Footwear Industry Needs To Play The Advantage Of Industrial Clusters

At the level of export trade, how to eliminate the "demonized" reality of China's export products by some countries and the media may be a practical problem facing China in the field of international trade in the future.

The argument of "low cost" has always been an important argument for western people.

Take the shoe industry as an example, about 70% of the export business of Chinese shoes belongs to processing trade, so the income is very limited.

At the same time, the whole industry is increasingly under the pressure of rising costs of raw materials and labor.

In addition, in recent years, all kinds of quality certification in the European and American markets have also increased the processing cost.

At this time, in order to ensure small profits, domestic shoe companies who are good at wielding big price knives in the domestic market usually choose to take as many orders as possible to ensure the frequency of capital turnover and reduce costs in various ways.

Guangdong and Fujian have many important export ports, and local operators believe in the philosophy of "small profits but quick turnover".

"Small profits but quick turnover" can be temporary, but if the other side not only needs to shift the cost pressure, but also shift the responsibility of production, the thin business will get into trouble.

The collapse of a large number of manufacturing enterprises in the process of globalization will give more warning to China's sports manufacturing industry in the future. We should abandon the old thinking of "small profits but quick turnover" and strive to improve their brand value.

However, in order to achieve this brand upgrading, the most realistic way at present is to make use of China's existing industrial scale advantages and appropriately raise processing prices.

Although the price increase will lead to the pfer of multinational companies, in fact, China has produced 40% of the world's shoes and clothing, and has become a system in the supply chain and other industrial chain links, especially in some regions.

Considering the existing input and the great potential of China's manufacturing industry, and reasonable increase in the cost of subcontracting, multinational companies should be able to tolerate a certain level of profits.

This will be the beginning of a virtuous circle, because if we can draw a certain amount of funds, R & D investment will be increased from 5% of the current industry to 10%. Processing enterprises can achieve their own value-added products through continuous product innovation.

What follows is the qualitative change of bargaining power of manufacturing enterprises.

Many Chinese manufacturing enterprises are seeking to become the upstart of the global market in the future.

Higher processing fees will create a favorable condition for China's processors who have long been oppressed by profit margins to accept the international rules of the game.

Whether it can fundamentally go out of the past 20 years of "good quality and low price" determines the overall value of "made in China" in the future.