Dongguan Shoe Business Pformation Government Actively Supports

The shadow of enterprise failure is enveloped in Dongguan.

In fact, the collapse and relocation of factories have been accelerating since 2008.

This process is accompanied by the wave of layoffs.

A recent survey conducted by the Chinese manufacturers' Federation of Hongkong also revealed that 20% of the Hong Kong businessmen in the Pearl River Delta were planning to close factories or abandon production businesses, and thousands of Hong Kong funded enterprises in the Pearl River Delta will be closed down.

Tao Dong, chief economist of Credit Suisse, believes that in the next three years, 1/3 of export enterprises in Guangdong may face the fate of closure.

More and more enterprises in Dongguan are investigating and preparing for the next step.

Mainland, Vietnam, Malay...

They are within the scope of their inspection.

A businessman has no borders, and the manufacturing industry is characterized by "water flowing downwards".

"Moving is very troublesome, but without food, you can only go."

Ye long ten, a former president of the Dongguan City Association of Taiwanese businessmen, visited many places, but there was no place to satisfy him.

Neighboring Vietnam has only about 86000000 people and will be saturated after several years of development.

The population structure of the inland provinces is also worrying, coupled with the increase in pport costs, "many places do not even have international airports", which makes many parts of the mainland.

Success rate is difficult to stand high.

According to Taiwan businessman Cai Yanlong, at present, northern Guangdong, southern Jiangxi, southern Hunan, Guangxi and other places are within five or six hours from Dongguan's drive, which is the preferred area for migration after the inspection of Taiwan businessmen.

At present, some manufacturers have moved to these places for production and processing.

Intend to plan, but no one wants to go.

The survey results of Taiwan businessmen's schools on "changes in the investment environment in the Pearl River Delta, whether to stay or go?" showed that only 5% of Taiwanese businessmen expressed their readiness to evacuate, 20% of Taiwanese businessmen said they would not be affected, and the remaining 75% of Taiwanese businessmen were affected, but they were making efforts to overcome them and would not leave easily.

Most of the Taiwanese funded enterprises are small and medium enterprises (stock market). They have formed a close industrial cluster in Dongguan. It is difficult for an enterprise to evacuate its supporting industries.

"We have one hundred families to go together."

Ye ten disclosed that this is the evacuation advice from the Taiwan Businessmen Association.

But walking or staying is not a matter of speaking alone.

If you want to stay, it depends on whether or not you can sustain it.

Who can master the pricing power?

Every July, many shoe companies in the Pearl River Delta will attend the American shoes exhibition in Las Vegas and accept the order.

"Our quotation will be higher this year, and we need to take into account the factors of cost increase and exchange rate."

A director of Guoxin shoe industry told reporters that this is the common hope of PRD enterprises.

But hope is always not easy to achieve. The price increase is faced with the danger of losing customers.

As early as 2008, Dongguan Fenggang Town United Thai Holdings Limited had to abandon some of its customer resources because of its disapproval of price increases.

"Overseas buyers such as the US and Europe do not accept new quotations after rising costs."

Dongguan's local industry insiders say that the US and European Importers are very sensitive in price and adopt an unprecedented strategy of tight procurement.

Unable to raise prices, enterprises can only reduce their own profit margins, but the reality is that the average shoe net profit level of the footwear industry is only 3% to 8%.

If we can't raise the price, then the order will mean loss.

In the process of striving for price increases, enterprises in the Pearl River Delta are facing an increasingly tight network.

"The depression of the international environment, the rise of energy and raw material prices, the increase in labor costs and the appreciation of the renminbi" have been called the four economic ropes for prying up the throat of the PRD enterprises.

The United States is Dongguan's largest export destination.

Every year, 17 billion dollars of Dongguan's goods are directly exported to the United States, and 13 billion U.S. dollars are sold through Hongkong to the United States.

The subprime mortgage crisis in the United States is getting worse and worse, and the global economy is slowing down. This will inevitably lead to severe hypoxia for the PRD enterprises mainly exported to Europe and the United States.

The reduction of orders is a common problem in recent Dongguan export enterprises.

The appreciation of the renminbi has also become an influential factor.

Many factories that pick up orders will suddenly find that the profits calculated according to the exchange rate at that time should be evaporated completely, even at a loss.

Domestic raw material prices and labor costs have not declined, but on the contrary, they are on the rise.

"Fundamentally speaking, the core problem of Dongguan's export oriented enterprises is the contradiction between falling demand and increasing competition, that is, the global demand has declined sharply, especially the US subprime mortgage crisis has triggered an economic recession. At the same time, manufacturing industries in Southeast Asia and other emerging countries are developing rapidly, competing with" Dongguan manufacturing ", while" Dongguan manufacturing "has led to a sharp rise in costs and a weakening of competitive advantage due to factors such as RMB appreciation.

Ye Hong, who served as the chairman of the Dongguan Taiwan Businessmen Association, analyzed the situation of "Dongguan manufacturing".

Administrative design and market power

The Dongguan model is the most close to spontaneous urbanization path in China.

At the same time, Dongguan provides opportunities for China's low-end population to be urbanized, industrialised and integrated into the international cycle.

Now, in order to comply with the trade-off between the selective development of industrial pfer, Dongguan should turn the Dongguan train off the original Dongguan mode, such as the selection of new immigrants, the expansion of government intervention in the economy, and the enhancement of upward administrative capability.

But where should Dongguan turn? Actually, there is no clear direction.

A chief of the Personnel Development Department of Dongguan Municipal Bureau of personnel has sighed for the slow progress of work, and has to introduce talents. But what kind of talents should he introduce? According to the policy designer's assumption, that is to change the cage for birds.

The manufacturing industry has gone, but the headquarters, R & D centers and logistics remain in Dongguan.

This assumption has not yet been understood at the grassroots level.

"" cage for birds "is not as beautiful as imagined, which is taken for granted." Li Shixian, director of the propaganda office of science and education of Humen Town, Dongguan, said: "there will be industries, people will have fewer people, and the third industry will also be affected."

According to Li Shixian, Humen has already begun to "pform". Humen's professional trade city is a symbol of Humen's rainy day.

"Humen has convenient pportation. Now Humen has 200 thousand purchases per day.

To retain this piece, there is hope for Humen! "Li Shixian said," the pformation of Humen is in line with the economic laws, and is not designed by the administration.

It is reported that 1/3 of Dongguan's economy depends on the collective economy of villages and towns.

Provincial and municipal leaders are more willing to attract highly profitable enterprises for tax purposes, while towns and villages are more willing to retain labor-intensive enterprises in order to solve employment, rent fees and develop service industries.

"At present, the health insurance and social security of the villagers depend entirely on the collective economy. If the government is in a hurry in the pformation, it may lead to new social unrest factors."

An official in Dongguan said.

The pformation of Dongguan is carried out under the framework of "emancipating the mind" in Guangdong province.

Since the end of last year, the Guangdong provincial government has made a clear-cut demand for industrial upgrading and resolutely eliminated backward production capacity at the general meeting.

But in Dongguan, concerns about "Industrial Hollowing" are very common. Local governments are constantly receiving pressure from associations and trade associations of foreign enterprises.

In fact, the local government is in good faith in the hope that enterprises can stay.

Manufacturing is the core magnetic field of Dongguan.

"It is wrong to regard manufacturing as a form of production of low-grade products," said Ye hung Deng, a Taiwanese businessman. "Manufacturing is an important part of the global economic supply chain system. In the chain of market, R & D and manufacturing, manufacturing will bring any effect to any country."

"If your product is recognized by the global consumers, your quality, delivery speed, and how to deliver the products to the global consumers at the fastest speed, this is a complete set of manufacturing systems."

Ye Hongdeng thought Dongguan did not make good use of the foundation of manufacturing.

Of course, the Dongguan government does not want to abandon traditional manufacturing.

Even those companies that want to move away, the Dongguan government wants them to stay in Dongguan and help Dongguan build a headquarters economy.

This is the ideal of Dongguan.

If Dongguan wants to develop knowledge intensive, technology intensive and talent intensive high-end industries, we should try our best to make up for the short board of knowledge, technology, talents and R & D.

Dongguan, once fortunate, has been playing a role in the adjustment of the whole industrial structure.

The market structure of the Pearl River Delta has given it the status of "world factory".

The strength of the market is strong and unstoppable. The scale of the developed cities is already there. There are so many manpower and capital gathered there. This is a wealth for Dongguan. It is the foundation of pformation. In the face of the rising cost horizon and the pformation of profit margins, Dongguan's new choice will undoubtedly leave a memory in the track of China's market economy.