Nanan Shoe Enterprises Foreign Trade Orders Tend To Pick Up, Profit Growth Generally Decline

"Our foreign trade orders are at the beginning of next year, and now they are fully committed to production." Dai Jingshui, chairman of Nanan Shunchang footwear industry Co., Ltd., said in an interview with reporters. During the interview, many shoe makers in Nanan lamented that compared with the depressed domestic market environment, foreign trade could make a difference.

The latest foreign trade data of Nanan Municipal Bureau of foreign trade and economic cooperation show that in 1-8 months of this year, the export volume of bags, handbags and shoes was $38 million 590 thousand, an increase of 73.91% over the same period last year. Among them, shoe-making enterprises have achieved rapid growth.

　　 Foreign trade orders for shoe enterprises tend to rebound

"The whole shoe and clothing situation is not optimistic. This year, the domestic market has not been able to cheer up. It may be worse than last year." Dai Jingshui said that the sale of shoes and clothing sold for four times, and as an enterprise that specializes in export channels, it can not feel empathy. On the contrary, this year's footwear industry in Shunchang has maintained a good trend: 1-8 months, the company completed output value of 310 million yuan, an increase of 50.7% over the same period last year, and the tax revenue was 14 million 484 thousand and 700 yuan, an increase of 75.2% over the same period last year. By the end of last month, Shunchang footwear industry's self export amounted to 6 million 290 thousand US dollars, up 58.04% over the same period, and its products were mainly exported to Europe and the United States.

"I have to make 3000 pairs of shoes every day." The reporter recently came to the shoe molding workshop in Shunchang, which is located in Hong Lai town. A worker who specializes in bottom process told reporters that since the beginning of this year, he has been very busy every day and has to do this amount almost every day. Reporters at the scene saw that a number of containers coming to France were stacked up with warehouses and even partially placed in staircases.

　　 Foreign trade enterprises generally narrow profits

It is understood that as the domestic market continues to be weak, many shoe enterprises are turning to foreign markets.

"After the popularity has been raised, foreign trade companies are actively asking whether they can accept foreign trade orders. Generally speaking, foreign trade companies will look for companies with a certain scale to undertake orders to ensure product quality. Dai Jun de said that the market has a low and high season, to undertake foreign orders, and to enrich the production line both inside and outside, so that there will be no gap period to achieve a win-win situation.

　　 This year At the beginning of the year, the South China group added 2 production lines on the basis of the original 2 foreign trade production lines, and the orders were mainly concentrated in Asia, Europe and other regions.

" foreign trade Orders are usually paid in advance, and capital reflux is faster. In the current situation of tight capital in China, the timely development of funds is particularly important for the development of enterprises. In the view of Dai Jun De, compared with the domestic market, foreign trade looks relaxed.

"Although the international market is more optimistic, it is not smooth sailing." Dai Jingshui regrets that since last year, the price of shoes has gone down all the way, and this year has dropped by at least 3%, while raw materials and labor costs are rising simultaneously, and this year's profits will drop by 5%. In this case, the sales volume is rising this year, but the profit is not even, even worse than last year.

before Reporter In the interview, insiders revealed that the domestic market was very fierce and the competition in the international market was intensified. At present, most shoe companies in Nanan are struggling to survive in the cracks, and the profits of enterprises have been thinned again and again.

"Shunchang is the first to increase production capacity, second is to reduce children's shoes orders, increase the proportion of adult shoes, adult shoes this year accounted for more than 70%, compared with last year at least 20 percentage points increase. Through these two ways to maintain corporate profits. Dai Jingshui said that the price of adult shoes is high and profitable.

　　 Read "stable" strategy to deal with market challenges

"Because of the economic recovery in Europe and the United States, the foreign trade market has improved slightly this year, but the situation is quite grim." Dai Jingshui is somewhat worried about the market trend, but he believes that as a necessities for shoes, the market potential has been great, and it can still make a difference in the future.

In fact, the appreciation of the renminbi has weakened the driving effect of the European and American market recovery on the economy. Dai Jingshui said, because the market is not very clear, the two phase of the new plant which was ready to start in the second half of last year has been shelved temporarily, hoping to develop steadily.

"If enterprises are not well funded, they will not necessarily develop." Dai Jingshui said frankly, most enterprises are on the issue of capital. At present, we must standardize the internal management of enterprises, reduce internal friction and reduce operating costs.

An insider who does not want to be named thinks that foreign trade personnel are the key to expand the international market. However, at present, this type of talent is very scarce. As the core resource to expand the international market, foreign customers' resources can only be developed steadily only if they are in the hands of business leaders.

Dai Jun De also said that while trying to maintain the domestic market, Nanhua group is planning the road of foreign trade. Now it has begun to take orders from India merchants. "After the completion of the planning, the order from the European Union may also be processed by itself. At present, it is still a matter of stability. "

In order to deal with the severe market, the footwear industry in Shunchang is also constantly thinking about ways to break through.

"At present, the company has two ideas: one is to go abroad to sell directly, to set up sales outlets abroad; the other is to create brand by buying up foreign brands or co operating with foreign enterprises to create brand names," he said. Dai Jingshui said that these two steps, regardless of any step, are great actions for enterprises. They must be cautious and cautious, and are still under discussion. He believes that if enterprises want to keep on developing, they need to maintain innovation so that they can have continuous profitability. Reporters also learned that in the second half of this year, Shunchang will continue to increase 2 production lines.

Reporters learned that in order to meet the production capacity, this year, Shunchang shoe industry has increased a production line. At present, there are 8 production lines all weather operations. This year, the production capacity is expected to reach 7 million pairs, a 1 million increase over last year. "By July, about 4000000 pairs have been completed, and I am very confident that I will complete the anticipation." Dai Jingshui said that now the capacity is saturated, in order to ensure delivery, the company will even reject some new orders.

Kang Mei "big exporter" Fujian Daewoo Shoes Co., Ltd. is also gratifying. In the 1-8 month of this year, the export volume was close to US $12 million. Wu Anqi, director of Daewoo footwear industry, said that the company began to expand its foreign market in 2011, when its exports amounted to only $60 thousand, but it increased to $1 million 630 thousand in 2012 and reached tens of millions of dollars in 2013, reaching 9 million 920 thousand dollars. Their slippers are mainly exported to Philippines and other Southeast Asian countries.

In fact, some shoe companies are not self exporting but export agents. As a well-known shoe manufacturer in China, Nanhua group is still growing at a rate of 20% per year under the market downturn. Last year, South China began to cooperate with foreign trade companies with export rights to do OEM for Admiral, FILA, KAPPA and other international brands. "Now the export volume is between 150 thousand and 180 thousand pairs per month, so far it has exported about 1000000 pairs, accounting for about 30% of the company's sales." The director of Nanhua group, Dai Jun De, said.