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EU Footwear Industry Tends To Cooperate And Protect Smes.

2012/3/30 10:41:00 12

EU Footwear Smes Protection

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footwear industry

At the conference, people pondered: what industry are we in? What kind of industry should we be in?


It should also be emphasized that every aspect of the company should be examined with a critical eye, questioning every hypothesis and even questioning the operation mode of the company, facing fierce competition in the global footwear industry.

Challenge

To seek innovative ways of coping.

Here are some typical examples:


The top two brands in the world are Brown and the shoe industry. They used to be a vertical integrated company that produced a full range of products in their own factories. All of them have been reorganized for many times and will be integrated at a faster pace in the future.


Nowadays,

Brown Shoe

(like all top American brands), they no longer have their own factories (its products come from various countries, but mainly from China), and 70% of their products are sold through independent channels (mostly in their brand stores selling top brand products) and have successfully designed dozens of global wholesalers brands.


It still produces about 50% of its footwear products in its own factories. But it has pformed into a company based on brand management and retailing, and has more than 7000 chain stores worldwide. Its president has always emphasized the importance of the overall image to today's retail customers, with matching accessories, especially handbags, which are crucial to the role of footwear retailing.


Arezzo is a famous women shoes company in Brazil. It also has no independent factories, but plays a leading role in the market through representative brands. There are as many as 11000 new products developed each year, and has consolidated its leading position in the industry through hundreds of franchise stores.


One of the common characteristics of these companies in addition to their great success is to focus on product development, brand building, sales, logistics and retail in the direction of market operation.

Most of the world-renowned footwear brands such as Nike are all like that.


A case that was shared during this session is Italy fashion street (IFG), a chain retailer specializing in "Italy manufacturing" high-end footwear brand in Southwest China.


The president of IFG from Hongkong has made it clear that the emerging market of China's high-end footwear brand has matured, and the comprehensive footwear well-known retail chain stores will have huge business opportunities, and now this industry is still blank in China.


China's footwear market is a market dominated by a single brand footwear retail chain (many brands have 5000 or more retail outlets), usually with direct sales linked to shoe factories, including BELLE, Daphne, AOKANG, Kangnai and many other market leading brands.

IFG president also said that in addition to the normal 10% leather shoes import tariffs, he imported leather shoes from Italy without any interference from the government and trade barriers.


The pursuit of appropriate innovation to promote the development of the industry has always been an issue raised by the general assembly. Two different cases are cited at the meeting.


The EU footwear industry mainly benefits from small and medium enterprises, focusing on protecting local industrial investment and employment, and is more inclined to cooperate.

The footwear industry in EU countries usually conducts research on projects by government organizations or Private Held Company, and proposes new production technologies to seek market opportunities and opportunities.


It is noteworthy that an important wholesaler in the European Union suggested that with the intensification of international competition, the independent operation mode of large leading shoe enterprises (such as Ecco, Mephisto, Clarks, Geox, etc.) in EU countries has been successful. This shows that innovation is the direction for Private Companies to develop in the future. On the other hand, the economic mode calls for the reduction of government intervention in the consumer field.


For example, in China and the United States, many leading enterprises such as Nike, Sketchers, Lining, BELLE and so on have been successful through the rule of innovation, and there is no such kind of system as the European Union countries exist.


Latin America (especially Brazil, Mexico and Columbia) seems to be mediocre in this respect, but because of its large number of medium-sized and large shoe companies, the success of private enterprises seems to be more significant.


In addition, Mexico has a large number of small and medium-sized enterprises and micro manufacturing enterprises, and does not emphasize shoe research and new technology development. In the whole industry, great progress and good results have been made in the management skills of non large enterprises. They have also upgraded this project recently, so as to supplement their relatively weak field of accessories.

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