Shoe Companies Seek New Ways To Reduce Costs

Industry forecast 1: 10% cost increase or international oil price rise this year. shoes The price fluctuation of raw materials will bring much impact. No one can give an accurate answer yet. But through the analysis of similar cases last year, the industry generally thinks that the price fluctuation is likely to reach about 10%.

"When the price of oil rose last year, the cost of rubber increased from 13000 yuan / ton to 19000 yuan / ton, and this year's market is fluctuating in the range of 14000 yuan / ton - 16000 yuan / ton. Sometimes, although only 2000 yuan / ton fluctuates, it has a great impact on the cost of product production. " Jinjiang Maotai Rubber and plastic factory General manager Ding Sien said. He believes that the peak of a price increase last year directly brought about an increase of 7% to 8% of the total production cost. If the crude oil price continues to remain high this year, it will still happen again.

Earlier, Mr. Liang, a new Quanzhou Xie Zhi shoe molding company, told an interview that when last year's raw material EV was at its lowest price, last year it was about 10000 yuan per ton, and then rose to 14500 yuan / ton. At the highest time, it had surged to 18000 yuan / ton, so that an average pair of shoes would have to rise seven or eight cents. In addition, the promotion of rubber prices increased four or five pairs of shoes with a pair of shoes, and the total cost was about 10%. That is to say, shoe material factories should at least compress 10% profit margins.

Leather making Tanning enterprise The pressure is even greater. The Technology Department of Feng an (China) Co., Ltd. said that the price range would be different if the raw materials were different and the procurement methods were different. "For example, oil may rise from 10 yuan to more than 20 yuan per kilogram. Some raw materials can achieve a maximum increase of 40%. In terms of leather making, the proportion of raw materials used is even greater. " The technicians say that the raw materials such as vamp, sole, glue and so on will rise with the price of oil, and the average increase may reach 6% - 7% level. He further pointed out that different types of shoes had different requirements for raw materials and technology, while basketball shoes had the highest requirements and the cost was also affected.

Industry forecast two: one or two months' buffer period, according to the introduction, the whole leather making industry is still in the low season, and after the rise of oil prices, crude oil can be processed into various raw materials and sold through chemical processing. It will take some time before the crude oil is processed. So the impact of the oil price may only begin in one or two months. As for the manufacturers of finished shoes, they can also get the "buffer period".

Dai Jianhui, deputy director of Fujian PEAK group technology center, said that under normal circumstances, it takes one to two months to see the impact. He believes that the impact of rising crude oil prices on raw materials will be comprehensive, and the raw materials needed for crude oil chemical production will be affected by the fluctuation of oil prices.

"If oil continues to maintain a high price, there will be some future impact." Ding Sien said that the impact of last year's oil price increase is obvious.

Industry exploration: a new way to reduce costs

Ding Sien said that if the overall price of raw materials is too high, then shoe factory can follow downstream products. A shoe factory Family communication can generally raise part of the price, but it can not completely shift the cost pressure. Many additional costs can only be digested by the shoe material enterprises themselves.

For example, he said, for example, the price of raw materials increases the cost of shoe materials by 5%. Then the shoe factory can only raise its price by 2% after communicating and winning the understanding of customers. The rest of the shoe factory has to find ways to solve it. "For example, by improving management efficiency and changing production processes, product formulations and other ways to reduce pressure."

He said that this way can not fully absorb the additional cost. Shoe material factory It is inevitable that profit margins will be squeezed. "After the cost is raised, we can discuss with some of them for a long time. It is possible for us to talk about the price appropriately, but we can not pass the cost entirely."

Dai Jianhui expressed similar views. He said, if it is a domestic market and has its own brand, it may be a little digestible, but for export enterprises, the impact is very great. Xu Wenjie, marketing director of seven wolves sporting goods Co., Ltd. also holds the same view.

He said that if the cost goes up, if it is to make the brand of domestic market, the way of digesting the cost may be more, but for export enterprises, because they order the order often in months, half a year, or even a year ago, so that once the price of raw materials changes, enterprises will be hurt very much.

"In terms of slowing down the cost pressure, we can only try to figure out the way out of the production process, such as minimizing the process, promoting new processes and improving efficiency in management." Dai Jianhui said.

Related news

The old way of reducing costs in shoe material factories has caused many industries to face the cost pressure.

Reporters learned that some shoe factories in Quanzhou had come up with many ways to reduce costs when oil prices rose last year.

In order to save electricity, rest during the day and start at night.

Last year, the surge in oil prices brought pressure to many shoe manufacturers in Jinjiang. Shoe material factory We should take advantage of the difference between day and night electricity tariff and take the rest of the day to start work in the daytime to reduce the cost from another aspect.

According to the introduction, the electricity charges of Jinjiang production enterprises were 0.5 to 0.7 yuan per kilowatt hour during the day, and about half of the night time, 0.2 to 0.3 yuan per kilowatt hour, and some places were even lower. A shoe material enterprise concerned pointed out, do not belittle the difference of these cents, a lot of business transactions are the key to the cost of these cents, because the order of shoes is in bulk, and the total price is much worse. In addition, for some small businesses, the factory can rest in the daytime and start up at night, so it can save some management cost.

It is understood that at that time, not only small factories did so, but quite a few larger enterprises also adopted similar methods to reduce costs. Most enterprises had shifts in shifts and night shifts. On this basis, some enterprises tried to increase the amount of overtime work during the day, reducing or even resting during the day. Because there are many procedures for processing a pair of soles, there are several kinds of materials used. The cost of electricity in each process is spread to each pair of shoes, and the total cost is 1 to 1.2 yuan.

Therefore, this method can reduce the cost of shoe material enterprises. In order to save the raw materials, a new cutting process is adopted. In general, the cutting process of EVA in shoe factories is based on rectangular raw materials, and the shoe sole model is cut out according to the machine model. As a result, the wastage rate of raw materials is up to 40%.

In this regard, in order to save materials, Huian Shoe material enterprise In the cutting process, it has gone out of its own way of innovation. According to the introduction, in order to reduce unnecessary waste of materials, the company improves its technology in equipment and mold. The new raw material is no longer the original rectangle, but the shoe shape similar to the shoe sole prototype and the original size.

In this way, the leftover materials in the two processing are only 3% of the total material. "If we waste 40% theories before, this saves us nearly 40% of our cost. In addition, because of technological innovation, we simplify some processes, reduce the consumption of personnel and reduce the cost of several aspects. The person in charge of the enterprise said. The R & D recycling technology has made millions of yuan in energy saving, environmental protection and production saving. A shoe and plastic company in Jinjiang has invested heavily in R & D and innovation technology, and developed TPR modified material, EPR, to solve the problem of TPR wear resistance, and the improved material can also be recycled and reused.

In the face of thousands of tons of leftover material every year, the enterprise has developed an additive, which makes the physical properties of recycled materials not to be reduced because of the two use. According to the introduction, this enterprise can recycle thousands of tons of waste every year, so it can generate millions of yuan a year.