September Nisshin: As a traditional and labor-intensive industry, the shoe leather sector has long been one of the key pillars of Wenzhou's economy. Over the past three decades, it has developed a relatively complete industrial support system and achieved notable growth in output value. The industry has maintained its competitive edge as China’s "Shoe Capital" and made strides toward sustainable development. But as the Wenzhou model continues to evolve, the question remains—how can the region achieve another leap forward? What new insights can the Wenzhou model bring to the global footwear industry? Transition Challenges: In today’s low-carbon economic landscape, the shoe leather industry faces significant challenges. Product quality is often subpar, with many companies struggling to differentiate themselves through innovation. Research and development capabilities are weak, and key parts of the supply chain remain vulnerable. While these industries generate economic returns, they also contribute heavily to environmental pollution. During times of financial crisis, the lack of strong R&D, branding, and international distribution channels makes the industry more susceptible to risks. Rising labor costs, slow talent development, and a shortage of multi-skilled professionals have further complicated the situation, creating a series of obstacles that hinder long-term growth. Transformation Strategies: To address these issues, the transformation and upgrading of the traditional industrial chain has become essential. Companies are encouraged to invest in technological innovation, accelerate digitalization, and focus on energy-efficient and eco-friendly projects. Brand building is also being promoted, with an emphasis on developing independent brands and innovating marketing strategies. Restructuring efforts are underway to strengthen product quality and drive overall industry upgrades. In terms of strategy, Wenzhou has taken steps to encourage enterprises to enhance R&D capabilities, optimize industrial structures, and improve product value. Companies are now more involved in setting national and international standards, adopting advanced foreign practices to elevate product quality, aesthetics, and competitiveness. At the same time, the industry is moving toward ecological development, focusing on energy-saving measures, clean production, and eliminating outdated, high-pollution technologies. Resource integration and industrial optimization are also central to the transformation. Increasing industry concentration and better organizing decentralized resources help reshape the product mix through brand development. This shift aims to move from quantity-driven growth to quality-based progress, boosting the brand influence of Wenzhou’s shoe industry. Outsourcing orders for branded shoe companies are being localized, strengthening the advantages of the industry cluster. Despite these efforts, many shoe leather companies in Wenzhou still operate at the OEM level, lacking full integration of production, supply, and sales. There is still significant room for growth in areas like procurement trade, brand promotion, product innovation, and trend platforms. However, for most companies, a successful transformation will require identifying the right opportunities and making strategic moves.