"Internet + shoe material" has just started, the soles of the fire up?
Recently, the professional hiking brand Hi-Tec in the outdoor field announced that the flagship series with Michelin's top sole technology has become the stepping stone to enter the Chinese market in July. Michelin, which is known for its professional tire production technology, has used its tire-specific technology to create Michelin soles flat card.
Since the industrialization of soles, new techniques have been advancing in various professional fields such as the sole industry from the generation of processing to independent research and development, new materials and new physical properties, lightness, waterproof non-slip, and environmental protection. However, at the current economic normal in China, the problem encountered by the sole industry as a traditional manufacturing sector is far from being as simple as technological progress. The biggest problem now is that the entire industry chain is weak in concept and the business model is not shaped.
I. At this stage, what is the obstacle to the development of the industry in the sole industry of China's sole industry when the entire GDP growth rate is sluggish?
1. Footwear production continues to grow, but sales growth continues to fall
According to statistics, from January to December 2015, there were 4,505 shoe-making enterprises. The total sales revenue was 744.775 billion yuan, a year-on-year increase of 6.97%, and the growth rate fell 1.92 percentage points. Compared with 2014, it was down 0.48 percentage points year-on-year.
2. The sales margin is slightly lower
In 2015, the total profit of the footwear industry in the country totaled 45 billion yuan, an increase of 5.46% year-on-year, and the growth rate fell 3.8 percentage points. The sales margin was 6.05%, a slight decrease from last year.
3. Negative growth in footwear exports
The annual export of footwear was 9.87 billion pairs, 51.1 billion US dollars, down 8.1% and 5.1% year-on-year, respectively, and the growth rate decreased by 9.6 and 16.9 percentage points from the previous year respectively. Different from the previous two export declines, major competition countries such as Vietnam and Indonesia have risen rapidly during this downward cycle, and the phenomenon of simultaneous export growth with China has dropped to a negative value in the previous two falling cycles. Maintain growth of 16.3% and 9%.
4. Imports maintain rapid growth
In 2015, the number of footwear imports increased by 32.4%, the amount of growth was 20.1%, and the unit price of imports grew by -3.4%.
——Data sources: “China's shoe industry running situation in 2015” issued by the 2016 Annual Meeting of the China Leather Association’s Special Committee, Shoes Special Committee and the Global Footwear and Sports Industry Development Trend Forum
——Data Source: National Bureau of Statistics
According to the data, we can see that China's footwear industry, whether it is sales or profit, in general, the growth rate is declining, and some of the important economic indicators even appear negative growth. Large enterprises grasped the major profit rate (8.4%), and SMEs profit decreased (5.0%). From the table of footwear and hat market, it can be seen that the upper-scale market is decreasing year by year; the offline retail market is adjusted downwards, and the decline slows down. In 2015, retail network dividends gradually disappeared, and the growth rate dropped significantly (in 2015, the sales of men's and women's shoes reached 50 billion yuan, corresponding to a growth rate of -6.4%); leather shoes, rubber shoes, plastic shoes, and cloth shoes were the four major categories of Chinese exports. , The growth rate of outflow of orders has led to the impact on the sole market, which is dominated by plastic bottoms.
Second, how does the "Internet + Sole" platform find opportunities in the pain points of traditional sole manufacturing to enter the golden age?
We are all talking about the slowdown in the growth of the entire footwear industry. The golden age of soles is also gone, mainly referring to the decline in profits of entire sole companies. Through the above data, we have the intuitive impression that the entire shoe market has experienced economic recession and malaise. As the sole trader of a shoe sole industry or a newly-entered entrepreneur, the only thing that can change is the circulation of the sole industry in China. Link, Graft Internet thinking to solve the pain points of the circulation market!
Finding steel Wang Dong pointed out that any industry will go through three stages: supply shortage, overcapacity and maturation. The process of overcapacity to maturity will surely create a large number of retailers. Obviously, the shoe sole industry is no exception. Big brand cooperators have a fixed order source and rely on excellent product technology, quality and reputation. However, the old customers of most small and medium-sized enterprises in China have been lost. Is it really impossible to solve the problems that new customers find difficult to find?
The nature of Internet industry such as sole B2B is a project based on retail and using the Internet to optimize the supply chain. The current sole price is not transparent, but the profit is very thin. Only direct users can improve profitability. In terms of retailing, the end-user experience is particularly important. How should the B2B soles identify the needs of users to better serve them?
For terminal procurement, the main pain points are: 1. Finding goods inefficient 2. Service lags 3. Reputation crisis
To really help users, the key is to make the supply and demand match more effective and find the goods more convenient! Only in this way can the user reduce costs and improve efficiency.
In addition, the standardization of the transaction process is another major point to improve the user experience. The purchase of soles is still in the original stage of transaction. Manual search, inquiry, price comparison, and sometimes the need to find more than one distributor to meet the purchase needs of a single purchase, plus the search for goods is the telephone. If you look for 10 soles, simply looking for the goods and the inquiry will collapse.
The B2B platform for shoe materials is different. With the use of smart matching technology and big data that has been precipitated by its own industry resources, it is possible to provide end users with fast and accurate products with huge resource advantages and professional teams, and bring about close interaction between product-person-service. Will make the end user's procurement process more concise and meet the end user's personalized service needs.
In the past, the sole trading session was “supplier-dealer-buyer”, and the real terminal was disconnected from the entire industry chain! The result was that the product quality could not be guaranteed, the circulation efficiency was low, and the terminal’s personalized requirements were not obtained. Very satisfying.
In addition, the regional nature of soles is very strong. Traditional offline logistics needs to undergo a three-logistic transition between “suppliers-logistics transfer company-distribution logistics company-intermediary-distribution logistics company-purchaser” and the process effect needs to go through “supply”. Business - logistics transfer companies - distribution logistics companies - brokers - distribution logistics companies - process plants - brokers - distribution of logistics companies - buyers "is more tedious.
The Internet + soles represent a new economic form, but also have a large value-added services such as logistics, raw materials, processing services, and supply chain finance has become the winning height of the Internet + soles.
When it comes to internet finance, it is easy to think of Taobao Huayuan, Jingdong white bars, and the cat's fat cat white bars, all of which are related to the user's credit system.
It's hard for everyone. The user credit file (rating + blacklist) established by the Internet e-commerce's big data precipitation can improve the capital chain circulation.
As in most traditional industries, in the traditional trade of the sole industry, dishonesty acts just as rust is eroding the chain. Just looking through Baidu is a lot of news about the boss of a certain shoe factory jumping off the road. On March 24, 2015, Guangzhou Shoes City was the tragedy in which the shoe factory lost 4 of its shoes and finally fell to the ground. It was common for collaborators to make money and escape.
In the final analysis, the shoe sole industry trades frequently, and the verbal agreement between the two parties of the transaction is rarely signed. The old customers shamelessly have to say nothing of new customers. In the hot period of the industry, a serious lack of credit system was born, which directly caused the problem of the general financing difficulties of SMEs and the fracture of capital chain.
Due to the lack of transactional big data, the traditional industry is bleak, the credit system is bleak, the entire industry's credit system is lacking, and the player’s default costs are extremely low. In such rivers and lakes, it is difficult for everyone to do business.
Internet e-commerce has gone through 1.0 information exchange, 2.0 match transactions, to the current 3.0 big data era, able to deposit credit data on platform users, achieve upstream value distribution for suppliers, and better protect the interests of downstream customers, the entire industry Chain can achieve a win-win situation.
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