Huidong Shoe Enterprises Face Market Challenges And Embrace Collectively.

Made in Huidong shoes Huang Bu, a well-known town in Guangdong, is located in the Guangdong Guangdong (International) footwear market, which is well known to the mainland. But the market entry rate of 72.4% of the whole market has made the general manager of the market operation Wang Wang feel the pressure. "We only rent it here or sell it in order to provide a centralized platform for the development of footwear industry, but the attraction of rent free for 1 years seems inadequate."

At 10 a.m. yesterday, around the 80 thousand square meter shoe market, while looking at the "opening rate" shop, the whole market has 532 berths, and the monthly rent of each shop is 4000 yuan. Although there are a series of rent reduction policies, some of the shops are still "time to stop".

"Now the competition of the traditional industry is becoming more and more intense, and the shoe industry in Huidong may be more developed in the past, but now almost all the provinces in China have a professional base, and the profit space of everyone is becoming smaller and smaller." Wang said that since the second half of 2007, business has started to fail, because the shoe enterprises in Huidong are basically export-oriented. With the depreciation of the US dollar, the RMB exchange rate has increased, export costs have increased, and the profit margins of export enterprises have been compressed.

"2 years is a novice, 3 years is a good hand, 5 years can be a boss." Because the technology content of shoe industry is not too high, to a certain extent, many skilled workers are unwilling to continue to work. "Wang said, this has led to the emergence of shoe enterprises in Huidong, but more factory shoe factories have not been registered in the industrial and commercial tax department, so" how many shoe factories are there in Jilong and Huang Bu? "

The direct consequence of low entry threshold is vicious competition. The result of vicious competition is the overall profit space compression. With the increasing number of shoe factories, small workshops also join in the competition. Customers do not need to pay first, and 30 days or even 90 days after the goods are sent back, so that once the capital chain is broken, the shoe factory can only wait for death.

Wang said that compared with the reduction of orders and vicious competition, people worried about "brand". According to statistics, only two towns of Jilong and Huang Bu have more than 1 thousand registered trademarks of shoes, but they are truly few brands. Wang said that trademarks can not be equated to brands, which not only need good product quality, but also have good technical content and cultural connotation.

"Who doesn't want to create a brand, but it's really hard. "Mr. Liu, a shoe manufacturer who belongs to Huang Bu Town of Huidong County, said that the brand can not be built overnight. It often takes years, even decades, and requires a lot of capital investment. Before building a famous brand, tens of millions of dollars need to be invested. Now it is estimated that we need to invest more than one billion. Under such conditions, because Huidong's shoe enterprises are generally small, they want to create brands.

Mr. Liu said that most shoe factory owners in the case of "smashing money" to make brand and continue to make OEM processing were slightly profitable, most of them chose the latter, because brand building is slow, OEM can not only save design and promotion costs, but also reduce operational risks, which is conducive to expanding the scale of production.

Objectively speaking, the majority of local shoe traders in Huidong are villagers and fishermen who "wash their feet on the field". Their own concept of brand is relatively vague, so it is difficult to form a consensus. "Wang said that although there are difficulties, but a small number of shoe companies are trying to transform and create brands.

It is reported that in January of this year, the brand of "fragrant love" created by 6 shoe companies in Huidong successfully won the commentary on the "China famous trademark", thus ending the history of Huidong's 30 year shoe industry without state-level well-known trademarks. The industry also said that under the current cold market situation of shoes industry, Huizhou shoe enterprises' brand management has won the breakthrough, which undoubtedly played a strong role in Huidong's footwear industry, and it also plays a positive role in the future of more shoe enterprises taking the road of brand.

However, there are also insiders pointed out that Huidong shoe enterprises have only been evaluated "Guo Zi" until now, and on the other hand, they have exposed the short board of their industry development. The path of creating a brand of small and micro private enterprises represented by Huidong shoe enterprises is still long.