Shoe companies actively respond to rising costs and urge new industry upgrades

With the rising prices of raw materials such as cotton and rubber, as well as the increase in labor costs, various shoe brands have raised prices. China's footwear industry will once again usher in an upsurge in price increases. Shangpu Consulting's light industry analysts believe that the current development of the footwear industry in China is seriously challenged. The increase in labor costs is directly related to the concept of change in the country’s people’s ideology and the improvement of the standard of living. Therefore, enterprises must upgrade their production methods. To cope with the pressure of rising labor costs.

According to relevant sources, the current prices of raw materials in the footwear industry rose by more than 20%, and the market competition was too fierce, so the price increase could not be large. At present, the profits of footwear production are very small, even reaching zero profit or negative profit. In addition to rising raw material prices, the national oil price and electricity price increase also have a serious impact on the development of the industry. Relevant information shows that since the beginning of this year, the monthly salary of some ordinary garment workers in China has been raised by 300 yuan, and the wages for special motor vehicle workers has also risen a lot. Shoes and clothing companies have generally been affected.

With the continuous increase in operating costs, in order to deal with competitive prices can not be raised, this way, the industry can only reshuffle, some SMEs will inevitably face elimination. Coupled with the financial crisis, many companies are concerned about the changes in raw materials and appreciation, so many companies are afraid to take over some big orders and can only wait. This has accelerated the industry's reshuffle.

How to survive in the competition, companies should strive to build their own brand. The brand means the development of the new value of the footwear industry. The current development of the footwear industry in China is becoming increasingly fierce, and the brand building is particularly important. In the final analysis, the brand's competition is the competition of shoe manufacturers' comprehensive capabilities. Quality and service are the key to brand competition. Only in this way can we create the best corporate image.

The "2010 China Footwear Market Analysis Investment Prospects Forecast Report" released by Champ Consulting pointed out that companies must strive to avoid being eliminated in the following aspects: first, to increase the use of raw materials, thereby greatly reducing their own costs; Second, increase bargaining power, establish its own brand, and absorb the cost increase factors. Third, strengthen innovation capabilities, develop new products, and be the vanguard of the market.