Jinjiang Children'S Shoes "Go Out" And "Kill Back"

According to incomplete statistics, there are nearly 100 children's shoes enterprises in Jinjiang. In 2007, the output value of children's shoes reached about 2 billion yuan, accounting for 1/10 of the total output value of footwear products in Jinjiang. Jinjiang has become one of the largest production, processing bases and brand centers of China's casual children's shoes.

In recent years, most of the children's shoes enterprises in Jinjiang are mainly export oriented products, and their products are mainly for Eastern Europe, Western Europe and South America.

However, since the second half of last year, the export of child shoes products has been blocked, many Jinjiang child shoes enterprises have to turn to the domestic market, Jinjiang Hua Kun shoe industry Co., Ltd. (hereinafter referred to as "Hua Kun shoe") is one of them.

The company once fought for more than 10 years in the domestic children's shoes market, and then went out of the country like most enterprises. Now, under the circumstances, Hua Kun shoe industry has "killed back" the domestic market.

Jianhua Zhu, chairman of Hua Kun shoe industry, said that it is the general trend for children's shoes enterprises to fight in the domestic market.

It is understood that since July 1, 2007, China began to implement the new export tax rebate policy, the export tax rebate rate of footwear products decreased from 13% to 11%.

This directly led to a decline in the export profits of children's shoes in Jinjiang.

"After the export tax rebate has been lowered, the company's revenue will be reduced by 3 million yuan last year, which is equivalent to half a year's profit," he said.

The head of a children's shoe enterprise in Jinjiang told reporters that since the implementation of the new export tax rebate policy last July, there have been no less than 3 small shoe enterprises engaged in foreign trade in Jinjiang.

One of his fellow friends, who was unable to resist the impact of profit reduction, was also preparing to turn off the shoe factory with 400 workers by the end of this year.

Before, the friend was also ready to invest in factories in the field to expand capacity, and now the plan has become a bubble.

The responsible person predicted that with the reduction of export tax rebate, the export profits of children's shoes decreased sharply. Before the Spring Festival of 2008, 20%-30% enterprises in Jinjiang were in trouble.

In fact, not only is the export tax rebate policy affected, all kinds of trade disputes also make children's shoes enterprises feel pressure.

A staff member of the relevant departments of the Jinjiang municipal government said that most of the children's shoes enterprises in Jinjiang were in the foundry stage, earning only modest processing fees by OEM production.

In recent years, in order to protect local products, some countries and regions have frequently used anti-dumping measures to restrict the entry of my footwear products.

For example, since October 7, 2006, the EU has imposed a 16.5% anti-dumping duty on Chinese children's shoes for two years, making Jinjiang's foreign trade children's shoes enterprises suffer a big blow.

At the same time, the continued appreciation of the renminbi is undoubtedly exacerbating the export business.

"As the RMB exchange rate continues to rise, foreign trade children's shoes enterprises, which mainly rely on production and processing, have to turn long-term orders into short-term orders, while low-grade children's shoes manufacturing enterprises that compete with price advantage have fallen into an unprofitable situation."

The staff said.

At present, the export price of children's shoes in Jinjiang is generally $2-3 per pair, and gross profit is only about 8%, with a slight profit from the floating cost of rising labor costs and rising prices of materials.

"Small" shoes also have a big market, in addition to foreign trade market "feel inadequate", the domestic children's shoes marketing environment changes and the growing maturity of the market, is also to promote Jinjiang children's shoes enterprises to enter the domestic market another incentive.

Yao Yong, marketing director of Altman (China) children's products Co., Ltd. believes that the market of children's shoes in China is now in the period of "disputes among Princes", and no leading brand has yet emerged. "From this point of view, the domestic market has provided business opportunities for some foreign trade children's shoes enterprises, and there is great potential for foreign trade to be sold domestically."

What attracts the company more is the continuous expansion of China's children's shoes market.

According to statistics, domestic children's shoes have annual market capacity of nearly 30 billion yuan per year.

With the continuous improvement of people's living standards, parents invest more and more in their children's lives. Children's consumption presents a trend of buying initiative and individuation.

In recent years, the grades of children's shoes have been gradually improved, from the former simple use of broken leather and synthetic leather to the use of full grain leather, and the whole children's shoes have a bright future.

"Compared to other product categories, children's products are small in cost and large in market.

According to statistics, there are about 380 million children in China, which are all financial resources of enterprises.

Liuhe Shenlong marketing planning agency planning director Chen Shuqing said.

In order to seize this huge "cake", the number of children's footwear enterprises has increased dramatically in the past two years. In Jinjiang and its surrounding areas, more than 20 brands have emerged in less than two years, among which there are many children's shoes enterprises with "export to domestic sales".

Although the domestic market is tempting, for Jinjiang's children's shoes enterprises, it is also a challenge to fight in the domestic market.

The development of the domestic market is different from that of foreign trade. From the brand image to the product style, the enterprise should make corresponding changes, and the marketing mode can not follow the original pattern.

Chen Shuqing believes that compared with the foreign trade market, the domestic market has changed more. For example, because of the regional differences and the level of economic development, the aesthetic differences of domestic consumers are relatively large, and it is easy to "loathe the old."

"This requires enterprises to own certain product research and development capabilities, financial strength and market management capabilities."

An insider also has the same view.

He believes that many children's shoes enterprises in Jinjiang still stay in the processing stage, which can be said that they are at the bottom of the shoe industry in Jinjiang.

R & D capability, brand promotion, market management and marketing means are at the initial stage.

"Therefore, these enterprises must start from scratch, create the brand image of the enterprise, and then occupy a place in the market."

"Brand building" is the foothold of this. At present, Jinjiang children's shoes enterprises mainly establish brand image by buying mature cartoon image, and create the way of domestic sales.

Take Jinjiang Wan Tai Sheng shoes and Garments Co., Ltd. as an example, at present, there are 7 brands in its hands, including cartoon images of children, such as rogue bunny, Altman and Spiderman.

In the brand expert, Chen Shouren, vice president of Quanzhou Institute of business and information, Lv Zhenkui, "many companies choose cartoon brands because they cut the market to do propaganda and get quick results."

Nowadays, there are too many cartoon brands for children's shoes enterprises. Altman, Disney, Teletubbies and others have already appeared in Jinjiang, and even a number of enterprises are acting or running the same cartoon brand at the same time.

"Cartoon brands are often related to a cartoon. Once the movie is out of date, the image and follow-up publicity of the cartoon brand will be affected." Lv Zhenkui pointed out that there is a certain limitation to enter the market by acting cartoon brand, and creating a brand is the real way out.

Compared with Jinjiang's adult shoe enterprises with many "Chinese well-known trademarks" and "Chinese brand products", Jinjiang children's shoes enterprises do not have a country name brand or well-known trademark.

"From the current situation, the competition for children's shoes industry is becoming increasingly fierce, and an unprecedented change is about to begin."

Chen Shuqing believes that this change is just like the situation faced by the adult sports shoes Market in 2000. Whether it can build, consolidate and maintain a brand in the competition, and build a strong brand through the brand management of the system, determines the survival of the enterprise.

Jianhua Zhu, chairman of the gentry shoes industry, has formulated a prudent "3 year strategy" for its domestic sales path, that is, to test water next year and decide whether to invest heavily in 2010 or not.

"Taking into account the degree of market acceptance, our strategy is to gradually form a stable product line that meets market demand.

After that, we will cultivate eight key markets in the whole country to form copies of the model and copy them to other markets.

According to Yao Yong of Ultraman Company, the market development ability, brand understanding and dealers' idea quality of Jinjiang children's shoes enterprises are still at the early stage of the development of adult shoe enterprises.

The key to the pformation of foreign trade to domestic sales is the problem of pformation and positioning. Children's shoes enterprises should be good at finding gaps in the market, "occupy the mountain to be king" in one field, and reflect differences so as to form the advantages of enterprises.

However, some people in the industry say that creating their own brand is a long and arduous process. Jinjiang children's shoes enterprises need to improve their management ability and make full use of funds to bear short-term interests losses.