The Shoe Leather Industry Base Faces The Financial Turmoil Tenaciously.

In China, shoes products are a large category of exports, so it is the first time to feel this "cold current" from abroad. Some enterprises are in a difficult position, prompting more enterprises to seek new ways.

From the reaction of various industrial bases, the state's policy control, the government's measures to help, and the positive self-help of enterprises, all efforts are for the same goal - to get through the difficulties faster and to develop better and longer.

We have reason to believe that no difficulty can be overcome as long as we have enough confidence and unremitting efforts.

"At the beginning of the reform and opening up, there are leather factories all over the country, with a large number of idle equipment and technical personnel. Foreign capital, especially Hong Kong invested in Shenzhen, has attracted a large number of skilled personnel and cheap labor force in the mainland. This provides a good condition for the Shenzhen leather industry to start."

Shenzhen Leather Industry Association's relevant personages said that at that time was mainly some "three to one fill" enterprise, this kind of development situation has lasted for approximately 15 years.

Shenzhen's exports amounted to US $4 billion 240 million and imports of US $466 million.

In terms of domestic sales, small and medium-sized enterprises engage in self marketing or wholesale business for large enterprises, and large enterprises sell their own brands in domestic shopping malls, supermarkets, franchised stores and special counters, accounting for 30% of the total domestic sales.

Kuang Yuqin, Deputy Secretary General of Shenzhen Leather Industry Association, said that the appreciation of RMB and the reduction of export tax rebates had a great impact on the leather industry which was mainly exported to the outside world. The profits of enterprises had dropped sharply or even lost. Environmental protection had restricted the leather industry in the upper reaches, and the original more than 30 leather making enterprises in Shenzhen had all moved out of Shenzhen. In addition, the price of raw materials increased sharply and the cost of labor increased, which increased the burden of enterprises.

"The US financial tsunami has had a great impact on us.

At present, the industry is shuffling, and a group of backward enterprises will die. "

Kuang Yuqin told reporters that the stronger the big business is, the more difficult it is for the small businesses to survive. Some enterprises simply can't get a single list. From last year, small and medium-sized enterprises went bankrupt one after another. This year the trend is becoming more and more obvious. "Some enterprises say that the collapse has collapsed."

"If exports are made, it is even better for Hongkong funded companies to pick up orders directly in Shenzhen. If they make their own profits, they will have less profits.

The manufacturing sector can make a profit of 5%. "

Kuang Yuqin introduced that even BELLE, the leader of the leather industry in Shenzhen, has a profit of about 12% of its own brand, and the profit of the agent is still less than that.

In addition, as a traditional industry, the relocation of leather enterprises in Shenzhen is relatively large.

"For example, Hasen, a Taiwanese capital invested in Shenzhen, moved to Kunshan four or five years ago because he couldn't get the land."

Kuang Yuqin introduced that among the more famous enterprises, apart from Hasen, Bao Kai shoe industry moved to Huizhou, and Jia Hao Yun also moved to Huizhou next year.

Kuang Yuqin said.

According to the insiders, currently, the most developed areas of leather industry in China are the Pearl River Delta region, the Yangtze River Delta region and Chengdu and Chongqing regions, while the leather enterprises in Shenzhen are mainly targeting the high-end market.

Kuang Yuqin said, at present, some enterprises in Shenzhen also take advantage of the multi brand strategy and begin to intervene in the low-end market from the high-end market.

According to the introduction, Shenzhen independent brand enterprises have formed a "BELLE mode" which is integrated into manufacturing, pportation, retail and other links. "Of course, not many enterprises have such a strong fund to clone BELLE's model, but deep enterprises will set up shop in a sub city or engage in franchisees after they create their own brands."

Kuang Yuqin said.

People in the industry believe that Shenzhen's attitude towards the leather industry has a process of recognition. It was first considered that the industry was polluted and belongs to the processing industry. It did not regard it as an advantageous traditional industry. Under the efforts of the leather industry and the people concerned, the leather industry was included in the traditional dominant industries in May this year, and it agreed that the leather industry should build an industrial base in Shenzhen.

"At present, our land use report has been launched. We hope that we can apply for 60 thousand to 80 thousand square meters of land in Henggang subdistrict to build a gathering base, but we still do not know whether it will be approved."

Kuang Yuqin briefed reporters on the progress of the construction of the gathering base. "To be honest, before our industry was not included in the traditional industries, the industry was rather discouraged. After being included in the dominant traditional industries, everyone was very enthusiastic about the construction of the base, but the problem now is that the land has not been approved, and only second places have been approved."

The first shoe exhibition in Asia, which ended in early November, did not repeat the past scenes.

The knowledgeable people in the footwear industry of Dongguan have realized the survival predicament brought by the OEM mode of production while feeling the chill. They are struggling to help themselves.

But the exhibition did not appear in the past "crowd surging" scene.

Reporters learned that the exhibition attracted more than 500 exhibitors to participate in the exhibition, but compared to the seventh international shoe exhibition, this exhibition has reduced the number of shoe enterprises by nearly 100.

Not only are local exhibitors slumping, but customers are also decreasing.

Wang Wei, chairman of the first exhibition hall, said: "there are obviously fewer visits or purchasers in this exhibition than in the past. It is no exaggeration to describe them in less than half."

He said that this is the first encounter of Dongguan's "world shoe capital", which will not be better than that of 2003.

The enterprises that have no independent design ability are more stressed in the financial crisis. "

In an interview, Long Guoqiang, Vice Minister of the Ministry of Foreign Economic Research of the State Council Development Research Center, also said that the footwear processing trade was mainly OEM, which was at the low end of the industry, and the benefits obtained from it were limited. Most of the processing trade enterprises lacked the R & D capability, brand and international channels, and had no strong ability to resist risks.

In this financial turmoil, some enterprises have closed down and closed down.

"China's shoe industry is the most