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Guangdong Shoe Enterprises: A Dilemma

2010/7/1 10:51:00 54

In China, about 65% of the leather products come from Guangdong. According to incomplete statistics, there are more than 1 leather goods manufacturers and a small factory in Guangzhou. There are nearly 3 leather goods manufacturers in Guangzhou at the peak of production and sales. According to the financial circles, more than 90% of these leather goods enterprises are small and medium-sized enterprises.

"Exports are less than 60%-70% in previous years.

Now the manufacturers in Europe and America are down.

Order

We have paid the deposit, but not the goods. Some manufacturers have ordered goods, but they have asked for a delay in delivery. Besides, foreign businessmen are optimistic about our products, but they are late.

Talking about the export of leather goods at present, Wu Liang Zhong, general manager of Guangzhou leather goods business association and general manager of Bao Peng leather goods (clothing) Co., shook his head.

At present, new changes have taken place in the leather business circle of Zi Yuan Gang.

Reporters interviewed several times in Zi Yuan Gang leather goods mall to see that in the past market crowded scenes were missing, instead of sparse people.

A dilemma of retreat

Export sales have been blocked and domestic sales have become the only choice for many export leather manufacturers.

But pformation

For the domestic market

These manufacturers have to face the problem of dispersed customers, high inventory pressure, and the return of domestic market and heavy payment.

What is more serious is that, because domestic leather goods manufacturers have long neglected brand cultivation, the vast majority of the domestic high-grade leather goods market has been occupied by foreign brands.

In the process of qualitative change of public consumption behavior, most enterprises in Guangdong leather industry did not adjust themselves in time.

Management

Strategy, the awareness of self created brand is not strong, they are more concerned about short-term interests, unwilling to invest too much in cultivating their own brands, and have not formed a group of famous brands widely recognized by the public. Some well-known domestic brands also fail to pay attention to consolidate and maintain their brands because of their ups and downs.

On the contrary, because of the great attraction of the Chinese market, some foreign brands or foreign brands registered abroad have entered the country, occupying the vast majority of the market share of leather products in China.

In Guangzhou's Tianhe, Guang Bai Department stores and friendship stores, more than 90% of the top grade leather products are foreign brands.

The immediate consequences of pursuing immediate profits and belittle brand building are finally apparent: the decline in export sales and the obstruction of domestic sales, and Guangdong's leather products are in a dilemma.

Build its own brand

It has been observed that domestic enterprises, especially those that are fashionable and branded, are significantly less affected by the financial crisis than those of export enterprises. In the export enterprises, the impact of the high-end road enterprises is significantly smaller than that of the low-end enterprises.

This gives the leather industry an inspiration: to truly revitalize, we must thoroughly innovate the old development mode and take the confidence and courage of change to do our famous brand.

"Make a brand, make money and do it at a loss."

Wu Liangzhong described his business philosophy in this way.

As one of the earliest enterprises to enter the leather industry in Guangdong, Guangzhou Bao Peng leather goods (clothing) Co., Ltd., as early as 1996, has a famous brand such as "Lang Chen".

At present, aware of the brand value, Wu Liangzhong, who is committed to building its own brand of leather goods manufacturers, has begun to increase in Guangdong.

Make the start of the external brand, start the brand, start the domestic market, do the domestic wholesale hope to change the way of doing business to do monopoly.

As for how to correctly build their own brand, the industry believes that we should give full play to the role of the leather industry chamber of Commerce, formulate a more practical strategic plan, select several brands that are currently doing well to carry out the pilot projects, and provide support for resources, manpower, material resources and publicity, and unify the industry goals in the same way. Secondly, leather leather merchants should implement the whole brand management strategy within the leather and leather businesses. The company should be responsible for the brand from top to bottom, so that each employee will have a sense of identity for the brand. Third, we must attach importance to consumer value, especially in brand dissemination. Fourth, we need to have a sense of innovation; fifth, we should set up leather leather professional managers training courses and technical training courses.

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Leather industry is looking forward to overall improvement.

According to the information provided by the Guangzhou Leather Goods Association, China's annual processing of light leather reaches more than 500 million square meters, ranking first in the world.

The export of leather products ranks first in the light industry for 6 years in a row. China is increasingly becoming the international brand leather processing and production base, and the production technology has reached the international advanced level.

However, according to a comprehensive reporter's understanding, leather goods in Guangdong and even mainland China have a large gap with the advanced countries in terms of brand cultivation, market management, product design, quality control and so on, which restrict the growth of leather brand.

The leather industry in Guangdong urgently needs to start from the following aspects to improve the quality of the industry: standardize market order, strictly control disorderly competition, improve overall quality, cultivate various talents, and improve the production level and quality of raw materials.

In addition, China's leather standard is old and difficult to meet market demand. For example, there are no separate leather standards for luggage and bags. The standard of clothing leather and shoe upper leather is only applicable. Hardware accessories are still adopted in the early 90s of last century.

All these restrict the improvement of leather products' quality and grade at the technical level.

Therefore, Guangdong leather manufacturers appeal to build an international leather brand that can compete with international famous brands and have Chinese characteristics, and urgently need to upgrade the leather industry.