The Government Changes Posture, Wenzhou Shoe Enterprises Seek Breakout Path

If Wenzhou wants to weather the storm before it is safe, it needs not only wisdom and luck, but also entrepreneurial spirit and entrepreneurial mentality with constant changes. Wenzhou, which has lost its entrepreneurial spirit, will do nothing.

Sitting on Xiao Chen's taxi, the young and capable Wenzhou youth has been complaining that the oil price has gone up and the business is hard to do. Now Wenzhou is no longer the original Wenzhou.

When we got off at the five Horse Street, Xiao Chen sighed softly. "Our factory will soon be closed," he said.

In Wenzhou, where everyone is busy doing business, the dim Chen Chen is only a representative of the noisy crowd.

In recent months, the Wenzhou people, who are smart and famous, have suddenly seen the doom is approaching: thousands of companies are feeling more pressure, processing orders are significantly reduced, sales and profits are stagnant or even rapidly declining.

According to Zhou Dewen, President of Wenzhou SME Promotion Association, 20% of SMEs face production stoppage and half stop production.

"The situation is indeed very grim," Pan Pingping, deputy director of the Wenzhou Municipal Bureau of foreign trade and economic cooperation, summed up all these pressures from all sides as "five knives" on the neck of Entrepreneurs: price rises of raw materials, appreciation of the renminbi, adjustment of export tax rebates, tightening monetary policy and labor and labor costs.

Pan Pingping believes that these unprecedented pressures are the same for all enterprises in the country, but this time, Wenzhou is always lucky that it has not been able to stand alone.

Due to its unique development mode, facing the enormous external pressure, the problems exposed by all the songs of Wenzhou are more obvious.

In Pan's view, if it hadn't been for the Wenchuan earthquake, Vice Premier Li Keqiang and other top leaders would probably not be in Wenzhou for the time of investigation in July, but rather earlier, because the difficulties faced by Wenzhou began to show up at the beginning of the year.

In fact, in the past few months, the main officials in Wenzhou were personally in charge of the enterprises, and had done a lot of investigation and discussion, and began to deliberate on the activities of enterprise service that were later interpreted by the public as the "Wenzhou rescue plan".

The office of the Wenzhou municipal Party committee and the municipal government office made public the implementation of the enterprise service year activities in the form of documents in June 4th.

In June 5th, the municipal Party committee and municipal government held a vigorous mobilization meeting for thousands of people.

According to an entrepreneur who was then at the scene of the conference, Shao Zhanwei, Secretary of the municipal Party committee, showed a rare urgency and candor in the mobilization report: "the purpose of enterprise service year activities is to serve the enterprises by the government, helping the enterprises to solve the major difficulties and outstanding problems, vigorously support enterprise innovation, promote pformation and upgrading of enterprises, and optimize and upgrade industries."

Someone made a statistics. When Shao Zhanwei talked about how the government served the enterprises and realized the linkage between government and enterprises, he used more than 20 times to use this idiom in every possible way.

For the Wenzhou government, which has always been careful to keep pace with the business activities of enterprises, the activity of enterprise service year which has already been in full swing is really unusual.

A cadre of the Wenzhou Municipal Economic and Trade Commission told the "legal person" reporter that the so-called "government govern by doing nothing" has no market in Wenzhou today. The most difficult thing to find in Wenzhou is government leaders. The most easily sought is entrepreneurs, because a large part of the government's leadership is in what enterprises they are in, and the difficult entrepreneurs often have to take factories as their homes in order to solve the sudden urgent need in time.

In order to establish a working mechanism for serving the grass-roots cadres in the middle level cadres of the whole city, Wenzhou has even opened 40 telephone calls, service hotlines and telephone calls to the administrative examination and approval management centers of nearly 600 government departments in the municipal departments. The 40 municipal departments directly serve the enterprises and the masses, and perform the duties of administrative examination and approval and law enforcement.

At the same time, Wenzhou style office also announced the way of complaint reporting to the public, and strengthened supervision and accountability.

Many Wenzhou experts are surprised that Wenzhou people who have always been interested in money have warmly embraced the meticulous care provided by the government when the cold wave is coming.

A secretary general of the Wenzhou die & Mould Industry Association felt deeply: "the Wenzhou government is changing, the industry is changing, the entrepreneurs are changing, and the cold and hot relationship between the government and the enterprises is also likely to change."

The tradition of love and money has provided fertile soil for the development of the private sector and entrepreneurship in Wenzhou, and the explosive growth of wealth has made Wenzhou a seaside town rapidly becoming one of the liveliest and richest cities in China.

However, if Wenzhou wants to survive the storm without knowing how long it will last, it is not just intelligence and luck, but also the entrepreneurial spirit that never fails and the entrepreneurial mentality that keeps changing.

"Wenzhou is standing at a critical moment for the coming of an innovation and change."

Professor Shi Jinchuan, vice president of the school of economics, Zhejiang University believes that after 1995, Wenzhou has hardly brought any institutional innovation, but is slowly losing those most valuable things.

Today's uncertain future is likely to be a turning point for Wenzhou.

As the leader of the coastal city, Shao Zhanwei has seen this point from his own point of view: "to overcome the difficulties encountered in the development of the world is not useful, the key is to exhilarate the spirit and turn the plight into the opportunity for development."

He analyzed that it is necessary to pform the predicament into a driving force for enhancing the advantages, pform the motive force of reducing the potential consumption and turn it into a motive force for eliminating the backward ones. With the "forced" mechanism of macro control, we are determined to eliminate a number of backward productive forces, eliminate a number of enterprises with high pollution, high energy consumption and low added value, encourage enterprises to carry out reorganization and integration, and rely on the development road of capital market and scientific and technological progress.

A more expert of Shao Zhanwei said that Shao Zhanwei's idea is not complicated. In this special difficult stage, by formulating a local policy of linkage between government and enterprises, he tends to advocate a more efficient enterprise behavior, thereby releasing the entrepreneurial spirit and vitality of Wenzhou enterprises.

Even local officials who are rich in business experience do not always get what they want in the face of business.

Wenzhou, a highly developed private economy, is rich in private capital, but in this generation of entrepreneurs, there is a strong desire to make money, and a large proportion of them have never been accustomed to pursuing the everlasting foundation.

They often are not doing business, they are doing business more.

Making money continuously and making quick money - the tireless pursuit of speculation has become the favorite of this impetuous city.

According to Zhou Dewen, President of Wenzhou SME Promotion Association, Wenzhou's private capital has at least 600 billion yuan.

It is this huge fund that makes Wenzhou's "speculators" all over the world. Over 100 billion yuan of Wenzhou's funds have been swept up in the real estate industry in many cities in the country. In 2001, the energy shortage in the whole country and the soaring coal prices, Wenzhou's funds immediately turned to coal mines, and 60% of the small and medium-sized coal mines in Shanxi province were in the hands of the Wenzhou people all the time. In 2005, the stock market was warming up, and nearly 100 billion Wenzhou funds were re involved. Hundreds of Wenzhou speculators in the capital market were naturally fruitful and exploded in battle, and then they were frying cotton and scrambled state-owned enterprises.

Experts estimate that over the past 5 years, the success of Wenzhou's "speculators" has made more than half of Wenzhou's enterprises more or less involved in speculative business. What's more, the alarming amount of industrial and industrial capital has been flowing to speculative fields.

This wealth effect has undoubtedly created thousands of wealthy people, and it is this temptation that has been slowly eroding the entrepreneurial spirit that once brought vitality to Wenzhou. If enterprises only focus on making quick money, there will be neither great enterprises nor excellent entrepreneurs.

People will eventually find that Wenzhou, who has lost its entrepreneurial spirit, will do nothing.

The shortage of funds and the sluggish global market really make many Wenzhou businesses struggling, but it is also an opportunity for Wenzhou and Wenzhou entrepreneurs to reinvent themselves.

"At present, the impact on brand and brand products of Wenzhou is relatively small."

Zheng Chenai, President of Wenzhou clothing trade association, believes that Wenzhou has the right conditions to cultivate a globally competitive brand enterprise. What is needed is a brand strategy in a global perspective.

Take clothing as an example, at present, most of the internationally famous clothing brands are produced in China. Wenzhou clothing enterprises such as Xia Meng, good bird, French school, Zhuang Ji, Huashi and Bai Xian are all doing OEM processing for international first-class brands. This shows that Wenzhou clothing enterprises already have world-class manufacturing capability in terms of technology and design, which will lay a solid foundation for the rise of Wenzhou's own brands.

For Wenzhou CHINT, people's appliances, AOKANG and Semir these private giants, they are seeking another metamorphosis.

The pformation from family business to group enterprise is a metamorphosis; the establishment of a joint stock company and the separation of ownership from management right are the second metamorphosis; the realization of the decentralization of shares and even the real mass companies are the third metamorphosis that a large number of Wenzhou entrepreneurs are dreaming of.

"Only by learning to operate capital can enterprises become stronger and stronger enough to resist attack."

Wang Zhentao, President of shoe industry AOKANG, told the reporter of "legal person" that he has never forgotten the successful listing of footwear international BELLE international holding company.

In May 9, 2007, BELLE's global offering was listed in May 23rd. After listing, BELLE's total market capitalization reached HK $523 and HK $500 million, becoming the largest mainland retail listed company in the HKEx market capitalization.

"If there is no combination of industrial operation and capital operation, no enterprise in Wenzhou can produce such a success story."

Wang Zhentao said.

Xie Hao is Deputy Secretary General of the Wenzhou municipal government and a well-known regional economic expert. In his view, China has entered a capital era rapidly, but most of them are only elementary school students in capital schools.

Before 2006, the listed companies in Wenzhou were almost blank. Until the last two years, only 4 private enterprises such as Huafeng spandex, Ruili group, Huayi Electric Company and newspaper bird were listed. Compared with Jiangyin in South of Jiangsu, they were far from being able to catch up. Only a county-level city, the number of listed companies has reached 22.

Fukazawa Masahiko, chairman of the Kearney Greater China region, a well-known investment bank, told reporters that Wenzhou's private enterprises have a good foundation for market cooperation, leveraging the listing to internationalize, and becoming bigger and stronger. This should become a consensus among Wenzhou's private entrepreneurs today.

Faced with the hesitation of Wenzhou's listing of private enterprises, Zhou Dewen's view may be closer to reality.

The first batch of private enterprises in Wenzhou, most of which are not standardized, are subject to supervision after listing, which will inevitably lead to their dilemma.

Some observers believe that this actually reflects the mentality of family businesses, which is a psychological obstacle that Wenzhou private entrepreneurs need to crack.

To be listed, family businesses can not always think that the more shares they own, the more companies are their own.

It is understood that in the whole of Wenzhou, besides AOKANG, CHINT group, people electric appliance, Metersbonwe, Weiming environmental protection, Red Dragonfly Group, Semir and other companies have officially launched the process of listing, at present, 5 companies have signed sponsorship agreements with the securities companies.

A person in charge of the Wenzhou listed office said that according to the plan of the Wenzhou municipal government, in 2009 and 2010, 30 enterprises in Wenzhou should be listed on the mainland and abroad, and 65 enterprises will be listed in the market guidance.

An expert from the Wenzhou municipal Party committee office said that positive listing is surely the only way for Wenzhou's private enterprises to regain confidence and gain core competitiveness. The experiment of dispersed ownership by other enterprises is also worthy of attention.

A typical incident is: Wenzhou Xia Meng group and Italy Zegna apparel group company set up 50% joint venture garment enterprises. The chairman of Xia Meng group Chen Xiaoxiang took the initiative to give up the position of president of the joint venture; in the lock industry, 8 local enterprises in Wenzhou established strong compulsory locking group.

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