Yiwu Small And Medium Enterprises: Where Is The Economic Spring?

Under the combined influence of adverse factors such as price rise of raw materials, appreciation of RMB and increase of labor cost, knitting, lighters, glasses, hardware and other industries have been pushed to the critical point of survival. Some enterprises in Yiwu are small in scale, weak in R & D and design ability, and their competitiveness is declining.

Many small and medium business owners say they can only wait in the wait and see, waiting for the arrival of the economic spring.

But the industry believes that the grim situation of export stagnation will not stop soon.

If this situation will last for a long time, what is the economic spring of Yiwu's small and medium-sized enterprises?

data

Some industry slack season ahead of peak season is not prosperous.

This year, at the time of last year, they had four or five single exports, about $3 million a month. In the first half of this year, the volume of business declined by half. The amount of single orders was also greatly reduced. Sometimes, small businesses were also required to support the operation of small businesses through the small list. "Yiwu"

Mr. Li, a Yongkang operator who operates locks and farm implements in the International Trade City, said that his farm machinery and equipment company had a capacity of 6000 units per month, but only one thousand or two thousand units could be sold this year, plus the price of raw materials increased. Only one farm machinery and a monthly loss amounted to 4.5 million yuan. He said that if he went on like this, he would consider changing or stopping production.

At the beginning of this year, the tie industry went into the off-season ahead of schedule, coupled with the regular summer season.

In the face of difficulties, most business owners hope that the cooler weather will lead to consumption, but some "tie" and other tie companies have already posted a message on the Internet that they need to pfer equipment because of the company's pfer.

6~9 month should be the peak season for foreign trade in bicycles. But recently, it has been walking in the bicycle business area of the international trade city.

"Sales are a bit unusual this year. There is no sense of peak season. Sometimes there are no orders for days.

I thought the situation would be better in July and August, but now the situation is not optimistic.

Mr. Gong, who has been running bicycle business for many years in the International Trade City, is rather helpless about the current market. He said that with the decrease in foreign entry, the foreign trade order in August may be even less.

In addition, in the past year, the sales of fishing gear were booming, but this year, the traders of the international trade city generally reflected that: Although no specific statistics were made, the overall sales were not satisfactory, and the popularity of fishing gear was not strong enough.

Market sentiment index fell year on year

Reporters from the small commodity index center staff office learned that in July and August for most of the industry in Yiwu, the seasonal sales of off-season, export oriented trade in July, a number of industries into the off-season, handicrafts, watch glasses, hardware, bags and other industries sales volume has dropped, but this year, the overall weakness of popularity.

From the index of prosperity index released by the small commodities index, the reporters found textile, hardware, watch glasses, sports and entertainment products, handicrafts and other industries. The prosperity index since January this year has declined compared with the same period last year.

Hardware, for example, is also in June and July. This year's market sentiment index decreased by 38.44 and 46.72 compared with last year, of which the market confidence index and customer sentiment index become the main reason for affecting the prosperity index.

Declining profit margins

According to the report of Yiwu Economic Development Bureau, as most enterprises in Yiwu are at the bottom of the industrial value chain, the profits of most export enterprises such as garments, textiles, playthings, jewelry and other processing industries which have higher profit margins have been greatly reduced by rising prices of raw materials, export rebates, RMB appreciation, labor costs and other factors. For example, the profit margins of seamless underwear have been reduced by 10 percentage points, the profit margins of the jewelry industry have been reduced by about 13%, leather bags and bags have been seen differently, and the profit margins have dropped by 10%.

Analysis

Low cost, low price and low profit, adaptability and simple processing export are the core characteristics of the development of small and medium-sized enterprises in Yiwu. This development mode is a double-edged sword. If its advantages are magnified and brought into full play, if there is no advance plan for industrial upgrading and pformation, the core competitiveness and international bargaining power can be enhanced. Once the external economic environment which is dependent on this economic development mode changes greatly, its badness will be exposed.

After conducting nearly two months of field research in Yiwu, the investigation team of China's most executive corporate advisory body, Sun Yang Business Management Consulting Co. Ltd., believes that some SMEs in Yiwu need to face the following aspects.

"Grass-roots" sex management enterprises are less competitive.

Most of the enterprises in Yiwu belong to the "Grass-roots" management. What can be done immediately? What can be done immediately? They can be described as "wildfires can not burn out, spring breeze is blowing, and the East is not bright west". To a large extent, the industrial cluster belongs to the natural cluster with low technical complexity and horizontal division of labor, which has played a great role in the initial stage of the market, but it is difficult to expand.

According to statistics, there are more than 2.6 industrial enterprises in Yiwu, but there are only 1 enterprises whose output value exceeds 1 billion yuan. The industrial output value of Enterprises above Designated Size accounts for less than 40% of the total industrial output value of the city, while the industrial output value of Enterprises above Designated Size in Jiangyin County, Jiangsu Province, ranked first in China's top 100 counties, accounts for 78.7% of the total industrial output value.

Nearly 70% of Yiwu's industrial output comes from the small workshop of "pre shop and post factory". It belongs to extensive and quantitative development mode, and its competitiveness is weak. Eventually, it will lead to price matching among peers.

Too much utilitarian enterprise pays too much attention to profits.

The utilitarian nature of enterprises is too strong, too much attention to immediate interests, and what they can do when they see what is good selling, they often rush together or disperse in a rush. Small and medium-sized enterprises in Yiwu pursue more short-term behavior under the fame and profit, impetuous mentality, unwilling to invest resources in the soft construction of enterprises, pay no attention to personnel training, management improvement, brand building and system integration.

Many small and medium sized enterprises are like duckweed in water, and they lack the foundation of long-term stable development.

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