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The development of the leather dyeing industry helps the industry to transform and upgrade.
Release time:
2018-07-18
Summary: At first glance, Song Neili appears like a scholar, exuding elegance, wisdom, and a refined demeanor, with a sense of grandeur and nonchalance evident in his conversations.
Upon first meeting Song Neili, he presents himself as a scholar, exuding elegance, wisdom, and a refined demeanor that conveys a sense of grandeur and ease. As the general manager of Tianjin Shengda Ruitai Chemical Co., Ltd., he has transformed his leather chemical enterprise into the NO.1 producer of leather dyes in China. Today, "Tianjin Shengda Company" not only owns the "Shengda Dyes" brand but is also a supplier for several foreign leather dye brands. In the current market, which is not performing well, Song Neili elaborated on the current market development status and the future prospects of the enterprise, while also offering his views and suggestions.
First, Mr. Song analyzed the pressures the industry is facing this year from the external environment. He candidly admitted that the overall significant economic downturn this year has led to a lackluster industry development, with business closures becoming commonplace across various sectors. He cited examples such as the closure rate of European-style furniture and fur enterprises being around 40-50%, and the sheep leather clothing, bag leather, and shoe leather sectors being hindered by a weakening export trend to Russia and slow development, while major brands like Belle and Aokang have driven a more optimistic development trend for shoe upper leather enterprises.
Next, Mr. Song discussed the characteristics of surviving enterprises in the overall pessimistic industry environment. He summarized that these enterprises share three common traits of "two lacks and one possession": no high-interest loans, no bank loans, but have capital from original accumulation. However, he admitted that maintaining such enterprises is quite challenging. He likened his own enterprise to a "market warrior" tempered by wind and rain, possessing its own sales channels and original industry data, which forms the foundation for standing firm in the market wind.
As the saying goes: "Losers always find excuses for their failures, while successful people see the direction of success in failure." Mr. Song compared this year's situation to a "war without gunpowder," stating that the key to victory is to reveal the dagger—investment. "Be excited when others are fearful," he cited his investment in an 80 square meter booth at the Shanghai International Leather Exhibition as an example, emphasizing the importance of the investment philosophy of "daring to be the first."
If decisiveness and courage are the foundation for enterprises to win the "market defense battle," then the calmness and objectivity of entrepreneurs are fundamental for sustained profitability and development. Mr. Song interpreted the current market issues based on his rich industry experience and firsthand knowledge gained from field visits to various markets. He believes that, firstly, there are too many suppliers in the current market, and due to weak exports, the overcapacity issue of finished leather enterprises is severe, leading to "bad money driving out good." The market automatically filters out its lucky ones with an invisible hand. "Stick to technological innovation, use brands to resist counterfeit erosion," and "manufacturing should be as close as possible to markets like Guangdong and Fujian" are Mr. Song's advice for enterprises to choose their survival path in the broader environment. Additionally, Mr. Song mentioned price factors, believing that lowering prices is merely a short-term measure for cash recovery, and changing domestic consumers' perceptions of fur and leather is key to reversing the downturn. Finally, when discussing the relatively optimistic "blue ocean" market choices abroad, based on field visits, he believes that Pakistan, Africa, India, and Mongolia are potential market options for the future. However, these regions are limited by overall consumption, income, and data demand mismatches, which to some extent affect sales expectations. Furthermore, Mr. Song mentioned cooperation methods with South Korea and Taiwan, where the formation of a "processing-packaging" monopoly structure brings significant current profit margins to the company.
Subsequently, Mr. Song briefly discussed his understanding of the leather dye sub-industry. Firstly, he believes that leather dyes have often been mistakenly referred to as "dyes" in recent years, and domestic universities and research institutions have not offered more specialized courses in this sub-sector, leading to insufficient theoretical foundations and an inability to extend talent cultivation into "vertical" fields. He believes that the development of the leather dye industry should focus more on professional positioning, "meticulously cultivating," using specialized marketing to influence users' "differentiated" consumption choices, while also improving the convenience of choices, such as "sofa leather dyes, professional purchases within the Community."
Secondly, for enterprises to develop, it is crucial to seize the main high-profit products in the market, such as shoe upper leather, and closely collaborate with major upstream suppliers to find a path for development.
Thirdly, Mr. Song mentioned four key factors for running a business: quality, price, interpersonal communication (domestic and international), and after-sale service. These four aspects can help enterprises weather market difficulties. "Enterprises may close, but the industry will not," Mr. Song maintains an optimistic view of market fluctuations.
Fourth, he introduced management experiences such as "grid management" and strengthening control over downstream enterprises. He hopes that adopting these measures can actively alleviate external pressures such as environmental protection crackdowns and safety inspections. His confidence in his enterprise is reflected in the advantages gained in "funding," "technology," and "inventory." Mr. Song believes that his enterprise has developed to its current level thanks to a mature and stable corporate value system: wastewater treatment, safe production, employee welfare, and no tax evasion. "To run a business, one must first be a good person," he subtly revealed the calm temperament and charm of traditional Confucian merchants who are "neither arrogant nor indulgent" through his close ties with universities and associations, and the respect for business ethics by the management in the 1950s.
Finally, Mr. Song mentioned his optimistic expectations for the dye industry. He believes that compared to domestic and foreign markets, the challenges faced at different stages of economic development are different. He asserts that only by emphasizing manufacturing now can China catch up with Europe and the United States in brand building and technological innovation in the future. Dyes, as a rigid demand, will not be absent at any stage of economic development, and the country cannot easily abandon them. If the dye industry can develop into a direct sales industry to factories, freeing itself from the control of distributors, it can truly achieve independent branding. "Industrialized Taobao," Mr. Song hopes to leverage the advantages of Internet+ to vertically integrate industry resources while leading the development of both domestic and foreign trade, creating his own business empire.
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