Pearl River Delta Shoe Industry Upgrading, Medium Enterprises "Hurt Most"

Entering the 2008, a lot of small and medium-sized enterprises in the Pearl River Delta, including shoemaking, clothing, toys and ceramics, are facing a huge crisis.

Are these enterprises quietly closed down or pferred to upgrade?

What is the survival state of enterprises that are already being pferred and upgraded?

What are their difficulties?

How should we deal with it?

The reporter launched an investigation with these questions.

Industrial pfer:

Facing the inside and outside, we encounter "acclimatized".

Some enterprises in the Pearl River Delta region have started a wave of factory relocation since last year and moved their factories to foreign countries or the Midwest.

However, a reporter's investigation found that many enterprises that had already pferred were not having a good time.

A Taiwan owned shoe factory has been moved from Guangdong to India for some time.

In 2007, a leading international sports shoe brand ordered 1 million 200 thousand pairs of shoes in India shoe factory, but the factory actually produced only about 200000 orders, with a loss of about 8 million yuan.

Another Taiwanese shoe factory that moved to Vietnam recently encountered workers' strike, equipment smashed, and the factory burned.

Vietnam's labor daily reported that this year, the southern Vietnamese workers strike incidents continue, dozens of cases have occurred, and is on the rise.

According to the Agence France-Presse reported on April 2nd, at least 15 thousand people took part in the strike and asked the factory to raise salaries to cope with the soaring prices in Vietnam.

The survey found that in order to find new foothold for enterprises, there are still many small and medium-sized business owners running in Vietnam, Indonesia, India, Bangladesh, Kampuchea and other places, so helpless and helpless.

Compared with China, labor and land costs in these countries and regions are relatively low. However, because of the lack of skilled industrial workers, perfect industrial chains, and barriers to language, religion and living habits, many enterprises have not achieved the desired benefits.

Companies that are looking to the Midwest have also encountered many difficulties.

Miss Chen, a market leader of a clothing company in Foshan, told reporters that exports dropped by two to 30% this year, mainly because the Middle East region was more serious and Hongkong's agents also had a big drop.

Now, the company focuses on market expansion, and exports and domestic sales are basically 55.

However, "there is no pure foreign trade in the domestic market, and the business climate in the mainland is not as good as Guangdong. An important reason is that dealers often default on payment."

In addition to sales, factories have moved to the mainland. The main destinations are Hunan and Jiangxi.

This clothing company in Foshan is such a forerunner.

"Fashions with fast changing styles and constantly adapting to changing market needs remain in the factories of Guangdong, and the main garment factories that move to the mainland are garment production lines."

Miss Chen said, "at present, the wage level in the mainland is hard to attract workers who are working in Guangdong to return to their homes. The local recruited workers have poor technical level and lack of supporting factories such as fabrics, printing and dyeing."

In view of this, there are also various kinds of "acclimatized" illness among enterprises moving inland.

According to Li Peng, the Secretary General of the footwear association of Asia, taking shoes industry as an example, the shoe industry of Huajian, Ganzhou, Jiangxi, and the shoe industry of Jiangxi, are still relatively successful at present. Most other shoe factories are still in the running in period.

At present, most of the shoe factories belong to the nature of processing plants, mainly in shoe processing, and other high technology links are still in Guangdong.

It is the difficulties in the pfer process that force Guangdong to move towards the "headquarters economy".

It is a new choice for many enterprises to keep their headquarters, brand, technology research and development departments in Guangdong, and place factories that require large quantities of land and intensive labor in the mainland.

Industrial upgrading:

Enterprises are "the most hurt".

In this round of industrial upgrading, the most difficult is not small factories, but medium-sized enterprises.

Li Peng, secretary-general of the Asian Footwear Association, told reporters that during the shuffle process, the middle size shoe factories and shoe processing factories with 800 to 3000 people were more affected.

Large shoe factories have advantages in terms of capital, customers and risk pfer. Small shoe factories mainly located in Baiyun District of Guangzhou, with the help of small and medium-sized orders, such as the sale of shoes on the west side of the city, the Russian border trade, the Middle East and Africa, can survive.

When the market environment is bad, dozens of small shoe factories can take long holidays, and the market will turn better.

At present, a small number of orders continue to increase, and the vitality of these small factories is stronger and stronger.

The middle size shoe factory is not very ideal: customers are small and small, and are affected by many living environments. Customers are unable to support prices. They are unable to pfer part of their survival pressure due to their own funds and migration capabilities, which eventually leads to a worse living environment.

As a result, the future situation is likely to become larger and larger shoe factories and more and more shoe factories.

This phenomenon is also confirmed in other industries.

The owner of a thousand toy factory in Dongguan told reporters: "once again this year, Guangdong raised the minimum wage standard, which increased by 10% at a time, plus 17% of social security, and the cost of labor increased by 3 at once.

Now orders are reduced, and only part of the workers can be dismissal, but the rent of the factory is still not reduced. "

He reluctantly said: "instead of a small factory boat small good U-turn, even if the production stopped for a period of time to start again, the pressure is not great, at least to survive."

It is also very uncomfortable for foreign enterprises, especially Taiwanese and Hong Kong funded enterprises, that do not have domestic marketing channels.

Jiang Lin, a doctor of economics at Zhongshan University, said that the export oriented economy is the bottleneck of Guangdong's development. A large number of foreign-funded enterprises have always been export oriented, and have not formed domestic sales channels, especially Taiwan funded enterprises.

Take Dongguan as an example, Taiwan funded enterprises account for about 40%, and products are almost completely exported. Enterprises are small in capital, poor in technology and backward in business philosophy. They are unwilling or unable to upgrade their industries, nor do they know how to develop the mainland market. Such enterprises are hard to adapt to the requirements of industrial upgrading.

Every year, a large number of small and medium-sized enterprises fail, but at the same time, more and more SMEs are born.

Such a drama of life and death is common in the eyes of Chen Naixing, director of the small and medium enterprises research center of the Chinese Academy of social sciences. However, the huge number of enterprises shutting down and closing down this year is still worrying him: "industrial pfer and industrial upgrading will ultimately play a role in market regulation."

This is a gradual process. The prerequisite is that enterprises must accumulate sufficient funds ahead of them, and the quality of entrepreneurs and employees should be improved accordingly.

"Obviously, most of our small and medium-sized enterprises do not have these prerequisites."

Chen Naixing said in an interview with our reporter.

Jiang Lin also believes that the Pearl River Delta's current round of industrial upgrading is beset with difficulties.

Guangdong's outside oriented light industry is dominated by its own low technology content and small technology spillover effect. A large number of low skilled labor intensive enterprises have low profits and low labor productivity.

Small and medium-sized private enterprises have not formed an independent industrial structure.

Private enterprises in Guangdong, especially private enterprises represented by Dongguan and other places, are only supporting production for foreign-funded enterprises. They are too dependent on foreign-funded enterprises. It is difficult to support Guangdong's economy independently.

Academia and the business community now almost agree that if industrial upgrading is too hasty, it will inevitably lead to small and medium-sized enterprises no way out.

The collapse of small and medium-sized enterprises will seriously damage the development of local economy.

In fact, the local government is also cautious about guiding the exit of labor-intensive enterprises. In fact, the enterprises do not want to go, but they still have the final say, and the villagers who are dependent on the profits of these factories do not want these enterprises to move out.

Under such circumstances, Zhejiang Province, located in the Yangtze River Delta, has put forward a radical solution to accelerate the pformation of the mode of economic development.

It is reported that the province is widely soliciting opinions and suggestions on "speeding up the pformation of the mode of economic development and promoting sound and fast economic development", with a view to promoting the pformation of industrial structure from olive type to dumbbell type through the linkage development of service industry and industry.

Industrial pfer and industrial upgrading ultimately play a role in market discipline.

This is a gradual process. The prerequisite is that enterprises should accumulate enough funds ahead of them, and the quality of entrepreneurs and employees should be improved accordingly.

Recently, a large number of small and medium-sized enterprises have ceased production in the Yangtze River Delta and Pearl River Delta.