How Should Shoe Manufacturers Cope With Rising Costs?

In April 16th, the National Bureau of statistics released the latest statistics in March. In March, the total consumer price (CPI) level rose 8.3%, up 5.3 percentage points over the same period last year.

On the same day, Premier Wen Jiabao chaired a State Council executive meeting. The meeting stressed the need to prevent economic growth from being overheated to overheating, and preventing price from being pformed from structural rise to obvious inflation as the primary task of macroeconomic regulation and control.

It seems that overnight prices have become the focus of attention.

For young traders, the most intuitive feeling of price increases is the rising operating costs.

No matter manpower cost, management cost or raw material cost, the profit space that has already been left behind is compressed again.

For young traders, how to deal with national price increases has become a top priority for them.

The sharp increase in human cost of price increases has become a problem that they have to consider for the young businessmen.

"With the simplest wage, the management salaries increased by 20% after the year of the management, while the average wage growth of ordinary employees was even greater.

It may take only about 1000 yuan a month to keep a general worker, and now it will basically rise to more than 1000.

This is only one aspect, including the increase of raw materials and the increase of other management costs, which are a great part. "

Xu Qinghai, general manager of Quanzhou Jiali children's Articles Co., Ltd. was also very helpless when he talked about the impact of price rises.

Xu Qinghai is not alone in the cost of manpower.

Zhang Jiameng, general manager of Fujian hi climbing sporting goods Co., Ltd., told reporters that before a miscellaneous worker could get a monthly salary of only 800 yuan, some enterprises have already made a monthly salary of 1200 yuan to recruit a miscellaneous worker. Not to mention other technical workers, a general worker needs nearly two thousand of the monthly salary.

"This year our staff salaries have generally increased by 20% to 30%, which is a great burden for us."

The same phenomenon also occurred in Jinjiang Dasheng Textile Industrial Co., Ltd.

Wang Yumiao, general manager of the company, although he did not disclose the specific salary increase in the conversation, he also gave such data: the total cost rose by more than 5%.

"For our upstream enterprises whose profit margins are not high enough, the increase in the cost of 5% should be a more frightening data."

Wang Yumiao said.

When prices rise, families have a hard nut to crack. For this kind of nationwide price rise, green traders generally say that there is no special solution except for the corresponding rise in prices.

Xu Qinghai told reporters that in the Canton Fair, Jiali products generally raise about 10%.

But he also admitted that such a price increase is inevitable.

"This way of raising prices is quite unacceptable to customers.

The reason is very simple, because our products are superior in quality and design, and have been positioned in the middle and high end market, the price is higher than others. Now, if we raise the price again, some customers will not accept us. There is no way to do it. After all, if we do not raise the price, we will hardly be able to reproduce it.

However, more than half of our customers continue to cooperate with us, but the amount of orders is much smaller.

There may be eight or nine containers in the past, but there are only two or three containers left. "

But Xu Qinghai also said that this is not a bad thing for Carrie.

"Smaller orders can also help us arrange production, which is also helpful for improving production efficiency.

Besides, although they may have only two or three containers at a time, they will continue to look for our orders after they are sold out. We are very confident about that.

However, not every company can be like Carrie.

Zhang Jiameng frankly said that although the climbing shoes cost nearly two yuan per pair on the original basis, the effect was not good.

"Because the price increase is not the uniform regulation of the whole industry, it is only the behavior of most enterprises. After all, if we do not raise the price, it will be very difficult for us to survive.

However, there are still some enterprises that ignore the current situation and still rely on low price vicious competition, so many customers take our samples to those companies that do not raise their prices.

The shoe industry of Chen Tai will collapse sooner or later.

Speaking of these, Zhang Jiameng felt a little distressed.

For this phenomenon, Zhang Jiameng said he could not do anything about it.

"The strength of a single enterprise is limited.

If this time, the industry association can stand up to appeal to all shoe companies to raise their prices uniformly, then this phenomenon may be less.

To cope with pressure and increase the added value of products is the key. "For enterprises, all kinds of pressures will exist after all. If enterprises want to survive, the development of the market is more critical."

And if we want to open up a good market, especially for those high-end customers, the best product is the key.

Wang Yumiao is convinced of this.

Wang Yumiao believes that for those high-end customers, if their products can meet their needs, even if 5% of the cost rise, they can still accept.

"If the added value of products is high, then the 5% cost growth is not high, and it can also be passed on to customers. After all, the pressure is relatively acceptable compared to the price."

Zhang Jiameng believes that domestic trade enterprises should make an issue on the added value of products.

"Very simple, for example, a pair of shoes, maybe we will do only a few dollars of profit margins, but if you put Anta, XTEP and other brands, the shoes can be sold at a much higher price, and of course profits will increase.

Therefore, the impact of price increases on these brand enterprises may be much smaller.

Although it has been mentioned many times to build its own brand, there are not many enterprises that do well.

As far as domestic trade enterprises are concerned, since they can not do many articles, it is better to concentrate on their own brands.