Home >

Raw Materials Rise; Shoe Enterprises Introduce Refined Management

2010/10/21 11:39:00 254

Fine Management Of Raw Materials

Cold weather is coming, in all major shopping malls Autumn shoes They are all listed on the counter. This is a good time for us to buy shoes. However, we heard from our customers that "the price of autumn shoes has increased again! Many brands have started to increase their prices, which are more than 700 yuan. Shoes worth about 600 yuan are rare". We can see in the major shopping malls that the price of a single shoe is generally seven or eight hundred yuan, which was the price of a pair of boots a few years ago. Boots At present, the price is basically two or three thousand yuan, and the price of the knee style is even more than 5000 yuan. The author investigated the market and found that the price of shoes had increased by about 15% compared with the previous years.


In Wuhou District's "China Women's Shoe Capital" Industrial Park, some shoemaking enterprises recently received a large number of winter shoes supplement orders. Zhang Lina, general manager of Chengdu Amiqi Shoes Co., Ltd., revealed to the reporter that the orders that the shoes company makes every day are mainly light warm boots. According to Zhang Lina, the shoes company can produce between 4000 and 5000 pairs of orders every day, but there are more than 10000 pairs of additional orders every day. There are a large number of orders in hand, but they can't be made because of various reasons. One aspect is shoes raw material It rose by 10% - 15%.


Now the shoe company has not started to buy shoes in the cold winter, but the materials have already started to purchase. "It is said that this winter will be very cold, so the winter shoes will mainly be warm boots with thicker leather, such as some lamb wool, which will have better warmth retention. However, due to the rising cost of raw materials and labor, the price will increase when shipping," said Zhang Lina.


Rubber price soars, shoe material enterprises are worried


It is reported that the price of rubber futures has risen to 32000 yuan per ton, and the price of crude oil remains high. At present, the price of shoe materials is like an "arrow on the string", facing price increases at any time. Most of the rubber raw materials of Jinjiang shoe material enterprises come from Hainan and Yunnan in China, as well as Thailand, Malaysia and other regions in Southeast Asia. " According to the relevant personage of Quanzhou Shoes Chamber of Commerce, among rubber, EVA and other shoe materials, rubber soles are popular shoe materials, and price fluctuations will directly affect the cost of local shoe material enterprises.


"The price of crude oil will rise along with that of natural rubber, and the synthetic rubber materials to be purchased in the next few days will certainly rise." Recently, Mr. Ding, from a shoe material processing enterprise in Chendai, Jinjiang, was a little worried that the factory's inventory of rubber materials was running low. "The bottom price of rubber shoes, which used to be about 8 yuan per pair of shoes, has now risen to nearly 15 yuan. Every time a pair of shoes is made, on average, 70% of the cost of rubber soles is consumed." The shoemaker calculated an account for the reporter: every 10% increase in the price of rubber soles will cost nearly 2 yuan more for each pair of shoes.


Due to the sharp rise in rubber prices, there is pressure for shoe material enterprises to increase costs. How to deal with this pressure depends more on how the manufacturer saves production and management costs. For some large enterprises, the ability to resist risks is relatively large; But for some small enterprises, this is a tough time. Now, for the raw material market, none of the costs are falling, while for the finished shoe manufacturers, consumers will not buy the price.


Refined management of export shoe enterprises reduces internal friction


"Only one and a half years later, the price of rubber has doubled." Manager Su of a shoe factory in Jinjiang said that in April last year, the price of natural rubber in Yunnan and even the whole country avalanched, and rubber futures continued to fall. Yunnan's national standard of first-class natural rubber once fell to 14000 yuan per ton. "The bottom price of rubber shoes, which used to be about 8 yuan per pair of shoes, has now risen to nearly 15 yuan. On average, 70% of the cost of rubber soles is consumed for each pair of shoes."


It seems a bit difficult to raise export prices. "The introduction of fine management can save nearly 10% of the profits for the enterprise." Manager Su said that, at present, the shoemaking and processing enterprises in the "low profit" state can only "ask for profits from management" as much as possible, introduce the fine management mode, finely decompose each process on the assembly line, and reasonably arrange the personnel allocation by calculating the process time, Reduce the loss of raw material waste caused by poor process.


Avoid risks when purchasing shoe materials abroad


The rise in the price of raw materials is becoming an unbearable burden for Wenzhou manufacturers. Wenzhou shoes industry, the second largest among Wenzhou's 16 characteristic industries, cannot be avoided either. However, many Wenzhou shoe enterprises have effectively reduced the cost pressure brought by the rising prices of raw materials by purchasing from all over the world.


Recently, Wenzhou Gilda Shoes Co., Ltd. has purchased a batch of cowhide from foreign markets. Mao Jiancheng, the manager of the foreign trade department of the company, said that the price of raw materials in the shoe industry has risen sharply since last year, such as the price of cowhide, which has risen by 20%. The price rise of various raw materials has overwhelmed the enterprise. Fortunately, the enterprise has contacted with foreign raw material suppliers since 2008 and was approved to carry out processing business with supplied materials. At present, 90% of the raw materials of Gilda Shoes can be imported, and 100% of them are cowhide. India, Pakistan, South America and other places are the main importers of raw materials for their enterprises.


Industry insiders pointed out that in the face of rising prices of raw materials, "only by deeply practicing internal skills, tapping potential and increasing efficiency, improving product added value, and optimizing channel construction can shoe enterprises digest the adverse factors of rising prices of raw materials and survive healthily." Many enterprises strive to seek new breakthroughs in technological innovation in order to raise product prices. Many shoe enterprises have set up R&D centers. With the support of technology, the price of products will naturally rise.

  • Related reading

Check The Supply Chain And Wipe Out Carbon Footprint

Industry perspective
|
2010/10/21 10:39:00
310

The Expansion Of The First Clothing Trade Area In China Is Constantly Hidden Danger Of Homogenization.

Industry perspective
|
2010/10/20 13:15:00
52

Chinese Textile And Garment Enterprises Are Facing "System Competition" Between Supply Chains.

Industry perspective
|
2010/10/19 14:38:00
82

Chinese Products Encounter A New Round Of International Trade Friction

Industry perspective
|
2010/10/19 13:01:00
276

Cotton Prices Soared To Boost Cotton Textile &Nbsp; Brand Clothing Rose Quite A Bit.

Industry perspective
|
2010/10/19 11:37:00
224
Read the next article

The Four Trilogy Of AOKANG Footwear Industry

On October 21st, AOKANG was named the first batch of 100 "national demonstration units for graduate employment training in Colleges and universities" recently. As early as in 2009, AOKANG won the honorary title of "China's best employer".