Export Oriented Footwear Enterprises Are Not Optimistic About Domestic Profit.

< p > with the rising cost of manufacturing and heavy channel costs, many crosses, such as a href= "http://www.91se91.com/" target= "_blank", shoes less than /a, are expected to kill a blood route on the domestic market, but the result is deeper encirclement.

< /p >

< p > since the financial crisis in 2008, many foreign shoe companies have been trying to walk on two legs, due to the weakness of foreign markets.

However, there are few shoe companies that can make a big difference in the domestic market, and even some enterprises are careless.

< /p >

< p > Li Peng, Secretary General of the Asian Footwear Association, told reporters that at present, the shoe enterprises that expand the domestic market expect less than 20% of the money to earn. Most of the domestic brands are losing money, and the export oriented shoe enterprises basically fail to find a successful mode in the domestic market.

< /p >

< p > 2013, domestic < a href= "http://www.91se91.com/" target= "_blank" > clothing < /a > a href= "http://www.91se91.com/" target= "http://www.91se91.com/" > shoes and hats, "needle", "href=", "yarn", "textile", "retail", total sales volume of textile products, amounting to 11414 billion yuan, an increase of 11.6% over the same period, slower than the growth rate of 18% in 2012.

Affected by the slowdown in domestic consumption, many shoe makers, such as 01880.HK, 00551.HK, and 03813.HK, which were independently listed in Yuyuan Industrial's retail business, grew at a slower pace last year.

< /p >

< p > latest data show that in the fourth quarter of last year, BELLE international footwear business grew 1.3% in the same store.

Yuyuan industries, which produced, distributed and retailing international brands such as Nike, Adidas and Baosheng international, consolidated revenues last year at $7 billion 580 million and $1 billion 775 million, representing an increase of only 4.1% and 1.8% respectively.

< /p >

< p > < strong > manufacturer's pressure < /strong > /p >

< p > Zhou Ping, a boss of a shoe factory in Dongguan, has told reporters yesterday that only more than 200 workers returned to the factory now, less than 1/3 before the Spring Festival.

His shoe factory has a staff of up to 3000~4000 at its peak, and the number of employees has decreased in recent years.

< /p >

After the financial crisis, Zhou Ping began to embark on the road of pformation, from mass production of OEM to small batch of independent design and development, and began to test domestic sales in 2010.

Over the past few years, the business situation has not improved but is getting worse and worse. Last year it was once on the verge of bankruptcy.

< /p >

< p > Zhou Ping said that before the financial crisis, the monthly salary of shoemaker workers in Dongguan was only 1000 yuan. At present, 3500 yuan may not be able to find skilled workers, plus five risks and one gold, which makes the enterprise burden heavily. Whether it is exported or domestic, it is difficult to make money.

Before, thousands of factories in Dongguan and even tens of thousands of people were quite common. Now factories with more than 800 people are rare.

Under the internal and external troubles, his business nearly closed last year, because the whole chain was too long from manufacturing to retailing, and he lost sight of it. Especially in the case of export recession, it was difficult to feed domestic sales. He had to slow down the pace of domestic sales. He planned to rush to 100 stores in 3 years, but it was very hard to drive to the 50 place, and finally turned off about 10.

< /p >

P, the Taiwanese businessman Lin Zong, who moved the factory to Guangzhou for more than 20 years, is deeply impressed by this. Although his company has accumulated some experience in the mainland and has many sales channels, he still keeps a cautious attitude towards the strategy of the mainland market and slows down the pace of expansion.

He told reporters recently that dozens of stores have been largely cut off and concentrated on the manufacturing industry that they are good at. Nowadays, both domestic and foreign sales are not well done. The overall export situation is still better, and domestic sales are difficult to pry. It is very difficult for foundries to move from manufacturing to business. 100 shoe manufacturers can only turn to brand retail for 1. It is not necessary for him to continue to take the risk of 1%.

< /p >

Lin Zong's family has been engaged in shoemaking for more than 50 years. His factory has a peak of about 20 thousand people, and after the outbreak of the financial crisis, it has shrunk to about 5000 people every year. P

"If the factory land is not what we bought, and if many workers have been following me for years, maybe I will turn off the factory or move to other places."

Lin was disappointed with the development prospects of the footwear industry in mainland China.

< /p >

P last year, the global economy has not yet come out of the trough, and the customers of various countries are still conservative and cautious.

Moreover, the mainland's costs such as minimum hourly wage and increased employee benefits also increase the burden on enterprises. Lin's profits declined last year, and the turnover in the first half of last year fell by 25%, reducing by tens of millions of dollars.

< /p >

Less than 3.2% yuan to 5 billion 559 million U.S. dollars, but gross profit fell 3.4% to 1 billion 182 million U.S. dollars in last year, mainly due to rising wage costs, coupled with the relocation of production capacity and deployment of production capacity led to lower production efficiency. P

In the same period, Baosheng international margin decreased by 5.7% to 372 million US dollars, mainly due to the significant reduction in sales of domestic brands and the promotion of discount activities to reduce inventories.

< /p >

< p > in recent years, Yuyuan industry and Baosheng international parent company 9904.TW are accelerating the pfer of production lines to Southeast Asia. In 2012 alone, 51 production lines were cut down on the mainland, especially the Pearl River Delta production line, while the shoe production line in Indonesia and Vietnam in the same period increased significantly.

< /p >

Guangdong, the world's major shoemaking and export base, has seen a downward trend due to the rising manufacturing costs and the diversion of some orders from Southeast Asian shoe companies. P

In 2013, Guangdong exported 3 billion 410 million pairs of shoes, a decrease of 5.9% over the same period last year, worth 13 billion 920 million US dollars, an increase of 5.2%, and the export average price was 4.1 US dollars per pair, up 11.8% over the same period last year.

< /p >

< p > under such circumstances, Lin believes that the urgent matter is to stabilize exports and reduce unnecessary expenses. From the perspective of businessmen, the first thing is to cut down a lot of unprofitable domestic businesses.

"This is also responsible for employees and shareholders. Some workers are over 50 years old. Once unemployed, it is not easy to find jobs.

Many shoe factories have been closed down, and the cost of operation is too high. If the manufacturing base is not consolidated, pformation and upgrading will not be easy, "Lin Zong sighed.

< /p >

< p > < strong > domestic sales is too deep < /strong > < /p >

Zhou Ping is more reckless than Lin Zong's prudence. He is worried about the rapid expansion of domestic sales. Over the past 100 million years, he has made more than $2 billion in manufacturing industry. Because of the massive investment in domestic marketing channels, P has been lost.

< /p >

< p > "I think I am well prepared for manufacturing and R & D, reduce the size of export orders, and turn to small batch and multi style production mode, but when we really expand domestic sales, we find that the understanding of domestic sales is too superficial, in fact, the process is much more complicated than export."

Zhou Ping said.

< /p >

< p > by virtue of the advantages in design and the use of red packets, only a "ticket" for high-end shopping malls will cost 200 thousand ~30 million yuan. Zhou Ping, a wealthy developer, quickly opened counters in some high-end shopping malls in China and opened stores in some gold lots. He was once complacent, and so many generations of factories had never been able to open the doors of shopping malls, which was easy for him.

However, it was not long before the problem followed. Many shoes sold in foreign markets were hard to sell in the domestic market, and the high cost of rental and other services accelerated with the speed of expansion.

< /p >

< p > "one month store rent plus artificial electricity and water and electricity will cost about 200 thousand yuan, and turnover is usually only tens of thousands of yuan. For a new brand, even if we enter the high-end shopping mall, it will be useless, and we can make very little money. Our counters and franchised stores are mostly in a state of loss. A family loses millions of yuan a year, and dozens of families are under very heavy financial pressure, coupled with manufacturing costs and logistics costs. Last year, the capital chain became very tight, and the export orders shrank sharply, and we even failed to pay wages."

Zhou Ping frankly said that he had no sense of risk prevention and control for domestic sales.

< /p >

Prior to "P", Zhou Ping thought that with the rapid opening of stores, the problems of high domestic operating costs could be solved, but in fact, it was not so simple.

Now, he is deeply aware that the problem lies in the gap between the two modes of manufacturing and retailing.

Before, as long as the product is done well, there is no worry about no export orders, and this kind of inertia thinking is used to operate domestic sales. Zhou Ping found that his thinking was wrong.

First of all, the difference between the internal and external sales products is very large. When Zhou Ping pushed a lot of PU heeled shoes sold in the overseas market to the domestic market, he did not expect to encounter the acclimatization. The domestic consumers preferred the leather shoes with low middle heels, while the consumption of PU high-heeled shoes always belonged to the small group, and the high price was difficult to be accepted by the domestic consumers.

< /p >

< p > "in fact, foreign buyers have done a lot of market research, according to the needs of the market to give us orders, we did not pay attention to this link, in the domestic expansion of retail sales first, we need to build a good marketing system, then the product mix, then is the product development and manufacturing, and we simply think that good products, we will be able to get the market recognition, resulting in a large number of inventory, and before doing the factory does not have to face the inventory problem."

Zhou Ping said that some of the shoes that he thought were good designed were not necessarily accepted by the market. A dozen pairs of them sold only one or two pairs, and the style of domestic sales changed rapidly.

< /p >

< p > > a href= "http://www.91se91.com/news/index_p.asp" > Dongguan < /a > Qisheng shoes industry Co., Ltd. has been testing domestic products since 2002. It took 8 years to increase the monthly sales volume from 60 pairs to more than 10 thousand pairs, and gradually gained profits. In this process, the development channel has been burning for several years, and has been relying on foundry to make money.

Informed sources close to the company told reporters that because of the slowdown in domestic high-end consumption, the current domestic profits of Qi Sheng footwear industry is also not optimistic.

< /p >

Huajing group, the largest female shoe maker in China, started to expand its domestic sales in the past few years. After investing tens of millions of dollars, it failed to cross the gap from manufacturing to domestic sales. Now it still focuses on export foundry. The company is now pferring large-scale production lines to Jiangxi and Africa to reduce manufacturing costs. P

< /p >

In recent years, Lin Zong has been looking for a new manufacturing base. He has bought a piece of land in Zhanjiang and has gone to Southeast Asia for many times to prepare for industrial pfer. P

"The domestic sales channels of shoes products are far from mature. There are almost no national department stores or stores in commercial channels, so the cost of brand access to the national road is very high. In recent years, it has been envisaged that Suning or Gome, which has made shoes, but has not yet paid for various reasons."

Lin Zong talked about his anxiety. The workers in the Pearl River Delta have about 3000 yuan a month, about 1800 yuan in Indonesia, about 1500 yuan in Vietnam, and less than 1000 yuan in Kampuchea. The shoe companies in these Southeast Asian countries, relying on cost advantages, will not only take away some of the export orders from Chinese footwear enterprises, but also take the advantage of the zero tariff of the China ASEAN Free Trade Area.

< /p >

"P > facing the constant changes in the internal and external environment, Zhou Ping continued to stabilize export orders while trying to resolve the dilemma of domestic sales in a new way:" because of the rising cost, Dongguan's a href= "http://www.91se91.com/news/index_c.asp" > shoe industry < /a > is closing up a lot of large shoe enterprises, but at the same time, there are many small manual workshops. Some of the mini factories are not inferior to big factories, and the delivery speed is very fast. I'm outsourcing some domestic orders to these mini factories, and their factories are more focused on the design of the domestic market. The manufacture of these workshops is especially suitable for network sales, and we are increasing the intensity of online sales.

The company is slightly better than last year. "

< /p >