Quanzhou Footwear Industry Chain Competition Pattern Initially Revealed

The positive effect shows that Quanzhou's industry is entering a peak period of mergers and acquisitions, and a number of low-quality enterprises have been eliminated. Strong enterprises are becoming stronger and stronger after a series of mergers and acquisitions.

Over the years, in the face of the chaotic market competition pattern, many people in the industry have put forward a prescription, that is, through a series of mergers and acquisitions, thus forming a reasonable and orderly competition pattern. Under this market pattern, the competition among enterprises is no longer dependent on the vicious low price strategy.

However, during the period of economic prosperity, the life of enterprises has been quite moist, and integration can only be a wonderful dream in the hearts of some big enterprises.

But this dream is gradually coming true under the Domino dominion that has been pushed down by the financial crisis.

Because of the global crisis, the order resource has been reorganized, and it has been rapidly flowing into the powerful enterprises. Some of the small and medium-sized enterprises have gone bankrupt because of the lack of orders. Some of them have been pformed into leading enterprises to support them, thus facilitating the integration of resources between the leading enterprises and small and medium-sized enterprises, forming a new pattern of "the stars and the moon".

On the other hand, some large enterprises are also in urgent need of finding capital injections because of the capital chain problem, which opens up space for mergers and acquisitions among large enterprises.

This is precisely the positive effect of the financial crisis. Under this effect, we have reason to believe that, just as the Asian financial crisis in 1998 prompted Quanzhou's foreign trade enterprises to turn from outside, and thus produced a number of brand enterprises such as Anta and XTEP, the crisis in 2008 is likely to bring up several strong "enterprise carriers" in Quanzhou.

From the strengthening of cooperation between upstream and downstream enterprises, forming a loose alliance to the wave of real gold and silver acquisitions. In 2008, Quanzhou's industrial sector entered a peak period of mergers and acquisitions.

One side is the impact of the financial crisis on the development of the industry. On the one hand, the leading enterprises take the opportunity to attack and integrate resources to promote their own industrial chain "empire". The industrial competition pattern of Quanzhou is quietly stepping into a new era of industrial chain competition.

At the end of this year, Xu Zhida, deputy general manager of PEAK China Limited, is much more busy than ever. First, because of the approaching business year, many of the business needs to be processed before the year. But the most important thing is that he has another work that he never had before. That is to integrate the upstream microfiber production suppliers, and select 3 enterprises from the existing more than 10 suppliers as their deep strategic partners.

In order to choose the right supplier, Xu Zhida had to run among the upstream suppliers in the past two months, inspecting their factory buildings, technical strength and product quality, and scoring them separately.

"The results will come out in March, when these manufacturers will become our regular suppliers, so as to form effective docking between upstream and downstream."

"This integration process is not easy. Most of these suppliers were upstream for Nike and Adidas, and resources were monopolized by Nike and Adidas. We want to cooperate with them, almost impossible."

Xu Zhida said that PEAK has been thinking about the integration of high-quality suppliers in the upstream, but has not been able to achieve it for several years.

The opportunity is the crisis that is spreading all over the world. Since last year, with the deepening of the financial crisis in the United States, the demand for the international market has declined. "The orders of these suppliers have also been greatly reduced, giving us a chance to cut in. After integrating the microfiber suppliers, we will integrate the suppliers of vamp and sole to form an efficient industrial chain with PEAK as the center."

In addition to vertical integration of upstream enterprises, PEAK's integration of horizontal resources is also thrived.

In fact, the cooperation between PEAK and domestic private enterprises has been around for many years. In those days, when PEAK was planning to extend from a single sports shoe manufacturer to a professional sporting goods manufacturer, it extended the product line to clothing quickly through outsourcing.

However, over the years, PEAK's outsourced factories are mainly distributed in Putian, Xiamen and other places. Quanzhou's local enterprises are few and far between, which also adds a lot of cost to PEAK.

But as the export market is declining, this situation is reversing.

Xu Zhida said that now every month, ten companies are coming to PEAK to do foundry work. "Many of them are local manufacturers."

Taking advantage of this opportunity, PEAK has made adjustments to its more than 60 foundry factories this year. "There are more choices to be made. Since this year, we have replaced more than 10 foundry factories and appropriately expanded the local foundry enterprises."

PEAK is just a spray in Quanzhou's surging industry integration wave. A material obtained by reporters from Jinjiang Economic Development Bureau shows that in the face of the harsh economic situation, the restructuring of industrial resources between Jinjiang's private enterprises is accelerating. Some small and medium-sized sports shoes manufacturers have adopted a "dodge" strategy to pform the shoe accessories with low production risk, and take the initiative to complete supporting processing for the peripheral shoe products enterprises.

The official guidance of Quanzhou is likely to facilitate the acceleration of this integration. The implementation of the Quanzhou Municipal People's government's opinions on supporting the growing industrial enterprises under scale clearly stipulates that Quanzhou will draw a certain amount of funds every year to reward small and medium-sized enterprises that have made OEM matching processing for leading enterprises.

A surging acquisition of undercurrents is more attractive than the silent resource integration.

The first flapping wing was Tianyu chemical fiber. In January 29th of this year, Tianyu chemical fiber announced the takeover announcement on the Singapore Stock Exchange. It announced the acquisition of the leading enterprise of China nylon industry, Qingdao Zhongda chemical fiber company, and Tianyu Chemical Fiber Co., Ltd. paid the price of 450 million yuan in cash. The acquisition not only perfected Tianyu chemical fiber product line, but also made Tianyu leap to become the largest nylon manufacturer in China.

More attention is paid to Xu Lianjie's Heng an international. In September of this year, Heng an international officially announced that it would indirectly buy Jinjiang food manufacturers' Pro food group 51% rights and interests with 229 million yuan in cash.

This is also a rare cross-border purchase in Quanzhou's local industry.

Through this acquisition, Heng an international has successfully cut into the food industry. Zhu Hongbo, director of Strategic Development Department of Heng An Group, has explained that when the purchase was explained, Heng an international has been listed for 10 years this year, growing at 30% per year and has a very good financing platform.

However, there has been a dilemma between mergers and acquisitions in the same industry, which has been looking for opportunities. On the one hand, if the acquisition of domestic brands is meaningless for Heng Heng, who has already made the brand of the domestic brand at present, there is no complementarity between products.

And acquiring international brands will also be difficult.

Under such circumstances, Heng An will turn to the starting point for related products, and the core issue is access and market.

In Heng An respect, although the kiss is a food enterprise, but with Heng an all belong to the fast moving consumer goods, the passage is basically the same.

Secondly, the production layout of our relatives in the whole country is almost the same as that of Heng An, for example, both sides have factories in Fushun, Xiaogan, Jinjiang and other places. Both sides have synergistic effects in the access and logistics distribution.

Zhu Hongbo believes that another important reason for buying relatives is that in Heng An view, food is a fast growing industry in recent years.

At present, under the more unfavorable economic situation, the asset price of enterprises is relatively low, and the controlling power of acquiring relatives by 200 million yuan is more cost-effective for Heng An.

The logic of Quanzhou Heng Heng's acquisition of relatives is representative. Nowadays, the underworld is surging in the industry of Quanzhou. The listed companies have become the backbone of this undercurrent, such as Anta, Fuxing Group and Fu Lian weaving, all of which show more or less the willingness to expand in the way of acquisition.

They share a common characteristic: in the forefront of the industry, with good cash flow and financing platform, they hope to acquire rapid expansion, improve the industrial chain or enter a new field.

At this time, the financial situation has provided an opportunity for these enterprises. There are many high quality enterprises eager to find a capital injection because of the capital chain, which provides an opportunity for acquisitions.

Accordingly, Xu Zhi Da predicts that in the next two years, it may be a peak period for M & A.

The competition pattern of industry chain is beginning to show that with the reorganization of resources and mergers and acquisitions, the form of market competition is quietly changing, and the competition pattern of industrial chain has already begun to show.

Xu Zhida, in an interview with reporters, did not deny the real intention of PEAK to integrate the upstream resources.

In Xu Zhida's view, this alliance with upstream manufacturers can bring PEAK's new strong explosive force through efficient integration of upstream and downstream resources.

Titus, President of Guo Hui (China) Co., Ltd., previously interviewed by reporters, pointed out that at present, Quanzhou's shoe soles and other upstream enterprises are generally blind in their product development, and the information asymmetry between them. The finished shoe enterprises do many things that should belong to the upstream enterprises. This phenomenon restricts the development of downstream shoe enterprises.

He has visited a famous shoe manufacturer in Taiwan, and the success lies in 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.

Under such a realistic situation, Ding Guosi believes that whoever successfully integrates the upstream and downstream resources and forms an efficient industrial chain around himself can win in the competition.

It is precisely because of this understanding that at present, most of the leading enterprises in the industry have turned their attention to the industrial chain more or less, and are committed to creating an industrial chain around themselves.

With the help of the current financial crisis, this pattern is accelerating.

According to Ding Guo's point of view, when the past situation is good, no one will accept anyone, and everyone wants to go it alone. But now the industry situation is deteriorating rapidly. Only by forming an alliance can we pass the winter smoothly. "The severe economic situation has become the catalyst for the formation of the industrial chain competition pattern."

Yang Jing: editor in charge