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How small shoe struggle to survive in the post-crisis era
From: Hua Can Shoe Machinery Co.,Ltd Post date: 2014-06-21


Recently, turmoil in the international economic situation will again be improved viability of Chinese small and medium enterprises shoes pushed to the cusp. Experiencing domestic prices, higher labor costs, exchange rate policy, continued strength enormous pressure, small in domestic and foreign trade markets are facing a new pattern.
    As China's traditional manufacturing industry, producing most of the OEM-based, most of the shoe are OEM survive, but this crisis has ruthlessly plundered the domestic shoe unique way of life, decreased compared to last year's small shoe Many shoe industry outlook is bleak.
 
Shoe industry phenomenon
 
    Currently the shoe industry common phenomenon exists mainly in the following three aspects:
    1. "Three lows" problem to be cracked
    Our footwear has been to win market prices, while the price of restricting "The Executioner" is the three low problem, the so-called three low that low-level, low-quality, low brand. Face "three lows" issue, the shoe must be from quantity to quality and efficiency, profits with brand quality.
    Chinese shoe grades have been stagnant, an important reason why businesses do not have a long-term vision, they only little immediate. A variety of footwear manufacturers scrambling to capture the market at a low price, do not reference prices on the international markets, forming a disorderly situation. Insiders suggested that the future of China's footwear manufacturers should make efforts to improve product quality, the key is to increase brand value and profitability. Trends dominate the market with cheap products phased out is inevitable.
    Low quality is the most important factor footwear. As we all know quality is the only lifeline of enterprise development in the fierce competition in the footwear industry, the law of survival of the fittest market continues to spur major companies move forward, but quality issues related companies can only hovering at the edge behind to become the most broadly generation. Therefore, the shoe shoe industry wants footing, recognized by consumers, we must start from the quality. Ensure product quality, but also pay attention to the accumulation of brand influence, this is a long process and requires patience.
    2. Development of domestic setbacks
    Foreign market was indifferent, some companies have started pushing into the domestic market to enter. It is reported that Guangdong, a shoe company in order to expand the market presence of local famous shopping malls, looking for better opportunities in the country's best-known shopping malls. While stationed in the well-known shopping district will be able to open the domestic market can not step in, but can help promote products and increase domestic orders.
    According to industry experts, order planning of the domestic market is not strong, traditional festivals particularly busy around the order, usually relatively short. Now 80, 90 higher, recruitment difficulties, there is no law orders can not feed a business, besides the presence of inventory digestion problem and owed money to domestic sales channels, thus opening up the domestic market is not easy.
    3 have not received a single raw material price
    According to statistics, the first half of 2011, 19.01 billion U.S. dollars of footwear, an increase of 21.7%. The main export markets include the U.S., EU and Australia and other countries and regions. However, due to raw material prices, RMB appreciation, coupled with rising labor costs, orders are still current shoe, but they can not take large orders.
    In addition, many companies give workers a rate of 15% -20%, greatly improving the operating costs of enterprises. The most tragic is even higher wages, some technical positions still not easy to hire skilled workers. There are afraid to take orders only silently watching is a common problem in the footwear industry.
    These three aspects are common problems in the footwear industry, but also the bottleneck restricting the development of enterprises. Competition is forward propulsion in the future development of enterprises in the process of looking for new opportunities to develop a broader market of living space, has become the best way to grow the strength of enterprises.