials rose, the proportion of the rich increased again, and the proportion of the poor increased.

"Rising" and "falling" have caused contradictions in the harmonious society, which have caused the "rising" disease and radiated every corner of life.

Previous years

The price of "mental disorder" has greatly increased the cost of raw materials for garment enterprises, and the cost of retail channels such as general stores has been climbing again. The labor cost has been worsening after the introduction of the new labor law, and the last straw in high inventory has pushed Chinese clothing shoes enterprises to the corner.

Domestic and foreign shoe enterprises need to withdraw funds for ordering in autumn and winter, so they have to take the "price discount".

From this, "high cost" and "low price" also played a "lawsuit" in the shoe industry.

But for the current situation, "low price" is likely to prevail for a long time.

Shoe industry cost "BBK"

In recent years, the minimum wage has been raised everywhere in China.

Statistics show that the minimum wage in China is two to three times that of India.

This is a huge threat to the shoemaking industry in China.

although

Denying that the closure of Chinese factories has nothing to do with raising salaries and inventories, but industry analysts say that Adidas's withdrawal from China is largely due to the pressure of rising labor costs in China.

In July this year, the price of refined oil returned to the "6" Yuan era, and the cost of the two hundred billion industries, such as shoe industry, garment industry, pportation and logistics, also decreased.

Overall, this is good news and can effectively reduce operating costs.

But since August, the price of refined oil has "broken eight again", it will be worse for shoe companies.

The European debt crisis has made the shoe material market panic.

Analysis of the industry, at present

The proportion of chemical materials used by shoe manufacturers is relatively large. The prices of some chemical fibre products such as soles, glue and some of them are related to oil prices. Transportation costs and so on are also affected by oil prices.

In Quanzhou's shoes, the proportion of synthetic shoes is still relatively high.

For the price of shoes, the lower the grade of shoes is, the greater the proportion of raw material cost will be more sensitive to the effect of falling oil prices.

Looking back at the area, with the increase of domestic inflation pressure and the rising of RMB exchange rate, the production cost of footwear enterprises in Henan is constantly improving, and the competitive advantage of price is not obvious.

The average export price of plastic or rubber shoes in Henan is only 1 US dollars.

Xuchang grok Industrial Co., Ltd., which ranks first in export volume, exports 12 million 450 thousand pairs, with an average price of only $0.6 per pair.

Wenzhou City Commerce Bureau's recent survey shows that in 1-8 months of this year, the total value of Wenzhou's foreign trade and import and export amounted to US $13 billion 720 million, a decrease of 3.1% compared with the same period last year.

In this regard, Su Xiangqing, director of the Wenzhou Municipal Bureau of Commerce, analyzed: "the external demand and the rising cost are the common reasons that affect the development of foreign trade, including the appreciation of RMB, the surge of raw material and manpower costs, and the vicious competition in the same industry under the severe situation."

As we see now, in the direction of pformation, many local brands have chosen to move to the upper end of consumption in Pyramid. In order to cope with this "great move", they have consumed a lot of energy in product design, channel innovation and so on.

However, the gold content of product design and channel innovation is not enough to match the soaring prices.

Many analysts say that Nike has increased pressure on its cost mainly because of increased marketing expenses of key product innovation plans.

Sale of finished shoes is "discounted"

At present, in China's footwear market, the bottom of Pyramid is that many footwear outlets and foreign trade shops occupy the main market. Up to now, after the international fast fashion giants have conquered the city, they have swept the field in the field of casual wear due to their style and price advantage. The price advantage of Nike and Adidas, which has been brought about by the appreciation of the renminbi, has left no price advantage for the brands such as Lining.

This year's slowdown in the retail market has affected the speed of inventory elimination in the sporting goods industry.

Affected by high inventory, mainland sporting goods brands have been discounting inventory by discount.

Reporters visited in some business circles found that Lining, Anta, XTEP and other sporting goods discount basically more than 50 percent off, while Nike and Adidas only part of the seasonal goods only 20 percent off, or two new products 20 percent off.

XTEP recently announced in the HKEx that the group takes into account the fierce competition environment and needs a more flexible and attractive pricing strategy to adjust the wholesale discounts offered to distributors from 60% of the proposed retail price in 2012 to 62%.

I learned from the major shopping malls and related brand enterprises in Quanzhou, Teenmix, BELLE and other stores have launched seasonal products.

In addition to a few high limit "limited edition", almost the entire venue entered the discount status.

In Zhongshan Road, many shoe and clothing shops also have their favorite words.

"A lot of new clothes and shoes have been discounted long before they are released. Now that people are getting more, they are going to push the goods at their fastest speed."

Clothing store Chen said that this year the whole industry is not good, everyone is discounted goods to clear the way.

It is said that discounts sometimes affect each other, and many other businesses will follow suit after a discount on a street or a shopping mall.

"The climate became more and more unusual. At the end of last year, it encountered warm winter. The spring of the beginning of this year was also unusually cold. In the summer, the southern region was also unable to get up.

Dealers are eager to sell products.

Mr. Lin, who is responsible for the electricity supplier, said that many enterprises on the line have started to sell goods in autumn and winter, and the line has begun to enter the order of autumn and winter. Because the signs of warming up in the whole industry are not obvious, it is one of the main reasons for enterprises to enter the discount season in advance.

"Digestion of summer stock is also an important reason for the early arrival of the discount."

The industry said that many of the summer clothing this year was ordered last year. Some dealers' blind optimism led to their accumulated cargo pressure. If they do not digest as quickly as possible, they will affect the next season's order products.

The battle of "high and low" has lasted for more than six months, and I don't know how long it will take to fight.

Zhengzhou customs recommends that enterprises should speed up industrial upgrading and continuously increase the added value and competitiveness of products in the context of higher production costs.

In addition, the government should set up a footwear industrial park as soon as possible and improve relevant supporting facilities, extend the footwear industry chain to the upper and lower reaches, actively introduce high-end enterprises, and gradually build an industrial gathering area integrating shoe production, R & D and supporting.

For consumers, it may be more likely to sit on the side of the heater in winter, watch the TV with the remote control or sit in front of the computer and constantly Click to find which shoe store will be discounted again.