The Structural Adjustment Of Putian's Footwear Industry: We Are Advancing On The Changing Runway.

In the past April, General Secretary Xi used the eight words of "cage changing birds and Phoenix Nirvana" when discussing the issue of comprehensively deepening reform and promoting structural adjustment.

It clarifies the great significance and direction of "pferring mode and adjusting structure", which provides a new impetus for China's climbing over the ridge and has overall significance.

As an important footwear manufacturing city in southeastern coastal areas of Fujian, Putian footwear industry is undergoing pformation and upgrading in recent years.

With the increase of labor costs, domestic manufacturing orders gradually flow to Southeast Asian countries. "Business is becoming more and more difficult to do" has become a common predicament in the domestic shoe manufacturing industry. In addition, due to the high technology and the unreasonable industrial structure, the domestic manufacturing industry, especially the shoe manufacturing industry, is facing a difficult situation.

Putian shoe industry is in urgent need of pformation

In the 50s of last century, Putian sporty shoes workshop came out sporadically.

After the reform and opening up, with the advantage of geographical location, Putian began to undertake the pfer of Taiwan footwear industry, and there were international manufacturing plants in Putian set up 10 processing lines above the production line, and a number of Putian shoe enterprises also began a long road to OEM.

As a result, Putian has also successfully become an important production base for Nike, Adidas, PUMA and Decathlon brands in China.

Since 2010, with the rise of labor costs, these international brands have slowly shifted their production lines from China to Southeast Asian countries such as Indonesia, Vietnam and Thailand, with sharp reduction in orders and a decline in the overall trend of foreign trade in China's footwear products.

(source: China Commercial Industry Research Institute)

(source: China Commercial Industry Research Institute)

According to statistics, in December 2017, China exported 390 thousand tons of footwear, a decrease of 4.9% compared with the same period last year. In 1-12 months, China exported 4 million 500 thousand tons of footwear, an increase of 6.5% compared with the same period last year.

It is not difficult to see from the data that even if the total export volume has increased, the total export volume is still negative growth under the impact of factors such as exchange rate and price rise of raw materials.

This is undoubtedly a great blow to the footwear industry in Putian, which is the main manufacturing industry.

Data show that in recent years, the price of raw materials for shoemaking has increased by 15% to 20%, which has greatly squeezed the profit margins of the meager foundry industry. The average interest rate of shoe enterprises has increased by 30% to 80%. The financing cost is high and the channels are few, which limits the further growth of the industry.

Compared with Jinjiang, which is also the production of sports shoes, another dilemma of the footwear industry in Putian is that the supply in the upper reaches of the shoe industry chain is relatively weak.

There are few shoe material stalls in the huge Putian shoes and clothes, but the advertising video of "Jinjiang international shoes spinning City" is very conspicuous.

But this does not mean that the level of shoe materials in Putian is not high.

"Putian shoe factories basically do OEM and foreign trade orders, quality control is very strict, the demand for shoe materials are cutting-edge, high-end."

Lin Ruishan, the permanent shoe maker who has had 20 years experience in the sponge industry, said.

Clearing obstacles to forge ahead on the road of pformation

In order to lead Putian shoe industry out of this predicament, the Putian municipal government has formulated a series of supportive policies in the past three years to help enterprises pform and upgrade.

Before 2015, the seven measures to promote the pformation and upgrading of footwear industry were launched to encourage enterprises to become bigger and stronger: cultivating leading benchmarking enterprises.

Support enterprises to increase production and increase efficiency.

In addition, there are also projects like "China made good Putian shoes", "Putian good shoes, European and American standards" and other projects, and actively explore the pformation and upgrading from "made in China" to "intelligent manufacturing in China".

At the beginning of 2017, Putian led by the government and set up Putian Public Association Investment Limited company with 7 leading shoe enterprises such as Shuang Chi and Huafeng, and jointly established Putian shoe shoe Network Technology Co., Ltd. with third partners.

This shoe supply chain platform has two platform products: one is the shoe shoe material B2B mall, which covers all kinds of shoes enterprises in the city.

To provide procurement, spot bidding, logistics and other services for shoe enterprises, resulting in an average cost reduction of 3%. The other is supply chain management collaborative operation platform, which provides centralized purchasing and financial services for shoe enterprises. Through the big data analysis technology, the purchase order is consolidated, and the supply price is unified to minimize the cost.

Although the footwear industry in Putian is undergoing pformation pains, many Putian shoe companies like Shuang Chi, Huafeng and so on are actively pforming and upgrading, running towards "China Intelligent Manufacturing", "China creating" and "Chinese quality manufacturing".

In the company of Putian Footwear Association, its smart shoe laboratory has been very effective. So far, it has launched many intelligent shoes including positioning, anti throwing, body sense games, intelligent football, etc., and has won the famous awards such as the Red Star Award, the red dot award and the intelligent terminal award.

Further, double Chi has also developed into an intelligent shoe incubation platform, providing an integrated solution for the industry to design, research and develop and sell.

Established in just 3 years, the shoe making technology Co., Ltd. has invested a lot of money in shoemaking, shoe making machines, new vamp, new material soles and special insoles from 2014. At present, Trend Corp has mastered TPU 3D printing sole technology, one pin 3D shoe upper technology and carbon.

Heating insole technology, automatic binding

The five emerging technologies, including the technology and the plantar pressure test and analysis technology of sports shoes, are all in the forefront of the industry.

Huafeng Group, which has been relished by the shoe industry in Putian.

After more than ten years of development, Huafeng has more than 120 design and development teams worldwide, and 186 patents have been applied.

In the three industrial parks of Licheng, Xiuyu and Xianyou, 8 factories including weaving, weaving and fabrics have been established, forming a more complete industrial chain such as spinning, weaving, dyeing and finishing. It has become the only supplier in China that has won the world's top three famous sports brands Nike, Adidas and new Brun certification.

Where does the competitiveness of Huafeng market originate? "From technological input and technological innovation, it also benefits from government innovation."

Fang Huayu, chairman of Huafeng Group.

This year, Huafeng Group is in an adverse position, and its Haptic orders for independent intellectual property rights products are scheduled for 2020.

At present, Huafeng Group develops more than 300 new products every year, and the total investment of 15 billion yuan is fully rolled out. The total output value of the Huafeng Group is 33 billion yuan.

We are willing to innovate and develop advanced and cutting-edge materials and equipment.

At the height of technology, it has emerged from traditional industries and has become the banner of advancing the reform of supply side in Putian.

The first Putian footwear industry to develop a gathering festival to boost the development of footwear industry in Putian

A few days ago, Putian was designated as the national demonstration zone for the export of footwear products quality and safety, which is the affirmation of Putian footwear industry.

However, many problems remain to be solved on the way forward for the footwear industry in Putian.

In order to better promote the supply side reform of Putian's pillar footwear industry, enhance the concentration of industrial resources and the overall level of profitability, achieve joint brand creation and create Putian good shoes.

Guided by the Putian Municipal People's government, sponsored by the Putian Municipal Committee of letters and the Putian Footwear Association, Putian Public Association Investment Co., Ltd. and Putian public shoes Network Technology Co., Ltd., jointly organized the 2018 first international shoe industry supply chain collection Festival by the double Chi Industrial Limited by Share Ltd, the sland Group Co., Ltd., Putian Xinlong Shoes Co., Ltd., Putian Yongfeng shoe industry Co., Ltd., Putian Yixin shoe technology research and Development Co., Ltd., Putian City Xinli Industrial Co., Ltd., the city of Huifeng Industrial and Trade Co., Ltd. and the Oriental wolf wolf garment Weaving Co., Ltd.

"Over 30 years since the development of the footwear industry in Putian, there has not really been a collection festival for the development of the whole industry.

This collection Festival is aimed at the upgrading needs of Putian's industrial development process. Through this activity, we integrate the supply chain, logistics, finance, software applications and other related service providers, rebuild the Putian footwear industry ecosystem, improve the whole Putian good shoes high quality supply chain system, and push the "Putian good shoes" to a wider market at home and abroad.

Putian general shoe Network Technology Co., Ltd., general manager Li Jinbin introduced.

It is understood that the event will also focus on the procurement of shoes through joint procurement, the introduction of world-renowned supplier of docking, publicity of high-quality raw materials in Putian shoes highlights, through the Putian shoe industry, the footwear industry network platform for the docking of large international raw materials enterprises, signed a strategic agreement on collecting mining, attracting excellent domestic and foreign suppliers to participate in the construction, for Putian shoe enterprises resource supply, product development, after-sales service and so on to provide more valuable support.

At the same time, this gathering will also invite experts from the industry and the top entrepreneurs of the industry to give lectures, which will bring new ideas for the development of Putian footwear industry.

The prosperity of every city is the crystallization of people's diligence and wisdom, and ingenuity is the backbone of a city.

The spirit of ingenuity conveyed by the good shoes of Putian has injected spiritual energy into this city.