Did the footwear have entered the era of "micro-profit"?

Last year, the annual output of Chinese shoes was as high as 6 billion pairs, equivalent to the world's per capita pair. However, such achievements did not make the shoe owners feel happy, but they all look dignified. “We received orders for 1.2 million pairs of leather shoes from a foreign company a few months ago. The price the pair offered was US$3.2 per pair. We were sure that we were losing money. We didn’t think that they would get anywhere else to do it for US$2.9. "Wang Kangzhen, president of Aokang Group, told reporters.

This "price war" that has been in full swing in China has now reached the overseas market. Many Chinese shoe companies compete at low prices and kill each other. Some companies, in order to survive, know that they have no profit, and even lose money to take orders. An unfavorable situation has emerged in which “the number of exports has risen and the economic benefits have declined.” Li Linchen, chairman of Wenzhou Dingfeng Shoes Co., Ltd., said that the basis for calculating the cost of shoes is not the cost of the shoes themselves, but depends on the market conditions. There is a market for the product and the price can be set higher. Otherwise, the price will naturally be reduced. Now it is a low profit to make shoes. The price is not as good as a year.

Many companies have pointed out that “three feet of ice are not a day's cold.” To prevent fratricide among peers, we must first strengthen the industry’s effective norms and self-discipline. It has been suggested that the trade associations should present a minimum price for exporting shoes.

However, from the actual operation, this move may not work.

Like the lighter industry in Wenzhou, it was tried in 1994. At that time, the export price of Wenzhou lighters was even less than US$1. Later, the association of cigarette makers established “regulations” with a minimum price of US$2, which is lower than the price of all accessories companies. Refused to provide supply. However, the long-term outlook is not long. Because the “new generation” companies are constantly emerging, in order to quickly enter the market, they have no respect for the “old rules”. It didn’t take long for the “rules” to vanish.

The unanimous view of the shoe-making enterprises is that Chinese shoes must hit their own brands, increase product added value, and enhance the overall image. Entrepreneurs suggest that in the process of creating a brand, companies can rise step by step. For example, first create a regional well-known brand, and then create a domestic brand, to enter the international brand after conditions mature. In view of the current status of the industry, it is proposed that companies with conditional licensing should take responsibility, increase manufacturing capacity, and drive other companies to go on brand-name development. For those enterprises that do not currently have the conditions for creating a brand, they can join forces to enlarge the company first, or develop processing companies for international and domestic brands.

According to the plan of the China Leather Industry Association, in the next 10-15 years, it is necessary to create 3-5 international brand names and build a “big shoe country” into a world shoemaking powerhouse.