Guangdong: Leather Industry Makes Big Province, Brand Small Province

According to recent reports, a research report on China's well-known trademarks and famous brand products released by China Brand Research Institute shows that although Guangdong's footwear industry and other four industries play a pivotal role in the whole country, there are few "well-known trademarks in China".

According to the statistics of China Brand Research Institute, there are 676 famous trademarks in China and 925 famous brand products in China, which are mainly distributed in clothing, food, tobacco and medicine, machinery and electrical appliances, and household appliances.

Generally speaking, the number of "famous trademarks" or "famous brand products" of provinces in China is directly proportional to the local GDP level.

Guangdong, Shandong, Zhejiang and Jiangsu, the 4 major GDP provinces, are well ahead of China's "well-known trademarks" and "Chinese famous brand products".

According to statistics, in the distribution of "China's well-known trademarks" and "China's famous brand products", Guangdong ranks first and third.

In particular, the number of well-known trademarks and famous brand products in Guangdong household appliance industry ranks first in the country, showing the absolute superiority in this field.

According to statistics, in 2005, there were 1374 Enterprises above Designated Size in leather and footwear industry in Guangdong Province, with a total industrial output value of US $67 billion 920 million, accounting for 19.65% of the same industry in the whole country and 11 billion 487 million US dollars in foreign exchange earning, accounting for 35.12% of the same industry in the whole country.

According to the estimation of the whole society, there are more than 20000 enterprises and two million employees, and 4 billion pairs of shoes are produced each year (nearly three billion pairs of them are exported), accounting for nearly 50% of the country's total, and 700 million leather goods and bags, accounting for more than 60% of the country's total.

Guangdong has become the manufacturing center of leather and footwear industry in the whole country and even the world. It is also the most important trade center, design and development center, information center and brand center.

"The world's ten pairs of shoes, Guangdong has its three", "Guangzhou shoes lead the trend", "international brand Guangdong," and so on, is a vivid portrayal of Guangdong leather and footwear industry.

However, the research of China Brand Research Institute shows that in the four industries of furniture, toys, clothing and shoes, its output is very important in the whole country, but the famous brand is very few.

Guangdong footwear production accounts for half of the country, but only BELLE has a "Chinese brand". This situation is not consistent with its status.

According to statistics, Guangdong leather, footwear, luggage, leather clothing and other industries have BELLE and Kaiser two Chinese famous brand products, three national inspection free products, 14 Guangdong famous brand products and 19 Guangdong famous trademarks.

In the brand selection of industry organizations, BELLE was named China's real leather leading shoe maker this year. Hasen is the real leather shoe king, and the number of full leather brands is 1/10. In addition, 25 companies are rated as the special brands of leather industry in Guangdong Province, and 10 enterprises are rated as the ten brands of Guangdong footwear industry in 25.

Why does the shoe leather industry in Guangdong have such a situation of "making big brands and small provinces"?

According to experts, Guangdong's furniture, toys, clothing, footwear and other industries "re production, light brand" performance is actually a microcosm of China's brand building.

At present, although China has nearly two hundred products ranked first in the world, it is an undisputed "big producer". However, due to the lack of core technology and brand support, many of the products made in China are at the lowest end of the industrial chain.

China has few international competitive brands, and less than 10% of its own intellectual property rights in export products are truly "brand small states".

I think this comment is correct, but "know it but do not know why it is so".

First, although Guangdong produces 4 billion pairs of shoes annually, there are nearly three billion pairs of exports. Taiwan funded enterprises and Hong Kong funded enterprises mostly belong to processing trade, and the average trade volume is less than half of the total export volume.

Chinese shoes only occupy the advantage of production in the division of the global industrial chain, so export processing has nothing to do with brands.

This part of the product can not be used as a base for judging comparison.

Last year, the EU's anti-dumping investigations on Chinese shoes selected 13 enterprises in the country as spot checks, of which 9 in Guangdong were able to illustrate this problem from the side.

Second, Guangdong's domestic enterprises are not lack of brand, but keen on acting foreign brands or making foreign brands.

For example, the industry knows that the five major international brands, Goldlion, playboy, crocodile, Montagut and Pierre Cardin, have sales of several hundred million yuan a year. They are usually ranked first in the sales lists of major shopping malls in the country, but we also know that most of the headquarters of these brands are located in Guangzhou.

Others such as Dupont, kangaroo, woodpecker, old man, Valentino, SANTA BARBARA POLO & RACQUET CLUB and so on are also mostly produced in Guangdong.

How can these brands "bloom abroad and incense" create a "Chinese brand" or "China famous brand"?

The industry recognized that Guangzhou is the information center and development center of leather shoes, and is also a brand center. However, how to identify the brand center from the national level is questionable.

Every three, Guangdong's domestic sales have already had corresponding market status in the industry, such as Heshan's top leather men's shoes, Huidong's fashionable women's shoes, the South China Sea, Longgang's high-end leather women's shoes, Dongguan's export brand shoes and so on.

But these industries do not belong to a specific enterprise, but belong to the region. Most of the production enterprises play the role of order and OEM. They only engage in production links, and seldom invest in circulation and retail.

For example, many brands in Wenzhou and some brands in the clothing industry put the shoe business in Guangzhou, specifically placing orders for Guangdong's enterprises.

And some local footwear brands headquartered in Guangdong often only engage in the procurement and sale of shoes, and do not make any production.

Therefore, many brands in Guangdong are only evaluated from "Shang" instead of "industry and commerce".

Fourth, "Guangdong shoes lead the trend" shows that Guangdong shoes are still ahead of the products.

But now a trend is that Guangdong is becoming more and more easily divided into two parts -- brand operation center and receiving center.

That is to say, the trend of Guangdong is "work" and "business" independence, and more and more "specialized".

Therefore, in terms of business, the market brand is brand; in terms of industry, the industry brand is also a brand.

However, one is the brand in the field of circulation and sales, and the other is the brand in the field of production and production.

The role of people in the division of labor is not different from creating brands.

Because Guangdong shoe leather industry is too big and water is too deep, therefore, it is often difficult to give the most complete and fair comment on the current situation of "making big province and small brand".

The above commentary is just a saying, whether it is right or not, I want to make an in-depth and meticulous industrial investigation for the shoe leather industry in Guangdong province. Based on the full understanding of the current situation of the industry, we can give a more complete and correct comment and give corresponding guidance for industrial development.

The Guangdong Leather Industry Association, Guangdong Footwear Manufacturers Association and the provincial economic and Trade Commission recently launched the Guangdong leather and footwear industry research work, which is expected to give answers to this question and give specific suggestions.