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Chinese Shoe Makers Gather To Discuss How To Deal With The Shoe Industry.

2012/6/8 11:27:00 39

ShoemakerEconomic PformationFootwear Industry Hollowing OutFootwear Industry Pformation

 

When European and American countries reverted to "re industrialization" and tried to revive their manufacturing capability, China lost its "traditional advantage project" in capital profits.


Just like the past changes in the United States, from the "industrialized society" to the "service economy", the evolution trend is regular. However, it inevitably leads to the footwear industry going to "sunset industry", industrial hollowing and economic bubble, and finally losing growth momentum.


  

Economic crisis

Lessons have been learned to maintain economic development by borrowing and lending.

When the United States attempts to turn the tide on the shoe industry, Chinese shoe makers are worried.

Under the double pressure of industrial environment deterioration and national economic pformation, no pricing power and cost out of control have become the two major threats to Chinese shoemaking enterprises.

What is more serious is that China is also facing the economic era dominated by financial capital.


"

Industrial Hollowing

Capital escaping from industry, enterprise outflow and relocation, using industry as financing platform for speculation, and the industrial living environment is getting worse and worse.

Everyone wants to make quick money, and businesses can't afford to make a big policy move. "

Zhou Dewen, President of Wenzhou SME Development Association, recently said that Wenzhou is facing the crisis of hollowing out the shoemaking industry.


So, the same question, for

China footwear industry

What kind of answers will entrepreneurs give?


Reshuffle


Mr. Li, chairman of the shoe business, told reporters: "the profit of the shoemaking industry is still very low, and investment will bring more value, so the flow of capital is normal.

As a result, the government has been making many measures to encourage shoemaking enterprises.

At this stage, the development of shoemaking industry is inseparable from the support of the government. "


The structural adjustment of shoemaking industry should first expand from low-end products to high-end industrial chain.

In the past, shoemaking enterprises competed more by relying on the advantages of efficiency, speed and cost, but these are not enough to support the sustainable development of enterprises.


In spite of the global economic crisis, Chinese enterprises are facing challenges, but there are also more opportunities.

The adjustment of the economic structure means that many industries are facing a reshuffle, leading to the adjustment of these enterprises. This will surely slow down the growth of the enterprises that are globalized, and give Chinese enterprises the chance to increase their market share.


All investment is troublesome.


The US economy is recovering slowly, but the employment situation has not improved, because the footwear industry is becoming less and less.

Someone once commented that "no shoe making industry is like a man without a backbone."

Although "blood" (financial industry) is everything, it is still unhealthy.

In this regard, many Chinese entrepreneurs feel empathy.


"I think that no matter how thick the profit is, we should stick to it.

This is not because of the high profits of the industry that I am calling for to do business. Now the footwear industry is generally facing low profits. It is difficult to control the cost rise, including domestic labor costs, production costs and so on.

Wanda Limited by Share Ltd chairman told reporters.


The definition of the hollowing out of the shoemaking industry is that many entrepreneurs do not invest in the existing industry. The investment is not determined by the proportion of GDP in the footwear industry. The more developed the country, the lower the proportion of footwear industry.

"The adjustment of China's economic structure is the third industry that will expand the expansion of domestic demand in the future, accounting for 70% of the total GDP share, which is the same as that of the moderately developed countries.

But this adjustment is not the weakening and hollowing of the manufacturing industry. "


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Investment and nurturing industry


"China's footwear industry is far from moving the industry to the central and western regions and pferring to less developed countries. This is determined by the situation of developing countries."

Chairman of the board of directors of Shengda Holding Group Co., Ltd., told reporters.


The pformation and upgrading of shoemaking industry need process. Jiang Xipei believes that the key is to find out how the shoemaking industry combines with modern service industry and modern financial industry.

Using technology to promote the pformation of shoemaking industry is the most critical issue.


"The technological level of China's footwear industry is still underdeveloped in the world, including equipment manufacturing capabilities and enterprise management capabilities.

The combination of shoemaking and modern service industries, such as

Electronic Commerce

The combination of mode and so on can be a breakthrough in the pformation of shoemaking industry.


In Jiang Xipei's view, the difference between China and developed countries in terms of shoemaking level is 20 years. The problem is the difficulty in pformation, not the performance of industrial hollowing out.

"Investment + industry" is the way for the Far East to deal with the current pformation of manufacturing industry.

So we have invested some companies in investment, and now they seem to have a good return. This is the way of Shengda nurturing industry and balancing profits.


  


Focus on market segmentation


"Now some shoemaking enterprises are facing bankruptcy or pfer. I think it is not the hollowing out of the industry.

This is due to the excessive reliance on international trade and dependence on exports.

Zhang Yue, chairman of Yuanda Group, told reporters that Wenzhou is a typical example. As the most prosperous small commodity manufacturing center in China's export trade, China has a lot of excess capacity in the process of globalization. When external demand is reduced or short-term termination occurs, the capacity can not be released, and these enterprises bear the brunt of it.


Having worked for 20 years, Zhang Yue has a deep understanding: there are two kinds of trade demand for shoemaking enterprises, one is necessities and the other is non essential goods.

The difference between the two is that the latter will be impacted by the fluctuation of the external demand market, while the former will not.

"Almost all of the world's trade is doing products that satisfy the waste and enjoyment of life, but the truly irreplaceable manufacturing enterprises should not produce products that are dispensable or improved."


Zhang Yue believed that shoemaking enterprises should learn to draw lessons from the crisis. Upgrading and innovation of enterprises should not only focus on competition, but also focus on different market groups and different needs.


Get rid of low cost manufacturing


For investors who are most keen on the market direction, Wang Chaoyong, chairman of faith International Holdings Limited, told reporters that "there is little concern for the current manufacturing industry."


This is due to the fact that there is a large number of overcapacity problems in China's footwear industry.

export slowdown

With the GDP growth rate falling, the excess capacity of a large number of shoemaking industries should be pferred to other industries.

In Wang Chao Chung's view, shoemaking enterprises will face increasing efficiency and form their own competitiveness in the future.

The collapse of some small and medium-sized enterprises is the survival of the fittest in this evolutionary process, and the elimination of backward production capacity is also a way to raise the gross profit margin of shoemaking industry.


In addition, the development of China's footwear industry is different from that of the US footwear industry. The United States is the government's intentional guide. Most of these people work in the field of science and technology, such as Silicon Valley, with a high knowledge structure. Apart from the division of labor, these shoemaking industry promotes a number of blue collar jobs.


"China's shoemaking industry is currently going to get rid of low cost manufacturing, which is why the state says that the growth rate of GDP should be lowered, but the structure of GDP should be adjusted.

Like Fujian, Quanzhou and other companies that produce clothing and shoes, they used to do foundry, and now they have developed their own brands, which is a good pformation.


  


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