Industry Shuffling Period Innovative Children's Shoes Enterprises To Tide Over Difficulties

In the preceding stage, Reporter When visiting children's shoes and clothing enterprises, a brand marketing director revealed that because of the quality problems of the market, the meeting was discussed urgently, and the original ten million brand promotion plan was withdrawn, and the focus shifted back to the control of product quality.

It is understood that this enterprise has always been low-key, and the marketing director also said that the company has been focused on R & D, product sales growth steadily, it is time to appear in the industry, and rely on marketing to completely brand reputation, already plan to make a big fuss about brand promotion activities. However, recent visits to the market are not optimistic. Some district agents reflect the quality problems of children's shoes.

The marketing director told China sporting goods Daily reporter that since this year, the shoe and garment industry has frequently seen the loss of business owners, which inevitably leads to turbulence in the upstream supply chain. Suppliers are worried about the issue of refund, in order to reduce cost pressures, Jerry building, so these enterprises are mistaken for " high quality Products are inadvertently flowing into the market.

Industry reshuffle is bound to appear "several happy family worries" situation, whether branded or suppliers have felt the cruelty of market competition. In the past few years, some companies with good momentum of development have also been repeatedly exposed to the problems of capital chain breaking and wage failure. Some manufacturers are unable to cope with the pressure brought by the market and face the crisis of bankruptcy.

"In the past, only a few small businesses, the impact will not be great. Now many large enterprises are facing bottlenecks. The cooperation between these enterprises and suppliers is large and the amount of arrears is high. " Zhong Feng, business manager of Shishi Chuangxing Textile Co., Ltd., told reporters that the operation of suppliers this year is more difficult than before. Brand manufacturers encounter problems. As upstream suppliers, the development of enterprises will also be affected.

Gage (China) weaving and dyeing Garments Co., Ltd. company Wang Yanzhu, chairman of the board of directors, admitted that the development of shoes and clothing industry had been hidden for a long time, but as an upstream supplier, they hoped to continue to maintain their cooperative relationship with the brands, help them get out of the predicament as soon as possible, but after all, to return to reality, unlimited support will only destroy the suppliers. In fact, for quite some time, the profit margins have been gradually reduced due to the increase in labor costs and the rising cost of raw materials. In addition, the threshold of bank lending has increased, and the government has not loosened the policy of tax revenue. The pressure of suppliers' survival is very large indeed.

Li Jianchao, director of the Fujian Textile Industry Association and the director of the Economic Department of Fujian clothing and apparel industry association, believes that the main problem of children's shoes and clothing enterprises is the health of the capital chain. At present, too many enterprises have poor capital turnover. But the quality suppliers do not cooperate with those unhealthy shoes and clothing enterprises. Triangle debts, arrears of payments and so on, directly restrict the development of the shoe and clothing industry. In addition, there are also problems in supply chain and industry chain innovation. At present, it is not difficult to find a good supplier if the capital chain is healthy.

"The long-term cooperation between enterprises and agents and suppliers depends on honesty. Many enterprises adopt the mode of "goods after delivery". Agents default on enterprise funds and enterprises default on suppliers' funds. Once the whole capital chain is not in place, there will be a series of problems. Wu Chengquan, executive vice president of foot friend sporting goods Co. Ltd.

Wang Yanzhu believes that in the past, the development of a second-line brand has benefited from the integrity of the industrial chain. This not only refers to the close cooperation between producers and suppliers, but also the mutual support and support between the basic industrial chains. Both processing and material suppliers play a great role in supporting and promoting brand development. However, the trust relationship between enterprises and the mutual aid relationship between industrial chains have gradually shaken. Suppliers worry that the owners will make donations and run away, and the funds will not be recovered. The more successful the companies are, the greater the risk will be.

"We don't have factories. We need to find other factories to transfer the goods. They ask for cash. The goods we produce are sent to the manufacturers. They are all ious in black and white. How much money do we owe them?" A shoe supplier sighed.

"In the past, we purchased raw materials for weaving from other manufacturers, and they allowed us to postpone payment, and now they are also demanding cash in cash." Wang Yanzhu believes that the change of form requires that the development mode of the whole industry should change along with it.

"Over the past few years, shoes and clothing market has been very good, merchants crowded in. Now the market is overcapacity and the supply exceeds demand. Those companies that initially stepped up and were not operating well enough met bottlenecks. A shoe supplier said that the overall market situation is more severe this year. When suppliers fail to see the hope, they can only choose a conservative way, rather lose orders, and ensure timely recovery of funds and preserve their strength.

There are more than one supplier with the same idea. Faced with the current development of the industry, suppliers have taken preventive measures. "First of all, when money is hard to come back, suppliers will appropriately reduce the supply of their suppliers or stop the supply of goods when their brands are not operating well, and secondly, shorten the period of arrears. We will not cooperate with each other for more than 3 months due to normal debts. For enterprises that owe debts, they can not support them without restriction. Instead, they should adopt a "brakes on" approach, and then control the amount of arrears. In the past, large enterprises could owe three to five million, and small businesses allowed three to five thousand. Now it seems that the larger the scale of enterprises is, the more likely they will be problems. Zhong Feng said.

Wang Yanzhu told the China sporting goods Daily reporter that in the fourth quarter of this year, the total volume of business of many suppliers has declined sharply. Because of "worry", the cooperation with the ill performing enterprises has been abolished, and the business has not been made arrears. "The business we have received this year is limited to some very familiar and trustworthy enterprises. Some listed companies, though larger, will also be cautious in considering the arrears."