What Is The Positive Significance Of The Failure Of Small And Medium-Sized Shoe Enterprises?

Since last October, rumors of a large number of shoe enterprises in Guangdong and Dongguan have gone bankrupt, and now, over half a year now, there are statistics that hundreds of shoe factories have been shut down.

This statement was confirmed by a person in charge of the footwear association of Asia.

He said that there are nearly 6000 shoe factories in Guangdong Province, including Dongguan, which closed more than 1000 in the past year, but there is no need to make a fuss about such a result. This is only the result of shuffling within the industry.

From 2002 to 2008, China's shoe factories surged from more than 20 thousand to more than 30 thousand, but the consumption group did not expand correspondingly, resulting in overcapacity.

Dongguan can not avoid such competition, and the weaker shoe factories are closing down. This is the certainty of the market and industry.

It is bound to be inevitable, but it is strange that Dongguan shoe companies struggling to survive in the whirlpool of collapse are not surprised.

Objectively speaking, there is a compassionate reason for the shoe companies that have already collapsed and are threatened with closure.

High oil prices led to soaring prices of raw materials and shoes in shoe making industry, and shoe enterprises took on enormous cost pressures. Most of the Dongguan shoe enterprises that had made small profits from foreign companies began to face the challenge of export tax rebate reduction and processing trade adjustment policy from July last year. Foreign anti-dumping measures and trade protection measures against Chinese shoes are becoming more severe. Up to ten percent or even dozens of anti-dumping duties have become an unbearable burden for Chinese export shoe enterprises. The appreciation of the renminbi has made China's export shoe enterprises bear more trade costs; and domestic labor costs continue to rise, and many shoe enterprises are beginning to face double troubles of raising wages and suffering from labor shortage.

These factors can be imagined for the squeezing of domestic shoe enterprises' living space. Their days are really bad, and they are indeed worthy of sympathy.

However, with sympathy and sympathy, if the disadvantages of domestic shoe industry in the process of rapid expansion and development in recent years have been taken into account, and these long-standing disadvantages have reached the level of being hard to get back to, it will be reasonable for us to concentrate on the closure of a large number of enterprises within a short period of time in the promotion of objective factors.

At present, the production capacity of our shoe industry is overabundant, the number of export enterprises is too large and the scale is small. Quite a number of shoe enterprises have short-sighted behavior.

Enterprises do not pay attention to product development and investment in science and technology, mostly in the form of OEM or ODM, imitate and plagiarize seriously, and do not want to spend time and energy to do market research and analysis, resulting in problems such as poor information in the international market, lagging behind in product design, single color and variety, poor comfort and so on. The product grades are not high and the price can not be sold, which is always lingering in the middle and low market.

In addition, in the process of foreign bidding, Chinese shoe enterprises are becoming more competitive and vicious, which makes shoe prices impossible to raise.

Apart from technical and quality reasons, another prominent sticking point in the development of China's footwear industry is the serious lack of private brand.

In the global footwear market, the first echelon with the representatives of Nike and Adidas in Germany is represented by the famous international brand influence and controlling the marketing ability of the global market. There are also the second echelons represented by Clark and Danish ECCO and so on. They are famous for their exquisite manufacturing capabilities and technological processes, as well as the third echelons represented by shoes manufacturers in Italy and France, whose advantages are world-class design masters and constantly developing new abilities.

However, in China, we can not see the influential brand enterprises, which is destined that our shoe enterprises can only be at the lowest level in the world market, and the profits collected can only be the last drop in the profits of the world shoe industry.

Seeing these problems, people naturally understand the reasonableness of the failure of many shoe enterprises in Dongguan, and naturally we can read out some positive meanings from them.

Industry experts agreed that after 2008, more low-cost and low profit start, lack of independent brand and technical content, lack of core competitiveness of enterprises, small and medium sized shoe-making enterprises will accelerate bankruptcy because of the cost advantage, but for most shoe manufacturers with regulatory norms and certain rules, it is the beginning of a new industry shuffle, and the footwear industry will go faster into the track of healthy development.