Chengdu Women'S Shoes Defense

Fragile fund chain March 2008, "BELLE" shoe factory boss fled the news shocked the entire shoe industry in Chengdu.

This is a well-known shoe-making enterprise in Chengdu for over 20 years, with assets amounting to tens of millions of yuan.

After the boss disappeared, there were only tens of millions of debts left and a new factory covering more than 40 acres.

When Li Kaimao mentioned the incident of "Rui BELLE", he believed that the collapse of "Rui BELLE" was directly due to the fragmentation of the capital chain, but this is only the most visible phenomenon.

According to Li Kaimao, "Rui BELLE" new factory is the last straw to overtake the camel.

As a matter of fact, all enterprises that built new factories this year have had 99% tough days.

"Women's shoes enterprises in Chengdu are mostly built up by a small workshop. After seven or eight years of development, they accumulated certain wealth.

The money was used to build the factory, and the enterprise did not have the liquidity, the wages of workers could not be delivered, the suppliers' money could not be reached, and the order could not be completed on time, resulting in the capital chain breaking caused by the blind expansion of the scale.

The shock of "Rui BELLE" to the whole industry is that, in the view of some business owners, this is not an individual phenomenon, but a victim of the government's misplanning of the whole industry.

A shoe factory owner, who did not want to be named, told reporters that the shoe industry in Chengdu is carrying out the fourth relocation of the industry history. The government has vigorously built up the "western shoes capital", and the enterprises required to enter the factory must have a considerable scale and build a production line.

However, most shoe manufacturers in Chengdu do not yet have the strength to build big factories.

"Rui BELLE" is here, the result is the first to pour.

The crisis of capital chain is also reflected in the hardship of loans.

Because of the credit crunch and the financial management of enterprises are not standardized, Chengdu shoemaking enterprises almost have no access to loans from banks.

When most bosses need to spend money, they usually borrow or use private funds through friends and family.

The interest rate of private lending in Chengdu footwear industry has been rising gradually.

"As far as I know, some interest rates have exceeded 1 Gross (10% per month)."

Ma Yuntao said.

Wang Tao also said that now he has been afraid to borrow money from the private sector.

"Before borrowing is mainly because the order came, borrow money to buy raw materials, should be anxious, probably half a month to return the money."

Now, enterprises are facing the overall price rise of raw materials, loans are to maintain normal production, not emergency.

"So high interest rates, and the profits of enterprises are getting lower and lower, who can afford it?"

The objective factors, such as the appreciation of RMB, the adjustment of tax rates, the increase of raw materials and the increase of labor costs, are the root causes of the shoe industry crisis in Chengdu. But on the other hand, the lack of market capacity of the enterprises is also the reason why this crisis can not be ignored.

In the 2008 Women's shoes market, bright lacquered shoes are very popular. However, like most other shoe manufacturers, Li Kaimao still produces sub gloss fabrics.

Women's shoes can be called a seasonal commodity, until the market trend has been discovered again, the shoes already produced can only be backlog in the warehouse.

"Maybe because of the lack of information in the inland market, most of the shoe manufacturers in Chengdu have insufficient market trends."

Li Kaimao said.

Similar market research requires many aspects to investigate the market at home and abroad, and it is not enough for enterprises like him.

"At present, there are no specialized agencies in the market to provide such information for enterprises."

Li Kaimao also placed his hopes on industry associations. However, he found that the services provided by the association in this regard were very limited.

The journalist made a special trip to the Chengdu footwear industry trade union, a staff member named Xu, said: "the association is still very small, with only fifty or sixty members.

There are very few related services available at present. "

How can Chengdu women's shoes get out of the predicament?

Li Kaimao and his colleagues are strikingly consistent.

Reduce quantity, do essence, create brand.

Only by adding the added value of the brand can profit margins be created.

Now, 98% of Chengdu women's shoes enterprises do not have their own brands. Even if they have their own brands, customers will not use them.

The business model of OEM is equivalent to working for others.

A battle of defending women's shoes in Chengdu has quietly started in the industry.

Li Kaimao quietly adjusted his product line, and began to take the high-end and avant-garde route in the Chengdu women's shoes industry, which takes "popular popularity" as the main position.

But he also knows that to create a brand, we must meet two conditions.

One is time, "no ten years and twenty years, it is impossible to make a brand"; two is capital, "why do Wenzhou and Fujian have so many famous brands?"

Money came out. "

Li Kaimao believes that the shoe industry in Chengdu is facing the third industry shuffle, whether it can create its own brand is the key to whether the enterprise can win in this shuffle.

In addition to the "positive war" under the sun, some enterprises are secretly carrying out the "underground warfare".

A shoe factory owner who specializes in border trade in Russia told reporters that in order to avoid taxes, he passed the product through relations, which saved the cost and guaranteed profits to a certain extent.

But this is only a gray deal.

Inspired by some leather shoes manufacturers in Guangdong, Li Kaimao is brewing up the industry to return to normal development by raising prices.

The "suicide" production must end. The rising cost of production must be shared by international businessmen and consumers who are in the lower reaches of the industrial chain.

To learn from their counterparts in Guangdong, they decided to adopt a "gradual step up the unit price".

"For example, the first time we raised the unit price plus 0.5 dollars, the customer only agreed to add 0.25 dollars, we said OK; after half a year we asked for another $0.5, the customer would say OK."

The domestic market, which was once neglected, is returning to their view at this time.

"The characteristics of domestic sales are six months in half a year, but it is better than having no meal all year round."

In July 2008, when reporters came to Chengdu Jinhua village, where thousands of leather shoes manufacturers were gathered, there was a forest factory on both sides of the straight road.

This is the golden season gold of Chengdu footwear industry, but it is silent all around.

Faced with the plight of the market, can the women's shoes industry in Chengdu win the battle of life and death?