Matthew Effect Affects The Footwear Industry In Quanzhou

"The stronger the stronger, the weaker the weaker," and "Matthew effect" is deeply affecting the footwear industry in Quanzhou. This is visible from CCTV's investigation on the survival situation of Jinjiang's foreign trade shoe enterprises and the two of Quanzhou's shoe industry research conducted by the Ministry of Commerce.

How to deal with it?

The industry has such a view that the footwear industry in Quanzhou is experiencing its own "adult ceremony" or become a talent or withdraw from the stage of history.

The relevant person in charge of the footwear industry association of Quanzhou believes that many brands of footwear industry in Quanzhou will encounter various problems in the vigorous development of the comprehensive sports products industry. The optimization of industrial structure and the upgrading of industries will be predictable.

"Anta experience" only Anta has the opportunity to have, the fundamental reason is that the industry status is different, and the stage of development is far from being.

From last year to this year, prices of raw materials and other factors such as rising prices of production factors, appreciation of the renminbi, export tax rebates and credit crunch have made many shoe companies in Quanzhou still suffer pains. However, they are more confident in the industry who have already taken the initiative to develop.

At a media conference recently, Anta chief operating officer Lai Shixian introduced to the media about Anta's experience in dealing with the unfavorable factors at home and abroad.

First of all, because of the huge purchasing power of Anta every year, Anta has strong bargaining power on its raw material suppliers. Even if the cost of materials and manpower has risen, Anta can raise the price of products on different lines by enriching the product line and product's technology, design content, and consumers can accept it. In addition, Anta's products come out of its own factory by 50%.

Relevant data confirm these claims.

At the beginning of the year, Anta released the first performance report after the listing. Due to the general rise of labor cost and raw material cost, Anta's cost expenditure increased sharply last year, but Anta still maintained a gross profit margin because of the 29% and 15% increase in footwear and clothing products respectively.

This year, more organizations are optimistic that in such a weak market, Anta's sales growth in 2008 will exceed 50%, and sales revenue is expected to exceed 4 billion 500 million.

The financing difficulties commonly reflected by SMEs are not a problem for Anta.

Through the listing of Hongkong last year, Anta has raised over HK $3 billion in development funds. After a year's operation, there is still a large amount of cash in hand, which can seize the opportunity at any time.

The media had hoped to promote Anta's experience in the sports industry, but found that only Anta had the chance to experience it. The fundamental reason was that the status of the industry was different and the development stage was far from the same.

"The stronger the stronger, the weaker the weaker."

According to a measurement report of Quanzhou Municipal Bureau of statistics, Quanzhou's export enterprises are affected by RMB appreciation, raw material and workers' wage increase and export tax rebate rate reduction, which is equivalent to an increase of about 22% of the production cost of enterprises.

The production situation of many small enterprises in Quanzhou is grim, and there have been varying degrees of atrophy.

The credit crunch has exacerbated the plight of these small businesses.

Theoretically, by introducing advanced production equipment and increasing productivity, the answer has become empty talk. It is very simple, because there is no money.

"Every shoe maker in Quanzhou has a distinct personality. It is not easy for them to come together.

The shoe industry in Quanzhou is seeking more and more vertical integration between upstream and downstream industries, rather than horizontal integration.

Joint or single?

This is a problem.

Since last year, "united" has become a relatively high frequency word in Quanzhou's business and local governments. Many parties hope to effectively integrate resources and solve various problems faced by enterprises in the near future through "joint".

For example, the Quanzhou municipal government development research center recommends that the government should encourage leading enterprises in the industry to actively seek to establish strategic partnership with upstream enterprises, lock the cost of raw materials to a certain extent through signing long-term contracts, or expand directly in the field of raw materials in the form of wholly-owned shareholding, holding and share participation, and carry out diversified operation.

Encourage enterprises to actively carry out extensive, in-depth cooperation and merger with other enterprises of the same size and strength in the industry, in order to win more discourse power in the negotiation of raw material prices.

At the end of June, a "seminar on upgrading footwear industry in Quanzhou" organized by the Quanzhou footwear industry association, the topic of "united" was once again touched, including the bosses of the whole shoe making industry chain, such as chemical raw materials, shoe materials, soles and finished shoes.

Ding Guo, President of Guo Hui (China) Limited, said that the success of a famous shoe manufacturer in Taiwan that he had visited was the integration of upstream and downstream resources.

Accordingly, Ding Guo believes that if we can fully cooperate with each other through mutual participation and other ways, we will greatly reduce the cost of enterprises and enhance the competitiveness of enterprises.

In fact, Guo Hui has also made some attempts in this regard. Guo Hui has established a point to point interaction with Mao Tai (Fujian) shoes materials Co., Ltd., providing personalized service for Guo Hui through the timely communication between them and the supply and design of raw materials.

This should be a good sign, but there are also people in the industry who have doubts about the joint prospects of the footwear industry in Quanzhou.

"Every shoe maker in Quanzhou has a distinct personality. It is not easy for them to come together."

In fact, this kind of personality is closely related to the industry.

According to the analysis of the industry, the sports industry and clothing industry in Quanzhou are different in market segmentation and competition. The products of the sports industry are mainly sports shoes and sportswear, most of which are similar products, so they are naked competition between them.

Therefore, the shoe industry in Quanzhou is seeking more and more vertical integration between upstream and downstream industries, rather than horizontal integration.

"Many brands of footwear industry in Quanzhou will encounter various problems in the vigorous development of the comprehensive sporting goods industry. The optimization of industrial structure and upgrading of industries will be predictable."

Last year, a book named "one year away from China" was sold well in the US and China. Sara is a housewife of a middle-class family and a former business reporter.

She made an experiment in 2005 - no Chinese products all year round, and the family's life became a mess. "In the next 10 years, I may not have the courage to try it again."

Faced with $10 a pair of Chinese children's shoes and $60 a pair of Italy children's shoes, we have to admit that "prices always win over our values."

We simply can not refuse products sold in China. "

Since last year, the price of this invincible Chinese edge began to blunt, RMB appreciation, export tax rebate reduction, labor force become expensive, raw material prices rise, a number of factors superimposed, such as shoes and clothing typical "made in China" cost increased by 30% to 50%.

This is the inevitability of China's economic integration with the world economy.

As a matter of fact, such a situation has been staged once in the capitalist countries decades ago. As a result, many of the world's top 500 have been trained from the pains of that year.

How to deal with it has become the key factor that "made in China" will continue to gain a firm foothold in the world economy. Enterprises need time to answer and pay a certain price for their growth.

As a result, CCTV launched a survey on the survival situation of Jinjiang's foreign trade footwear enterprises. The Ministry of Commerce of the PRC conducted two shoe industry surveys in Quanzhou, all of which showed the importance of Quanzhou's footwear industry, especially the sports industry to its domestic counterparts.

The above is just the situation of export shoe enterprises.

The 2008 Olympic year, originally known as the Quanzhou shoe industry domestic sales of the great development year, was placed infinite hope.

However, in this special year, the footwear industry in Quanzhou has experienced their own "adult ceremony".

Whether at the end of last year, the two Olympic Games of Quanzhou shoe enterprises were hit by the Olympic Games, or this year's hi dragon and Fujian Merck's listing were stranded. They all appeared in Quanzhou footwear industry. This is no accident.

Quanzhou footwear industry association responsible person said that despite the value of production, the brand of a large number of Quanzhou footwear industry to the development of the comprehensive sports goods industry, the output value exceeds the textile and garment industry.

Under the development of high-speed, it is bound to encounter all kinds of problems. The key lies in how enterprises should deal with them and turn them into advantages.

Industrial structure optimization and industrial upgrading will be predictable.

Not only the enterprises themselves, but also the parties are actively working for it.

Since an industry survey in 2003 caused the attention of the Quanzhou municipal government, the shoe industry chamber of Commerce of Quanzhou began to carry out a major research research in the industry, which is different from the idea of "catching big and small" in the past. This time, the leading direction is "catching small magnification" and based on the overall development of the industry; the Quanzhou Municipal Committee of the Municipal Committee of the municipal government is tightening up specific measures to support the following industry; in the counties (cities and districts), Jinjiang is the first to set up small and medium enterprise Guarantee Corporation to solve the financing difficulties of small and medium-sized enterprises.