Wenzhou Shoe Industry Shuffling Innovation Is The Advantage

"At present, China's footwear industry has entered the stage of shuffling, and the footwear industry in Wenzhou is also facing challenges. However, the overall development trend of Wenzhou footwear industry is steadily improving in the first quarter of this year."

A few days ago, Xie Rongfang, executive vice president and Secretary General of Wenzhou shoe leather industry association, said in an interview with reporters.

Xie Rongfang's optimism is reasonable.

Reporters learned from the first quarter data released by Wenzhou Customs: in 2007, Wenzhou footwear exported 2 billion 220 million US dollars annually, accounting for 48.15% of the total export volume of similar products in the province. In the first quarter of 2008, Wenzhou's footwear exports accounted for 24% of the total export value, and export value ranked first among all kinds of export products.

The sum was $207 million 62 thousand and 700, an increase of 5.53% over the same period last year.

According to the statistics of Wenzhou Municipal Bureau of statistics, in the first quarter, 770 enterprises in Wenzhou footwear industry completed the total production value of 9 billion 100 million yuan, and the output reached 120 million pairs, an increase of 11.5% over the same period, of which the output value was 3 billion 500 million yuan in March, and the output was 45 million pairs, an increase of 16% over the same period.

"The above data show that the economic performance of Wenzhou shoe leather industry in the first quarter was good in 2008, and exports and domestic trade maintained a certain increase, and accounted for 24% of the total value of Wenzhou's exports, ranking first in the total value of all kinds of export commodities. The growth of export leather shoes, shoes leather and textile surface shoes remained at more than 13%, while the growth of textile surface shoes was close to 20%.

Xie Rongfang analyzed this way.

Xie Rongfang said that the shoe industry in Wenzhou relies on the secret of starting an undertaking forever, namely, playing the "innovation" brand.

Innovation one: self purchase, off-season profit, reporters recently in Zhejiang Suye bird Shoes Co., Ltd. to see that the domestic trade oriented Footwear Company production workshop in the off-season is still a hot production situation.

Liu Xiaobiao, general manager of the company, was pleased to say that in order to make the company's business off-season not light, the company introduced foreign trade business in the off-season.

In recent years, due to the continuous rising of raw materials, Wenzhou shoe enterprises with low profit margins have encountered challenges in their development.

Liu Xiaobiao said: "in the face of difficulties, we first think of positive coping."

In order to reduce the cost of shoemaking, Liu Xiaobiao adopted the practice of reducing supply chain cost savings.

Originally, Suzhou Ye bird shoes company was unstable when purchasing shoes materials. The main reason was to choose suppliers more complicated. The quality of shoes supplied by suppliers was difficult to synchronize with the requirements of the company, and the price fluctuated greatly with the market changes.

In response to these problems, Liu Xiaobiao made great efforts to reform. The company began to purchase materials from the shoe market in 2006, but instead proceeded to purchase raw materials on its own, and then handed them to the shoe making enterprises for processing according to the standards.

After the launch, Liu Xiaobiao said that not only the quality of shoes was guaranteed, but also the cost of making shoes was lower than that of peers. As a result, the company not only guaranteed profits, but also made the products more competitive in the market.

As an internal trade enterprise, every 6 months, 7 months and 8 months, the shoe manufacturers of Suzhou ye ye and other shoe enterprises that do domestic trade will also lead to a long off-season.

In the off-season, as the footwear enterprises generally take piecework wage and the sharp decline in business directly affects the income of workers, the loss of employees in the off-season is the most troublesome thing for operators.

A few years ago, the company lost nearly half of its employees in a slack season. The situation at that time brought great shock to the 80's general manager.

"Without stable workforce, it is impossible to produce stable and high quality products."

Liu Xiaobiao always thinks so.

After careful consideration, in 2007, Suzhou Ye bird shoes company set up the Ministry of foreign trade, and began processing OEM products for foreign merchants in the off-season. "The processing profit of foreign trade is very thin, and the company makes these profits to the employees in the off-season, so that employees can get very high remuneration in such a low season. The phenomenon of staff turnover has been effectively curbed, although the company does not make money in the off-season, but because the workforce is stable, the biggest winner in fact is still an enterprise."

Liu Xiaobiao said so.

Innovation two: to expand foreign trade, people who are familiar with the footwear business in the Middle East know that many foreign trade shoe manufacturers in Wenzhou rely on domestic foreign trade companies to provide orders for foreign shoe companies to make OEM products, leading enterprises to be at the bottom end of the industrial chain, and the output of foreign shoe enterprises is considerable every year, but the profit margins are small but not optimistic.

At the beginning of 2007, Zhan Chong Lou, general manager of Yongjia Zhongyi shoes and Garments Co., Ltd. discovered this problem when the company was founded.

Zhan Chong Lou once served as the general manager of a well-known footwear industry group in Wenzhou before the establishment of Zhongyi shoes and clothing enterprise.

In 2007, after the creation of the shoes and footwear company which was mainly made of shoes, he focused his product sales on a wide range of foreign markets.

Zhan Chong Lou is a person who loves learning. In his spare time, he likes to read books about business management.

After the new company was founded, he thought about a way of development which is different from other foreign shoe enterprises.

Zhan Chong Lou put his vision into the economically active Middle East.

When he set up his shoes and shoes, he invested a total of twenty million yuan, of which ten million yuan introduced a Italy shoe production line and launched in Yongjia, north.

Another ten million yuan, he used to buy more than 200 square meters of three storey shops in the most famous commercial streets of Dubai, the United Arab Emirates, so that his wife could sit in person and accept orders from Middle East merchants in Dubai.

Because the foreign trade business is through the foreign market, the product style adopts the popular style in Europe and America, the "Zhongyi" brand men leisure shoes produced by the Zhongyi shoe company will cause the Middle East merchants to buy. Last year, the Zhongyi shoe company sold tens of thousands of casual shoes through Dubai, and the products were all over the big cities in the Middle East countries.

This year, due to the impact of raw materials and other factors, in order to prevent corporate profits from shrinking, the Italian shoe and clothing enterprises began to introduce high-grade leather casual shoes to the Middle East market, and increased brand publicity in the Middle East.

Zhan Chong Lou said that in the next few years, Zhongyi shoes and clothing company will take the road of brand extension. At present, he has started looking for agents in big cities in some Middle East countries, adopting the way of high-end line, and making the shoe industry "cake" in the Middle East market.

Innovation three: professional brand, long-term orders Jindi footwear industry has gradually been recognized by the public since 2006, relying on the two most important enterprises in Wenzhou footwear industry: the highest tax paying enterprise in Wenzhou footwear industry, and the largest number of leather shoes exported to Wenzhou every year.

In 2007, the Jin Di footwear industry, with an annual output value of 560 million yuan and an export volume of US $59 million 900 thousand, was once again ranked the first taxpayer in Wenzhou footwear enterprises with a tax payment of 39 million 480 thousand yuan.

In, the export market exceeded 12 million pairs, making it the largest number of export enterprises in Zhejiang and the largest export amount.

"This year, the company has received a steady stream of foreign orders, which has exceeded the limit of the company's capacity."

For this year's export situation, Zheng Shili, executive vice president of the company, is very optimistic.

Jindi shoes is a foreign trade export enterprise specializing in the production of high quality women's shoes. All products are exported to Europe and America.

At present, they have established long-term cooperation with German German Seaman company, and there are large international orders every year.

Zheng Shili told reporters that in order to grasp the quality of production, the company established more than 120 quality inspection teams responsible for spot checks of the quality of products. In 2007, Jindi shoes invested about 23800000 yuan to carry out technological pformation, greatly improving the quality and grade of products, and achieving a higher market share.

Zheng Shili said that the company has targeted the future development of women's shoes in the domestic market.

"We are ready to cooperate with advanced leather shoes manufacturers such as Europe and the United States to produce women's shoes with top quality, and strive to have a place in the domestic market."

Innovation four: integrated monopoly and innovation. Red dragonfly has developed two shortcuts in 2007: sports shoes and integrated monopoly.

The first invention of sports shoes is to break the "serious similarity" of all products in China's footwear industry, and to compete with competitors in product category to achieve differentiation. Integrated monopoly is the best way to break through the sales mode and reduce the pressure of single store cost and achieve the high efficiency of single store.

The so-called "integrated concept store", that is, in a 300~1000 square meters of space, the collection of Red Dragonfly brand shoes, leather goods, clothing and accessories and other products, provide one-stop shopping experience.

Qian Jinbo is very proud of the strategy of the concept store.

He believes that with the advent of the era of consumer upgrades, consumer demand for products has changed, and branded consumption arises at the historic moment.

Integrated concept store mode is popular in European and American countries. Red dragonfly can not only satisfy consumers' changing fashion shopping needs, but also make full use and integration of resources of enterprises and brands so as to maximize market profits.

So far, Qian Jin Bo's Quasi luxury brand "test" has achieved initial success.

At the end of 3, when the Hangzhou integrated store was completed, compared with the previous single store mode, the Red Dragonfly integrated concept store grew by 30% over the previous year.

A month later, the Red Dragonfly integrated concept store has opened dozens of stores.

In May 31st, the Wenzhou clothing trade association's needle and cotton branch conference held the two three general meeting at the Jiangjun Hotel. At the same time, a general election was held. Qiu Riliang, chairman of Wenzhou Zhisheng Garments Co., Ltd. was elected as the new chairman of the cotton textile branch.

Ni Xueshan, chairman of Arctic rookie and Chen Zhonghuai, chairman of three point water children's wear, respectively served as honorary president.

The Wenzhou clothing needle and cotton textiles branch was founded in 2003. In the past year, it has made remarkable achievements in strengthening brand building, enhancing the image of the industry and enhancing the influence of the industry.

In order to improve the overall strength of the industry, the sub committee has also organized many activities such as market inspection and participation in exhibitions. This has greatly enhanced the cohesion of the inter industry enterprises and greatly enhanced the brand image of the region, which has created a great influence throughout the country.

Among them, Wenzhou underwear has been evaluated by the authoritative personages in the industry as one of the most active elements in the national underwear enterprises, and has made a lot of contributions to the underwear industry in China.