The Chinese leather industry has entered a period of adjustment, and brand transformation has become a new historical task

a

Since the beginning of this year, the economic operation of the leather industry above designated size in China has shown a trend of "slowing down while stabilizing, and stabilizing while rising", with a particularly significant rebound in exports. From a data perspective, from January to August 2014, the sales revenue, profit, and export growth rates of China's leather industry above designated size were 9.8%, 13.7%, and 10.3%, respectively. Except for a slight decrease in sales growth rate, both profit and export growth rates have accelerated. Based on the analysis of the industry's recent operating trends, the future development growth rate is expected to continue the current stable trend and is promising.

In fact, macro data and industry perception are not completely consistent, and the impact of the new economic normal on the leather industry is becoming increasingly apparent, with different companies having different feelings. And all of these can be seen from ACLE/CIF/MODA Shanghai 2014 (China International Leather Exhibition, China International Footwear Exhibition, and China International Luggage, Fur Clothing and Apparel Exhibition). After all, China International Leather Fair can be described as a combination of industry achievements, global resources, essence of channels, forward-looking thinking, near considerable industry trends, and far from future development.

New products have more pricing power

During the period of deep industry adjustment, China International Leather Exhibition, as an important trading platform, plays an increasingly prominent role in showcasing new technologies and products, showcasing brand value, promoting product strategies, attracting domestic and foreign customers, and expanding markets for enterprises.

The price of raw leather in the upstream of the leather industry has been rising, while the price of synthetic leather has been declining, from 3.6 yuan/square meter to 1.35 yuan/square meter. The price of natural rubber has also shown a downward trend, from a peak of 40000 yuan/ton to 13000 yuan/ton. Although the price pressure of raw materials has eased, labor costs are difficult to alleviate.

Yu Jingmin, the person in charge of Zhejiang Huarilun Plastic Products Co., Ltd., introduced that the annual growth rate of labor costs in the company is 8% -9%, while the prices of existing products are basically stable and have not increased in the past two years. However, the company's profit margin has slightly increased, mainly driven by the development of new products. Huari Wheel Plastic's main product is rubber shoe soles. The price of general shoe soles in China is around 40-50 yuan, while their product price is around 100 yuan. Due to fierce competition and consideration of the cooperative relationship with customers, it is difficult for companies to raise prices on their existing products and maintain the original price level. However, new products can experience significant price increases. Taking the foam rubber sole as an example, the cost price is 15 yuan, and the selling price can reach 45 yuan, so the profit level can be imagined.

Developing new products to maintain profits is also one of the strategies of Suzhou Zhaoyi Footwear Co., Ltd. Zhaoyi Footwear originally focused on snow boots, but in recent years, the snow boot market has been relatively chaotic with too many entrants, either in quantity but not in price, or in price but not in quantity, which has a great impact on the enterprise. Shen Weihua, general manager of Zhaoyi Shoes, said that the factory price of snow boots for domestic sales has dropped by more than ten points. Zhaoyi's exhibition brought a new Niu Twisted Shoes series, known as "Chicken rolls Shoes", to fill the gap in the sales of terminal retail in spring and summer, so that it has seasonal products throughout the year, and the profits of new products are also very considerable, which can be said to kill two birds with one stone. Mr. Shen introduced that the factory price of a pair of girls' twisted shoes is over 70 yuan, but the selling price is 200 yuan