Zhejiang Leather Economic Pformation Does Not Become An Ostrich Should Be Phoenix

"This year, I am afraid, is the most difficult year for China's economy."

This year's national "two sessions", Premier Wen Jiabao's warning has now become a reality that must be faced directly.

Raw material prices are rising, labor costs are rising, and money is tightening.

Small to lump economy, a "cell", to the group of tens of billions of annual sales, Zhejiang enterprises feel earlier, faster and deeper than the rest of the world about the changes in the external environment, and the difficulties and challenges that come with them.

However, in a survey, reporters found that even in the face of the worst predicament, enterprises are always persevering and calmly resolving; even in a sluggish mass economy, enterprises will be safe and even more moist than before.

These enterprises, after passing through the crisis, will surely be reborn like Phoenix.

The choice of "phoenix" --

Facing difficulties and taking the initiative to attack

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

"Four knives" refer to the appreciation of the exchange rate and the sharp rise in the cost of energy, raw materials and labor, and "one rope" is the tightening of credit.

However, it is also facing "four knives" and "a rope". Why is the profit margins of some enterprises being cut very little, and some enterprises are safe?

The reporter found that the reason for this differentiation is not the size of the enterprise, nor even the degree of relevance to the industry, but in the face of the difficult attitude of the enterprises and the measures taken accordingly.

In the "skin capital of China", Wenzhou shintou Town, as the output of shoemaking 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 leather deep processing, and has escaped the intense market impact.

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

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, the report of Hangzhou Zheng Qiang Wanjie Co., Ltd. in Xiaoshan in April this year 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 are planned for this year. At present, the proportion of new products accounts for 51% of sales.

For a long time, Zhejiang enterprises have mainly relied 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.

This is also the choice of "phoenix".

The rationalization proposal of Jiashan Huayue timber Co., Ltd. has greatly improved production efficiency. When others feel that they are not profitable, they have received their soft hands. Ruian's mechanical and electrical enterprises have taken the initiative to "embrace the group" to expand overseas markets, and have appeared in India, Thailand and other countries. They have won orders and widened the development space. The total export volume increased from 59% to 1 this year.

Compared with other enterprises, "phoenix" may just take a "small step", just "cost more" or "just a little bit of creativity", but it is this "more" courage that makes them different.

The wisdom of Phoenix

Seize opportunities and plan ahead

Zhejiang Fu Ling holding group was originally a private enterprise mainly focusing on plastic film. Although it already has 4 international advanced production lines and has been booming every year, chairman Zhao Jianchang has seen that plastic films are located downstream industries and must extend to the top of the industrial chain so as to form new advantages and development space.

Thus, the three yuan petrochemical project, which invested 2 billion yuan, 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 500 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.

When studying the lump economy, many local cadres who are in charge of industry say that there are two types of enterprises that are better off: one is the industry leader, the product technology and quality are excellent, 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 is just to the output stage.

In the past few years, Sun Xi, chairman of Hangzhou Zhongxin Textile Technology Co., Ltd., visited Japan and other places, and found that in Japan, there are only 50 people per 10000 spindles, which is equivalent to 1/3 in China.

Sun Xi believes that as a coastal developed province, sooner or later, Zhejiang will have problems of labor shortages and rising costs.

Therefore, since the end of 2005, "Zhongxin" has imported advanced equipment from Japan and Switzerland successively.

At that time, an imported equipment was worth 1 million 200 thousand yuan, and the same domestic equipment only cost 200 thousand yuan.

But Sun Jie calculated an account: with imported equipment, it can reduce 60 workers per 10000 spindles, even if it is calculated by 15 thousand yuan per person's annual wage, it can save 900 thousand yuan a year, and the life of a machine is 8 years.

Now, many colleagues are asking him how to introduce advanced equipment abroad.

Economic development can not be smooth sailing. There are both climaxes and lows.

The so-called crisis is the combination of "danger" and "machine".

Therefore, in the eyes of "phoenix" enterprises, the current downturn is the starting point for the next round of climax.

In 1989, when Hai Liang group started business, the copper bar processing market was depressed. But chairman Feng Yali saw the business opportunities. In 1996, "Hai Liang" risked bankruptcy risk and made a $25 million copper pipe production line, which was also a low market. However, six months ago, the enterprises that did not survive had collapsed, 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.

In the face of the continuous adjustment of the textile market, the Huangshui root of the rainbow silk group has also launched: Leasing silk mill in Chongqing, processing semi-finished products, acquiring reeling mill in Anhui, and completing the upgrading and upgrading of a Haiyan silk spinning factory at the moment, replacing the world's most advanced equipment, increasing the textile speed from 20 thousand meters per day to 80 thousand meters.

In the face of changes in the external environment, "phoenix" enterprises take the initiative to seize the opportunity to speed up the restructuring, or to work hard and preserve their strength, waiting for the next round of start-up and explosion.

Zhuo Yongliang, director of the Zhejiang Institute of reform and development, believes that with the rising raw material prices, rising labor costs and the increase in oil prices, Zhejiang's economic development model will usher in a major turning point, and promote the pformation of Zhejiang's internal quality development mode to the solid foundation.

In our survey, we can also feel the pformation of entrepreneurs' ideas. Quite a lot of enterprises are beginning to realize that the golden age that can be rewarded by investment is over, instead of the era of survival of the fittest and survival of the fittest.

We believe that when the economy regain its momentum, those enterprisers who are brave and enterprisers are bound to stand on the new wave of development.