28.01.2015 14924
In the face of currency fluctuations, reducing business margins, and a drop in purchasing activity, many Russian entrepreneurs find themselves on the Asian continent in search of new suppliers. As if having predicted such interest, Chinese suppliers set about building a made in China brand, forming large-scale shoe clusters and receiving support at the government level. What is happening in China's domestic shoe market and will the country's exports continue to grow?
National interest
According to Euromonitor, the average income of China's population continues to rise, and with it consumer demand for footwear. According to Euromonitor forecasts, the country's footwear market will maintain positive dynamics in the next few years, but the growth rate will not be so impressive. Last year the growth was 320 billion yuan or about 52 billion US dollars. In 2012, shoe consumption in the medium and upper-average segment began to grow, but average figure the country still remains low - only 1.11 pairs.
Footwear industry in China (including the first quarter of 2014)
|
|
Price volume |
Number of pairs |
Average check |
||
|
Turnover (millions of US$) |
Turnover (million pairs) | ||||
|
production |
|
|
|
||
|
Consumption |
|
|
|
||
Men's and women's shoe consumption patterns are different from each other. Men in China tend to attach higher value model designs, giving preference to the classics. Women pay more attention to the compliance of a particular model with global trends. It is logical that women are the main consumers of shoes in the country.
According to a survey conducted by the Union of Hong Kong Trade Development, nearly 84.9% of respondents have purchased at least two pairs of leather shoes in the past 12 months. The average expenditure of respondents for each pair of leather shoes was 1075 yuan. Almost 80% of respondents visit shopping centers and department stores at least once a month, mainly on weekends and holidays.
The market for plastic shoes is growing at an equally rapid pace: according to information from the website ask.com, 527 shoe factories in China produce shoes made from synthetic materials.
The main consumers of casual and sport footwear are young people aged 18 - 30 years, students and office workers. They are quite demanding not only about quality, but also about the brand image, as well as the individuality of the model. Among all the products of sports brands, shoes are the most important from the point of view of building a brand and distinguishing it from competitors. IN recent years In addition to the market leaders - Nike, Adidas and Li Ning - other local companies, such as 361, Anta, Toread, are also increasing their momentum.
Internal competition
According to Su Chayung, President of the China Leather Industry Association today, “the main problems of the industry are rising labor costs, labor shortages in some, especially coastal areas, and fairly high competition from other Asian manufacturers.”
To optimize costs and increase profits, many companies are modernizing production and changing management systems. Some large companies have moved their factories from coastal provinces to the central regions of the country, where labor is cheaper. “The leather and footwear industry in China is at the beginning of a restructuring phase. The entire modernization process will take one to two years and will lead to the closure of small enterprises that cannot meet high environmental standards,” says Su Chayung. “The industry plays a huge role in the development of the national economy, but many enterprises have environmental problems that need to be addressed.”
Currently, there are four main clusters of the footwear industry in the country. The first is located in the south of the country in Guangdong province with production centers in Guangzhou and Dongguan. Factories producing high-price shoes are mainly concentrated here. Zheiyang Province, mainly in the cities of Wenzhou and Taizhou, is home to companies producing mid- and low-price footwear. Many of them focus on producing only men's models. In the west of the country, in the cities of Chengdu and Chongqing, footwear industry enterprises produce female models middle and low price segment. The fourth cluster is located around the cities of Quanzhou and Jinjiang, local factories are focused on producing sports shoes.
Competition exists not only among local manufacturers; companies from the USA and European countries, such as Italy and Spain - they dominate the high price segment. Products from joint ventures located in Taiwan and Hong Kong account for the lion's share of mid-price footwear. However, it is in this segment that Chinese manufacturers have managed to strengthen their presence in recent years. But, as before, most local companies compete with each other primarily in the market for cheap shoes. Increased competition has led to further segmentation of the market. According to analysts, such processes will lead to an improvement in product quality and a strengthening of the image component of brands.
Export policy
China is the world's largest shoe manufacturer and exporter. The country shows a significant positive trade balance in the footwear market. In 2013, Chinese shoe production reached a new record high of 14.2 billion pairs. Three quarters of this, worth US$48.1 billion, was exported, up 8.5% from the previous year. Over the past four years, however, annual export growth has declined slightly but steadily.
According to a report by the National Union of Leather and Shoe Workers of China, leading light industry enterprises in Guangzhou province recorded an increase in their revenues last year. Last 2013, exports amounted to 3.41 billion pairs of shoes worth 13.92 billion US dollars. At the same time, the total number of exported shoes decreased by 5.9% compared to the previous year, but the total value of exported goods increased by 5.2%.
Anta Group's sales increased by 28.3% in the first half of 2014, Qiaodan reported an increase of more than 10%, thanks to contracts concluded with several global brands for sewing batches of shoes. Footwear sales in China increased in value by 9.6% in the first half of 2014, reaching more than US$50 billion. According to the same source, footwear exports totaled 5.3 billion pairs during the six-month period, up about 0.2%, up 12.2% year-on-year to reach $24.5 billion. 438 million pairs were leather uppers, with a value of US$59 billion (up 15% in volume and 19% in value).
In 2013, footwear exports from Guangdong to the US, Africa, Latin America and the EU declined to varying degrees. These 5 markets account for 76.5 percent of the province's total footwear exports. However, recently there has been a decrease in exports of Chinese shoes to these regions, while exports to countries in Africa, ASEAN and the Middle East have simultaneously increased. Wholesale supplies of footwear from China to Russia are characterized by stable growth.
Main trading partners
|
|
Price volume |
Number of pairs |
Average check |
||
|
Turnover (millions of US$) |
Turnover (million pairs) | ||||
|
production |
|
|
|
||
|
Consumption |
|
|
|
||
The total turnover of Chinese-Russian trade in January-October 2014 increased by 7.1% compared to the first ten months of 2013 and amounted to $78.9 billion. The growth rate of Russian-Chinese trade in January-October exceeded the growth rate of China's overall foreign trade turnover, which grew by 3.8% in annual terms during this period. Chinese exports to Russia grew in the first ten months of 2014 by 10.1% in annual terms, reaching $44.3 billion; imports of Russian goods to China increased by 3.4%, to $34.6 billion.
The most popular shoes supplied to Russia from China are rubber and plastic shoes(most often these materials are used in soles) - this type accounts for more than 60% of total exports. Russian buyers also often order Chinese textile (or rag) shoes. The top three in supplies from China is closed by leather shoes, whose share in exports increases annually.
In the context of currency fluctuations, reducing business margins, and a drop in purchasing activity, many Russian entrepreneurs, in search of new suppliers, find themselves in Asia...
Popular brands have been ordering shoes from China for several years now. World practice developed due to the conditions that were created in the Celestial Empire for the development of production. As a result, the cost of one pair of shoes delivered from China is cheaper own production in the homeland of the brand. This situation could not but affect the development of trade - more and more companies are seeking to buy shoes from China in bulk.
Why is it worth ordering shoes from China wholesale from our company?
It is not difficult to order shoes wholesale from China. There are a lot of companies offering intermediary services in the delivery of shoes from the Middle Kingdom. The Taobao.ru.com company stands out favorably against the general background. We offer our clients a full range of services:
- access to catalogs of Taobao shoe sellers (we do not impose suppliers with whom we have a contract on our clients);
- a proven system for purchasing goods (our company has been working with both wholesale and retail customers for 10 years);
- transparent payment and delivery system (the buyer always knows what he is paying for and, thanks to the three-step payment system, has the opportunity not to pay the entire cost of the order at once);
- 10 years of experience working with Chinese suppliers.
Our experience allows us to avoid the mistakes of beginners and guarantee our clients the maximum result: high-quality inexpensive shoes from China.
We have perfected the ordering and delivery algorithm so that buying inexpensive shoes wholesale from China is no more difficult than making a purchase in an online store.
Our website is not an online store, but an official intermediary of a Chinese online supermarket. The entire catalog of our website is a copy of Chinese Taobao, translated into Russian for the convenience of our customers.
What products do we offer?
China is a leader in the production of branded footwear; designers and technologists carefully monitor trends and respond to every request on the market instantly, including the creation of replicas of famous brands. In pursuit of buyers, factories do not skimp on quality, but create goods for each buyer.
Shoe manufacturers divide their quality into several categories:
The latter is a sign highest quality. It is shoes with this marking that we offer our wholesale customers to choose. Despite the high quality of workmanship and materials, AAA-class shoes will cost the buyer inexpensively.
Our company helps customers choose shoes according to their stated requirements:
- product material;
- seasonality;
- men's/women's, adult/children's
Buying high-quality shoes in China is a difficult task, but thanks to well-developed multi-stage order verification schemes, it is possible.
Where to buy shoes from China wholesale?
A wholesale buyer who decides to place an order in China is faced with a number of questions. Not only the purchase price, but also the final result, what the customer receives in the end, that is, profit, depends on the correct solution of each issue.
For Russian entrepreneurs there are great shopping opportunities in China:
|
|
|
|
|
|
|
|
|
Anyone can purchase inexpensive but high-quality shoes from China with our company. The buyer only needs to place the desired product in the cart in the required quantity and place an order. All you have to do is pay for delivery and after some time receive the goods in your city.
If you have any questions, we are ready to answer them by email or by phone indicated on the website.
What is the right business? This is when an entrepreneur offers those goods to consumers that are equally beneficial for him and necessary for customers. And in the pursuit of profit, he does not forget that not only revenue is important, but also the reputation that he earns.
The most popular product at all times has been, is and will be women's shoes. Even 10 years ago women's shoes from China carried in huge bags by shuttles. At the same time, such cheap Chinese shoes were of dubious quality and were made by unscrupulous artisans. Today everything has changed. The Celestial Empire has become a leader in the production of any goods: shoes, clothing, household appliances, children's products and much more. The quality of manufactured products in China has soared to unprecedented heights. It is not for nothing that many global brands today locate their factories and production facilities in China. And one of the confirmations of this fact is the wholesale Chinese women's shoes offered by the Kabluchini online store.
Chinese factory shoes: advantages
Our shoes wholesale from China meets all international standards. On the Kabluccini website you will find only high-quality, durable and stylish shoes. Long gone are the days when Chinese women's shoes were made on the knees. Nowadays, there are many companies that value their reputation and produce exclusively high-quality Chinese shoes, which anyone can buy cheaply in bulk.
How to buy Chinese shoes wholesale?
Shoes can be purchased wholesale from a manufacturer from China in different ways. Some entrepreneurs try to work with factories directly, but this method has a number of disadvantages.
- The first disadvantage is that in order to buy shoes from China, you need to ship them across the border. This means that you will have to take care of completing all the necessary documents and pay the fee yourself. Perhaps as a result you will be able to translate factory shoes from China, but how much nerves and time will be spent...
- The second drawback is the increase in prices for shoes in bulk if you buy them from resellers. If you are interested in factory-made China, today many retailers offer large and small wholesale of women's shoes. In this case, you do not have to worry about customs clearance and delivery, but all wholesalers increase prices for products. Accordingly, you will receive less profit.
The most convenient and proven way to buy Chinese shoes is to order them from a supplier who delivers them directly from China. For example, buy shoes from China in the Kabluchini online store. We offer high-quality Chinese shoes from the manufacturer with delivery by courier or mail throughout Moscow and the Moscow region, as well as special services throughout Russia and the CIS countries (Ukraine, Belarus, Moldova, Azerbaijan, Uzbekistan, Armenia).
Buying shoes wholesale made in China with us, the entrepreneur will avoid customs hassles and receive good shoes with delivery at the best prices. The Kabluchini online store guarantees high quality products and offers a huge range of models. Here you will find branded leather and suede shoes for women for any season and for any occasion, be it daily trips to work, attending special events or walks in the park with the whole family.
Chinese shoes from "Kabluchini"
Any entrepreneur just starting his own business, or a businessman who has a well-promoted store, first of all looks for a shoe supplier who will offer high-quality and inexpensive models. At the same time, it is equally important that branded shoes meet fashion trends and the customers liked it. If you are interested in just such Chinese shoes, you can order both a small and a large batch in our online store.
We are a reliable and trusted supplier shoes from China which sells good quality shoes.
By cooperating with us, you can order any number of shoes from us at wholesale prices, starting from 6 pairs. We also work to order, producing beautiful and fashionable shoes according to your sketches and creating models under your brand (this cooperation option is valid for orders of 620 pairs or more).
Take a look at the catalog of our online store! On the pages of the site you will find huge selection shoes by affordable prices. We invite everyone to cooperate. It could be the owner large store shoes, a budding businessman opening a market outlet, the organizer of a joint venture, or several girlfriends who decided to order fashionable shoes cheap with delivery throughout Moscow and the Moscow region. For you – the best price, the most best conditions shopping and delivery, and of course the most stylish and quality shoes for all occasions!
Expanding your business and creating your own collections of clothing, shoes, and accessories can be done much more economically by paying attention to such an area as OEM production in China. Recently, business representatives from the CIS countries and Russia have begun to pay more and more attention to this format. The Moneymaker Factory made step by step plan cooperation with Chinese factories and factories, and perhaps you have the option to significantly expand your zone of influence!
Today, more than 4,000 factories are successfully operating in China different directions in 350 industrial areas.
All plants and factories are geographically located in industrial regions in Primorye and the East.
The most important thing is that at these enterprises the cost of labor is several times lower than in America and Europe, so many brands decide to sew clothes, accessories and other products here.
The Moneymaker Factory decided to examine this issue in detail and present the reader interested in long-term cooperation with Chinese factories in OEM format, a step-by-step algorithm, plus, discover some interesting and important details!
OEM production
So, OEM (Original Equipment Manufacturer) production is a system of relationships that involves the execution/creation of a particular product (in our case, clothing and accessories) according to a special order.
As a result, the resulting product has the client’s brand name, that is, absolutely any company can order the production of a branded product identical in quality and all basic characteristics, reducing financial investments.
OEM Benefits
Is it worth paying attention to this format at all? Definitely, as there are a number of advantages!
- Production, as already noted, allows the creation of goods under a certain brand, and this point cannot but be unimportant in the context of promoting one’s goods on the market.
- There is always the possibility of replacing the contractor and starting the production of clothing and accessories at another factory, and all this while maintaining the name of your own trademark.
- OEM production greatly shortens mass production times.
- There are no restrictions in terms of the production of this or that product, plus, it does not matter where the customer lives geographically.
- Low labor costs combined with highly developed infrastructure.
- There is no need to increase the cost of organizing tailoring.
- The ability to concentrate 100% on selling and promoting your products.
If you are firmly confident in your decision, then all the necessary steps will be described step by step.
Step 1. Selecting a manufacturer (factory/plant)
This point cannot be underestimated! Sometimes difficulties begin at the search stage. Attention! You can find a manufacturer on Alibaba.com or comfortably use the Russian-language project chinafactory.ru, in which all factories are divided into categories, which simplifies the process significantly.
After several applicants have been selected, it is definitely worth conducting an analysis of the validity of the choice! We have compiled a simple checklist for you that will help in this matter (for each question in the table, try to find the answer, and the picture will become clear):
| General information about the plant/factory | Technical assessment of the enterprise | Financial assessment of potential |
| Availability of legal registration documents in full. | Quality and level of equipment and technology. | Basic financial indicators. |
| Scope of activity. | The presence of certificates, both Chinese and international format. | Availability of the results of the latest audit. |
| Experience of cooperation with foreign companies, especially from Russia and CIS countries. | Compliance of the equipment used with quality standards. | Occupied market share. |
| The main competitors in their market segment. | Personnel qualification level. | Organizational production structure. |
| Loading and depreciation of equipment. | Financial indicators and general condition. |
Based on the information received, it is already possible to draw conclusions. Once the choice is made, you can contact the factory/factory representatives directly. Of course, for these purposes it is best to use the services of a translator. If all is well, you can move on!
Step 2. Discuss branding details
At this step, you should discuss with maximum scrupulousness all the nuances of the design, logo, and also agree on the shipping brand, texts that will be written on labels or packaging, and so on.
This point is so important, since subsequently it will depend on it whether the end consumer will like the product, moreover, whether problems may arise at customs.
Step 3 - Discussion of volumes. Minimum quantity
Since we are talking about an order at a factory, it is therefore quite natural that there is a certain minimum value, which is different for each factory and depends on a number of conditions. It is impossible to predict what number of units is considered starting - everything is discussed individually with the supplier, but there are a number of general trends that will be useful and interesting for you to get acquainted with!
There is an unwritten rule - in factories the minimum order is 200 units (1 color and 1 model). Sometimes it is possible to agree on smaller volumes, but in such a situation small orders will be “made” from materials and accessories that are already available from suppliers or from leftovers, which is not suitable for every situation.
As for adding your own label, there are also a number of nuances. There is a restriction on the production of special accessories and packaging products under an individual brand. For example, cardboard hang tags will be produced in any quantity, but starting from the figure of 5,000 units.
Step 4 - placing an order
You must send your order to the selected Chinese manufacturer, which will list in as much detail as possible the nomenclature (list) of the ordered goods. We recommend that you describe each item in as much detail as possible, describe the quality and quantity of each type of product, attach sketches, photographs, pictures, descriptions, and requirements for the materials used.
This is done in order to obtain the most correct quote for the final cost of the goods from the Chinese factory, as well as the so-called packing list (international term Packing List).
REFERENCE: What is Packing List? This is a document in which the manufacturer indicates the dimensions of the packaging container, weight, volume, net, gross, as well as article numbers, attaches photographs, and so on, that is, a complete set of data about the product being produced is generated for the correct calculation of logistics and customs duties.
Once you receive a packing list from the manufacturer, you will see which type of transportation is best to use. At this same stage, we recommend requesting an export HS Code from your Chinese partners.
Step 5. Make a list of expenses
Since the issue is serious, it is better at the initial stage, even before concluding an agreement, to find out how much, at least approximately, you will spend on customs and delivery. To do this, having received a packing list and HS Code from the manufacturer, immediately send them to the transport company and broker so that they can calculate the cost of services of this nature. After their answer, you will have a clearer “picture” in your head regarding the economics of the project.
Step 6. Receive product samples
At step 5, it is best to request samples of the garments and accessories being sewn to ensure that the product will be of the highest quality. By the way, this is relevant when you have several candidates in mind for cooperation.
Typically, sending samples will cost a certain amount, but in the end you can avoid the risk of receiving a defective batch of goods. Upon receipt of the samples, if you are satisfied with everything, you can begin drawing up the agreement/contract.
Step 7. Conclusion of a contract
This is one of the most important and fateful stages. We strongly recommend that you never make an advance payment until you have your sample contract signed by the plant/factory in your hands.
We also do not recommend concluding the so-called Proforma Invoice in the form of a small document without any specifics. Only a full-fledged contract with a written annex in the form of your specifications, drawn up by a professional lawyer. By the way, today most Chinese industries also work with English-language versions of contracts.
ADVICE: It is best to sign the received samples (see the previous paragraph) by the manufacturer, putting a stamp on them, plus add the inscription “Reference sample to Agreement No. ___ dated ___.”
Step 8. Prepayment and launch!
You need to remember that the Chinese will never work without advance payment, and this is their right. After the official conclusion of the contract, you, logically, need to make an advance payment or, as an option, a deposit.
Attention! At this stage, you can still make some adjustments to production, especially with regard to packaging containers, and also slightly change the packing list. This opportunity will no longer exist.
Pay special attention to the correctness of the indicated weight, since if it is indicated incorrectly, then at customs you may encounter such a nuisance as an administrative fine reaching up to 100% of the total customs value.
Step 9. Receive mass production sample
As a rule, ordinary factories in China ask the client for about a month to produce a batch. This also includes the time for printing stickers (stickers), packaging, inserts, and so on from an outsourcing printing house.
Now is the time to request a production sample that was created specifically as part of mass production. If there are any complaints about quality, and this sample is radically different from the first one, then you should urgently contact representatives of the factory and resolve this issue,
Step 10. QC Order
At the same time, all details are checked under a “microscope”:
- Packaging quality
- Box sizes
- Weight and so on
ADVICE: Be sure to record all stages of the check on film, calculate the number of places and make sure that, in addition to your cargo, nothing unnecessary is put in the container. This also applies to gifts from partners and even catalogs of goods, which our “friendly” customs can easily mistake for undeclared goods or even smuggling.
Thus, you can see that the process itself falls entirely on the shoulders of the factory, and the customer’s difficulties are mainly nerves, worries and great responsibility, plus constant control, because their own money is at stake. That is why we have also prepared the TOP 5 basic rules for OEM production that will help you avoid fatal mistakes in this area!
TOP 5 rules for working with factories
Sometimes the unexpected happens: it seems that all the conditions have been met, but problems still occur. Why? The fact is that the vast majority of OEM production facilities located in China are not able to fully defend their rights and freedoms, since all disputes in this area are resolved exclusively according to Chinese laws.
Of course, the legislative framework has been improved many times, but it has not become ideal, which is why it is so important to be extremely careful. Before you start looking for partners, familiarize yourself with a number of simple rules that will help you avoid losing money.
Resume
Thus, you have a turn-based strategy. By adhering to all points of the plan, you will be able to minimize risks and get an excellent opportunity to expand your zone of influence and increase conversion under your brand.
If you still have any questions, representatives of the Moneymaker Factory are ready to answer them at any time!
Currently, China is a confident leader in the production of consumer goods, including shoes. When buying shoes, even in expensive boutiques, consumers often purchase goods manufactured in China. It can be manufactured as branded popular brands, and unknown local manufacturers. Shoes vary greatly depending on the technical equipment of the manufacturer's factory, the quality of the materials used, and the availability of control over the products produced.
There is an opinion among consumers that all Chinese goods are of low quality. In fact, this is only half true. Cheap economy-class goods produced in small enterprises are of really low quality and have a very short service life. Most factories value their reputation and produce decent products.
Large Chinese shoe companies
Almost the entire world buys Chinese shoes, of which about 10 billion pairs are produced annually. Purchasing is a profitable business. Products produced in the Middle Kingdom are much cheaper than European ones. An effective infrastructure necessary to reduce the cost of manufactured goods has been created here.
Equipment and components for various types shoes, there are markets for raw materials. Next to large factories there are enterprises producing packaging and components. Many famous Spanish and Italian brands have moved their shoe production to Chinese territory.
There are also domestic factories in China that spend huge amounts of money on developing their own collections. Chinese designers do not stay away from European fashion; they attend leading shoe exhibitions and quickly respond to new products. As a rule, every new collection Chinese factory is an exact copy of famous European shoe manufacturers.
There are also enterprises that produce shoes according to customer designs. Valuing its business reputation, the factory will not produce the same model for other buyers. Typically, from the moment an order is received, finished products are produced within two months. The Chinese are trying to meet deadlines; the production cycle is scheduled for the whole year.
The minimum batch, the production of which can be ordered, is from three thousand pairs of shoes of the same type. The Chinese treat even those customers who place small orders with respect, because it is possible that next time they will increase the volume. If an order is accepted, it will not be moved up in the production schedule to benefit a major customer. The Chinese are very disciplined and efficient, production process they strictly adhere to the instructions.
Chinese shoe market
Among the many shoe companies, it is not easy for someone who decides to organize the supply of Chinese shoes to navigate. Reliable companies with extensive business connections in the Chinese footwear market and direct contacts with enterprises come to the rescue.
It should be noted that the footwear market in China has its own specific characteristics. The production of various product segments is distributed among the provinces of the country. So, in Sichuan province they produce women's shoes, and the city of Chengdu is the center of its production. More than a thousand shoe factories produce products for every taste, from the cheapest to branded ones.
Expensive men's shoes made of genuine leather are made in Guangdong province. Shoemakers in Zhejiang province are more focused on production men's shoes from artificial leather. Many sports shoe manufacturing enterprises are located in Fujian Province.
Those suppliers from Russia who prefer to purchase finished products can purchase them in bulk at specialized markets. They are located in large cities such as Beijing, Guangzhou, Urumqi. The quality of Chinese shoes is improving every year, and the price remains attractive.
