Luggage Export Enterprises Fight Their Own Brands To Fight In China

In the first half of the year, China

Export volume and volume continued to decline, and exports to Europe and the United States reduced market share.

Labor costs have risen and the profit margins of OEM production have been narrowed.

In order to reduce operating losses, many luggage enterprises focus on the domestic market, hoping to seize the domestic market share by creating their own brands.

Labor costs have risen and the profit margins of OEM production have been narrowed.

In order to reduce operating losses, many luggage enterprises focus on the domestic market, hoping to create them.

Seize the domestic market share.

High cost restricts corporate profits

Reporters learned that, at present, regardless of the size of domestic luggage enterprises are large or small, the monthly wages of workers have started to rise to 3000 yuan level, and the continuous rise in labor costs has become the biggest worry for luggage export processing enterprises.

"Every year, the cost of manpower is rising at the speed of 15%~20%, which has become one of the biggest challenges for enterprises."

Ken Chan, general manager of Jiaxing Xingfa luggage and bags Co., Ltd., in an interview with the media, said that due to the half cost of manpower in Southeast Asian countries such as Vietnam and Philippines, it attracted many European and American customers' attention.

The European and American countries are also the main market of luggage export in China. If these countries' purchasers reduce the purchasing intention of China's luggage products, they will directly reduce the export volume of China's luggage products.

"Even if the wages of workers are raised, they may not be able to retain workers."

The head of a luggage export enterprise in Ningbo said, "now young workers are hard to find. Our factories are all older workers. The working efficiency is not comparable to the efficiency of young workers. The problem of hard employment is not easy to solve."

"Now is not the era of" no you do ", there is a lot of people who give up orders, and the profit margins are shrinking every year after taking orders.

Gu Jianming, director of Pinghu Siyuan luggage and bags Co., Ltd., said that at present, a foreign famous brand case sold abroad for more than 1000 yuan is taken as an example to figure out the cost of manpower, raw materials and so on. The profit of the processing enterprise does not exceed 5 points, or even stays at a few yuan level.

Behind the reality of small and medium enterprises' OEM processing, the export of small businesses has dropped significantly, or even slipped more than 50%, and profitability has been cut.

Building independent brands for domestic market

Because the export business is more and more difficult to do, many bags and bags enterprises will focus on the domestic market, hoping to create the domestic market by creating their own brand.

According to industry sources, the profits of the same domestic market can exceed 10 points. Once the domestic market is opened, its value will be far more than that of simple export processing.

"Not only is our company, but now many bag processing enterprises want to seize the domestic market. In March this year, our Siyuan bags also launched the domestic brand. In the long-term planning of the company, the proportion of domestic sales is more than 50%, the goal is to achieve the same proportion of domestic sales and foreign trade."

Gu Jianming said.

In order to better open up the domestic market, it seems to have become the preferred marketing mode for luggage enterprises to develop sales channels through the electricity supplier.

Reporters learned that many domestic manufacturers of luggage and suitcases chose to invest in outsourcing business.

In order to open sales channels, and also use micro-blog, WeChat and other media to help brand promotion.

Although the network platform can bring a certain volume of traffic to the luggage enterprises, it is not easy for these enterprises to start branding in the short term.

On Tmall, the reporters found that most of the luggage products sold well, most of the prices were around 100 yuan, while the price of high-end brands in the high-end products, sales did not rise significantly.

The industry said that the brand building investment, long cycle, in a short period of time to make the success of the brand voice, obviously is not easy.