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9 major issues reveal the status quo of China's leather industry

Release time:2020-09-17 Source:Dongguan Oukai Leather Co., Ltd
   Since the development of China's leather industry, the market is unpredictable, consumer demand is changing day by day, and industry competition continues to rise. The resulting industry changes are also one after another.
   Integrate the leather industry development issues and present it to everyone in the most intuitive way: "9 Great Truths" reveal the current situation of China's leather industry, you will understand after reading it!
 
  Leather industry profits are thinner than blades
A few days ago, a report released by a research institution showed that the average wage in China’s manufacturing industry has surpassed that of major Latin American countries except Chile, and has reached about 70% of the level of certain Eurozone member states. This is a positive feedback of China’s economic development. It is also an intuitive manifestation of the substantial increase in manufacturing labor costs.

   It is understood that in the past ten years, my country’s labor costs have increased by 2.7 times. The financing costs of private enterprises have exceeded the bank’s benchmark interest rate by more than twice, and logistics costs have doubled in developed countries. Both labor, raw materials and business operating costs have risen sharply.
   Therefore, the cost issue has also become a problem for many small and medium enterprises. With the intensified industry competition in 2017, under the influence of the "price increase" and industry reshuffle trends, corporate profits have been cut again, even thinner than blades!
  Some companies laugh at themselves: "Telling a little story in the capital market instead of working hard for a lifetime"!

   "Three Big Mountains" and "Four Highs and Four Lows"
   In recent years, leather companies have generally encountered "three mountains", namely "the iceberg of the market, the mountain of financing, and the volcano of transformation".
 
In the development and growth of enterprises, leather companies are also facing the "four highs and four lows" problems: high labor costs, high financing costs, high taxes and fees, high institutional transaction costs; low product quality, low technical standards, and brand recognition Low and low corporate integrity have severely restricted the improvement of the competitiveness of China’s leather industry.
  
   I don’t want to innovate, dare not to innovate, and even innovation is not as good as “copying the new”
   I don’t want to innovate, dare not to innovate, and even innovation is not as good as “copying the new”
Without technological innovation, there will be no rise of leather companies. Chinese leather companies have long been immersed in the industry atmosphere of low-price competition and small profits but quick turnover. Many companies do not want to spend huge amounts of money, manpower and material resources to innovate, nor dare to innovate. Innovation is not as good as "copying the new", leading to serious homogeneity of industry products, resulting in a lack of innovation in China's leather industry, long-term stagnation at the level of low-end manufacturing, and stagnant international influence.

Nowadays, competition in the leather industry is intensifying. Innovation is the inevitable way for companies to survive. For leather companies to improve their competitiveness, they must first face the importance of innovation; secondly, they must be willing to invest, establish long-term development goals for the company, and prevent mutual plagiarism. Form a good innovative competition model in the industry.
  
   Cost reduction cannot be "just listen to the sound of stairs without seeing people coming down"
For the development of an enterprise, cost control is particularly important, especially for leather companies. Only by implementing cost-reducing actions can companies better "lighten the burden" for business operations. They cannot "just listen to the sound of the stairs without seeing people." Come down".
  
  The brand is the life card of the company!
   Brand building is an important part of expanding effective supply and promoting supply-side structural reform, and leather companies must attach great importance to it.
   At present, my country’s manufacturing brands have low market recognition and weak competitiveness. There are only 31 of the world’s top 500 brands and only 7 of the top 100 brands. In the leather industry, there are few leading listed companies and many small and medium-sized enterprises in the industry. This has always been an industry problem. Focusing on corporate brand building is a compulsory course for leather companies to strengthen themselves and go abroad.
  
   To be able to withstand loneliness and temptation
  It is a long and arduous process to achieve a brand. It is necessary to carry forward the entrepreneurial spirit with innovation, perseverance and responsibility as the main content, to withstand loneliness, to withstand temptation, to be down-to-earth and dedicated!
   To this end, leather companies must do the following two points: First, they must vigorously strengthen the construction of national technical standards, improve product recognition, popularity and reputation, and continue to create high-quality products to meet diverse and individual needs. Second, we must strengthen the building of integrity and lay a solid foundation for brand reputation. We must strengthen the rule of law and improve the level of market supervision.
  
   Imitation and inferior products have become a cancer affecting Chinese brands
  The unevenness of good and bad products in the leather industry is a problem that companies hate but are difficult to solve. Imitation of inferior products affects the reputation of the company and the development of the entire industry. Therefore, many companies currently attach great importance to product quality and strive to remove the cancer of counterfeit and inferior products.
  To combat imitations and inferior goods, leather companies must start from their own resolutely put an end to it, make counterfeiters and sellers pay a heavy price, restore consumers' confidence in "Made in China", and also help leather products enter the high-end application market.
  
   Reform cannot rely on slogans, innovation cannot rely on packaging!
   At present, competition in the leather market is fierce, and the industry is ready to upgrade and transform. It is urgent to enhance the competitiveness of the entire industry. However, it is not simple to break through the problem of industry development. For this, companies must deepen corporate reforms, based on corporate innovation, optimize corporate internal structure, and reduce unnecessary costs. Only in this way can leather companies achieve growth and help the industry upgrade.

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