Transformation Of Chinese Shoe Enterprises: Where To Turn?

This is an era of pformation.

From the state to the region, from organization to individual, we must be busy, looking for new positioning and new way out.

In the tide of social pformation, shoemaking industry is no exception, every corner is permeated with the taste of pformation.

Originally the main export OEM shoe processing enterprises began to pform into domestic sales, and the original suppliers specializing in shoe materials and accessories also boldly pursued the pformation of integrated strategy and became the boss of shoe enterprises.

At the same time, those shoe companies that are fighting for the Quartet in the domestic shoe market are also busy with their own positioning pformation, from the more primitive products suppliers to the high standard and high demand brand service providers.

For all shoe makers who are at the core of the pformation storm, pformation is an important means for them to get out of their predicament and explore their way out.

For them, whether the war of pformation can win or even whether they can survive.

The pformation from export to domestic trade, which is the three big event in the field of foreign trade this year, is like a three heavy hammer, which stunned almost all export oriented shoe companies and forced them to move the "domestic market development plan" hidden in drawers to the table.

The value of the renminbi to the US dollar has finally dropped in 2007.

The practice of international trade is settled in US dollars, and foreign businessmen sign contracts with us dollars and foreign shoe manufacturers.

As a result, the same $5 shoe could have been cashed at 40 yuan, and now it has turned into 37 yuan, which has lost nearly 10% profits on the ground. The export tax rebate policy adjustment is the second heavy hammer on the export shoe enterprises. The reduction of 2 points has reduced the profit expectations of export shoe enterprises to nothing, and the last little profit has been completely eliminated. Inflation is the third heavy hammer that the export shoes enterprises bear, the soaring raw materials and the soaring cost of personnel have greatly deepened the cost burden of export shoe enterprises.

The overburdened export shoes enterprises are finally forced to take the first step of pformation, from export sales to domestic trade.

The pformation of raw materials to brand players, if the export to domestic market is more or less passive by the environment, the pformation of brand manufacturers by shoe material suppliers seems to be more active.

Most of the raw materials manufacturers have been pformed into brand dealers directly into the domestic shoe market, because they have spotted the current wide market opportunities.

The footwear industry has been basically shaped and fairly stable through the vigorous development and training of the whole industry.

More importantly, a large number of leading brands have suffered from widespread mistakes due to lack of sufficient experience. They have to compress the front line or withdraw from the market, thus leaving behind a huge market space and immeasurable channels.

With strong capital to enter the market at this time, we can maximize the resources of products and talents with the least cost, and take a large initial entry cost to take over the front-line resources such as market and channel.

With the sharp reduction of cost and the large concentration of advantageous resources, raw materials suppliers have reason to believe that their pformation will win the battle.

In addition, the pformation from raw material manufacturers to brand dealers has also become the business wisdom of raw materials traders to avoid the current situation of increasingly delinquent payments.

Based on the general tightening of market capital chain, shoe companies began to collectively default on the payment of shoes suppliers, and the period of arrears was extended from 3 months to 6 months, 9 months or even 12 months.

The raw materials traders secretly thought that the huge funds and their shoes were in arrears, becoming the capital with the lowest turnover rate. Instead, they entered the market directly and converted into the market channel arrears. At any rate, the receivables as the shoes were much higher than the shoe material raw materials in terms of turnover and yield.

The pformation of product suppliers to market operators under the dual threat of export shoes enterprises and raw material business pformation shoes enterprises, shoes companies already in the forefront of the market have to fight twelve points to cope with the more severe challenges.

At first, when the market was booming, the shoe companies did not completely perform the division of labor among the shoe enterprises, but only assumed the most basic product supply function. As for the channel development, marketing support, brand building, terminal services and many other functions, most of them were pferred from shoes enterprises to agents.

Shoe companies take a very small part of the function, but seem to have gained a large part of interest. The dissatisfaction of the market links has been a long time. These dissatisfaction will not get any trouble when the manufacturers are strong. Now the competition is becoming more and more intense. The backward brands are covetous, and the bargaining power of the channel traders is getting stronger and stronger. A little careless market may fail. The shoe companies have to rush to the top to carry out the pformation, undertake the various functions that they should have undertaken, and obtain the legitimate business interests.

Shoemaking enterprises began to set up huge market service teams and provide personal service in various markets, put enough advertisements to mold the advantages of brands, and perfect the regional management mechanism of agents so as to face severe market competition.

In short, in addition to the original high-quality products, shoe manufacturers also began to provide a comprehensive market development plan, feasible regional support measures, taking into account the overall and local brand value added strategies and other one-stop services, fulfilling the functions of a mature market operator, and all that they have is to preserve and further enhance the market.

The pformation of postscript is a common topic faced by the Chinese shoe industry. The direction of pformation is not accurate, the strategy is not right, the timing is inappropriate, and the determination is not big, which is related to the future of every shoe enterprise.

The war of pformation is not a battle of shoe companies, but a battle of the whole industry.