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Wenzhou Children's Shoes ushered in the period of development and adjustment
From: Guangzhou Beililai Children's Shoes Factory Post date: 2019-03-28

Recently, China Children's Shoe City Brand Docking Meeting and Wenzhou Children's Shoe Chamber of Commerce President's Expansion Meeting were held in Wenzhou Business Center. It is reported that China Children's Shoe City will soon settle in Yongjia, and the small micro-park will provide a place for children's shoes production and supporting small and micro enterprises to show their production and sales. At the same time, the park will also be located in the Chinese shoe and garment accessories trading market, facilitating the integration of the whole supply chain of children's shoes.
As one of the leaders of China Children's Shoe City, XiangChaozhen, Executive Director of the World Warm Business Development Service Center, has been paying close attention to the development of Wenzhou Children's Shoe Industry and the deep integration of Wenzhou people's economy and Wenzhou's economy. He said that Wenzhou, as China's shoe capital, has formed an industrial agglomeration advantage in men's shoes, women's shoes and casual shoes, and has won a good market share and reputation, with an overall industry output value of over 100 billion yuan. Children's shoes as one of the branches, there is still a lot of room for development. "We not only need to polish the gold-lettered sign of"China Shoe Capital", but also are moving towards the goal of building a"world shoe capital".
According to Yang Shichen, president of Wenzhou Children's Shoes Chamber of Commerce, Wenzhou Children's Shoes achieved a total output value of about 15 billion yuan in 2018 with fashionable, trendy and cool fashion design. However, after nearly five years of rapid development, Wenzhou children's shoes industry ushered in a period of adjustment in 2018. The slowdown of industry growth is precisely a critical period for self-adjustment and momentum.
It is against this background that the representatives of Wenzhou children's shoes and accessories enterprises gathered together to discuss the bottlenecks, challenges and Countermeasures for the development of the industry, and to discuss how to develop in groups, how to build China's children's shoes city, and how to gather the strength of the industry to collide with the spark of thinking.
Wenzhou Children's Shoes Transition from "Small and Scattered" to "Small and Fine"

Know your friends and know your enemies, and you won't suffer a hundred battles. What is the development trend of Wenzhou children's shoes industry? What is the most important advantage of long board?
Ye Shaozhong, secretary-general of Wenzhou Children's Shoes Chamber of Commerce, said that since 2018, there has been a marked differentiation in the development of enterprises. The output value of good enterprises has increased by more than 20% or even 30% over the same period of last year, while small and scattered enterprises have been eliminated. At present, Wenzhou children's shoes industry still takes small and micro enterprises as the absolute main force, but is transforming from "small and scattered" to "small and refined". Some shoe factories occupy a small area, but the environment has been transformed into a garden style, which also attracts some foreign enterprises to come to study.
According to feedback from many children's shoes business owners, the biggest advantage of Wenzhou children's shoes is fashion, which has formed a market reputation of "fashionable children's shoes look at Wenzhou". In the future, if Wenzhou enterprises want to maintain the momentum of development, or even become "the capital of children's shoes in China" and "the capital of children's shoes in the world", they must continue to play the brand of fashion, integrate the whole fast fashion industry chain and create fashion brands.
Yang Shichen believes that the past two years are the best time for Wenzhou children's shoes enterprises to build brand. "With the liberalization of the two-child policy, parents of post-80s and post-90s prefer Wenzhou's fashionable and trendy children's shoes, which is of great benefit to Wenzhou's children's shoes. Wenzhou children's enterprises will surely have some well-known brands if they can make use of the "fashionable East wind" and according to the current speed of development.
At the same time, in terms of children's shoes accessories, Wenzhou has also formed a supply chain of high-end products. Li Mingzhen, head of Yichang Shoe Material, said that the leather price supplied by the factory is high, and some purchasers have set the threshold, mainly because of the advance investment that meets the requirements of environmental protection. With the increasingly stringent environmental protection requirements of the government and industry, Wenzhou enterprises with advanced layout will enjoy the first-mover advantage.
What challenges does Wenzhou children's footwear industry face? Many leaders of participating enterprises mentioned the problem of high cost, one is land cost, the other is labor cost.
Lin Jiancong, general manager of Yongjia Phantom Children's Products Co., Ltd., who has been engaged in children's shoes industry for more than 20 years, said that as early as 2008, Phantom Children's Shoes had the corresponding ability to start looking for their own factory, but they are still renting. In recent years, the cost of leasing factory buildings is increasing gradually. The head of Daiwa Zipper said he was worried that the existing plant might face demolition and needed to look for a new site in advance, but was currently struggling to find the right place.
At the same time, with the rise of multiple markets, Wenzhou's original raw material procurement pattern has also been greatly affected. Lin Jianchong said, "Before Huanglong Commercial City was demolished, one purchaser could complete the purchase. Now the newly built commercial city is scattered, and two purchasers are not enough to run, which also increases the cost of manpower. Coupled with the impact of Internet e-commerce, the price of children's shoes is more transparent, and the pressure of competition is also growing.
Yang Shichen believes that children's shoe enterprises are facing "growing pains". The profit margin of enterprises is narrowed, and group development is a way to break through.
Take Wenzhou Children's Shoes Chamber of Commerce as an example. Two years ago, the State officially implemented the Technical Specification for Safety of Children's Shoes, which upgraded the material and shoe-making standards of children's shoes. In order to meet the new standards, children's shoe enterprises need to use the form of "alliance" or "group purchase" to break the predicament that the original suppliers are unwilling to customize shoe materials for a single small enterprise or order high prices. Yang Shichen concluded that in 2018, Wenzhou children's shoes, with the help of the advantages of the purchasing alliance, reduced the cost of intermediate circulation links and enlarged the advantages of Wenzhou children's shoes as "fashion products". This has made Wenzhou children's shoes enterprises develop smoothly, and also helped to fundamentally realize the "bigger and stronger" of the industry.
For the soon-to-be-settled China Children's Shoe City in Yongjia, Lin Jianchong said that this will bring new opportunities to Wenzhou Children's Shoe Industry. "Wenzhou should insist on doing a good job of the city's business card of"China Children's Shoe City", develop in groups, nurture regional brands meticulously, seize the commanding heights of industry development, and create an advanced manufacturing children's shoe base."
As a rising star of Wenzhou children's shoes, Tan Rui, the head of Xingyue shoe industry, said that the traditional business model of solely selling products by shoe enterprises has met great challenges in the new era. From the point of view of market supply and demand, from the era of "scarcity of products" to "excess of products", sales channels continue to differentiate, from product innovation to channel innovation. Now, we should pay more attention to model innovation.
Tan Rui takes home-made TV as an example. For example, national brands such as Changhong once competed positively with foreign brands and gained market recognition because of product innovation. However, with the rise of platform enterprises such as Suning and Gome (as channels), platform enterprises have achieved greater success in business. This is the potential and power of the business model itself.
In Tan Rui's view, Wenzhou children's shoes sales are still generally dependent on the traditional agent model, or through large-scale e-commerce platform, encountered a larger bottleneck. Take e-commerce channel as an example, sales growth rate of many children's shoes enterprises on Taobao has declined. An important reason is that the hierarchy of e-commerce traffic, such as last year's listing of Pingduo, has gathered a lot of traffic in a very short period of time, to a certain extent, diverted Taobao traffic.
For Wenzhou children's shoes industry, Tan Rui suggested that a new ecological chain should be established to open up the channels from suppliers to merchants. Only by breaking through the old thinking of selling products, can Wenzhou children's shoes industry become bigger and stronger in the new market environment. Tan Rui also said that the construction of China's children's shoe city is the same. The children's shoe city, which will soon be completed, can try to operate with the idea of an Internet company, rather than just a traditional production and trading hub.

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