Jinjiang Shoe Material Enterprise "Internal Decompression" To Deal With Price War

Recently, with the continuous extension of shoe material off-season, the price war is at home. Shoe material industry The Louis louder and louder. And the start of the price war has further catalyzed the white hot competition in the shoe material industry. Against this background, in order to cope with the price war, many shoe material enterprises began to "decompress" from inside and regulate themselves internally. At the same time, the outside world is spanforming into high-end and high-end products in order to gain more room for development.

Price war catalyzes the white hot competition of shoe materials

This year, local shoe enterprises have difficulty in surviving. Many enterprises are in a downtime or semi shutdown state, which has led to the production and sale of upstream shoe materials enterprises in the off-season for a long time.

"This year's shoe material market situation is worse than before. Brand shoes and clothes Discount, compression profit space directly reflects the cost control of supply chain, so the survival situation of upstream shoe material enterprises is naturally not optimistic. Chen Zhirong, general manager of Hongtai shoe material Co., Ltd. is very grateful.

It is understood that this year because of the environmental downturn, many shoe materials enterprises are afraid to rush to open up new customers, and even stop some customers who have lower rates. Profit is not optimistic. However, the cost of manpower and raw materials continues to rise, and costs rise and profits drop. In order to survive, many enterprises have fought a price war.

In recent 1 months, it is located in Jinjiang In the Chinese shoes capital of Chen Dai, the price war of shoe material industry is escalating again. In some outdoor billboards, shops and other places, there appeared slogans such as "direct sale per yard," and "down to the bottom" slogans. In the past, the price war of shoe materials was still obscure in salesmen's promotion, so it was rare to appear in such a naked form.

This price war is not for one or two days. Ding Minghui, general manager of Zhongli shoes materials Co., Ltd., told reporters that he had just received an offer from an old customer for an outdoor sole. According to the normal price, the lowest price of this sole should be 22 yuan / double, so as to ensure some profits for sole enterprises. However, there is an enterprise to the old customer quoted 18 yuan per pair of prices, this situation makes Ding Minghui very worried: price war let the already depressed market survival even more brutal.

Shoe material enterprises carry out internal share reform

"Sustained economic and cold winter makes enterprises more difficult to operate. Enterprises must start to standardize internal production processes and improve management level to reduce internal friction." Recently, Shu Hui shoes made special plans for the reform and implementation of the company's internal shares, and Ding Shuhui, chairman of the company, said that the purpose behind the internal reform is to standardize the development of enterprises.

It has been revealed that after the share reform, Shu Hui shoe material Co., Ltd. will realize the collectivization operation, with five subsidiary companies, namely, composite, sponge, weaving, lining and foreign trade. The function of the head office will be spanformed from the original manufacturing to the system management, and the convenient platform will be provided for the subsidiary companies from various aspects such as plant warehouse, production setup, supply chain management and so on, so that it can achieve independent operation and self financing, and ultimately mobilize the enthusiasm of the management and the grass-roots staff, enhance the overall performance management level of the company, and revitalize the innovation ability of the subsidiary company.

"Accounts and daily operations are still in the traditional family management, which is a common phenomenon in shoe materials industry in Jinjiang." Ding Shuhui spoke in a word about the crux of this line. As a manager of the leading industry of composite industry, he admitted that although his ideas were relatively advanced in the industry, he still had some limitations over the years. He hoped that in the running in of the parent company and his subsidiary, he could enhance his interactive learning with the high management level, and promote the exploration of new ideas in the spanformation of enterprises.

"First of all, the sponge plant has been reformed. Now it has entered the running in period. We have sold 40% of the shares to the professional management team. There are people who know management and people who know technology. Only in this way can they exert their subjective initiative, save the emissions and reduce internal friction, so that the internal performance management system can really work." Ding Shuhui said.

Ding Shuhui believes that through the internal share reform, it not only promotes the establishment of modern enterprise system, standardizing corporate governance structure and improving management level, but also focuses on strengthening enterprise's ability to resist risks and opens up new channels for financing new projects in the future, such as shareholder investment and venture capital investment.

In fact, in addition to share reform, more and more enterprises put their internal management and carding on the agenda. Jinyi shoe material has introduced the implementation plan of the internal control standard, and made a clear positioning for the market and products. In the long run, from the long term, the shoe manufacturing enterprises' production cycle, production process simplification, production manpower saving and comfort, etc., all provide better quality and fast product and cycle for the shoe manufacturers.

Innovating high-end products to respond to market changes

"Bad customers dare not do it, but what are the remaining quality customers? Why do we have to do it?" Ding Shuhui often asked himself this way. Therefore, instead of opening up to the outside world, it is better to make products to attract customers and promote its own industrial chain to a higher level.

The industry believes that the use of emerging innovation is not only an important measure for local shoe materials enterprises to deal with price wars, but also a spanformation and upgrading of profit margins. Just like the rise of outdoor markets in the previous two years, the innovation of supporting shoe materials has also been lifted. It is worth mentioning that the experience and service that had been launched in the shoe brand had also appeared in the management concept of shoe material enterprises.

Lin Guodong, general manager of the circular plastic foam industry, believes that the premise of shoe material innovation is based on the industry we are very familiar with. For unfamiliar industries, it is very difficult for us to judge whether the products we made are not needed by customers or others. Only in our most familiar industries, we have enough information to judge the probability of successful product development and how much customers will have enough resources to communicate, experiment and promote innovative products.

Many shoe materials enterprises believe that since everyone has chosen a small and beautiful innovation mode, through a new category to get a more lucrative profit, this requires enterprises to further tap the product characteristics, identify the accurate positioning of products in the market, so that customers can find matching enterprise procurement through this product positioning, perhaps this is the so-called "selling point" of shoe material enterprises.

"This price war is not a one or two day thing, but you can not participate in it, we will have a market for our innovation and quality." Ye Yanxiong, sales manager of Jinyi shoes material Co., Ltd., when he mentioned this sentence, he had a strong foundation. In Jinjiang, Jinyi shoe material is an old brand name. Since its beginning, Jinyi has been leading the development of the foam shoe material industry. Its products and product codes have been recognized and adopted by the same industry.

"In quality innovation, we have to do better in service, and realize the whole process of tracking the sales team before, during and after sale, which is a normalization of service management in Jinyi." Ye Yanxiong told reporters, "if there is no accurate production guidance before the sale, the enterprises will be eliminated in the fierce market competition. We have reached an agreement with our customers after fully communicating, and we will make this as a selling point of their customers to help them to promote; in selling, enterprises should make the most basic delivery and quality assurance, solve any problems arising from the mass production process in time, and collect feedback from the products, so as to support the market fundamental data for product innovation and upgrading. This is service to shoe material enterprises. "