Hundreds of thousands of pairs cost only 6 yuan a pair

“100 pairs at 10 yuan a pair, 300 pairs at 8 yuan a pair, 500 pairs at 6 yuan a pair! Zhang Qiang (not his real name), who runs a shoe factory, shouts on social media platforms every day.

The shoes produced won’t go out. “I want to get rid of the hundreds of thousands of shoes I lost money on right now.”

This is not unique. Yang Jie (not her real name), who ran a shoe factory in Tianjin in the 1950s, said on April 27: “It’s been four months and I can’t say I have received any orders.”

Not only is OEM shoe factory, whole shoe industry appears in the first quarter of this year sale is declined.

Here’s a look at some of the shoe giants’ woes:

On May 6, The board of Directors of Fentai, the main shoe manufacturer of Nike, decided:

The area of land formerly leased in nam Ha Small industrial zone, Teh Ling County, Binh Thuan Province, Vietnam, has been reduced to more than 15.44 hectares, equivalent to less than one third of the original lease land, and the total rent of the original land and the basic cost of the lower layer, which is about us $17.4 million, has also been reduced to US $5.53 million.

Baocheng, one of the world’s leading footwear companies, has decided to take unpaid leave and cut wages from June 1 to December 31, 2020.

And the performance of a few domestic sports brands also appears different degrees of decline.

The retail sales of Li Ning (excluding Li Ning YOUNG) showed a decline of 10%-20%, the retail sales of Xtep and 361 degrees decreased 20%-30% year on year, and the retail sales of Anta in the first quarter decreased 20%-25% year on year.

At this time, in fact, no one is easy.

Shoes and clothing market discount promotion efforts

Mr Wu of professional market personage tells a reporter, not only be to meet New Year to celebrate a festival, be in peacetime namely, store of a lot of brand shoe also rolls out discount promotion privilege. In the first quarter of this year, the shoe industry saw a precipitous decline in sales revenue, and a number of shoe companies reported increased losses. The combination of multiple bad news prompted these companies to cut prices and promote sales more aggressively.

A shoemaking enterprise in the city has a small reputation in the national industry, but this year the relevant information shows that the enterprise in the first quarter of this year attributable to net profit loss of more than 560 million yuan, a year-on-year growth of 114.77%.

Data from the National Bureau of Statistics showed that the sales volume of shoes and apparel in the first quarter was 225.2 billion yuan, down 32.2 percent year-on-year. From the perspective of residents’ expenditure, in the first quarter, the footwear and clothing expenditure of urban and rural residents showed a decline of 20.1% and 11.5%, respectively.

Mr. Mai told reporters that shoe companies are currently facing the dilemma:

Reduced orders and increased inventory pressure. It is more difficult for physical retail stores to operate, so it is imperative to adopt discounting and promotion measures. At the same time, many enterprises will live on the hope of online channels, how the effect, the enterprise is the most clear. How to stimulate consumption, how to digest inventory and other issues, is not only the industry needs to face the reality of the problem, but also how to find a difficult choice for enterprises to break through.

Post time: Jun-23-2020
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