Ming Shoe Industry, Hard "2008 Cold Winter"

I have been making shoes in Wenzhou for more than ten years.

Before last year, I have been a foreign trade company. I have fixed clients in South America, Europe and Africa, and have accumulated some wealth over the past decade.

However, as the shoe industry has entered a meager profit era in recent years, many orders have been taken away by factories, and factories are no longer willing to give the latest styles to trading companies.

Under such circumstances, I have no way to start making factories last year.

As a trading company, I have to be a factory.

But what I did not expect is that this year's macroeconomic environment and national policy changes will be like this.

Wenzhou's shoe making enterprises now account for 20% to 30%.

The small and medium-sized enterprises that are still adhering to the principles are basically three production lines with two lines, two lines and one line.

In the first half of this year, export oriented enterprises almost lost every factory.

The two lines and made a line, but still at a loss.

We worked hard, but this is a market problem.

The guests gave me 10 dollars last year, and this year is still 10 dollars. If we increase the price, they will go elsewhere, but my cost is rising rapidly, which is very difficult.

Take a pair of ordinary leather shoes as an example.

The customer gave me 5 dollars for a pair of shoes. Last year, my factory plus its own trading company could earn about 3 yuan RMB profit.

But at the same price this year, I have to pay more than 3 yuan.

How do you pay it?

First, the tax rebate reduced by two points, according to the ratio of US dollar to RMB 7.5 last year, which is a loss of 0.75 yuan.

Second, in one year, the exchange rate is changed from 7.5 to 6.8, and the difference is 7 cents, while 5 yuan is 3.5 yuan.

Our electricity price has gone up by 1, and all the glue and raw materials have increased by nearly 2 yuan, the salary has increased by 6, the rent has increased by 2, and the packaging carton has increased by 1.

These additivity is about 7 yuan more than last year's cost. Where can I digest it?

Because workers are hard to recruit.

Now, making shoes hard to earn money, many workers have not done this job.

If we do not lose money in making the list, the workers will have to leave on holiday, but when they are busy, they will not be able to recruit workers.

We have been making an African list in the last two months. I lost 140 thousand of my products, plus two months' salary of 300 thousand, and rent of tens of thousands, and I want to lose nearly 500 thousand.

But if companies want to keep up, I will bear them.

In fact, compared with other small businesses, I still have two advantages.

First, I have my own trading company with regular customers.

Second, I am using my own capital to support this enterprise without borrowing.

Under this circumstance, even if there is bank loan, the pressure of enterprises will be very great.

I am eating old books now.

I have invested about 10000000 of capital from equipment investment to loss making operation.

If this is done, two years later, the money earned from the dry trade will be dried up, and the next thing to do is sell the house.

Last year, there were few days before I left the factory before 12 in the evening.

There are still many enterprises in Wenzhou struggling like me.

We are also upgrading our products, reducing the proportion of leather shoes and increasing the proportion of leather shoes.

At the same time, we registered our trademarks and actively participated in exhibitions abroad.

But it all takes time and process.

Everyone says upgrading, but how can it be so fast?

There is a qualitative leap in industrial competitiveness, which is a long process.

Therefore, we need the help and guidance of the government most of the time, so that we can gradually get through three or four years, so I will grow up, and I will be willing to give up the low-end market to Vietnam.

But without the support of the government, even if we can survive this, we will have to live very badly.

In fact, it can not survive this, it is really unknown to small and medium-sized enterprises, including myself, I don't know if I can survive.

I lost hundreds of thousands of dollars in the first year. I can't bear losing it again next year. I won't be able to do it until next year. I can't sell the house at home to run a shoe factory.

Most of the enterprises are still holding on like me.

I think half of the shoe factories will close, which may include myself.