PEAK CEO Xu Zhihua: Footwear Industry Enters The Era Of Supply Chain Competition

< p > quotations "the future suppliers will be very closely related to the molding enterprises, and gradually form several different ecological chains within the industry. The whole industry will not be the competition between enterprises and enterprises, but the competition among different supply chains."

Xu Zhihua < /p >

< p > < strong > core cue < /strong > < /p >

< p > after visiting the industry for more than a month, the Fujian footwear industry association and the newspaper jointly sponsored the "2014 Haixi top ten shoes business card" survey activities have gradually come to an end.

The dozens of enterprises that have been displayed not only reflect the development status of the whole shoe industry chain in Quanzhou, but also comb out the future development of the industry from the innovation of enterprises.

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< p > "the whole shoe industry in Quanzhou is facing the impact of emerging industries, the pressure brought by e-commerce, new technologies, labor costs and so on, and the needs of consumers have changed. This also requires our enterprises to match these needs."

Xu Zhihua, chairman of Fujian footwear industry association and CEO group of PEAK group, said that for product molding enterprises like PEAK, to match the market demand, we need the support from the front end of the entire supply chain. "The future will not be the competition between enterprises and enterprises, but the competition among different supply chains."

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< p > < strong > pformation mode is suitable for market < /strong > < /p >.

< p > enterprises can not create demand, can only adapt to demand.

This is Xu Zhihua's core concept. Under the impact of the new business mode and the change of consumption demand, enterprises can only actively adjust themselves to adapt to the market.

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< p > reporter: what is the core issue facing the footwear industry in Quanzhou during the period of industrial pformation? < /p >

< p > Xu Zhihua: the most important thing is the pformation of business mode brought about by market pformation.

The footwear industry in Quanzhou is facing the impact of emerging industries. The pressure brought by e-commerce, new technology, labor costs and so on has changed the needs of consumers. This also requires our enterprises to match these needs.

The trend of consumer demand is becoming smaller and more individualized, so that enterprises must pform their business models to adapt to the market.

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< p > reporter: what are the specific aspects of these changes and how do enterprises adapt to them? < /p >

< p > Xu Zhihua: at present, the most obvious manifestation is in the consumer end and cost side.

On the consumer side, that is the change of consumer demand just now, which requires enterprises to respond quickly on the supply chain. The cost side is mainly the rise of costs, which requires enterprises to improve labor productivity and have enough bargaining power.

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< p > reporter: is this a higher requirement for the whole industry chain? < /p >

< p > Xu Zhihua: Yes, the enterprises like us PEAK belong to the product molding enterprise in the industrial chain, and there is a long upstream supply chain ahead.

In order to improve production efficiency, the front-end industry needs support from new technology, new technology and new equipment.

I once visited Brazil to see that there were only 2 workers in a production line of a factory, and there was a huge gap between the traditional production line and hundreds of people.

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< p > reporter: why can't we directly introduce this advanced production line abroad? < /p >

< p > Xu Zhihua: because this is not the introduction of several advanced equipment problems, it is entirely another production process, which can be said to be a complete overturn of traditional industries.

To develop this new production process, we need a whole new industrial chain to match it. From the current development of our local industry, we can not meet the requirements, nor is it suitable for making such a big span reform.

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< p > ecological circle competition era < /p >

< p > looking for different market demands and matching them, the future footwear industry may form several different ecosphere composed of brand enterprises and supply chain enterprises, and bid farewell to the era of homogeneous competition between enterprises and enterprises.

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< p > reporter: what is the direction of the industry's future pformation if it is not suitable for completely reforming the industrial chain? < /p >

< p > Xu Zhihua: it should be said that there is no fixed direction. If all enterprises are going in a direction, then they will go to the old way again.

Now the market demand is diversified, each enterprise will develop its own advantages in the future to adapt to a certain market.

The whole industry is going to scale and the mode of mass production has to be changed.

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< p > reporter: large scale production is not the final mode of all large manufacturing industries. Why should we change it? < /p >

< p > Xu Zhihua: first of all, we need to understand how large-scale production is coming.

Manufacturing enterprises have many choices in the development process, such as enhancing value, reducing costs, and so on, and find a balance between them.

And our industry has chosen to reduce costs, which requires large-scale production. The advantage is the high efficiency of the unit, but it also brings the same mold and equipment, and the final result is product homogeneity.

Under the impact of new business models and new demands, this way has become increasingly inappropriate. In the field of electricity supplier, some enterprises can produce products for consumers in 7 days. For them, they do not need large scale production, but rather create fast supply chains.

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< p > reporter: how should the supply chain enterprises adapt to this diversified change? < /p >

< p > Xu Zhihua: still have to be clear about your position.

As we have just said, the whole industry will develop a variety of development directions in the future. Some will focus on enhancing value, some focus on fast supply chains, and some will stick to large-scale production. Whatever direction they need, they need support from upstream enterprises.

In the future, suppliers will have a very close relationship with the molding enterprises, and gradually form several different ecological chains within the industry. The whole industry will not be the competition between enterprises and enterprises, but the competition among different supply chains.

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< p > reporter: what is the need for upgrading the supply chain of Quanzhou footwear industry? < /p >

< p > Xu Zhihua: the elements that enterprises choose suppliers are nothing more than quality, price and service.

Quanzhou's current supply chain capability is one of the best supply chains in Asia and even the world, with the highest cost performance. At present, it is to find new market demand and actively match it.

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