Investigating the Logic Behind the "Like Price Rise or Fall" in the Footwear Industry

Recently, for export-oriented shoe enterprises, the export prices have seen a reversal of "volume increase" and "price drop." Why reversed? This question mark draws people's search for the logic behind the development of the footwear industry.

We are all aware that in the increasingly fierce competition, many shoe manufacturers tend to lower prices each other in order to receive more export orders, and they hope to increase the volume of orders by means of small profits and quick turnover. This kind of competition makes the price of shoes always hovering at the level of meager profits. Most export companies only blindly take orders, seize the market, busy with the processing of orders, and do not study the production of high value-added products, making the export profits of footwear products decline; in the negotiations with foreign businessmen, shoe buyers eager to export the psychological It also fully gave the initiative to the merchants and concluded the transaction at a very low price in the step-by-step inquiry and bargaining.

It is also based on this market trend led to China's export of shoes anti-dumping to create more reasons, affecting the overall image of export shoes, causing a vicious circle. The most fundamental reason for this problem is that many export-oriented shoe companies lack the brand name. In contrast, some well-known shoe companies in China even have price increases and room for negotiation during the financial crisis. People generally feel that the processing companies are always stuck in the passive negotiation stage. However, these leading enterprises still gain the strength to negotiate with the giants because of their leading technology and scale guarantees.

It is understood that many export-oriented shoe companies should further adjust the footwear industry's industrial structure, and actively consolidate product recognition in traditional markets such as Russia. Grasp the current relatively loose time for market access standards in Russia, support the development of the shoe processing industry in the Russian industrial park, and ease some of the export pressure. Concerned and actively respond to the adverse effects of the appreciation of the RMB exchange rate. Help companies use foreign currency to introduce foreign advanced production equipment and raw materials to obtain expected profit appreciation.

In this regard, industry sources said that to reverse the passive situation of products subject to human control, we must accelerate the upgrading of footwear products and industries. In order to cope with this “volume increase, price decline,” situation, shoe companies must form the concept of winning by quality, increase the added value of products, and realize the transformation of export methods from quantitative expansion to quality and efficiency, and reduce trade friction at the source. Enhance product competitiveness. Secondly, by accelerating the pace of industrial adjustment, improving channel construction, improving product design and creating independent brands, etc., we will increase the discourse power and initiative of footwear products in the international market, and lay the foundation for winning the market and increasing profits.