Wenzhou Shoe Capital Enterprise: Pain And Persistence

The second nirvana is the period of soaring asset prices. The smart Wenzhou real estate group and the stock market dare die team were once swept over the national property market.

The third nirvana is going on, and the Wenzhou people, who have experienced heavy losses in the property market, have begun to focus on financial innovation and return to the real economy.

This article tries to summarize the sample of Wenzhou during the trend of financial crisis.

This is one of the two largest industrial parks in the region, with a large number of shoemaking and garment enterprises.

Ask taxi master whether a large number of enterprises fail.

Zhang Zhi, a taxi master, told reporters that he had heard that his business was also greatly affected. In the past, others were rushing to catch a taxi, but now they could hardly see such a scene.

However, when asked where there was a bankrupt enterprise, Zhang thought for a long time and couldn't say exactly where it was.

The reporter asked a young man from Hubei who worked in a shoe factory. He also said it was not clear which local businesses had gone bankrupt.

A business owner said that local businesses were indeed bankrupt or shut down, mainly by relying on large groups to separate out the scattered orders or sub contractors.

A local official said, "over 4% of SMEs in Wenzhou fail, and this year it may rise to 5.9%."

However, Li Xiongwei, director of the Wenzhou economic and Trade Commission's economic operation comprehensive office, said that 5.9% should not be achieved. "In fact, it is difficult to accurately count the data in this area. Many Wenzhou people can't go on with this company, they will open another one, and the original one will not cancel it."

He analyzed that most of the Wenzhou entrepreneurs were local people who would not just close their doors and Patten their butts. In addition, the bankrupt enterprises often broke through the chain of funds, while Wenzhou had a large number of private capital, which could provide SMEs with difficulties.

"When renting a shop in 1997, it was basically a commodity, and some people came to it, but now it is hard to see the prosperity of the past."

However, in stark contrast with them, the direct selling outlets of various manufacturers in the outer street of the hall are more than 4 p.m. in the afternoon, but the streets are getting scarce.

Outside the market, all kinds of buttons are being loaded on cars or tricycles.

Wang Suinai, the first - generation entrepreneur in Wenzhou button, believes that the reason for less customers may be a change in the sales model.

She introduced, including their own factory, now sales can be done on the Internet, businessmen do not need to go to the scene.

However, their sales have dropped a lot, and the executive staff of Haifeng footwear Equipment Co., Ltd. said that the output was not as good as before.

Rising production costs, reduced exports and tight money make them feel the pressure.

Jiang Jie, Secretary General of Wenzhou Private Enterprise Promotion Association estimated that the total cost of enterprises increased by 8% - 12% this year.

These semi stoppages or downtime enterprises are mainly concentrated in textile, shoemaking, clothing, lighters, glasses and other labor-intensive industries, and their output value is mostly below 10 million.

Zhou Dewen said that as an export-oriented economic city, the most serious decline in Wenzhou's orders was 40% or 12% less than the same period last year.

Last weekend, at WenZhou Railway Station, reporters saw workers in twos and threes carrying their backpacks back home.

The staff said that the number of passengers in Jiangxi, Sichuan, Anhui and other places increased significantly. The train from Wenzhou to Anhui Fuyang had to book tickets several days in advance.

Recently, WenZhou Railway Station has gradually seen the scene of migrant workers waiting for gathering during the Spring Festival.

According to the relevant data, in the first half of 2008, nearly 20% of SMEs in Wenzhou were suspended or semi shut down, and 60 thousand enterprises were suspended.

In the first half of the year, Wenzhou's GDP growth was the first time below the national average growth rate, the lowest level since 1991.

Is this really the case?

According to Zhou Dewen estimates, Wenzhou's private capital has at least 600 billion yuan.

It is this huge fund that makes Wenzhou's "speculators" all over the world: in 2001, the national energy shortage and the soaring coal prices, Wenzhou's funds immediately turned to coal mines. 60% of the small and medium-sized coal mines in Shanxi were in the hands of the Wenzhou people for a time, followed by fried cotton and fried state owned enterprises, and all the lucrative speculators had Wenzhou's figure.

But this is not recognized by Wenzhou tiger tiger lighter Co., Ltd.

He told reporters that the Wenzhou model is speculative in general, good at catching opportunities, being good at innovation, and being good at guerrilla warfare in the capital market.

Zhou Dahu believed that in Wenzhou, there should be two kinds of people. One group began to rely on the establishment of enterprises and brands, while the other group was a very large contingent, relying on their own early or family funds to opportune, to shoot guns all over the country, some to make real estate, some to invest in short-term industries, and to get money quickly. In the process, the funds were expanded rapidly.

In addition to promoting domestic exports by trade, Wenzhou businessmen or independent investment in developing countries set up factories, or through mergers and acquisitions to enter the developed markets in Europe and the United States.

At the same time, more private enterprises in Wenzhou have also stepped out of the country to participate in the development of overseas resources.

In February this year, Wenzhou Dejia Wood Industry Co., Ltd. won the bid in Congo (cloth) forest development project, winning 636 thousand hectares of forestland development rights, with a timber volume of about 20000000 cubic meters.

Pingyang Huayuan metal materials Co., Ltd. invested in chrome mining in Vietnam through the opportunity of China ASEAN Expo.

"Under the situation of domestic industrial upgrading, it is an important feature of Wenzhou businessmen's post speculative era to pfer industries and choose international competition."

A staff member of Wenzhou SME Promotion Association believes that this is also a new direction for the extension of Wenzhou mode.

The development of small and medium-sized enterprises must rely on the support of funds.

Under such circumstances, private lending in Wenzhou has become increasingly active.

According to reports, private lending in Wenzhou was severely attacked by illegal banks in 1986.

But by the 90s of last century, the environment of private lending has become increasingly relaxed. Although the state has not officially recognized private lending, it has become more and more normalized in Wenzhou.

According to Zhou Dewen's incomplete statistics, the flow of private lending has increased by 10 billion yuan over the past year, reaching a scale of 60 billion yuan.

Private lending in Wenzhou has been regarded as a sample of normalization of private lending in the future.

Li Yuesheng, chairman of the small loan company in Lucheng District of Wenzhou and chairman of Kaiyuan Group, also believe that the small loan companies can also play the role of "two birds with one stone", that is, those large capital enterprises help small businesses tide over difficulties while nurturing the growth of small businesses, not only to provide them with funds, but also to impart management experience to them.