China'S Footwear Industry Changes To Intelligence

Upgrading and upgrading of China's traditional manufacturing industry is a hot topic at present.

The traditional manufacturing industry mentioned here mainly refers to those labor-intensive manufacturing industries, such as textile, clothing, footwear, food, toys, simple mechanical tools, etc.

Traditional manufacturing is related to the national economy and the people's livelihood. It is also an important part of the national economy. It is also a large household earning foreign exchange.

However, in recent years, with the change of the market environment at home and abroad, and the labor-intensive traditional manufacturing enterprises are mostly small and medium-sized private enterprises, the internal management is often unable to catch up with, and generally encountered the "growing pains".

Upgrading and upgrading of traditional manufacturing industry has become a historical necessity.

The key now is to find a suitable path to upgrade and find some suitable ways and means.

In terms of global enterprise operation and management, the Harvard Business School, the originator of MBA education, is very influential, and its most important weapon is enterprise case studies.

Through more than 7000 cases, combined with the theory of business management, leading the trend of world management.

China's MBA education institutions need to spend a lot of money on the business case of Harvard Business school every year. China's famous enterprises are also proud of being selected as a Harvard Business School case.

Here, I want to try to analyze the experience and practice of a traditional manufacturing enterprise, Qingdao Hengda Group, in the form of MBA case study, with a view to drawing lessons from the business community, especially small and medium-sized private enterprises.

The inevitability of history is that "body" is strong but not lacking in mind.

The most proud work of the industrial society in the twentieth Century is the "water production line".

In 1913, old Ford set up the world's first production line in its own car company.

The automobile assembly line has greatly increased production efficiency, reduced labor costs, and standardized production, thereby turning cars from a few luxury goods into ordinary people's vehicles.

From 1903 to 1927, Ford Motor Co's T model set a record of 15 million cars.

Large scale production lines have always been the main characteristics of modern industrial production.

However, since the Second World War, the society has entered a new stage of diversified market demand. Accordingly, industrial production is required to develop in the direction of multiple varieties and small batch. The weakness of single product and mass production mode of production line is increasingly obvious.

Japan's TOYOTA automobile has adapted to the requirements of this era.

Later, Japanese cars wantonly swallowed the US market. The originals of the automobile assembly line were helpless. Even though Ford Motor Co had the largest and most efficient production line in the world, the market would no longer be satisfied with the same products as T cars.

At that time, Japan developed a new breed cycle of 3 years, while the United States needed 5 to 6 years.

In this world-renowned car trade war, we can clearly see the biggest drawback of traditional industrial enterprises with pipeline as the soul: machinery.

Such a machine without thought has pformed the backward agricultural society into an industrial society, but it is precisely because of its lack of thought that it has made itself go down step by step.

It is like the "body" by Dark Neef, the author of the knowledge economy. Though strong, it lacks brains.

And the most outstanding business representatives who make money by their brains are Microsoft.

In 1970s, with thousands of dollars in business, no one would have thought that Bill Gate's assets would set a record of 100 billion dollars in 1998.

Bill Gate has increased his assets by tens of millions of times in more than 20 years.

At present, in the developed countries and regions of the world, a new type of enterprise intelligence enterprise has left the traditional industrial enterprises far behind. Intellectual enterprises have become the source of new dreams for entrepreneurs.

Intellectual Enterprises: the most important factor of production is knowledge capital.

In the era of agricultural economy, the most important production factor of social production is land, and without land there is nothing.

In the era of industrial economy, capital has become the most important production factor in the production process. Capital determines everything. Capital can employ labor, purchase machinery and equipment and produce raw materials to organize production.

However, with the development of the economy and the increase of social wealth, the capital in the society is more and more abundant, and the investment capital relative to the actual consumption demand is no longer scarce.

Under the new economic conditions, the most important production factors in the production process are knowledge, that is, creative knowledge, and those who possess these knowledge and innovative abilities.

Peter Drucker said: "in this society, knowledge is the primary resource of individuals and even the whole economy.

Land, labor and capital -- the traditional production factors listed by economists have not disappeared, but they are secondary.

Under the new economic conditions, the new mode of production and the new law of economic operation will bring about two major challenges to the vast majority of the industrialized enterprises in the world (which is called the old ones). The first challenge is that these old enterprises must pform the current mode of production of the enterprises, and must pform the new production mode of the new world as soon as possible, pform large scale mechanized production into intelligent production, and mass production and standardized production into small batch production.

The second challenge is to adjust the operation mode of production and operation in order to adapt to the new economic operation rules under the condition of accelerating environmental changes.

This is a very difficult matter, but it is a difficult problem for these old enterprises to survive and develop.

In the new economic era or in the era of knowledge economy, more and more intellectual enterprises will be spawned.

So, what is intelligence enterprise?

At present, a popular argument is that intellectual enterprises, or knowledge enterprises, refer to micro economic organizations that mainly rely on the input and development of intellectual resources and acquire economic benefits through production, dissemination and application of knowledge.

The knowledge here refers specifically to "modern knowledge and intelligence that can be used as resources in the production process and play a major role in the production process".

According to the current situation of the coexistence of knowledge economy and industrial economy in the world, we can divide intellectual enterprises into three types:

One is a new manufacturing enterprise.

These enterprises are knowledge-based enterprises in the manufacturing field that come into the era of knowledge economy, including high-tech enterprises such as computer hardware and software, communications, microelectronics, aerospace and so on.

One is a knowledge-based traditional manufacturing enterprise.

Such enterprises already existed in the era of agricultural economy or industrial economy, but after the evolution process of knowledge, production management of enterprises has become flexible, and the technological and knowledge components of products and their production processes have been greatly improved, and knowledge occupies a dominant position in the wealth creation of enterprises.

One is a newly emerging intermediary service oriented knowledge enterprise.

This kind of enterprise is mainly through collecting information, accumulating knowledge, creating knowledge and using the knowledge to provide professional services for customers.

China made: domestic and international market environment calls for knowledge.

Among the three types of intellectual enterprises, the traditional manufacturing enterprises that are knowledgeable are of great significance to China.

China has a large number of labor-intensive traditional processing and manufacturing enterprises. Their existence and development are in line with China's actual national conditions and play an important role in enriching people's material life, solving employment and stabilizing the society and exchanging foreign exchange.

In the fields of textile, clothing, footwear, food, toys, furniture, hardware, and simple mechanical tools, China's position in the global market is very important.

However, these traditional manufacturing enterprises rely on relatively low labor cost and raw material cost in the production process, and external competition relies on the price advantage brought by low cost. They rely on mass production, earn small profits and quick turnover to earn little additional labor costs.

Bo Xilai, Minister of Commerce of the State Council, has made such a figurative analogy to resolve the EU's prejudice against Chinese textiles: "China can only import 800 million airshirts to import 1 Airbus A380."

With the development of the times, these traditional manufacturing enterprises are becoming more and more difficult.

Rising prices of raw materials, increasing wages of workers, appreciation of the renminbi, anti dumping in foreign markets, and pfer of orders from foreign buyers have made enterprises more and more stressed, and many of them have gone bankrupt or changed careers.

And this year, "made in China" is frequently exposed to quality problems.

Toxic pet food, two glycerol toothpaste, unsafe toys, unqualified tires, defective aquatic products and so on, each incident is closely related to the personal safety of consumers.

These negative reports have caused a great stir in the world. In fact, they have caused a serious blow to the relevant Chinese manufacturers, and to some extent, triggered a crisis of confidence in "made in China".

Although these negative reports abroad often contain elements of malicious speculation, we should also be soberly aware that most of our export products are low-end processing and manufacturing products, without brands or technological content, but relying on low price and large volume wins.

Because of the low export commodity prices and the small profits of export enterprises, the quality problems of some products will be exposed continuously in low price and large quantity of export commodities.

What should I do?

Both theory and practice prove this truth: Chinese traditional manufacturing industry must speed up pformation to modern manufacturing industry, and must upgrade to knowledge innovation.

Made in China, we must turn to China to create.

Chinese shoes: how to continue to measure the world

In recent years, the labor-intensive Chinese footwear industry has become the focus of controversy in "made in China".

The development of China's footwear industry can be described by "advancing by leaps and bounds".

According to statistics, in 1985, China produced 1 billion 600 million pairs of shoes annually, reaching 5 billion 700 million pairs in 1995 after 10 years, and 9 billion pairs in 2006 after 20 years.

The average annual growth rate of China's footwear industry is 23%, much higher than the growth rate of China's GDP.

Chinese shoes account for 60% of the world's total shoe making, and are the world's largest footwear manufacturing base.

China is also the second largest footwear consumer market in the world, accounting for 22% of the world's total consumption, second only to the United States.

China is also the world's largest exporter of footwear, and footwear exports account for more than 53% of the world's total exports.

But shoemaking industry is labor intensive industry after all.

Since 1980s, under the comparative advantage of low wages in developing countries, the global leather production capacity has been pferred to developing countries. China has thus become the largest producer of footwear in the world.

However, with the continuous and rapid development of China's economy, labor costs have begun to increase.

Since 2004, the "shortage of migrant workers" has occurred frequently in the eastern coastal areas of China. In fact, it reflects that the psychological compensation expectation of the labor force has begun to rise.

This situation is bound to continue to develop, so China's future development prospects of shoemaking industry based on low labor costs will be limited. The capacity of shoemaking industry may continue to shift to lower labor cost areas such as India, Pakistan, Thailand and Vietnam all over the world.

The world footwear industry center will shift. Under the situation of "cross rod", what will China's footwear industry support to follow up development?

In fact, in this respect, we should learn to learn Italy.

As early as the middle ages, processing leather and shoes was already a traditional craft in Italy.

The footwear industry in Italy began to industrialisation in the 50s of last century. Because of its extraordinary creativity and imagination, excellent raw materials, superb technology and special taste, Italy shoes are full of vitality and are sold in the world.

Since 2000, the export of Italy's footwear industry has been blocked by the impact of cheap leather shoes such as China and Vietnam. It has been very depressed for a while. A large number of shoe enterprises have gone bankrupt. But after a painful decision, they decided to rely on the strategy of brand and innovation competition with China and Vietnam, and stick to the middle and high-end line.

According to the website of Italy Footwear Manufacturers Association (ANCI), in 2006, the footwear industry in Italy produced 244 million pairs of shoes, down 2.5% from last year, but its output value reached 7 billion 199 million euros, up 3.2% from the same period last year.

It is widely believed that the footwear industry in Italy has passed the most severe time and is ushering in a clear recovery period.

Nowadays, although Italy has no advantage in the number of shoemaking, Italy's shoe making technology and Italy's shoe brand are still synonymous with high-end shoes.

The historical experience of the world shoe industry pfer shows that