Domestic Brand Shoe Enterprises Release Potential To Break Through Predicament

Compared with the current cold wave of shoe industry, Quanzhou shoe enterprises in the forefront of domestic brands have been encouraging news. Some enterprises have received more orders in spring and summer 2009, compared with last year's growth rate, more than 30%, and the price of single products increased by 10%.

People in the industry believe that owning independent intellectual property rights, relatively smooth flow of cash flow, and scattered sales terminals are the main reasons for these well-known brands to "go against the trend" and maintain a strong momentum of development.

The growth of orders next year will be 30%. Due to the financial tsunami, the domestic shoe industry has started a "collapse tide". A large number of shoe enterprises which mainly rely on the "three to one supplement" processing trade have been shrinking or interrupting due to the large number of foreign orders.

In the short term, it is seen that many export-oriented enterprises are seeking pformation, relocating the target market to the domestic market, trying to make breakthroughs in the domestic market, so as to achieve the purpose of "levee levees".

However, when the foreign trade enterprises turn to the domestic market, they have to face various problems such as the establishment and promotion of their own brands, the re distribution of marketing networks, the circulation of funds, and the market competition.

By contrast, enterprises already firmly rooted in the country and mature in brand are much more relaxed.

Recently, the order information released by Lining, a domestic sporting goods giant, showed that the amount of orders for product dealers increased by 31.6% in the second quarter of 2009 compared with the same period last year. The average retail price of footwear products increased by 10.2%, the number of orders increased by 18.9%, the average retail price of clothing products increased by 11.8%, and the number of orders increased 18.8%.

Anta, also a domestic sporting goods first-line brand, recently released its order conference information in the second quarter of 2009 in Hongkong. It said that the order volume in the second quarter of 2009 increased by more than 30% over the same period in 2009.

The average price of its products has become an important driving force for Anta's sports earnings growth. The average price of footwear and clothing has increased by about 6.5% and 10% respectively over the same period, and the order volume has increased by about 15% and 23.5% respectively.

Ding Shuibo, chairman and chief executive officer of XTEP international, recently held a performance press conference in Hongkong. The first half of the company has increased its price of footwear products and clothing by 9% and 16% respectively. It is expected that the retail price of products will increase by 5%-10% in 2009.

He disclosed that the order of 2009 spring has just completed, the order amount increased by 40% over the same period last year.

Ding Shuibo also said that the company's capital expenditure this year is 220 million yuan, of which 10 million yuan has been used in the first half of the year, and the remaining 210 million yuan will be used to add production lines and new shop decoration.

Release the potential to break through the dilemma, and the financial turmoil has led to massive withdrawal of offshore capital, leaving a chance for domestic brand enterprises to "break through".

Last month, at the "Third China Sports Entrepreneurship Forum" sponsored by the Graduate School of Beijing Sport University, Wei Jizhong, chairman of the former China sports industry group, said that whether China's sports manufacturing industry could successfully break through with the weakness of the manufacturing industry in Europe and the United States depends not only on the size of the whole industry, but also on the richness of the domestic consumer groups.

The consumption of sports products is a selective consumption. Therefore, as a local brand, we must first ensure that we provide good products, and secondly, we must serve well.

At present, the entire domestic sporting goods industry is more and more a brand name behavior. Enterprises are no longer a bee crowded to the same road, but focus on differentiated operation.

Because the brand that people can remember is limited, so the whole market will become more and more concentrated on a number of big brands, brand will increasingly represent a kind of consumer personality.

Because of this, the energy of brand enterprises has been gradually released. Some enterprises have invested a lot of money in advertising such as CCTV and other central level media, while launching market activities and sports sponsorship. This also shows the division and contention of different consumer groups.

In 2009, CCTV 2009 gold resources advertising bidding meeting, the city's 31st degree win the bid 158 million yuan "CCTV 2009 sports channel clothing designated supplier", while the 156 million yuan won the bid, "CCTV 2009-2010 sports event live partner", showing the big brand's big hand, big investment and family demeanour.

According to industry analysis, the impact of the current economic crisis on the daily consumption of small consumer goods is limited.