Four Major Decompression Strategies For Leather And Shoe Materials Enterprises

Since last year, influenced by factors such as price rise of raw materials, rising cost of labor and exchange rate adjustment, Jinjiang footwear industry has met with challenges. Among them, shoe material enterprises in the middle reaches of the industrial chain are particularly strong.

In this regard, they either adjust the product structure, or take the way of reducing intermediate links, joint orders, cash and take delivery, trying to find a way to develop their own cost in the process of finding the best way to reduce costs.

Method 1: adjust the product structure, and adjust the products to high-end outdoor soles and shoe sole.

Wu Tianci, general manager of Xintai footwear, said that the company's current business approach is directly working with foreign trade companies, but the depreciation of the US dollar has greatly reduced their orders in the US line market.

"The orders of customers in the US line market always include the sole of any price, but now they can only be customized to reflect the sole of their market."

He said that at present, the demand for outdoor climbing shoes is increasing in Europe and the United States.

Outdoor mountaineering shoes have high technology content, and production in China is more competitive than in foreign production.

Similarly, customers who purchase Golf soles are mainly exported, with the number increasing and domestic sales fewer.

Because golf shoes are difficult to manufacture, fewer manufacturers can produce them.

Cai Asan, general manager of new Zhongyi, said that at present, the demand for football soles in foreign markets has improved, which has brought a chance to the current predicament.

He said football soles belonged to soles with high technical content. Compared with foreign sole manufacturers and Chinese sole enterprises, the technology of Chinese football soles factories was relatively clear, with low cost and strong market competitiveness. Foreign buyers purchasing football soles also liked to go to China.

Therefore, they will adjust the product structure and push the football soles.

The development opportunity of football soles gives Cai Asan the prospect of another kind of market. According to him, it will also develop new soles, such as bicycle soles, golf soles and so on.

"These new products have high technology content and belong to high value-added products, so the price is higher, and there are fewer competitors in the market.

In addition, environmental friendly footwear with European standards is also a new direction.

He said.

Ding Youyi, chairman of the WorldCom footwear industry in Jinjiang, believes that this year's foreign shoe enterprises are facing the issue of readjusting the product structure. Enterprises generally attach importance to products with better quality, more popular in the market and higher rate.

This year, the number of board shoes and high-end casual shoes required by the market has increased, while the number of sports shoes and running shoes has decreased.

Method two: reduce production cash and get goods. "Now, the shoe industry is in a state of shrinking export sales, and domestic business is bankrupt due to some enterprises' failure, which has aggravated our difficulties and pressures."

Wu Tianci said.

In this regard, enterprises must adjust their direction and cooperate with shoe factories with strength and credibility to reduce risks.

Faced with this situation, cash withdrawal has become one of the means for many manufacturers to protect themselves before difficulties.

Zhuang Keli, general manager of Jinjiang Er light leather Distribution Department limited, said that most shoe factories have taken several measures: protecting old customers and reducing orders for new merchants.

For enterprises that used to cooperate regularly, they should no longer apply the method of clearing goods after payment, but rather demand cash payment in order to speed up the withdrawal of funds.

"Because most of the shoe material enterprises produce shoes products of sports shoes, the management of sports shoes manufacturers has been greatly affected.

Shoe factory purchases shoe material to need a large amount of cash, so production will be affected, delivery time may be pushed back, so that the whole industry chain is affected.

Zhuang Keli said.

Method three: reduce pfer joint order to reduce cost pressure, jump off intermediate links directly with foreign businessmen, and business alliance to buy orders, become the industry's current cost decompression means.

Ding Youyi, a WorldCom company, believes that if we want to reduce pressure, we must go abroad to set up points abroad, directly cooperate with guests, reduce intermediate links and save costs.

"60%% is a pfer order for foreign trade in our foreign trade order, but if we set up a sales branch directly overseas, there are still some difficulties in terms of financial strength, technology and legal support."

He said.

In addition, cooperation has gradually been adopted by some companies.

"As early as three years ago, we adopted a way of tug of cooperation, that is, manufacturers, trading companies and customers who purchase customers to work together to develop projects."

Wu Tianci said.

"A few years ago, I proposed the practice of Corporate Alliance, which may be considered unrealistic.

Now, if the external environment continues to persist, enterprises must take concrete measures to deal with the current difficulties.

Joint venture is not necessarily necessary for mergers and acquisitions. Joint investment projects are also acceptable.

Ding Youyi thinks.

Method four: from the time of management, Ding Youyi proposed that in addition to the breakthroughs in product pformation, manufacturers should also start with the efficiency of production management, optimize management and reduce costs as far as possible.

On the one hand, we can properly streamline personnel, retain good talents, create a good working environment for employees, and improve work efficiency.

On the other hand, control the production process and minimize unnecessary waste in all links.

"The use of electricity saving production machines, a year can also save a lot of money.

Safety production is also very important. Excellent talents can manage well in management. Safety production will bring good benefits to enterprises. "

He said.

Jia Yi Import and export company Li believes that the breakout of shoe materials in Jinjiang should not only adjust the structure of products, but also improve the quality of production. Manufacturers should also save energy and reduce emissions, and use energy saving machines and environmental protection machines to comply with the call of national environmental protection.