Coastal Shoe Enterprises: Stronger And Stronger, Weaker Weaker

The difficulties and challenges faced by SMEs this year are likened to "four knives" plus "a rope".

The "four knives" refer to the rising exchange rate and the sharp rise in the cost of energy, raw materials and labor.

"A rope" is the tightening of credit.

But also faced with "chopping rope", the profit margins of some enterprises have been reduced to a very small level, and some enterprises are safe and even more moist than before.

The "Matthew effect" in Economics -- the weaker phenomenon of the strong Heng Qiang and the weaker ones -- has intensified since last year in the Yangtze River Delta and the Pearl River Delta.

Reporters found in the survey that the reason for this differentiation is not the size of the enterprise, nor even the degree of relevance to the industry, but rather the difficulties faced by the enterprises and the countermeasures.

    打造品牌“由魚成龍”

At the beginning of this year, the industry association of footwear industry in Pearl River Delta region found that in 2007 years, more than 1000 out of five thousand or six thousand shoe factories in Guangdong were closed down.

"Most of the failures are shoe factories that rely solely on production orders."

Shenzhen Longgang District footwear industry association president Liang Huinan said.

Since last year, the RMB has continued to appreciate, the price of raw materials has increased, the cost of wages has risen, and the export trade has been suppressed. Many enterprises have been overburdened, and their profits have dropped significantly or even lost.

What is quite different from this is that some large and powerful enterprises have taken the opportunity to expand rapidly and embark on the road of becoming bigger and stronger.

When BELLE Shoes Co., Ltd. was founded in 1992, it was only a small factory with an investment of only 2 million yuan, mainly for Hongkong brand processing.

In recent years, they put forward that "basing themselves on the mainland market, creating BELLE brand, and opening up a chain store of shoes", really started their own brand business, and soon became the first and second largest shoe business chain group in the world.

Shenzhen's new BELLE shoes, BELLE, Staccato, Teenmix and other women's shoes, are among the top ten sales in the country in 2007, of which BELLE brand ranks first in China's women's shoes sales for 12 consecutive years.

Throughout the footwear industry that stands fast and expands in Shenzhen, most of them hold this brand "sharp sword".

Shenzhen Yao Qun industry is a strange enterprise for consumers, but it is almost unheard of about Daphne, Qian Baidu, Kang Li, sun Da, Baidu and honey Si Luo Ni.

Yao group is doing behind the scenes work for the design and production of these brands.

Yao group now has tens of thousands of employees, and the technical staff who manage and design make up 14% of the total number.

In addition, there are a number of Shenzhen shoe enterprises' popularity and market share are rising rapidly, such as Fuling Mingda and Ali Li Da.

A group of enterprises specializing in the processing of famous domestic and international women's shoes, such as Sheng Feng, Bao Kai, Tai Wei, Jia Hao Yun, and Gao, are also affected by this wave of industrial adjustment.

Independent innovation runs all the way.

In Jiangsu, because of the cost of "forcing the palace", a number of enterprises are unhappy, and profits are mostly in the "zero" state.

However, in the first half of this year, the report of Jiangsu Xinzhong environmental protection Co., Ltd. showed that the profit remained above 5%.

Chen Song, chairman of the board, told reporters that the "magic weapon" of new China environmental protection is the golden age of constantly developing new products and keeping the industry's profits at 15%. The annual R & D expenditure will not be less than 1% of the turnover.

While consolidating the development of efficient bag filter, Xinzhong environmental protection has introduced, digested and absorbed a series of advanced desulfurization technologies at home and abroad, and cooperated with Shanghai University of Electric Power to develop a wet recovery technology of Magnesium Oxide, which is a recycling economy mode.

At present, Xinzhong environmental protection has many desulphurization technologies, such as limestone gypsum method, Magnesium Oxide wet method, circulating reflux and semi dry method.

"Desulfurization equipment accounted for 35% of the product, to a large extent alleviate the predicament this year."

Chen Song said.

The auto parts industry is also faced with a sharp rise in the prices of raw materials such as steel and the difficulty of shrinking the export market under the influence of the US subprime crisis.

However, in April this year, the report of Hangzhou Zheng Qiang Wanjie Co., Ltd., located in Xiaoshan, Zhejiang, showed that its profit increased by 61% over the same period last year.

Its "magic weapon" lies in the continuous development of new products, and its profits in the industry remain at the golden age of 20%. The annual R & D expenditure of "positive and strong" is no less than 6% of sales revenue.

Last year, 19 new products were developed, and 23 were planned for this year. At present, the proportion of new products accounts for 51% of sales.

Zhejiang Fu Ling holding group was originally a private enterprise mainly focusing on plastic film. Although it already owns four international advanced production lines and has been booming every year, chairman Zhao Jianchang has seen that plastic film is located in downstream industries and must extend to the upper end of the industrial chain so as to form new advantages and development space.

As a result, they invested three yuan in 2 billion yuan petrochemical project came into being.

After the first phase of production last year, 300 thousand tons of polypropylene products were produced and sales revenue reached 3 billion 500 million yuan.

This year, Zhao Jianchang is ready to invest five hundred million yuan, using Japanese patent technology to develop an annual output of 150 thousand tons, 3 billion yuan to sell, fill the domestic blank of polypropylene anti impact new material project.

Facing difficulties and taking the initiative to attack

In the "skin capital of China", Wenzhou shintou Town, because the production of shoe making enterprises has dropped by nearly 30%, the demand for leather processing industry has shrunk sharply.

However, Pingyang Far East leather company has become a supplier of famous brands such as "Nike", "Adidas" and "AOKANG" through deep processing of leather, and has experienced severe market impact.

Moreover, the profits of leather products now are several times higher than those of rough processed raw skins.

For a long time, small and medium-sized enterprises in Zhejiang mainly rely on low cost and low price competition.

This has become a "habit" for many enterprises. Facing sudden changes, if we turn a blind eye to it, it is obviously an "ostrich thinking".

At this moment, facing difficulties and taking the initiative to attack is the solution.

When Zhejiang Hai Liang group started business in 1989, the copper bar processing market was depressed. Chairman Feng Yali saw business opportunities.

In 1996, "Hai Liang" risked the risk of bankruptcy and made a $25 million copper production line.

But half a year ago, the companies that did not survive came down, and Hai Liang's orders exceeded their capacity.

Today, "Hai Liang" speeds up the pace of industrial adjustment and innovation, advances to the upstream resource industry, and goes to Inner Mongolia to explore and exploit.

According to the insiders, there are two types of enterprises that are better off: one is the industry leader, the product is of high quality, the market share is high, the brand influence is strong, and the initiative of pricing is taken; the other is the pformation in the early years, and the initiative extends from the low end of the value chain to the high end, and now it has just reached the output stage.