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    In The Face Of CPI's Rise, Low End Shoe Companies Must Fend Off Cheap Clothes.

    2011/8/11 9:51:00 32

    CPI Footwear Raw Materials

    On August 11th, the National Bureau of statistics released data in August 9th. In July, the national consumer price level (CPI) rose 6.5%, an increase of 0.1 percentage points from last month and a new high. Among them, the direct factors affecting the development of shoemaking industry: water, electricity and fuel prices rose by 4.4%. Indirect factors: pork prices rose by 56.7% over the same period last year, affecting the overall price level by about 1.46 percentage points, while grain prices related to the national livelihood rose by 12.4%, affecting the overall price level by about 0.34 percentage points.


      Rising costs Shoe enterprises How to face


    Today, "water shortage" and "electricity shortage" Raw material shortage "No longer can be regarded as the news of China's footwear industry, because the cost rise of small and medium-sized shoe enterprises and" three wastes "has been playing for six months, and the" three famine "attacks have failed to stimulate the whole shoemaking industry. However, for mid stream shoemaking enterprises whose strength and influence are relatively backward, every fluctuation is fresh in memory, because the problem which is not a threat to well-known shoe enterprises is fatal to them.


    As we all know, when the cost of shoemaking is soaring, it is followed by the test of survival of the fittest. Although this time CPI New high has not led to the survival of small and medium-sized shoe enterprises in trouble, but it is undeniable that small and medium shoe enterprises are facing enormous challenges.


    From the last round of soaring costs, we know that in order to cope with cost pressures, many shoe and clothing brands have chosen to raise prices. However, for small and medium-sized shoe enterprises, there is no bargaining power in the market. Cost pressure can not be transferred to the downstream, it can only digest itself, "no increase in price and so on, and price rise and death" has become an embarrassing situation that many shoe companies have to face. The competition faced by small and medium-sized shoe enterprises has become more and more brutal, and the rising cost has made many shoe companies suffer from both sides. Under the blade, how to effectively solve the cost crisis and achieve rapid development has become a problem that shoe companies have to think about.


       Pork gold content soar or become vegetarian


    The price of pork continued to rise by 57.1% in the first half of July, and the price of pork rose or dropped in July. The average price of pork sold across the country rose to 17.68 yuan / kg, which also broke through the highest price of the whole price in 2008. Meanwhile, with the rising price of pork, the cost of pig skin has become a "raw material", resulting in the transformation of pig skin shoes products onto the luxury stage.


    "Prices have gone up too fast, and our raw material comprehensive cost has risen by more than 60%, but the terminal price in Europe has not been raised yet, and now it is almost at a loss. Now the company's capacity is only 1/5." Li, manager of the Sales Department of Yulin Fuying Leather Making Co., Ltd., said that the price of raw material pigskin has risen sharply recently, and the cost of factory production has increased. However, the export price is rising slowly, and the company is going through a very difficult period. At present, the dilemma of tanning companies also reflects the market situation of the downstream products of pig skin from another aspect.


    There is a phenomenon that the Chinese footwear industry would not like to see. Under the leadership of "mad pig", "mad cat", "mad dog", "Crazy Horse" and "mad cow" rush to battle, and fight for the promotion of their prices. If so, the shoe making industry that has always been raw materials of various animal skins will surely "become monks" because * the shoe industry can not afford to bear, and consumers can not afford it.


    To get rid of the negative impact of the CPI rise is a pressing problem for the shoe industry at present. To change this difficult situation, the low-end shoe enterprises must get rid of the cheap coat and improve the quality of the products by adjusting the product structure and customer structure. The footwear industry must pay attention to ecological protection on the one hand. On the other hand, we should increase investment in scientific research, actively transform the industrial structure, and continue to move towards the upstream industry.

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