Mini Shoe Enterprises Welcome New Spring Mode Of Callers, Docking Internet Era

When large scale foundry factories are pferring, closing or compressing the scale, a group of small and small shoe enterprises suddenly rush out, docking with new models.

The era is gradually forming the new normal of Dongguan, the most important shoe making base in the world.

Li Peng, Secretary General of the Asian Footwear Association, has frequently visited Dongguan recently.

In the middle of the industry, he was surprised to find that although the number of shoemaking workers in Dongguan still showed a decreasing trend, the number of shoe enterprises did not decrease but increase.

In a recent interview with reporters, Li Peng said that in the past, thousands of people were making shoes factories in Dongguan, but now there are few shoe factories with more than ten thousand people.

In some factories that have been reduced or collapsed, they have evolved into 35 or even hundreds or even dozens of small shoe factories. It looks like a small industrial area. Orders are directly linked to new retail outlets such as Taobao and micro stores.

The shoe industry in Dongguan is not a sad one. Instead, it shows some vitality. The shoe industry is in constant pformation and upgrading.

Large foundries are still in the cold winter.

With no apparent recovery in external demand and increasing labor costs, China's footwear export orders have not improved significantly.

According to the latest data released by the General Administration of customs, China exported 1 million 760 thousand tons of footwear in 1~5 months in 2015, down 4.7% from the same period last year, with an export value of US $20 billion 716 million, a slight increase of 0.7% over the same period last year.

Reporters recently interviewed in Dongguan, a number of shoe enterprises generally reflect the operating costs are still growing, due to the rise in the price, resulting in a reduction in the number of orders, profits are still showing a downward trend.

The world's largest

The operation of Taiwan Baocheng group released by the manufacturer also shows that the net profit of shoe-making business is getting thinner and thinner.

Baoji group's combined revenue in the first quarter of 2015 was NT $62 billion 252 million, an increase of 11.6% over the same period last year.

Shoemaking business accounted for 70.4% of consolidated revenue.

Although the consolidated revenue growth in the first quarter of 2015 continued to grow, only the capacity pfer and scheduling of matching orders with the brand customers affected the operating efficiency of the shoemaking business. In addition, the channel business actively expanded the sales base, which resulted in an increase in the relative selling costs compared with the same period in 2014, resulting in the combined gross operating rate and consolidated net operating interest rate of Baocheng group in the first quarter of 2015, respectively, 22.9% and 3.6%, compared with 23.4% and 4.8% in the first quarter of 2014.

Among them, the consolidated net profit of Baoji group in the first quarter of 2015 was NT $2 billion 225 million, which was 16.2% lower than the 2 billion 656 million net profit of NT $2 billion 656 million in the same period in 2014.

In order to reduce manufacturing costs, Baocheng group has gradually reduced its production line in mainland China in recent years, and accelerated its pfer to Vietnam and Indonesia.

According to insiders contacted with Baocheng group, the 00551.HK of the Baocheng group, located in Dongguan's Gao Gao town, has a peak of about 100 thousand people, but it has shrunk to thirty thousand or forty thousand so far.

Even the net interest rate of Baocheng group, a shoemaking giant, has dropped to 5% of the normal boundary of the industry. Other shoe making factories are also having a hard time.

In the mid 90s of last century, Yang Yong, a Taiwanese businessman who moved from Taiwan to Dongguan Houjie, recently received an interview with the first financial daily, said that over 10 years ago, a pair of shoes with export price of 5~6 dollars could earn about 2~3 dollars, which could earn about 1 yuan five or six years ago. Now, because of the rising cost, the export of a pair of shoes of 15 dollars can not even earn 1 yuan. The profit margin is only about 1%, and some orders will be lost.

According to the statistics of the Asian Association survey, since the outbreak of the financial crisis in 2008, with the rising manufacturing costs in China, the footwear industry in Southeast Asia has already taken 30% of China's orders.

Because of the rising cost and the loss of orders, Dongguan footwear industry, which once made up of 1/10 in the global market, has been quickening adjustment in recent years. ANGA shoes, flinda shoes, intermodal shoes, Huahong shoes factory, and famous shoe factory have been relocated or closed. These factories are thousands of people or even tens of thousands of people, and Huajian group, oasis shoe industry and other large factories with over 10000 people are also reducing the size of Dongguan shoemaking base.

"As a global shoe making base, although many large shoe factories have moved or reduced their size in Dongguan, the low end orders have been diverted.

At present, there are two major trends in the footwear industry in Dongguan.

Large scale production has gradually lost its advantages. Large shoe factories will continue to migrate some production lines to Southeast Asia and to Jiangxi, Hunan, Guizhou and other places. However, many factories are still staying in Dongguan with high value-added links such as R & D, design, orders and trade, and international purchasers, raw materials and high-end shoemaking talents are still gathering in Dongguan. Dongguan has gradually formed the headquarters of these shoe enterprises. On the other hand, the Internet is promoting the accelerated development of domestic sales, and the domestic orders for the design and processing of shoes products are growing at an unprecedented rate. With the help of Dongguan for decades of establishing a perfect industrial chain for international OEM, Dongguan micro shoe enterprises are growing rapidly and may gradually develop into the mainstream. On the one hand, the cost is rising.

Li Peng thinks so.

Small shoe companies greet callers spring

Guo Dong (pseudonym) has been fighting for more than 20 years in the footwear industry in Dongguan, mainly for shoe manufacturers in Italy, Spain and other European Union countries. The factory has reached more than 4000 people at its peak. However, due to the rising labor costs and the pfer of orders from east to South Asia, the scale of its factory production has been repeatedly compressed in recent years. However, what he never expected is that he escaped the financial crisis in 2008 and withstood the pressure from the European Union to impose anti-dumping duties. However, due to the sharp decline in overseas orders and lack of experience in testing water and domestic sales, he broke the chain of capital and was forced to close the factory in 2014.

Over the past year, Guo Dong has been thinking and reflecting. Now, with the help of his friends, he has reopened a miniature shoe factory with dozens of people and wants to make a comeback with the help of the Internet operation mode.

"At present, Taobao stores and WeChat stores are our customers' goals.

We first study the latest popular footwear in Europe and America, and then design according to the trend of our designers, and send out some styles developed to customers. These orders are relatively small. After receiving orders, 3~7 days can be shipped. At the same time, the orders for foreign trade will take at least 45 days from receipt to shipment. After receiving 3 months' payment, the whole process is obviously compressed and profits have been greatly improved.

Although the number of OEM shoes is large, the net profit rate is usually only 2%~3%.

Taobao and other electricity supplier customers gave us orders, due to the reduction of intermediate links and our added value through design, the profit margin increased significantly to 20%.

But if we sell our brand on Taobao or Jingdong, our profits will be even higher.

For example, a pair of shoes with a cost of 100 yuan, usually at the end of the physical shop price is at least 4 times, and on the Internet can sell 2.5~3 times the price, after deducting various costs, the estimated profit margin is even as high as 100%.

Guo Dong recently accepted the first Financial Daily reporter's interview, he has registered a new brand, and opened two or three stores, is ready to shop online, explore O2O mode, try to design, manufacture to terminal retail chain operation.

At present, not only for online stores, micro shop OEM, small and micro shoe enterprises also hope to build independent brand with the help of e-commerce platform.

In early May, Dongguan Houjie Qiao Hong shoes industry ushered in the Alibaba's "China made goods and goods online" line, which is a factory with more than 20 years of international famous beach shoes brand foundry, and is willing to take advantage of the "Internet +" Dongfeng to realize pformation and upgrading.

Qiao Hong, chairman of the footwear industry of Guo Zhengjin, said that at present, the production of a pair of shoes at most can only earn 1 yuan, which means that the factory with a scale of more than 300 people will have to produce one hundred thousand or more shoes a month to keep balance.

He decided that the development of independent brands is the way to go. In 2013, he registered his own brand "Rock bear" and cast his sights on the Internet.

But from the zero inventory of the processing to the high inventory that the independent brand may face and the insensitivity of the popular vane in the terminal market, this makes the shoemaker, including Guo Zhengjin, somewhat at a loss.

Taobao, which is under the Alibaba, is constantly looking for quality "made in Guangdong" to optimize its commodity structure, and launch the "China made goods and goods online".

With the help of the Asian Footwear Association, ten Dongguan shoe companies including Qiao Hong shoes have been selected to join the event.

Taobao's data show that in 2012, Taobao's annual sales volume was only 5 billion ~60 billion yuan, and by the end of March 2015, it had sold more than 600 billion yuan in the Alibaba system.

Li Peng said that the biggest headache for many brand shoe companies is inventory, including BELLE.

And other enterprises are troubled by inventory, and the biggest advantage of the Internet is that it is expected to achieve zero inventory.

For example, the brand sandals that have just been listed have already been put into production at the end of 2014, and now these tiny shoe companies can build their own brands. They can fully rely on the Internet to produce in season. After buying a batch of materials in a unified way, they first design some styles to put the Internet on the market to see the market reaction. If the sales volume is good, they can replenish the goods in time, and if they are not welcome, they can produce the other styles with the original materials. This is the advantage that the traditional mass brands often do not have.

Some small shoe enterprises, with excellent design and management capabilities, are expected to develop into shoe manufacturers similar to European advanced customization in the future.