How Can Chinese Shoe Enterprises Get Out Of The Cold Winter?

Lower price P has always benefited China and made China's a href= "http://www.91se91.com/news/index_x.asp" > economy < /a > rise, thus making it difficult for American consumers to abandon China's imports.

The experience of an American journalist trying to leave China for the year has given her a fresh look at the distance between China and the United States.

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While P launched China's American life, she got a conclusion that China has already penetrated into American life.

"Made in China" is everywhere in the United States, but it is ultimately the result of economic globalization.

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< p > reporter: the advantages made in China are mainly reflected in the aspects of labor force, < a href= "http://www.91se91.com/news/index_x.asp" > land resources < /a > and so on. So why is the advantage becoming inferior today? What is the underlying reason? < /p >

< p > Wang Ji Wan: superiority becomes weakness. This is the inevitable rule of market economy development.

In the past, we relied heavily on low a href= "http://www.91se91.com/news/index_x.asp" > labor force < /a > cost, low price land resources and so on. We could only get temporary growth.

When the trend of Global trade enters into quality, price and brand success, our overdraft success in the past few years will be the return and cost of today's failure.

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The most profound reason for this is p. I think it is a question of enterprise strategy. It is not far away for an enterprise or an industry to see only 35 years of growth but to ignore sustained growth at a long-term strategic level.

Consciousness innovation is the most fundamental innovation. We still have a lot of businesses and industries who are lucky to be immersed in the joy of rapid growth, while ignoring the potential crisis. This is an important reason that China's manufacturing is losing its edge.

More importantly, with the deepening of competition and relying solely on the so-called advantages of labor force and land resources instead of finding a short board from fundamental product innovation, business model innovation and management innovation, we will face a bigger industrial crisis.

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< p > reporter: the possibility of further acceleration of RMB appreciation is becoming a reality. The 1 US dollar has a record high since the 7.1029 yuan RMB exchange rate reform. For export oriented Chinese enterprises, the crisis and pressure brought by RMB appreciation is more and more far-reaching.

In addition, international oil prices exceed 105 dollars per barrel.

What is the far-reaching impact of RMB appreciation and soaring international oil prices on China's footwear industry? < /p >

< p > Wang Ji Wan: the rising price of resources will definitely affect the development of various industries.

At present, the export of footwear products in China highlights the structural contradiction, which is mainly manifested in the large volume of export products, but low prices, many export enterprises, but small size, with more processing, but less than a href= "http://www.91se91.com/news/index_x.asp", less than /a.

In addition, similar to other traditional processing products, China's footwear industry is still at the end of the industrial chain. We lack control over the intermediate links of footwear distribution in the international market, and the establishment of the retail links network is still in its initial stage.

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< p > oil price rise and RMB appreciation are undoubtedly a cost calamity for shoe enterprises solely dependent on export trade.

Due to the low added value of our export shoes and the low output value of the unit energy consumption, the Chinese footwear industry must adjust its structure. We must change the old trade growth mode and not lie on the edge of some resource advantages. The Chinese shoe industry will make the industry stronger, bigger and deeper, and the remaining opportunities will be less and less.

If we do not change the way of growth rapidly, then we are waiting for death.

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< p > reporter: once, "made in China" was repeatedly misunderstood and discriminated against.

In the western context, "made in China" is synonymous with low price, low quality and low grade.

For a long time, the export of Chinese goods to the outside world contributes immense energy to the global economy, but often fails to receive due respect and attention.

Chinese brands are also unable to match their competitiveness.

Let's reflect on it. Why? < /p >

< p > Wang Jiwan: from a macro perspective, we should adjust the industrial structure, strengthen the "a href=" http://www.91se91.com/news/index_x.asp "> service industry" /a ", and get rid of the situation of low cost processing trade and increase the added value of China's manufacturing industry. This is the way for the long-term development of China's economy. From the micro perspective, as a manufacturing industry, enterprises actively explore new development directions, and enhance the added value of manufacturing industry through technological innovation, brand and talent construction, which is the only way for Chinese manufacturing enterprises.

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In the 30 years of reform and opening up, China has indeed won the world market by quantity and low price. But today, when resources are tight, competition is turning to quality and brand competition, our advantages become inferior. To complete the pformation from manufacturing in China to China owned and created in China, I think we should make efforts in terms of the quality, efficiency and brand competitiveness of enterprises, instead of just staying in price wars and resource wars. P

China's footwear industry has entered the era of brand winning, not the symbol of advertising surface, but from qualitative changes in product quality, technology upgrading, management innovation, health and environmental protection.

This road does not go today, it has to go tomorrow, sooner or later, it has to cross.

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< p > reporter: China's footwear industry must adjust its structure and change its original mode of trade growth so as to make the industry bigger and stronger.

So, how did it happen in the past few years as /p?

< p > Wang Ji Wan: These are all facts and facts.

One day we realized that it was not important. The important thing is how to practice.

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< p > > a href= "http://www.91se91.com/news/index_x.asp" > Hengda < /a > has been doing steadily for 25 years. Whether it is internationalization or globalization, or the construction of the "Hui Valley" of China's footwear industry and the opening of a new chapter in the pformation of China's footwear industry, these are the embodiment of our pursuit of effective, quality and healthy growth.

We must pform the growth pattern, on the one hand, we should make innovations based on customer value and enterprise ecological chain. On the other hand, we should also face up to and face the impact of capital innovation on traditional manufacturing industries. We must win the brand reputation and market efficiency of the world market. We must change from traditional innovation to innovation and system innovation. I think we must jump out of the dilemma of being a follower, and we must break the line of innovation and realize your differentiation.

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< p > no scientific and standardized market planning, lack of product portfolio management, and no improvement in investment decisions, our innovation will be blind and risk will be great.

Hengda will not do things that are irresponsible to customers, shareholders and society. Even if it is a good idea, it will not touch the healthy growth of enterprises. This is the "high voltage line" of the market.

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< p > Hengda carries out the pformation of intelligence management. R & D is only a necessary condition for Hengda innovation. To complete the core technology, product reliability, safety, comfort and health, we must stand on the market to see whether the whole innovation pipeline is smooth through the role of the third party, whether the system innovation supports the whole strategy of the enterprise, and cares for the value chain of the survival and development of the enterprise.

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< p > competition and contradiction, when will China's footwear industry end civil war < /p >

< p > core hints: in 2007, the cost of raw material import and export of China's footwear industry increased sharply, while the unit price of export finished products fell at the bottom, and the profits of the whole industry went down further.

The unpredictable situation of national policies, environmental pressures, market difficulties and rising costs will make the shoe industry swaying in the predicament.

At the beginning of the year, the thousands of shoe enterprises in Guangdong were closed down, the implementation of the merger plan for BELLE listing and financing, the intensification of anti-dumping, and the rising labor cost in the new labor contract law and so on.

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P: reporter: thousands of shoe enterprises in the South have closed down. What are the failures? A href= "http://www.91se91.com/news/index_x.asp" > Enterprise < /a >? In the past few years, foreign anti-dumping has never been interrupted. The implementation of the new labor contract law is the fundamental reason for their withdrawal from the footwear market. < /p >

< p > Wang Jiwan: it is undeniable that the implementation of the new labor contract law will indeed increase the labor cost of enterprises to a certain extent. But in the long run, this increase in cost is not only the need to protect workers and enhance the harmony of labor relations, but also the pains of a country's enterprise development and social progress.

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< p > from 2001 to 2007, the number of Chinese shoe enterprises increased from 2 to more than 30 thousand. The vicious competition of enterprises and the price war led to a decline in the profit margin of the whole industry.

At the same time, in recent years, a series of raw materials, water and electricity, factory rent and other costs are also rising, the "low cost, low profit" mode of processing trade has obviously no way out.

This means that shoemaking enterprises need to reshuffle, otherwise, the continuation of vicious competition may eventually bring disaster to the development of the whole industry.

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< p > I have roughly calculated that although there are nearly 1000 shoe factories in the PRD, their capacity is not as good as that of a leading enterprise.

Obviously, the crisis faced by the PRD footwear enterprises is not a disaster caused by the new labor contract law, but a change to the traditional backward competition mode. The so-called crisis faced by the shoe enterprises is more like a turning point.

After this shuffle, the shoe making enterprises with their own brand and technological content and core competitiveness will stand out and the shoe enterprises will become stronger and more competitive through integration.

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< p > reporter: in May 23, 2007, BELLE international listed on the Hong Kong stock exchange. At present, its market value has exceeded 100 billion Hong Kong dollars. It is the largest mainland retail listed company in the HKEx market capitalization.

After the listing of BELLE, in November 13, 2007, following the successful acquisition of FILA China Trademark in September, the company acquired assets of 5 companies in the group of 1 billion 600 million, and confirmed that although BELLE was the main female shoe manufacturer, relying on the heavy investment in the hands would achieve the conjecture of men's shoes side by side.

What do you think of the late capital restructuring and market shuffling of China's footwear industry? < /p >

< p > Wang Ji Wan: in the case of equity investment income larger than the main business income and thus leading to divergence of investor value, many listed companies have occurred. In the early days, household appliance enterprises collectively invested in the stock market. There were also clothing giants in the industry. Li Rucheng and his YOUNGOR had ten shareholding shares in listed companies. Many people thought that YOUNGOR Li Rucheng and three carriages had the same drive.

In fact, we turn back to the depths of thinking, which is a misreading of business operations and business rules.

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Last May 23rd, BELLE international entered Hong Kong Stock Exchange in Hong Kong, and its market value exceeded HK $100 billion. P

In fact, what YOUNGOR is doing now is "mixed operation". In my opinion, when an enterprise develops to a certain extent, how the new target goes and how to walk healthily and continuously is a question that every enterprise must calmly ponder. You do not hold on to your big tree based on success and development, try to spread seeds everywhere, and expect extensive seed collection, which should not be the style of my enterprise.

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< p > Li Rucheng's inner heart is also very clear. The clothing industry is the first industry of his YOUNGOR and his main industry tree. It has social benefits and stable cash flow. Real estate is the second platform of YOUNGOR. There is still room for the development of regional property. YOUNGOR investment is actually not a "wrong hit" that the outside world believes, but a phased business exploration of Chinese enterprises in the changing environment. This should not be the mainstream of Chinese manufacturing and Chinese creation.

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The same is true of < p > a href= "http://www.91se91.com/news/index_x.asp" > BELLE < /a >. The fundamental reason for its sustained growth today is to be strong before doing big and do deep work.

Leather shoes industry is not a sunset industry, but a sunrise industry with huge market demand and demand. Who doesn't wear shoes? What kind of shoes will be put on in the future? How to dress up with taste, comfort, healthier and greener? How can every enterprise adapt to these needs? < /p >

< p > capital is the phenomenon, the market is the essence, but this does not prevent Hengda's capital road. We are also actively planning the domestic A share listing.

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< p > reporter: some people think that in addition to the role of "price butcher", it seems that there is no longer a more suitable role for "made in China".

Similarly, for a commodity, OEM China is often inferior to Japan or even Korea, unless it has a certain market share at a lower price under the premise of homogeneity.

Once the helplessness is formed, the logic of thinking is that the logic of "made in China" in order to win competition in the global market, we must consistently adhere to the "low price strategy".

On the shoe industry, what do you think? Between the shoe industry and the shoemaking enterprises, between Chinese shoes and foreign shoes, how long will it take to end this protracted "price war"? < /p >

< p > Wang Ji Wan: our city's home appliance boss Haier Zhang Ruimin has a saying: if you are a brand, you can sell a lot of money. If you are not, you can only rely on foundries to make a living.

Low price routes not only have no way out in shoe industry, but also in other industries.

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< p > foreign markets are not as irrational as the Chinese market. The developing Chinese market has to go on before the idea of enterprises and consumption is mature.

Judging from the current and future development trend, price war is no way out. Price war can not solve the problem of sustained and healthy development of Chinese shoe enterprises. Price war can not enhance brand power by raising sales volume, nor can price war bring enterprises to long-term survival blue ocean.

Consumers will abandon you sooner or later, because you are overdrawn and sacrificed corporate value and customer value, how can you be responsible to their irresponsible enterprises? < /p >

P: reporter: is there a middle road between the low level market price competition and the increasingly serious export situation? From the narrow door of technology and brand to the wide market of global market, what do you think is the most appropriate strategy? < /p >

< p > Wang Jiwan: there is no shortcut to do business. I think we have to do it step by step.

No strategy allows all enterprises to take over, and no management book can enable enterprises to succeed in innovation. Every enterprise has its unique growth genes and cultural lineages.

Suitable for oneself is the right thing to do.

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