October 19 is a good day for Liao Caiwei. As the chairman of Chengdu Yimi Children's Products Co., Ltd., I saw the dawn of the business in the past year. Three foreign merchants came to the factory and decided to place orders. They agreed to sell their products under the brand name of 100 million meters, but they also demanded that they lower the purchase price. Even so, such opportunities are still rare. Different from the famous Chengdu women's shoes, the popularity of Chengdu children's shoes is very low. However, in Beijing, Guangzhou and other famous shoe business circles, the proportion of "Chengdu made" children's shoes is as high as 70%. There is a good production base, but also has the ability to independently design and research and development. What created the current industrial predicament of Chengdu children's shoes?
The newspaper reporter Huang Zejun’s expanded market and reduced orders “This year's business is harder to do, and smaller factories can't stand the pressure to turn off a lot.†Liao Caiwei said that from the end of 2009 to the present, orders have been greatly affected. Affected by the collapse of many small businesses with poorly funded operations, the Chengdu children's shoe industry is facing reshuffle.
The development history of Chengdu children's shoes can be traced back to the early 1980s. Liao Caiwei told reporters that in 2000, he invested 120,000 yuan to start making children's shoes. Initially, these children's shoes were sent to Chengdu Hehuachi Wholesale Market, and the production cost was 20 yuan for children's shoes. At the time it was able to sell around 30 yuan, and the profit could reach 50%. During the peak period, Chengdu was dominated by Wenjiang, and there were nearly 700 children's shoes factories, once known as the "capital of children's shoes in western China."
After a long period of time, the domestic market for children's shoes in Chengdu was gradually dismantled due to repression and arrears by purchase traders in Urumqi, Beijing and Guangzhou. The collapse of the domestic market has forced Chengdu's children's shoes to go to foreign markets.
Liao Caiwei said that the profit of the export market is lower than that of the domestic market, but the transaction is relatively standardized and the manufacturers are free from the debt owed. However, from the end of 2009, due to the impact of the financial crisis, export orders are also declining.
According to statistics, after 2009, China’s baby industry has increased production by 30%. China currently has 380 million children under the age of 16, and China’s baby products market has a market size of at least 38 billion yuan each year.
The demand for the domestic children's footwear market has grown substantially. Chengdu children's shoes are suffering from reduced orders or no orders. Over-reliance on exports is one of the reasons for this phenomenon.
Rising prices and reduced profits For consumers, when they enter a mall in recent years, they always feel that children's shoes are expensive.
However, for such shoe manufacturers like Liu Caiwei in Chengdu, the decline in profits has become an indisputable fact. “Ten years ago, the profits of a pair of shoes could reach 50%, and now even 20% are not.†Liao Caiwei said that she used to draw drawings and then gave them to the workers. Now every month, the cost of the designer is 10,000 yuan. More than yuan, the design of the shoe-type buyers are not satisfied even if the white input.
Since the beginning of this year, the rise in the prices of various raw materials and the increase in labor costs have made it difficult to bear a pair of small children's shoes. With the increase in the price of labor in our country, many foreign investors have focused their attention on India, where labor is cheaper. “The same thing, if I raise the price of the customer, I definitely went to buy somewhere else.†It is based on this situation, Liao Caiwei self-digestion of the soaring cost of shoes, so the profits are also greatly reduced.
Because of this, many children's footwear companies in Chengdu under the test of this round can not stand the pressure, on the verge of collapse.
"Chengdu children's shoes have not had their own regional brands, low value-added products, and no right to speak." Xu Bo, professor of leather at Sichuan University believes that the lack of brand has become the main reason to restrict the pace of Chengdu children's shoes. However, to create their own regional brands must be fundamentally transformed from the two technologies and quality.
Bright prospects and haze of today's turbulent European and American markets, trading non-standard domestic market, Chengdu children's shoes out of the way?
Xu Bo believes that the children's shoes industry is indeed facing a reshuffle, which is an inevitable period of pain. Not only Chengdu, but also other domestic children's shoes production bases. At present, many localities have gradually shifted their sales to domestic sales, and the domestic market has once again become a "sweet potato." Chengdu should seize such a transition period, improve its own technology, improve product quality, and shape regional brands in competition so as to increase the added value of products and achieve rebirth.
Many Chengdu entrepreneurs who focus on the development of children's shoes also have such a consensus. In the early 1980s, Wang Fuquan, the general manager of Liyuan Shoes Co., Ltd., who started in the children's shoes industry, once visited the coastal areas. “The scattered and self-reliant scenes will surely make Chengdu children's shoes enter a vicious circle and shape a regional brand. Can go further."
Xu Haiyu, deputy secretary-general of the Provincial Leather Industry Association, told reporters that in order to create a regional brand, Chengdu children's shoes enterprises should establish team awareness and also need to further improve the matching industry of the children's footwear industry.
It is based on the vision of the future, this year in August, Liao Caiwei and the other more than a dozen Chengdu children's footwear companies came to the Sichuan Foreign Shoes City, hoping that the export shoe city Chengdu shoes can be integrated into the future planning. After many negotiations, the export shoe city re-planning, the location of thousands of square meters on the 7th floor are all planned for the children's shoes area. This means that the export shoe city that will be opened next year will be like the famous Beijing Footwear Company, RiTan International, with a special exhibition area dedicated to children's shoes.
Going out, a brighter future, this may be the first step in Chengdu's children's shoes.
Author: Huangze Jun
The newspaper reporter Huang Zejun’s expanded market and reduced orders “This year's business is harder to do, and smaller factories can't stand the pressure to turn off a lot.†Liao Caiwei said that from the end of 2009 to the present, orders have been greatly affected. Affected by the collapse of many small businesses with poorly funded operations, the Chengdu children's shoe industry is facing reshuffle.
The development history of Chengdu children's shoes can be traced back to the early 1980s. Liao Caiwei told reporters that in 2000, he invested 120,000 yuan to start making children's shoes. Initially, these children's shoes were sent to Chengdu Hehuachi Wholesale Market, and the production cost was 20 yuan for children's shoes. At the time it was able to sell around 30 yuan, and the profit could reach 50%. During the peak period, Chengdu was dominated by Wenjiang, and there were nearly 700 children's shoes factories, once known as the "capital of children's shoes in western China."
After a long period of time, the domestic market for children's shoes in Chengdu was gradually dismantled due to repression and arrears by purchase traders in Urumqi, Beijing and Guangzhou. The collapse of the domestic market has forced Chengdu's children's shoes to go to foreign markets.
Liao Caiwei said that the profit of the export market is lower than that of the domestic market, but the transaction is relatively standardized and the manufacturers are free from the debt owed. However, from the end of 2009, due to the impact of the financial crisis, export orders are also declining.
According to statistics, after 2009, China’s baby industry has increased production by 30%. China currently has 380 million children under the age of 16, and China’s baby products market has a market size of at least 38 billion yuan each year.
The demand for the domestic children's footwear market has grown substantially. Chengdu children's shoes are suffering from reduced orders or no orders. Over-reliance on exports is one of the reasons for this phenomenon.
Rising prices and reduced profits For consumers, when they enter a mall in recent years, they always feel that children's shoes are expensive.
However, for such shoe manufacturers like Liu Caiwei in Chengdu, the decline in profits has become an indisputable fact. “Ten years ago, the profits of a pair of shoes could reach 50%, and now even 20% are not.†Liao Caiwei said that she used to draw drawings and then gave them to the workers. Now every month, the cost of the designer is 10,000 yuan. More than yuan, the design of the shoe-type buyers are not satisfied even if the white input.
Since the beginning of this year, the rise in the prices of various raw materials and the increase in labor costs have made it difficult to bear a pair of small children's shoes. With the increase in the price of labor in our country, many foreign investors have focused their attention on India, where labor is cheaper. “The same thing, if I raise the price of the customer, I definitely went to buy somewhere else.†It is based on this situation, Liao Caiwei self-digestion of the soaring cost of shoes, so the profits are also greatly reduced.
Because of this, many children's footwear companies in Chengdu under the test of this round can not stand the pressure, on the verge of collapse.
"Chengdu children's shoes have not had their own regional brands, low value-added products, and no right to speak." Xu Bo, professor of leather at Sichuan University believes that the lack of brand has become the main reason to restrict the pace of Chengdu children's shoes. However, to create their own regional brands must be fundamentally transformed from the two technologies and quality.
Bright prospects and haze of today's turbulent European and American markets, trading non-standard domestic market, Chengdu children's shoes out of the way?
Xu Bo believes that the children's shoes industry is indeed facing a reshuffle, which is an inevitable period of pain. Not only Chengdu, but also other domestic children's shoes production bases. At present, many localities have gradually shifted their sales to domestic sales, and the domestic market has once again become a "sweet potato." Chengdu should seize such a transition period, improve its own technology, improve product quality, and shape regional brands in competition so as to increase the added value of products and achieve rebirth.
Many Chengdu entrepreneurs who focus on the development of children's shoes also have such a consensus. In the early 1980s, Wang Fuquan, the general manager of Liyuan Shoes Co., Ltd., who started in the children's shoes industry, once visited the coastal areas. “The scattered and self-reliant scenes will surely make Chengdu children's shoes enter a vicious circle and shape a regional brand. Can go further."
Xu Haiyu, deputy secretary-general of the Provincial Leather Industry Association, told reporters that in order to create a regional brand, Chengdu children's shoes enterprises should establish team awareness and also need to further improve the matching industry of the children's footwear industry.
It is based on the vision of the future, this year in August, Liao Caiwei and the other more than a dozen Chengdu children's footwear companies came to the Sichuan Foreign Shoes City, hoping that the export shoe city Chengdu shoes can be integrated into the future planning. After many negotiations, the export shoe city re-planning, the location of thousands of square meters on the 7th floor are all planned for the children's shoes area. This means that the export shoe city that will be opened next year will be like the famous Beijing Footwear Company, RiTan International, with a special exhibition area dedicated to children's shoes.
Going out, a brighter future, this may be the first step in Chengdu's children's shoes.
Author: Huangze Jun
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