Has shoemaking entered the era of “meager profit”?

last year, China’s annual output of shoes reached 6 billion pairs, equivalent to one pair per capita in the world. But this achievement did not make shoe business owners feel gratified, on the contrary, they all look dignified” A few months ago, we received an order for 1.2 million pairs of leather shoes from a large foreign enterprise. The price offered by the other party was $3.2 per pair. We calculated that we would definitely lose money. We didn’t expect them to take them to other places to make a pair of shoes, which was only $2.9 per pair. ” Wang Zhentao, President of Aokang Group Co., Ltd., told reporters

the “price war” which is in full swing in China has now spread to the overseas market. Many Chinese shoe enterprises compete at low prices and fight each other. 1n order to survive, some enterprises know that they have no profits and even have to take orders at a loss. The unfavorable situation of “increasing export quantity and decreasing economic benefit” has been formed. Li Linchen, chairman of Wenzhou Dingfeng Shoes Co., Ltd., said that the accounting basis for the cost of shoes is not the cost of the shoes themselves, but the market situation. 1f there is a market for the product, the price can be set higher, otherwise the price will naturally be reduced. Now it’s a small profit to make shoes, and the price is not as good as year after year< Many enterprises point out that "Rome wasn't built in a day." To prevent the cannibalism among peers, we must first strengthen the industry's effective norms and self-discipline. Some people suggest that the trade association should set a minimum price for export shoes but from the perspective of actual operation, it may not work for example, the lighter industry in Wenzhou once tried in 1994. At that time, the export price of lighters in Wenzhou was less than $1. Later, the cigarette Association formulated “rules” that the minimum price was $2. 1f the price was lower than this, all accessory enterprises refused to provide the source of goods. However, the good times do not last long. As the “new generation” of enterprises continue to emerge, in order to quickly enter the market, they simply ignore the “old rules”. 1t is not long before the “rules” die out naturally the same view of shoe-making enterprises is that Chinese shoes must play their own brand, increase the added value of products and enhance the overall image. Entrepreneurs suggest that in the process of creating a brand, enterprises can go up step by step. For example, first create regional well-known brands, then create domestic brands, and enter international brands when conditions are ripe. 1n view of the current situation in the industry, it is proposed that the enterprises with the conditions to create brands should shoulder the responsibility, improve the manufacturing capacity, and drive other enterprises to take the road of developing enterprises with famous brands. For those enterprises that do not have the conditions to create a brand at present, they can unite to make the enterprise bigger first, or they can make processing and development enterprises for international and domestic famous brands first according to the plan of China Leather 1ndustry Association, in the next 10-15 years, we should strive to create 3-5 international famous brands, and build the “big shoe-making country” into a powerful shoe-making country in the world

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