Affect the negative factors in the development of the footwear industry

Affect the negative factors in the development of the footwear industry

In recent years, China's footwear industry has developed rapidly. At present, China's footwear production is approximately 11.3 billion pairs, accounting for more than 60% of the world's total output. Footwear exports account for about 1/4 of the total global trade in footwear. China has become the largest in the world. Footwear production and exporting countries. At the same time, the shoe machine industry as the leader in the footwear industry has also developed rapidly. According to statistics, by the end of 2010, there were more than 300 shoemaking machinery enterprises in China. In 2010, the industry achieved sales revenue of 4.338 billion yuan, an increase of 24.70% year-on-year; the industry realized a total profit of 237 million yuan.

However, with the development and improvement of the shoe industry, the footwear industry is currently facing such as the increase in raw material costs and labor costs, the impact of the exchange rate appreciation and other aspects also plagued the shoe machine industry. China's footwear machinery industry has both opportunities and challenges.

Extensive growth mode and low level of expansion have reduced the quality of industry development. Small enterprises have little independent innovation capability. Brand building is at a relatively low level. Enterprises with initial growth are relying heavily on foreign trade and OEM processing. These companies have not yet established independent brands. With channels, the added value of products is not high, and they often adopt a vicious price competition to participate in market competition. Their extensive growth mode and low level of expansion have reduced the overall development quality of the industry.

Increases in the prices of production factors and sluggish channels have slowed down the growth of the industry. In recent years, the prices of domestic raw materials and labor have risen. This has made it more difficult for footwear companies to control production costs, which has brought some resistance to the development of the domestic leather footwear industry. On the other hand, China's ** channel is relatively narrow, making companies, especially small and medium-sized enterprises, have poor access to foreign markets and rising costs. This has created some obstacles to the development of small and medium-sized shoe manufacturers and slowed the overall development of the industry. .

The brand innovation ability is not strong Although the well-known footwear enterprises in the industry have the advantage of R&D, design, and channel management, the gross profit margin level is relatively high; but overall, the profitability of the industry is weak, and most brand footwear companies do not have strong brand awareness. The marketing network is incomplete and lacks enough funds to invest in R&D. It often adopts a follow-up imitation mode of operation, which adversely affects the overall image and brand promotion of well-known brand footwear companies in the industry.

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