China: What Does Ten Billion Pairs Of Shoes Mean?

Recently, many media have been concerned about such a news: China's annual production of shoes has exceeded 10 billion pairs, in the world's total output of 14 billion 800 million pairs, Chinese shoes have accounted for nearly 70%.

To see such news, the first thing I feel is shock, which is about 10 billion pairs a year, which is equivalent to giving the people of the whole world a surplus of half and a half every year. The output of Chinese shoes is amazing.

In fact, not only shoes, but also other processed products, China's output is also amazing.

For example, toys and other small souvenirs, the proportion of Chinese products may be larger than shoes, the biggest feeling of people who often go abroad is to buy toys, such as small souvenirs, accidentally bought "Made in China".

The huge capacity of China's processing industry needs to be viewed dialectically, both for China itself and for the global economy.

China is a large populous country with abundant labor resources and large output in some areas.

After all, 1 billion 300 million of the population has too much pressure on employment, so it is the only way to develop the processing industry and service industry that can accommodate more jobs.

And the proportion of the processing industry is large, and the output will naturally increase. Therefore, the larger proportion of the total production is not worth making a fuss about.

As for global consumers, China is also good at providing cheap products.

Some overseas public opinion also believes that if there is no Chinese product, ordinary people in Europe and the United States will increase their daily expenses greatly, so the standard of living will be greatly reduced.

However, if a product accounts for 70% or even more of the global market, I am afraid it is not all good.

If the product is still low value-added, even cheaper in the low value-added category, the problem is even greater.

First of all, the astonishing and cheap scale of billions does not bring us the riches we deserve.

When I read this group of reports carefully, I found a key point: China's footwear industry has lost its pricing power bit by bit.

Although the report did not start, but from the common sense we can know that the price does not have the right to speak, which means that Chinese shoes can only earn a low processing fee, and as for what price to sell in the market, it has nothing to do with you.

In fact, not only shoes, but also many other products, Chinese enterprises are also playing the role of processing without price power, even including some of the top brands in the world. The origin is also China, but the selling price has nothing to do with us.

The root of the loss of pricing power of Chinese shoes, including other processing products, is the absence of brand names.

Although our production quality may not lose to anyone, but because there is no brand, we are strangled by the throat. It seems that there is a huge scale of production. It can only make clothes for people, help others to win huge profits, and we only earn tens of yuan per pair or even a few yuan of processing fees.

Secondly, the 70% or even higher occupancy rate has also led to high tension in the foreign trade.

It can be seen that if there is no structural optimization and adjustment, 10 billion or 70% will probably lead to small profits but real woe.

How to optimize the structure?

This goes back to the old problem: brand.

From the example of the above shoes, we have seen that for a large population such as China, the manufacturing industry can not scale, but it is obvious that only scale and no brand are obvious.

It is a development idea to seize market share by small profits but quick turnover, but it is not necessarily the best way of thinking.

Giving up some simple processing skills and reducing some share will probably be a better option by building brands and increasing the gold content of products.

Because compared with the former, this way of thinking will reduce resource consumption and reduce trade frictions.