Dongguan Footwear Industry "Both Inside And Outside" Promotes Transformation And Upgrading

Dongguan, Guangdong, is known as the "world shoe capital". Most shoe companies are mainly engaged in processing trade. Under the impact of the economic crisis, shoe companies have to transform and upgrade. However, at present, the European debt crisis continues, the European and American markets continue to be weak and the domestic sales force is insufficient. Under the new severe economic situation, reporters in Dongguan shoe enterprises found out that the export profits were thin and the domestic market development was not easy, and the transformation of "world shoe capital" was difficult. Industry experts believe that from the case of successful transformation enterprises, they are still in the difficult position of transition, and should not give up easily. They must stick to "internal and external training" and catch up with the domestic and foreign markets.

At the fourteenth China Dongguan international shoe exhibition, which was not long ago, the cold and clear exhibition scene made the shoe industry face a grim situation. This exhibition, known as the Dongguan footwear vane, is a good time for shoe companies to strive for Christmas or second years of overseas orders, but there are about 450 exhibitors. Last autumn and the end of April this year, the number of exhibitors reached about 500. That is to say, the number of exhibitors dropped by about 10% this year, which is rare in previous Dongguan shoe exhibitions.

Although many shoe companies have received overseas orders, their profits have fallen sharply. Xie Yang, general manager of Yiyang (China) Footwear Co., Ltd. told reporters: "compared with the same period last year, the average profit of every foreign trade order has decreased by about 2/3, and the greater profit pressure comes from inside. The rising cost of raw materials and manpower is the main reason for the shrinkage of profits. The shoe companies only export as they work for others.

It is also not easy for some shoe manufacturers who turn around to do the domestic market or "cross border" and do both inside and outside the market. Dongguan East Zan silver company is a standard three to one supplement company, specialized in the manufacture of finished women's shoes, the company began to export from 17 years ago. Last year, it began to try to sell domestically, and re registered in the country, but faced with the common problem of opening up the domestic market. "Plus the cost of shoes, such as rubber and pig skin, has increased by 30%, the cost of labor has also risen significantly, and the productivity of workers has also declined significantly, which has brought a lot of negative impacts on production." Wang Huiwen, the head of the company.

When another economic winter comes, should the shoe industry turn inward or outward, to the left or to the right? Industry experts believe that transformation and upgrading and internal and external development are the right path for the development of footwear industry, but as long as the transformation is at an early stage, persistence and perseverance will eventually bring fruit to fruition.

As one of the three "advanced enterprises of industrial structure adjustment and transformation and upgrading" in Dongguan, Dongguan Qisheng shoes industry Co., Ltd. has great experience in developing domestic market, which is worth 1800 yuan. Yin Jiqi, the head of the company, told reporters that as early as 1997, he ended the original foundry factory and set up a new factory for domestic sales. It was hard at the beginning, but the company invested a lot of money in research and development, and was able to endure loneliness. In 2008, the Beijing Olympic Organizing Committee issued the order of 2000 pairs of leather shoes for Qisheng shoe industry, which greatly enhanced the brand awareness of the company. In the same year, the financial crisis caused many export foundry shoe factories to go bankrupt. Yin Jiqi is more determined to follow his own brand line. He is glad that he has taken a step ahead of schedule.

At present, there are more than 100 professional development designers in Qi Sheng, and 3000 new shoes are developed each year. From 2002 to 2010, Qisheng sold only 60 pairs of shoes from a month to sell more than 10 thousand pairs a month, and has opened more than 180 stores in the provincial capital and first tier cities above 1/3. Because of the pricing power in the domestic market, we can digest the cost of the increase by raising the price. Now, the unit price of some basic shoes has risen from 1500 yuan to 1800 yuan.

Feng Peixi, deputy general manager of the Dusseldorf Exhibition (Shanghai) Co., Ltd., who hosts the Dongguan shoes exhibition, said: "the whole shoe industry is in the throes of transformation and upgrading, but we believe that this kind of pain will not be too long. At the shoe exhibition, you will find that Chinese elements and Chinese customary style have become the design goals and trends of foreign countries, and the trend that China is driving the world trend is becoming a trend. This also shows us the future and Prospect of Dongguan shoe exhibition.

According to the McKinsey Global Institute's prediction, China will replace Japan in 2014 to become the second largest consumer market in the world. In the shoe market, the leading domestic shoe companies such as BELLE and Saturday occupy the middle and low end consumer market under 1000 yuan, and the high-end market is still in its infancy. Industry experts suggest that domestic shoe companies can take this opportunity to actively explore the domestic market.

In fact, not only some shoe companies in China have been keeping an eye on the huge domestic market, but some of the non traditional European and American markets such as Portugal and Turkey have also exhibited at some shoe exhibitions held in China this year, hoping to enter the Chinese market.

At the same time, although the overseas market is in a depressed state, it must not be abandoned. Li Peng, Secretary General of the footwear industry in Asia, reminded the majority of shoe manufacturers: "guiding enterprises to expand domestic sales, but not to export, and not to abandon the traditional external market." Europe and the United States economic downturn, and recovery takes a long time, but the emergence of new customers such as Russia, ASEAN and other foreign countries, the new consumer market is also rising, foreign market space is still very large.