Multiple Factors Of Chinese Shoe Enterprises Make The Order Decline And The Order "Grabbing" Can Not Be Taken Away

Order "grabbing" does not leave China shoes The attraction of enterprises is still in the past. According to the survey results of the Asian Footwear Association, since the outbreak of the financial crisis in 2008, with the manufacturing costs rising, a large number of orders of Chinese shoe enterprises have been snatched away by the Southeast Asian shoe industry, and the trend of "orders flying southeast" has become increasingly obvious recently. However, the reporter found that compared with Southeast Asian enterprises, Chinese shoe enterprises still have a strong attraction for orders.

　 Order decline caused by multiple factors

Industry analysts believe that the decline in export orders is mainly due to the rapid rise in domestic production costs. With the pressure of rising RMB exchange rate, some export shoe enterprises have entered the stage of meager profits, and production and operation are difficult.

A leather shoes export enterprise in Chengdu, Sichuan is worried about the decrease of orders. Luo Yan, the product manager of the company, told the reporter that more than half of the company's Western European customers and orders had been lost in the past five or six years. "There are many reasons for the loss of orders in the Western European market." Luo Yan analyzed that "the first reason is the increase in production costs. Our logistics costs are affected by the location of the enterprise. The cost of transporting raw materials purchased from Fujian, Guangdong and other places to Chengdu is high, and the transportation cycle is very long.

In addition, the supply of footwear belongs to the buyer's market at present. In order to meet the increasing order demand of customers, manufacturers must look for higher quality raw materials. In many cases, they have to import from abroad, which further increases our costs. "

Shoes exporters also have a headache about the change of the RMB exchange rate. "Last quarter's product quotation can still maintain a certain profit. This quarter, the quotation of similar products has changed, because the customer requires the seller to digest the loss caused by the exchange rate change, not to mention the risk of exchange rate change in the payment cycle." Luo Yan complained. With few orders and further "erosion" of exchange rate, it is no wonder that the seller's profits will continue to decline.

　　 Order "grabbing" does not leave

In fact, orders are not abandoning Chinese shoe enterprises. A shoe company in Wenzhou, Zhejiang, which mainly engaged in OEM, sold nearly 1/3 of its products to European and American markets, but it was not strongly impacted by Southeast Asian competitors. "Last year we had a British customer who placed an order in Thailand, but he came back a few months later." Mr. Liao, manager of the international trade department of the shoe company, told reporters about an interesting experience.

This British customer has a cooperative relationship with Mr. Liao's enterprise for many years. At the beginning of last year, because a Thai manufacturer offered a lower price, the British customer placed three orders in Thailand, but he was very dissatisfied with the quality of the products provided by the other party, and finally he was still "reconciled" with his old partner.

Mr. Liao said that he also knew that a Taiwan funded enterprise had moved its factory from the mainland to India, but after a period of operation, it finally withdrew due to management style, labor quality and other reasons. "These newly rising shoe enterprises in Southeast Asia mainly rely on cheaper labor, and they can only produce low value-added products at present. If customers have high requirements for product quality, their labor cost advantage will not be reflected." Mr. Liao analyzed.

Because of this, the most vulnerable domestic manufacturers are those with small production scale and low product positioning. In contrast, large enterprises with mature brands, excellent production technology and good service quality generally maintain good relations with European and American customers, and have not been "robbed" by other markets of a large number of orders.

Xu Changwen, a researcher from the Research Institute of the Ministry of Commerce, believes that although China's traditional advantages are gradually fading, the talent accumulation and understanding of foreign markets of Chinese enterprises over the years are far from what these new competitors can catch up with overnight, so there is no need to be too alarmed.