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An analysis of the development of China's footwear industry
From: Foshan Nanhai Xiangda Machinery Co., Ltd Post date: 2020-01-07



Footwear industry is a labor-intensive industry, its development and transfer are affected and restricted by land resources, labor cost, raw material supply, environmental protection and sales market. As the major global consumer markets and shoe manufacturers, wholesalers and retailers are seeking the most profit maximization, they must consider the important factors in the above aspects, so that the focus of global footwear industry is constantly shifting. In the early stage, the center of global shoemaking industry was in Italy, Spain, Portugal and other countries in Europe. In the 1960s and 1970s, it began to move to Japan, Hong Kong, South Korea and other countries and regions with relatively low cost. In the late 1980s and early 1990s, it moved to the coastal areas of mainland China with lower cost of local labor, richer industrial resources and better investment environment Area.
After China's accession to the world trade organization, China's footwear industry has entered a golden age of development, with the increasing output and export of shoes, becoming the world's shoemaking center. Since 2011, the recovery of the world economy has been slow, and China's footwear industry has begun a difficult period of transformation and adjustment, entering a new normal era.
In recent two years, although the proportion of China's footwear output to the world's footwear output has declined, China is still the largest footwear producer in the world. In 2016, China's shoe production reached 13.11 billion pairs, accounting for 57.0% of the world's total. In 2017, China's shoe production reached 12.62 billion pairs.
China's shoe production in 2010-2017 (unit: 100 million pairs,%)


Trend of the proportion of China's shoes output in the world's shoes output in 2010-2017
After more than 20 years of extensive and rapid development, China's shoemaking industry has accumulated a lot of contradictions. The export-oriented shoemaking industry, faced with the shrinking international market, coupled with the downward pressure of anti-dumping and other trade protection measures from major market countries, while large-scale enterprises appear, a number of small enterprises close down, and the shoemaking industry enters the adjustment period.
Although China's shoemaking industry is faced with such problems as external order transfer, rising domestic cost and strengthening environmental protection, with the advantages of high-quality investment environment and labor resources, it has established a perfect upstream and downstream industrial chain, formed industrial clusters for various footwear production, established a perfect market for finished products and footwear materials, as well as a research and development center and Information Center for footwear, to protect the environment It hinders the stable development of China's shoemaking industry.
From 2010 to 2016, the sales revenue of China's shoemaking industry has maintained an overall growth trend. In 2017, the sales revenue of Enterprises above Designated Size in China's shoemaking industry was 744.216 billion yuan, down 3.24% year on year; the total profit was 42.782 billion yuan, down 2.65% year on year, less than the drop in sales revenue.
Sales revenue trend of China's shoemaking industry in 2012-2017 (unit: 100 million yuan)

Changes in total profit of China's shoemaking industry in 2012-2017 (unit: 100 million yuan)
In recent years, China's shoes export situation is more severe. On the one hand, the cost of China's shoemaking enterprises is rising, and the price of export products is rising. On the other hand, the European Union, the United States and other countries have set higher tariff barriers on China's shoes products, which is lower than the competitiveness of Southeast Asian countries.
In 2017, China's shoes export turned around, with both the number and amount of exports increasing. The number of shoes exported in the whole year reached 9.643 billion, an increase of 3.77% over the previous year; the amount of shoes exported reached 45.660 billion yuan, an increase of 1.74% over the previous year.
China's shoes export volume in 2010-2017 (unit: 100 million pairs,%)

China's shoes export amount in 2010-2017 (unit: US $100 million,%)

1. The rise of new sales channels
The off-line channel layout of Chinese footwear enterprises is earlier, mainly based on the traditional street stores and department stores. With the rapid development of domestic e-commerce, more and more ways for consumers to obtain information and purchase goods, the traditional offline channels are shrinking, and the market competition is increasing, which makes the offline retail industry suffer unprecedented impact. With the growth of the young generation as the main consumer, online sales channels have been sought after, while the customer flow of traditional department stores has been declining in recent years. In recent years, some footwear brands have been forced to adjust the terminal channels and close stores frequently. Although the influence and attraction of the old brands still exist, with the continuous emergence of new brands, their sense of crisis has become more and more serious. The main reason behind the decline of the giant's closing and the same store is the decline of the product's own competitiveness and the untimely adjustment of the channel.
At present, online shopping has gradually become one of the main forms of consumption, realizing the optimal allocation of goods, imperceptibly changing people's lifestyle. From the comparative analysis of sales volume of "double 11" between 2014 and 2017, it can be seen that the scale of online shopping is constantly expanding, among which the sales volume of online channels of footwear products is also continuously increasing, but the promotion speed of online channels of big brands in the domestic footwear industry is slow. In 2016, the proportion of online revenue of several listed companies was still less than 10%. Many enterprises focus on the online channel as a platform to clean up the tail goods, its operation efficiency and product attraction are far less than the emerging fast fashion brand and the "online Red" brand focusing on the online operation channel.


2. Change of consumer demand

In modern society, all walks of life begin to pay attention to the comprehensive image design, so does the footwear industry. At the same time, with the change of consumption concept, the brand loyalty of consumers has declined, and they gradually focus on the sense of design and cost performance, rather than blindly pursuing the brand in the past. At the same time, since 2014, the European and American sports and leisure styles have been driven, the major sports shoes brands have rapidly regained market recognition by virtue of function and fashion, and further seized the share of traditional fashion shoes. However, some Chinese footwear brands have lagged behind in response to the market development trend and lack of understanding of the market trend. In the context of industry recovery, the development of various brands also appeared differentiation. The development of giant brands is relatively slow, such as the forced privatization of Belle International and the reduction of Daphne's market value by nearly 10 billion. The net profit of Saturday Co., Ltd. has also declined for many years in a row. According to the third quarter report of 2016, the operating income in the reporting period was 1.096 billion yuan, down 9.65% from 2015, and the net profit was 18 million yuan, down 24.03% year on year. In order to transform and change, the company acquired the vertical community of female fashion consumption Internet in early 2017 to build an integrated industry. In addition, Baidu's main business has declined, and then it has devoted itself to the infant and child industry, but its effect remains to be seen.


3. Change of production mode
Before 2010, the enterprise order has the characteristics of less times and large quantity, which is suitable for large-scale and long-term production. However, in recent years, global orders show the characteristics of less orders, more orders and fast delivery, which is no longer suitable for the previous production mode. International brands have gradually moved towards a small, personalized and customized order mode. However, most Chinese footwear brands still adhere to the production mode of mass and homogeneous products. Under the appearance of being unable to adapt to the production mode, what it really embodies is that the shoe brand company has inaccurate judgment on the terminal market situation, insufficient expectation on the market development trend, and the estimated sales volume is inconsistent with the market demand, resulting in overstocking of inventory layer by layer, which ultimately affects the subsequent product renewal and company operation, and makes the brand lack of market competitiveness.



Xiangda Machinery Co., Ltd. was founded in 1979 and Nanhai Xiangda Machinery Co., Ltd. "bioshoe baoxiong brand" was established in 1997 in China. It is a professional manufacturer of internal and external line machines for shoe making. At the same time, the company needs to optimize its business structure. The company is located in Foshan City, the economically developed Pearl River Delta, with a total area of 15 mu and a total investment of 5 million US dollars.

Main products: baoxiong,baoxiong brand,baoxiong inner thread sewing machine,baoxiong outer thread sewing machine,inner thread sewing machinelarge bottom sewing machinemark carMartin boot outer thread sewing machinetooling boot outer thread sewing machinedouble line lockstitch seat type inner thread sewing machinesewing lockstitch mark machineultra-high speed outer thread sewing machinevertical inner thread sewing machine
Official website: www.xdbioshoe.com
Hotline: 13433109413
Address: No.2 Nanxing Road, Honggang village, Lishui Town, Nanhai District, Foshan City, Guangdong Province


copyright:Foshan Nanhai Xiangda Machinery Co., Ltd Technical support:Acshoes(Management login

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