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    RMB Appreciation, Shoe Companies Face Many Tests

    2008/5/30 0:00:00 10385

    RMB

    China's ten largest shoe king, 6 in Wenzhou, so Wenzhou shoe enterprises can be called China's footwear industry vane.

    Not long ago, 7 cricket kings and other Wenzhou brand shoes quietly withdrew from the Wuhan market, because almost simultaneous action, caused a great shock.

    Cost increase 15%~20%, a person in charge of a shoe factory in Wenzhou, who did not want to be named, told reporters: at present, the shoe market can be described as internal and external troubles. There are many factors such as RMB appreciation, environmental requirements and rising production costs. After the implementation of the new labor contract law, the cost of workers has become a pressing problem to be solved.

    "Roughly estimated, the cost of an enterprise is estimated to increase by 15%~20%."

    Similar to other traditional processing products, China's footwear industry is still at the end of the industrial chain. Our country lacks the control capability in the middle market of footwear distribution in the international market, and the establishment of the retail link network is still in its initial stage.

    If mainland enterprises again repeat the simple and extensive labor of high investment, high risk and low income, more enterprises will probably fail.

    The news that China's footwear products have reached 10 billion pairs has attracted the attention of all sectors of society.

    Wei Ya Fei, director of the shoe making office of the China Leather Association, calmly stated: "overproduction is pressure on the Chinese market and even the world market. Too much output makes the footwear industry accelerate the adjustment of industrial structure and explore a new model for the development of the industry, which is becoming more urgent. This is also the key to further develop the brand in the next few years."

    For the OEM of OEM, it may be a serious time to consider creating its own brand.

    Although shoes are accessories, they need to integrate many hi-tech technologies: taking women's shoes as an example, not only the foot type of a girl is very different from that of a young woman, but even the feet of her siblings are different.

    If a pair of shoes is really split up and made up of 250 small parts, it can be described as "precision products".

    Adhere to it; and when it set up factories in 1994, it purchased a computer design system with a value of five hundred thousand dollars and a huge database. At that time, only Prada, Ferrag-amo two brands were launched. The technicians on the assembly line told reporters that the production of OEM with a large number of specialized production was different from that of thousands of people producing the same shoes. The staff making FED brand almost did different styles every day, which also guaranteed the richness of the shoe styles; and Yitai's own brand FED and B.SILLY were authorized by the Japanese new Rong company in 2001 and 2006 to authorize China's general agent "PURA BIANCA" and "RIZ" two major women's shoes brands, and formed a complete chain of design, manufacture, marketing and after-sale service. Reporters in Jiaxing Yitai shoe production line learned that: the company's 5000 workers a day's output of about 10 thousand pairs, high quality brand is Yitai consistent.

    Operators should be more sensitive. In this environment of "appreciation tiger" and "cost wolf", the operators also put forward higher requirements.

    Yang Jingming believes that first of all, operators should have professional quality. Secondly, the influence of macro environment and international economic factors should also be quite sensitive.

    Sometimes the crisis has not yet happened, but it must be reacted in advance.

    The cost of export of mainland enterprises is rising, and China's labor force is no longer the cheapest, and the per capita income of some Southeast Asian countries is far lower than that of China.

    That is to say, this trend has been pointed out. Yitai has pferred the export factories to Southeast Asian countries two years ago. At present, two enterprises in Yitai are only responsible for the domestic sales channels. In the same year, the site selection of Jiaxing was due to the high level of Jiaxing culture, simple living habits and adjacent to Shanghai. From the point of view of export, Yang Jingming told reporters: "we are also highly trusted by foreign customers, and we will move to Jiaxing, and they will support it."

    International competition is very realistic, and capital always flows to the greatest interests.

    Footwear operators have a keen market sense in addition to their professionalism.

    Yang Jingming, who has set a good example for the shoe companies in the mainland, often encourages himself: "when it comes to bottlenecks, it may be the closest to success."

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