Small And Medium Shoe Enterprises: Adjust Strategy In Order To Break Through In Time

With the stock market slumping, tight fiscal policies, raw materials, wage increases and inflation remain high.

Faced with this series of difficult problems, how these industries have low cost and profitable enterprises have been struggling for 08 years has become the focus of attention.

In recent months, CCTV financial news has made special reports on small and medium-sized enterprises in Zhejiang, Guangdong. These small and medium-sized enterprises are in serious trouble. Once the roaring of machines, there was a lot of traffic.

Some enterprises are now closed or temporarily shut down or moved out.

In the big environment, the state's monetary tightening has become a big problem for enterprises to develop financing. Only when borrowing from private capital is the most active part of private capital lending, according to the previous financial news reports. Wenzhou has several times higher interest rates than banks, and whether enterprises can bear such a high burden.

CPI continues to rise at home and abroad, and the rise of raw materials driven by cost poses a severe test to the sales and profits of enterprises.

The author has made an in-depth investigation of small and medium-sized shoe enterprises, and visited the shoemaking enterprises in Guangdong, Fujian and Wenzhou. Last year, she wrote an article entitled "how many brands of shoes in Wenzhou: how far the branding can go". Compared with other places, Wenzhou shoes and Jinjiang sports shoes have a higher percentage in the market, and also can best reflect the development trend of China's footwear industry.

The survival situation of some small and medium-sized shoe enterprises in Fujian is not optimistic. The closure of enterprises is not news. The enterprises that made foreign trade suffered serious setbacks due to the appreciation of the renminbi. In the past 06 years, the blowout of domestic enterprises has intensified the competition in the domestic sports market.

However, these small and medium-sized enterprises are not familiar with the domestic market, and few of them can develop smoothly. These enterprises are once again faced with survival problems. Some of the big brands are fortunate to take the small businesses into their industrial chains.

It is understood that some big shoe brands develop better. They have strong funds, solid brand foundation, stable excellent management team, good corporate system, and the weaker the stronger the stronger, the weaker the pattern is.

Wenzhou, which is composed of small and medium-sized shoe enterprises, is known as China's shoe capital. In recent years, the development of enterprises is not satisfactory, rather than the backward strategy of enterprises.

The brand positioning and product positioning of Wenzhou footwear industry are too vague, the age span is too large, and the coverage is too wide. From 20 years to 5 years and 60 years old, the Wenzhou brand is very fragile on product support, and it also causes consumers' vague cognition of brand.

There is also no naming of corporate brand names. This is a good thing for Fujian's clothing enterprises, such as men's clothing of seven wolves, strong men's wear, etc.

A lot of Wenzhou shoe enterprises and men's shoes are promoted by a brand. Some very masculine brands still have women's shoes. No wonder their agents complain that women's shoes are difficult to make. Even women's shoes are all in a loss. And at the order meeting, the company requires that the proportion of women's shoes should be booked to the company's requirements.

Question: Dealer agents do your brand without money, who will continue to do so? How long can an enterprise lose its profit?

Especially in the domestic market, more than 80 of most brands are purchased by outsourcing, and the cost of procurement is not a small number of logistics costs. Marketing expenses, advertising costs and brand building are major blood pfusion projects. Small and medium-sized shoe enterprises with annual output value of less than 200 million generally do not have money to make money, and profit is the ultimate goal of a business.

In fact, the advantages of the original Wenzhou shoes are almost gone. The so-called brand output of Wenzhou shoe companies almost depletes the advantages of the Wenzhou shoe making industrial cluster.

To some extent, the companies that provide OEM processing have the right to dominate, but of course, some business owners and top management do not think so.

In the same industry, people who recruit people from the enterprise, who do not know how to absorb outstanding people from other industries, are basically lagging behind in the same industry. Enterprises can absorb some talents from other industries and bring innovative thinking into marketing management mode. Thirdly, because of their low cultural level, employers of these enterprises often have their own opinions to evaluate a person. Because of their psychological expansion, business owners are fond of flattering people. The professional managers who have ideas often have unique ideas and ways of doing things, and the development talents of a company are the key. Obviously, the value of professional managers has not been widely valued, which shows why Chinese enterprises do not go long. Another fatal weakness of small and medium shoe enterprises is the problem of talent reserve. Firstly, managers are unstable and cause great losses to enterprises.

Today, when everyone wants to be a boss, the integration between small and medium-sized enterprises is extremely difficult. These problems indicate that the old concept has not been broken. Some enterprises with annual output value of only 5 or 60 million have been making OEM processing for people. They are eager to expand their brands. These enterprises, when the comprehensive strength is not yet available, want to operate large brands and make big brands, and the probability of failure is high.

These enterprises are facing the dilemma of weak growth and lack of stamina. Industry shuffling and integration are inevitable. This will help to improve the industrial level, make the division of labor more detailed and improve the industrial clusters.

So how can SMEs change their disadvantages and get out of the predicament? I believe that enterprises should adjust their strategies in time and formulate forward-looking business development directions.

Or the integration of enterprises, from small enterprises to large enterprises; secondly, to actively cooperate with other large enterprises, become a partner of big brands, improve product quality, strictly control the manufacturing cost, and also promote the development of enterprises; thirdly, the products of enterprises should be distinctive and avoid the homogenization of products, and the style development will have the market competitiveness as the popular front line, and it is also a way for the survival and development of small and medium-sized enterprises. Finally, the time of multi brand operation strategy is ripe, and the multi brand strategy of BELLE shoe industry has made her enterprises develop rapidly in a few years. First of all, we should lay aside the old idea that we should rather be a chicken head than a phoenix tail.

Through the research and field visits of several well-known shoe brands, enterprises only improve their competitiveness through technological innovation, reduce costs and improve efficiency through management innovation, and broaden their horizons through conceptual innovation.

So even today, facing the pressure of RMB appreciation, wage increase, inflation and global energy crisis, those enterprises are developing better.

All the external disadvantages will have adverse effects on the growth of enterprises, and may even lead to the emergence of survival crises.

But the fact is that small and medium-sized shoe companies can survive and demonstrate their vitality and competitiveness, ultimately in their own hands.