Analysis Of Footwear Industry In Wenling In The First Half Of 2014

In the first half of this year, the current international situation was turbulent.

Under the background of internal and external hardship such as weakness and the great safety improvement in the city, the footwear industry in our city has not started well, showing the gloomy domestic market and the trend of slow export recovery.

However, the pace of pformation and upgrading of industries has accelerated, and the results of "four to three" projects have shown signs of success.

1. Basic characteristics of the operation of the industry

1, regulations on stable development of enterprises, small and micro enterprises difficult.

According to statistics, the total number of shoe industry in Wenling in the first half of this year was 4351, a year-on-year decrease of 48%, with a total output value of 14 billion 489 million yuan, a decrease of 3.4% compared with the same period last year. The total output value of these enterprises was 239 yuan, with a total output value of 5 billion 885 million yuan, an increase of 7% over the same period last year. The value of export delivery was 3 billion 338 million yuan, an increase of 5.9%. compared with the same period last year. Among the 13 shoe manufacturers we investigated, the output value of 50 million products exceeded 50 million, the output value of the products increased by 1.2-30%, and the value of the products decreased.

20 million of the 3 enterprises below, the output and output value all had a serious decline.

In the area of Heng Shi Road, there are thousands of small domestic workshops for footwear. At present, 2/3 is in a closed business.

It is understood that in the first half of this year, 70% of the small and micro enterprises in this area operate losses.

2, the recovery of foreign trade is slow and the domestic market is shrinking.

The recovery of the developed economies was slow, the growth rate of the emerging economies slowed down, and the current situation of the Middle East and Ukraine was unstable. In the first half of the year, Wenling's footwear exports were still low.

According to the data of Wenling customs office of China Customs, the total export volume of footwear in the 1-6 months of this year was 513 million US dollars, down 3.94% from the same period last year, accounting for 28.5% of the total export volume of the whole city.

In January, Wenling's footwear exports amounted to US $1.19, the highest peak in the first half of the year, an increase of 4.99% over the same period last year, while the footwear industry in February dropped to 45 million US dollars, a decrease of 62.2% compared with the same period last year, down 41.2% from the same period last year.

The recovery began in March, and the growth rate was positive, but the recovery process was slow.

After the "1.14" catastrophic fire, the city's iron fist promoted the "three changes and one demolition" and the "five water co governance" campaign. The industry chain of the footwear industry was broken, and a large number of migrant workers returned home or diverted.

Meanwhile, during the first half of the year, the weather was abnormal, frequent spring rains and low temperatures in early summer, which completely disrupted the normal rhythm of shoe production, resulting in the disconnection between domestic production and marketing, and the phenomenon of customer returns and the serious backlog of inventory.

3, the cost is high and profits are falling sharply.

According to a recent survey by Boston consulting company, the cheap "kingship" made in China has been "ousted". The actual production cost of China's manufacturing industry is close to the US. The main reason is the increasing labor cost.

The annual labor cost of 10-20% increase, coupled with the "three changes and one demolition" in the first quarter, broke the industrial chain, such as shoe sole, high frequency, printing and other factories closed. The procurement cost of supporting materials increased by 10%, and the factory rent increased by 50%.

(originally 10-20 yuan per square, now needs 30 yuan.

The high cost of production has become an unbearable pain for the shoe industry.

Although the price of shoes in Wenling is also increasing year by year, because of the fierce competition in the market, the increase in shoe prices is far less than the increase in costs.

The relative profit of the enterprise is getting thinner and thinner, and the phenomenon of "blade profit" appears.

This is undoubtedly the most painful year for the export enterprises in the Middle East and Ukraine.

According to Shilin footwear industry, the company's products are exported to Ukraine, with sales volume of 700 thousand pairs in the first half of this year, a decrease of 2/3 compared with the same period last year. In addition, the depreciation of Ukraine's currency is serious, and the price of shoes is raised by 30%, and profits still drop by 20%.

In the first half of the year, about 30000000 of Ukraine's currency was depreciated for a few days because of its too late conversion. The exchange rate only lost about 4000000 yuan RMB 1/3.

4, land resources are scarce, and enterprises have the tendency to move out.

In recent years, the shortage of land resources has become a prominent bottleneck that restricts the economic development of footwear industry in Wenling.

According to the "three changes and one demolition" and "five water co governance" work requirements, as of June 10th, the city of Wenling has dismantled 4 million 452 thousand and 100 square meters.

The problem of land restriction is particularly prominent after enterprises break up.

Most shoemaking enterprises are forced to stop production and face a more serious predicament.

At the same time, the merchants' Bureau of other provinces has offered attractive conditions for industrial undertaking. Some enterprises with the ability to expand and expand have the intention and inclination to move abroad.

Once the shoe industry moves outside, it will seriously affect the healthy development of the footwear industry in Wenling.

For large enterprises, although the direct impact is not big, their supporting production enterprises stop production, which indirectly affects the long-term production of enterprises.

Large enterprises are constrained by inadequate supply of supporting products and production is restricted.

Two, industry development highlights

In recent years,

Entering the era of meager profit, accelerating the pformation and upgrading of industries has become the consensus of entrepreneurs and has been put into action.

Driven by the "four to three" project implemented by the municipal government, Wenling shoe enterprises constantly adjust their development strategy according to their own development characteristics, pay attention to brand and R & D, strive to improve quality and efficiency, and actively seek to break through in the predicament.

1, the upgrading of automation equipment is speeding up.

Technological innovation and machine substitution have become the driving force for many enterprises.

After the great renovation of Wenling, Wenling shoe enterprises speeded up the pace of machine replacement and equipment upgrading, which not only promoted the grade and technical content of footwear products, but also saved manpower and cost for enterprises.

Zhejiang jade company has invested about 6000000 yuan to introduce an automatic production line.

The original assembly line needs 65 workers. After using this production line, only 10 workers can complete all the operations.

According to the annual salary of 40 thousand yuan per person, this line can save about 2000000 yuan labor cost for a year.

According to the estimate, the equipment will increase the production efficiency by more than two times, and the space saving rate can be increased by 50% to 60%.

Compared with the introduction of the overall automation pipeline, other shoe companies are more interested in high-tech investment in local processes.

Europe and Hong Kong (Europe and Hong Kong stores), Zhejiang Province, Zhuo Ling and other regulatory footwear industry this year purchased about 1000000 of the new equipment, such as computerized sewing machine, laser carving machine, laser cutting machine, automatic brush machine, etc., to improve production efficiency and product quality, reduce the labor intensity of workers, and effectively ease the recruitment difficulties.

2, the introduction of new materials and new technologies has intensified.

Some sports shoes enterprises in Wenling are actively innovating product varieties and enhancing market competitiveness through the use of new equipment, new technologies and new materials, and strive to break out of the Red Sea market with oversupply of sports shoes, and remain invincible.

Bo Yang, one stop (one stop shop) and other shoe industry imported flat knitting machine to process the upper surface of knitted upper.

The flat knitting machine produces 3 pairs of shoes per hour and 1 workers can manage 10 machines.

For example, 120 million pairs of shoes produced daily, old technology and old materials need hundreds of people, while knitted leisure sports shoes reduce the number of needles, dripping, high frequency, blanking and other processes. It only needs dozens of workers and shoe workers. Only the employees' salaries can be saved by about about 1000000 yuan, and other welfare and safety guarantees are not included.

At the same time, a machine saves electricity, and it costs only 10 yuan in 1 hours.

In this way, the investment of 100 flat knitting machines can be recovered in 1 and a half years.

3, the business model has made new breakthroughs.

Everything in the world is changed by poverty but by means of change.

This ancient Chinese simple materialism thought, many Wenling shoe enterprises have made a good interpretation with their own experience.

Taizhou Jacques shoes industry is a well-known domestic fashion casual shoes manufacturer in Wenling.

A few years ago, he was also one of the many low-grade women's shoes manufacturers in Hengfeng. He made a lot of effort by beating the world at low prices and making small profits.

After correcting the pain, Zheng Haihua, the boss, decided to adjust the development strategy and carried out a series of reforms.

First of all, create an independent brand, improve quality and reduce profits and increase profit margins.

The original line of 50 people, one day can do 5000 pairs, and now a pipeline of 80 people, day and night overtime can only produce more than 4000 pairs.

But the price of the product increased to 55 yuan, more than 20 yuan of Hengfeng shoes, but 10-15 yuan cheaper than Wenzhou shoes, Wenzhou quality.

Price to determine the competitive edge of the market.

Secondly, we should make a big adjustment of production mode.

The original is to take Mr. postnatal sales, inventory sales, customer management is loose, once the market is not sure, resulting in a large backlog of inventory.

Now the order is placed on the basis of materials, and every new item is sent to the customer to listen to the opinions widely. More than 80% of the samples approved by the customers are organized and produced, and the production volume is 20 percent off production according to the customer's order quantity.

It is better to supplement orders in the later stage and not blindly produce.

In order to better carry out his business philosophy, Zheng carried out a massive exchange of management.

High salary from Wenzhou and other places to introduce production director, deputy general executives, replaced a number of the original management personnel, formulate standardized, scientific management system, cultivate staff to learn Wenzhou management mode, guide enterprises to formal development.

Like Zheng general, enterprises that are flexible and flexible are few in Wenling. Their enterprises have good prospects for development and brand influence is gradually forming.

Many domestic enterprises are brave enough to break through the traditional marketing mode and set foot in the electricity supplier field.

According to incomplete statistics, there are more than 100 enterprises in Wenling shoe industry.

5 breakthroughs have been made.

4, enterprise management has a new mode.

In the economic downturn, many enterprises put their energy into the practice of internal strength. The management mode of innovative enterprises is one of the important means of practicing internal strength.

These enterprises not only actively introduce advanced management experience at home and abroad, but also constantly innovate management methods and methods according to the actual situation of enterprises.

5, brand building is in the ascendant.

Brand building has become an important means of industry development.

The vigorous growth of shoe industry must rely on brand support.

In 2014, the brand building of Wenling footwear industry is in the ascendant.

Up to now, the industry has 4 national brand honorary titles, 1 provincial regional brands, 5 famous trademarks in China, 6 provincial famous trademarks, 3 provincial famous brand products, 2 provincial famous brand names, 1 provincial famous brands, 7 provincial technical centers, 11 regional brands, 1 provincial government quality awards, 9 Taizhou brand products, 11 brand names in Taizhou class, 29 home brand products 29, and municipal well-known trademark 21.