Socks market in China in 2007, both the domestic market or foreign markets, are faced with greater pressure. Domestic context, in the past year, China socks was the phenomenon of growing polarization, the main manifestations are: the domestic cotton socks before the market has experienced three years of rapid development, the whole, though steadily, but the situation has begun to flatten; In contrast, stockings market has maintained rapid growth momentum, there is gratifying sales of the state.
The OEM market in foreign trade: First, foreign exchange rates, record highs, and second, the export tax rebate from the original 17% down to 11%, coupled with the prices of raw materials such as cotton yarn, socks, foreign trade export business is moving from the hot summer into autumn .
Here's a few hot issues in China Socks described separately:
Calls for a high degree of homogeneity of product innovation
A high degree of homogeneity of products, making most of the manufacturers can not brand competition to achieve rapid increases in sales, resulting in a price war is still the principal means of market competition. In 2007 the overall market rose cotton socks, cotton socks up in the rapidly growing market, due to enter the brand soared, leading to competitive imbalance.
How to innovate and create differentiated products to compete to become the focus of socks.
In 2007, Zhejiang Shenli Knitting Co., Ltd developed the "Milan Spring" Variety socks items listed, there is no identical pairs, but is not the same socks alone product, a set of nine single-loading can only socks 36 different mix.
Fashion socks, socks in China in 2007 to become the biggest bright spot in the market, the domestic production of several fashion socks based enterprises and sales to continue rising. This also shows, in a highly homogeneous market, product differentiation is an important breakthrough breakthrough enterprise; the other hand, the consumer's needs are changing, socks, hot spots of consumption has grown from the initial warmth, comfort , the brand transferred to the fashion, and with the season, with up clothes.
Three bases are different from the competitive situation
At present, China's production base of socks mainly concentrated in Zhejiang (Yiwu, Zhuji, Henin-Hardenne), Guangdong, South China Sea and Jilin Liaoyuan three places.
From the current situation shows that Zhejiang Yiwu is still China's largest production and sales base in socks. Particularly in the domestic context, focusing on brand building, focusing on marketing and sales expansion, with "wave-sha," "Mona," "Zhen Han" first-line brands such as socks, represented by enterprise group, and always maintained a more than 60% of the domestic market share .
Driven to "Dan Jiya", "Love Yue", "Lai" and others as representatives of the Zhuji socks enterprise group, continues to lead the export advantage. Today Zhuji's Socks enterprises, but also begun to domestic restructuring, but because of the long-term trade sample processing mode of production, thus affecting the Zhuji Socks enterprises to expand the domestic market way of thinking.
In recent years, Jilin Liaoyuan the importance of local government with the support, to develop rapidly, gradually become "China's cotton socks of the town." However, upgrading product quality, brand building, marketing and areas requiring further strengthened, there are still certain problems.
Guangdong, South China Sea Socks outreach efforts in the domestic market is not enough, although there are some brands sold in the market, but many have the technical superiority and product development companies in Guangdong will remain Yiwu Socks Socks processing enterprises.
A high degree of market competition in China Socks homogenization is mainly reflected in:
Product a high degree of homogeneity, not cotton socks that stockings, Which out of the "bamboo carbon fiber", "soybean fiber," the next day, the same products will appear in front of consumers.
Sales channels homogenization. Socks for the wholesale distribution industry, general agent system, one agent agent a few well-known brand, and even more than a dozen brands is widespread, resulting in sales are extremely fragmented.
Brand building of a high degree of homogeneity. Socks brand competition in the domestic market, mainly through the following phases:
The first stage: the initial competition stage of the brand. From 2002 to 2004, and many socks enterprises to "treasure Lady socks" for example, to star endorsement of the way brand competition;
Phase II: The investment channel will be as a primary means of competition. From 2004 to 2006, the same little-known "Zhenhan socks," to star endorsement + channels of investment planning for the core movement achieved an unprecedented success. Then the "Zhenhan socks" for example, there are many peer companies to follow.
Phase III: the advertising phase of brand competition. In 2006, the past few years has been focusing on foreign trade, "Mona," Socks to become the products of the Beijing 2008 Olympic Games as an opportunity to sponsor high-profile return to the domestic market, and China Central Television and other mainstream media advertising in an attempt to become China's new socks leading brand, as the final outcome, is also dependent on the market to speak.
Socks channel construction companies almost all the biggest Achilles heel.
I visited the socks in the enterprises, almost all of the following problems:
The lack of marketing team
99% of the socks business marketing initiative rests in the hands of agents. Do not set up marketing team targeted the management of the distributors, although the shop-point nets everywhere, but the low rate of products in the market to meet sales still can not grow. Plant economies of scale can not be reflected.
Neglect of market development
Products out to market, a place on the shelves of retail outlet, all the sales is complete. Totally dependent on the wholesale market logistics, flow, radiation, low-cost advantage, playing is the price war.
Both opportunities and challenges in 2008
In 2008, the fierce market, and what will occur again hot socks do?
To sum up, quietly, China has come out of socks with high margin, high-growth period, ushered in a highly competitive era of little profit, the future Chinese socks new market a "shuffle" Time has come, and "wash card "twin sister" market segmentation "will also be accompanied over the region. In 2008, China's market will surely be Haoxiliantai socks, opportunities and challenges.
Coming era of competition in the market segments. The domestic market with the new one "reshuffle" from brand and market segmentation is not only confined to species, grades, and the region is further broken down, but also in style and consumption of a product is subdivided into groups characterized by the depth of fine points. Mainly reflected the brand in the horizontal segment in the market, that is the same species, or the same grade of product layer through the "product style" and "consumer group" in the horizontal subdivided. The market is equalizing, accounting positions in various markets will be increasingly focused on the number of brands.
Can be seen that the focus of a new round of competition in segments of "culture", "innovation", and "R & D", the ultimate goal is to "sales" and "market share", "difference" of the sword during this period of exceptionally sharp, lack of scientific R & D inputs and the market herd behavior, in this market opportunities and challenges will be very dangerous.
Export-oriented brand to enter the domestic market competition will intensify further. 2008 export-oriented enterprises to enter the domestic market will significantly accelerate the pace.
In view of the land, the rising cost of human resources; raw materials, stubbornly high raw material prices; yuan appreciation pressure on more and more difficult to digest; trade processing is an increasingly transparent; international competition and other reasons, the export of conventional products are increasingly unprofitable, Canada lower export tax rebate on the concerns of foreign trade and processing enterprises need to find new profit growth point, so have targeted the domestic market.
Competition in the market upgrade, more systematic. Socks for China is not one single success can win the competition in the market, it can be based. The design, development, production, marketing, management, promotion and other links, including human, financial, material, intangible assets and other fields, will likely become the focus of rival attacks. Market competition, forcing companies to face a systematic operation and management, have a chance to win in the market competition. This is a test and an Socks businesses mature, we must face and through the process.