Shoe Manufacturers In Putian: Now They Are Ready To Do The Processing.

"In 1995 and 1996, shoes were sold in short supply, so long as they were double shoes, someone bought them."

Song Bin listened to his father's description.

Nike, Adidas and other international brand shoe factories are entering Putian. In this low labor cost city near Taiwan, a large number of people join in the making of shoes.

Seeing more and more shoes from hometown, Song Zonghu decided to go up north and sell shoes.

Song Zonghu, who made millions of dollars, opened more than 20 stores in the northeast and became the general agent of the three footwear dealers in Northeast Putian.

Not only that, he also exported shoes to Russia.

But in 2004, Russia adjusted its customs policy and the market was reversed like a storm. Song Zonghu suddenly lost about 20000000 yuan.

In desperation, he went back to Putian to run a shoe factory with his friends.

At this point, the shoe industry has become a pillar industry in Putian, mainly based on OEM, and its sales are surging overseas.

Processing for international brands is a simple road with stable returns and low investment.

Song Zonghu said that the profit rate of processing high-end shoes is 15% - 20%, the middle end is 10% - 15%, and the low end is 8% - 12%.

But Song Zonghu, who had suffered a lot in export, insisted on creating his own brand.

In 2007, he began to try to apply for brand, specializing in the domestic market blank - vulcanized shoes, is familiar with canvas shoes.

"My friend said," I've made a lot of money and my brain is swimming. "

"How to raise a small brand and carry such a big burden?" Song Zonghu said. "Now the processing is done, the order is still going up. What about the future? To make our own brand, we can sell domestically, as well as price advantage."

His fears are not unreasonable.

In 2008, domestic sports brands came to a peak, while the Putian footwear industry, which accounts for about 80% of the foundry industry, encountered bottlenecks due to fluctuations in the international market.

In the past two years, although orders have gradually picked up, the outlook is still not optimistic.

Chen Wenbiao, President of Putian Footwear Association, analyzed: "from the whole market environment, our labor cost advantage is in the bottleneck stage."

Labor costs account for 20% to 30% of the total cost, and our wages are 2 to 3 times higher than those in Southeast Asia.

European and American importing shoes from Southeast Asian countries are gradually implementing zero tariff, which has a great impact on our exports.

In 2009,

The brand was unveiled for the first time, exhibiting the China Sporting Goods Fair in Beijing.

In 2011, the company's own brand business exceeded the processing business, accounting for 60% of the total, and the brand promotion investment exceeded 300 million yuan, forming three design teams.

At the height of its peak, more than 1100 stores were opened and annual sales amounted to 200 million yuan.

But it didn't last long.

In 2014, under the influence of the overall economic situation, enterprises around Song Zonghu went bankrupt one after another. His domestic sales also dropped to 100 million yuan, plus the impact of the Internet on the retail industry. His shop was closed to more than 400.

The "runaway tide" caused by the bankrupt enterprises has tightened the loan for the banks. The 15 million yuan loan authorization of Song Zonghu enterprise has been withdrawn, and the cash flow is tense.

In order to keep the company up, Song Zonghu disposed of about 200000 pairs of stock shoes and lost about 10000000 yuan.

At the same time, Song Bin, a graduate of Jimei University's business administration major, challenged him. They fell into the most serious disagreement: continue to invest in a physical store, or touch the Internet?

Considering repeatedly, song Chung Hu biased his son's opinion.

Out of the electricity supplier back to their operation, also coincides with the Alibaba and the Putian municipal government cooperation, launched the "China made Putian good shoes" activities.

Unexpectedly, on the first day of the activity, they completed the 4 day sales target, and the 7 shoes on the line also achieved an average of 4 seconds to sell a pair.

At the end of the campaign, online sales increased by seven or eight times.

Putian is still on the waiting list.

We saw hope and strong willingness to participate. The second phase of online promotions changed from 4 to 17.

In the second period, 170 thousand pairs of Putian shoes were sold out in just 4 days, which was the sum of the sales of the 17 brands on line in the past 4 years.

Song Zonghu's company launched a light running shoes online less than two days, and more than 20000 pairs sold out.

Song Bin said: "the electricity supplier has reduced the cost of creating its own brand, greatly accelerated the development and reduced the threshold of pformation."

In the past, they have invited celebrities to endorse, but the annual endorsement fee of 1 million 500 thousand yuan has not brought about obvious results.

Now Alibaba can provide the lowest cost platform for publicity, and products can reach market terminals to a greater extent.