Leveraging "Consumption Upgrading" Shoe Enterprises To Embark On A New Road To Spanformation And Upgrading

In this year's two sessions, a proposal by Zhang Jindong, chairman of Suning chairman, put the concept of "consumption upgrading" into the public's eye and said that "2017 will become the first year of China's consumption upgrading". Further to the recent "Sino US entrepreneurs summit", we stressed again the great opportunities brought about by "consumption upgrading", and also exposed Suning's international strategy. But for shoe companies, what is the meaning of "consumption upgrading"? Can the "consumer upgrading" point out a way for shoe companies in the stalls that need urgent spanformation and upgrading?

The changes brought about by "consumption upgrading"

First of all, we must first understand what is "consumption upgrading". The term "consumption upgrading" has now been agreed to become "the change of consumption structure brought about by economic development". Popularly speaking, the pursuit of consumer goods has also changed under the continuous improvement of living standards. According to the survey data of China's household financial Survey (CHFS) in 2015, the number of the middle class in China has reached 204 million and the total wealth of the middle class is US $28 trillion and 300 billion. According to McKinsey's 2016 Chinese consumer survey, Chinese consumers are more picky about where to spend their money, and the widespread fast market growth is no longer there. Consumers are beginning to increase spending on improving their quality of life and experience. Secondly, according to the 2017 China consumption upgrading report, the consumer demand of consumers is divided into three levels. From bottom to top, the consumer demand is basically a subsistence based consumption, a service consumption represented by "safety" and "entertainment", and a "realization" type with "recognition" and "respect" as the core. According to the statistics released by the National Bureau of statistics, in 2016, the added value of China's service industry was 384221 billion yuan, the proportion of the service industry in GDP has increased to 51.6%, 11.8 percentage points higher than that of the second industry, the contribution rate of service industry to the national economic growth is 58.2%, 20.8 percentage points higher than that of the second industry. The rapid development of service industry shows that Chinese consumers are now at the second level, and service has become an important criterion for consumers to choose.

How to spanform the shoe enterprises into "consumption upgrading"?

At present, many domestic shoe enterprises still rely on OEM as the main way of survival, which leads to the production of Maori run bottom, and only raw material costs occupy 40-50%. Raw materials and labor costs continue to rise, forcing shoe enterprises to upgrade and spanform. However, the high cost of spanformation is not acceptable to a single enterprise. Failure of one attempt may lead to increased liabilities. Therefore, if we can take advantage of the "consumption escalation" outlet, we can seize the consumer's pain points, so as to successfully achieve spanformation and upgrading. How to make consumers feel the improvement of the quality of life for their shoes? For those shoe companies that do not have a brand name, they need to provide products that can impress consumers. For consumers, the size of shoes is not allowed, and the problem of shoes being unfit has not been solved. Especially for online shopping shoes, the replacement rate is always high, largely due to the size problem. Therefore, how to get the foot size data of consumers is an important problem that shoe manufacturers need to solve urgently. At present, a number of shoe manufacturers have launched research on foot type data acquisition equipment. The double Chi enterprise of the president of Putian Footwear Association has worked with the Chinese Academy of Sciences to build virtual reality technology and shoe industry laboratory, and build foot scanner and VR foot measuring device. Through a simple test, a complete static foot data and dynamic gait analysis can be obtained and spanmitted to the "Chinese foot database" which is also established with the Chinese Academy of Sciences. AOKANG, a well-known shoe maker in Wenzhou, has also released its "C2M" high-end customization strategy to set up a "China foot data bank". Secondly, for most shoe companies, when consumers come to a store or shop to complete the purchase, they basically mean the end of the service. Unless there is a problem of quality or shoe size discomfort, consumers will no longer have contact with the store. Therefore, how to make their shoes stick to consumers and continue to provide services to consumers is another aspect that shoe companies need to consider. For this reason, from 2015, Lining Double speed, 361 degree, Anta XTEP and other enterprises are competing to launch. Smart shoes "At present, the service industry has accounted for 50% of GDP, and the proportion of the service industry will be higher and higher." explaining why more and more shoe companies are investing in the industry of intelligent shoes, Gu Wei Ming, general manager of the double smart general, thinks: "in the past, we sold shoes, which were generally picked up by consumers in the shops, so the end of buying them. Now we can choose the most suitable shoes for consumers according to your sports situation. For example, the consumers want to take part in the marathon and go outdoor travel. We can choose the most suitable footwear for consumers according to different sports needs according to the sports condition and frequency of the consumers, and combine them with the foot shape, foot pressure and gait of the consumers. So this is no longer a simple sale, it has evolved into a continuous service. For shoe companies, whether there is a chance to share this bonus is a very important piece of revenue in the future. In the product life cycle, whether we can establish effective connections with users is the key to whether enterprises can continue to serve customers and share the upgrading bonus of consumption. In fact, it is precisely for the shoe enterprises, how to provide continuous services is an important entry point in the spanformation and upgrading in the future.

In general, "consumption upgrading" is like a guiding light to illuminate the direction of the shoe industry in the spanformation vortex. It is hoped that shoe enterprises will succeed in this direction and make progress towards "China's wisdom making".

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