Wenling has the reputation of "the hometown of Chinese children's shoes". There are more than 5,100 footwear companies with an annual output of more than 1 billion pairs and an output value of over 30 billion yuan. Among them, the output of children's shoes accounts for one-eighth of the country. Every year, nearly 400 million pairs of children's shoes are sold from Wenling to various parts of the world. The containers used are enough to put up nearly 80 football fields.
Behind the seemingly huge industry, Wenling's children's shoes do not have a well-known brand in the country. Most shoe companies are still mainly OEM (OEM). They want to live up to the title of "??百乐宫网上游戏??town of Chinese Children's Shoes" and build a brand. It has become a top priority for Wenling Shoes.
"Brands have no advantages, which is the biggest difficulty faced by all Wenling shoe companies. Without brands, a series of" pain points "in the industry have arisen." Said Zhejiang Wenke Chairman Yuan Wenxin.
So, why is it difficult for Wenling shoe companies to create well-known brands? What dilemma do they face? How to go out of a brand?
Cheap children's shoes rely on volume
"In the domestic market, one pair of eight pairs of children's shoes comes from Wenling. More than 400 million pairs of children's shoes are produced every year. The output value of more than 30 billion looks huge. In fact, the average price of each pair of shoes is only tens of dollars. Wenling children's shoe factory needs to face the reality. "Luo Chunyuan, sales manager of Zhejiang Taizhou Xidebao Shoes Co., Ltd. said that compared with Guangzhou, Fujian, Wenzhou and other places, the competitiveness of Wenling children's shoes lies in low prices.
In fact, the quality of low-priced Wenling children's shoes is not inferior to Guangzhou, Fujian and other places, but Wenling children's shoes based on OEM production methods are actually using their own factories to make wedding dresses for other enterprises.
In the opinion of Zhang Zhilei, assistant to the president of Taizhou Baolite Shoes Co., Ltd., the low-priced Wenling shoes have not changed for more than a decade.
"More than ten years ago, the factory price of a pair of shoes was tens of yuan, and to this day, it is still the same price." Zhang Zhilei said that raw material prices are rising, labor costs are rising, and corporate profits are decreasing, and they can only seek a path to transformation. In 2017, Baolite Shoes invested 8 million yuan to introduce new equipment, which increased production efficiency by 20%.
From 2014 to 2016, Baolite also tried to make domestic sales of children's shoes, but after three years of operation, the situation of being unable to build an excellent brand made this action helpless to stop.
"Over ten years ago, shoe companies such as Red Dragonfly and Aokang have come to Baolit to study. Now they are all bigger and stronger." Zhang Zhilei said that Wenling shoe companies, who are accustomed to substituting processing, in that era , I ca n’t be too busy. No matter how good the brand is, there is no brand power. Wenling children's shoes can't afford the price, even if you have good quality.
"Brand pain" triggers a series of problems
In the Xidebao production workshop, workers normally and intensively produce the last batch of children's shoes in the summer, but the production batch that should have been completed after the Spring Festival has been delayed.
"Originally the production line started at the beginning of the tenth, but now it is about 20th of the first month, ten days later, workers need to enter the factory one after another, a series of procedures such as medical examinations and training to slow down the production cycle." Luo Chunyuan Said that compared to the 2017 Spring Festival, the rework rate at the beginning of this year has dropped by 10%.
Zhang Zhilei, who also feels this way, told reporters that compared to the original 70% -80% rework rate, it has now fallen by more than ten percentage points, and it is difficult to retain labor and talent.
However, in the production line of Zhejiang Bike Sports Goods Co., Ltd., it is actively producing autumn products. Chairman Yuan Wenxin told reporters that compared with previous years, it is easier to recruit workers this year.
So, what causes different shoe factories to have different situations and feelings?
At the end of 2017, Beck worked with Disney to increase the added value of each pair of shoes by 8 yuan, and a large portion of these 8 yuan of profits will be distributed to workers.
"Export-oriented shoe companies basically follow the path of OEM, while domestic-oriented shoe companies want to increase the added value of their products, they must build their own brands, and the profits generated are used for the training of talents." Yuan Wenxin told reporters that the OEM's sequelae are positive So, it is difficult to build your own brand.
"It takes a lot of time and energy to build a brand. Although the current business environment is very honest, most domestic companies still have a triangle debt relationship. In addition, Wenling's corporate information circulation is also a cause of lag." Yuan Wenxin said Once the capital chain can't keep up, which affects the production and design investment, the brand road is still far from perfect.
So, does Wenling shoe company have no brand awareness?
"Warring States Period" or a time to become a strong brand
There is no "leading company" and no famous brand. This is the current situation of Wenling shoe companies. Many people in the industry refer to this situation as the "Warring States era of shoe companies".
In Yuan Wenxin's view, this situation is a good time for some companies to become stronger and bigger. "In the 35-year history of producing children's shoes, Wenling, which is one of the leading industries in the footwear industry, urgently needs to create a model for a leading enterprise to drive the surrounding shoe factories step by step towards a big brand." Yuan Wenxin said.
Lin Bin, chairman of Wenling Xilinmen Shoe Factory agrees with this view, "With a high value-added and big brand company, the surrounding shoe companies will learn and form a virtuous competitive business that you can catch up with Model, which will say goodbye to the status quo of using low prices to attract customer groups. "
Lin Bin said that some domestic shoe companies Anta and Xtep have found opportunities in the first few years of advocating sports and achieved big domestic brands. Now, with the opening of the two-child policy, children's health issues are more concerned. Wenling's children's shoes companies You can seize this opportunity to build a brand that belongs to Wenling.
In 2012, Xidebao, a form of export sales processing, turned some of its energy to the domestic market and began to seek a path of independent brands. "The quality is not inferior to Guangzhou, and Wenling children's shoes companies urgently need to upgrade the brand." Luo Chunyuan told reporters that the annual output value of 150 million Xidebao, 5 million yuan each year into product design and research and development.
"If you want to build a brand advantage, then you need to be clear. You can't compete for the market at a low price, but you need to rely on quality and sales." At the desk of Yuan Wenxin, a book called "China · Wenling Children's Shoes and Accessories Comprehensive The feasibility report on the overall construction plan of the innovation service platform (China · Wenling Children's Shoes Technology Research Institute) has been drafted.
In addition to shoe companies looking for ways to build their brands, the local government has also made some moves.
"The establishment of small and micro parks and the construction of characteristic shoe towns are in full swing, from children's shoes production to children's shoes production creative design, research and development, brand marketing, and help the industry gradually move towards independent brand markets and mid- to high-end markets." Wang Yunpeng, deputy director of Wenbei Chengbei Street Office, said.
In the first half of last year, Chengbei Street ranked first in the country in terms of the average daily purchase amount in Alibaba's shoe industry belt. In the second half of the year, it launched a large-scale network promotion of the shoe sales platform, selling 180,000 pairs per day, and the single-day sales reached 10 million yuan, ranking eighth in the national industrial belt.
Wang Yunpeng told reporters that in the future, it will also integrate the e-commerce market exchange strategy, combine online regional platforms with offline physical industrial parks, and create a new e-commerce platform for shoe companies.
Can Guangzhou's style, Fujian's quality, and Wenling's price still apply to Wenling's shoe companies? Obviously no longer applicable.
In fact, the bosses of many Wenling shoe companies already know the answer, because they are racking their brains on how to increase the added value of children's shoes, because they know that after the brand's road has been opened, it is difficult to recruit workers, the information is not timely, and the price The pain may be resolved.
Fortunately, in the process of interviewing many Wenling children's shoes companies, among the bosses, the "brand" appears most frequently. It is not difficult to see that the owners of Wenling children's shoes are seeking a brand.
How do I go? During the interview, a shoe company owner used the Wenling pump industry as an example. He said that several leading pump companies are setting an example. The whole pump industry in Wenling has been driven. This government-supported model may be applied to the production of children's shoes. Among enterprises, a healthy competitive business environment is formed, instead of relying on reducing prices and compressing profits to occupy the market.