Wenling shoe industry in the first half of the domestic market is not optimistic about the overall situation

It is understood that this year, Wenling shoe companies that undertake foreign trade business have abnormally sufficient orders. The minimum order production plan can reach 7,8 months, and the most is up to November, with an average increase of 15% or more. Faced with such a hot foreign trade market, we were surprised at the same time, we can not help but ask: What are the reasons for the success Wenling shoe exports this year, the excellent situation? From a series of statistics, we can see a clear picture. According to statistics, from January to June this year, Wenling’s number of entrepreneurs rose to 353 with an output value of 4.527 billion yuan, an increase of 12.61% year-on-year; the city’s footwear output value was 12.8 billion, up from the same period of 2009. The annual output was 11.2 billion, an increase of 14.3%; the output was 650 million pairs, an increase of 30% year-on-year; the foreign trade export volume was 437 million US dollars, a year-on-year increase of 25.1%. However, behind these bright growth rates, we found that Wenling shoes industry is undergoing a double test of ice and fire: the export situation is excellent, and domestic sales are extremely difficult.

High-quality standards make it possible to export well

Taizhou Zhengbiao Footwear Industry Co., Ltd. is a medium-sized foreign trade shoe company of Zeguo. In the first half of this year, the output value reached more than 30 million yuan. The order production plan has already reached September, and the order volume in Eastern Europe alone has increased by 30%. The original production line is far from satisfying, and in order to complete the task on time and quality, two sub-factories are set up outside. In the face of our doubts, General Manager Xia Nianzu analyzed that after the financial crisis, the global consumer’s purchasing power declined and the demand for low-priced products increased. Wenling’s shoes are filling the low-end shoes space in the international market with low price advantage. . Second, when the financial crisis broke out, foreign dealers cleared up in panic. After more than a year of market digestion, the stock is almost zero. When the economy gradually improved, they began to restock. Of course, the main reason is that in recent years, the production process and materials of Wenling Shoes have been reformed, and the overall quality has been improved. The footwear industry has formed a mid-to-low-priced and high-quality regional brand advantage. The major international trading companies that had previously been underground in Dongguan and Jinjiang have quietly turned to Wenling. His words were confirmed by many CEOs such as Ford Long Shoes.

"Apart from the different materials, Wenling shoes are now almost the same as Jinjiang shoes and Wenzhou shoes. Some customers have reported that some of my shoes are better than Anta." For this reason, he cited several examples. Glue is used in Taiwan imported 800 yuan a barrel of environmentally friendly water-based plastic; upper material from the original low peel strength rose to peel; in order to increase the soles of the anti-fold wear resistance, special wear resistance and so on. The cost of each pair of shoes is increased by 1-2 yuan from the materials alone.

The refinement of the cold-gluing process is also an expression of Wenling’s shoe quality improvement. “Original 'formation' only needs 10 processes and it is now subdivided into 15 tracks.” said Li Dinghai, chief executive of Taizhou Feiying Shoes. In order to ensure that every pair of finished products are perfect, Eagle has set up a quality management department to conduct spot checks once a day and strictly control quality.

"The craftsmanship is not refined, but the quality is not high enough to be shipped." When interviewing Mr. Chen Ronggao, Chairman of Zhejiang Rongshi Industrial, he deeply said this. In 2003, Rong Shi received the first order for export to Japan. When he personally spotted the product before leaving the factory, he found that some of the products had problems with the asymmetrical texture of the two uppers. Chen picked up scissors and cut 17 pairs in front of the staff. "I would rather lose 80,000 yuan and not allow a pair of unqualified shoes to leave the factory." Mr. Chen's move created a product quality warning line in the employees of Rongshi. Since then, Rongshi Company's shoes have never happened in similar situations. At present, the company is well-functioning, not only making shoes but also extending it as a package. In the first half of the year, the output value has reached more than 60 million.

This quality of life, such as business philosophy has been more and more people of insight in the shoe industry resonance. The quality of Wenling Shoes has been continuously improved with their active efforts, and the market reputation has also spread more and more widely.
At the same time, data issued by the Taizhou Inspection and Quarantine Bureau can confirm the fine craftsmanship, and the high quality has made Wenling’s excellent export situation. In the first half of the year, the Wenling footwear export market shifted from a low price to a better price in the Middle East and African markets to Europe, the United States, Japan, Japan and South Korea, where the export value of Central and South America increased by 35.8%, the United States increased by 29.6%, and the EU increased by 13.8%. The price of shoes also rose from the original average of 2.44 US dollars/pair to 2.91 US dollars/pair.

Abnormal weather and blind follow-up led to the downturn of the domestic market

Wenling's Chengdong, Chengbei and Hengfeng are the main producing areas for domestic sales of shoes. Among them, Hengfeng Hengshi Road, which is a domestic sales business, can be described as the “barometer” of Wenling’s domestic market for shoes. In the past, the bustles and bustles were crowded here and there in the first half of the year. "By mid-June, the total sales of shoes were less than 20,000 pairs of shoes. If the weather is fickle again in the second half of the year, we will be dead." One company official expressed with great concern the author. This worry of his kind represents the mood of the vast majority of domestic sales companies.

Among Wenling's more than 6,000 footwear industries, domestic sales companies account for about 60%, of which more than 80% are small workshops. Relying on the weather to eat, follow suit, low-cost competition is the fundamental point of their footing the market. No need for independent research and development, to see who sells shoes well, to buy an imitation on the line; without their own brand, just look at the brand name. For them, making money is the hard truth. They can't be leaders in market trends and always be blindly followers. Because the technical content of shoes is not high, only the market leader can earn money. For example, at the end of last year, at the end of last year, snowstorms occurred in the northern part of the country. The companies that produced cotton shoes and snow boots made profits, but companies that followed suit had serious difficulties in hoarding products.

In the first half of this year, the fickle weather was a fatal blow to the small workshop owners. In March and April, it was the peak season for sales of net shoes and sandals, but this year there was heavy rain and snow in the north, and the south was cold and cold. "This spring, the weather is like a roller coaster, taking off cotton shoes to wear sandals." Completely upset the order of the original types of shoes, made shoe companies can not comply, can not keep up with market trends. A good deal of shoes are overstocked in warehouses, and customers’ shoes that they urgently need are too late to do so.

However, there are also plenty of domestic sales companies that are completely opposed to the depression. Some large-scale enterprises that have taken precautions to carry out brand operations have not only enjoyed good sales of their products in the first half of the year, but also have been praised by customers for their product quality. Some companies’ products are still in short supply. East of the City of Ford Long, north of the Flying Eagle, will be grams, warm green apple, Hengfeng's rich star, Ming Le and other footwear industry is one of the best. In the first half of the year, the output of the Eagle was more than 1.8 million pairs and the output value was 60 million yuan, an increase of 20% over the same period of last year. CEO Li Dinghai attributed these achievements to the management philosophy of "Quality-Qualified Enterprises and Brand-Building Enterprises". A few years ago the Eagles began a drastic reform. The factory moved from the original leased land to a new factory site covering an area of ​​11 mu. Registered “Exclusive Dragon” brand and hired Shi Lei, a TV drama “The Deer” to act as a spokesperson for Shi Lei. The brand operation was conducted; the internal management system was continuously improved, and the Quality supervision; enhance self-development, develop more than 100 new varieties each year; carry out image packaging and set up specialty stores.