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    &Nbsp In The Post Financial Crisis Era; How Can Jinjiang Shoe Enterprises Turn Around?

    2010/4/26 16:02:00 30

    Crisis Shoe Companies

      4月23日下午,晉江舉行了一年一度的工商企業界千人大會。進入會場,企業家們驚訝地發現,以往坐在主席臺上的市領導,這回坐到了臺下,而不少企業家被請到主席臺“上座”。讓納稅超千萬、超億元的企業家“享受市領導待遇”,是泉州市委常委、晉江市委書記楊益民的主意。他希望借此舉激發“企業家們繼續創新的激情和信心”。


    In a world that has not yet completely subsided.

    Finance

    In the crisis, thanks to the outstanding performance of local enterprises, Jinjiang handed out a beautiful answer: in 2009, GDP's growth rate was 11.9%, and its total revenue increased by 13.8%.

    Especially, it is a common sight in the whole country.

    Exit

    Under the negative growth situation, Jinjiang's exports are growing by 11.9%, which is 30.2 and 20.6 percentage points higher than that of the whole country and Fujian province respectively.

    However, the impact of the financial crisis has also exposed the hidden worries of Jinjiang's extensive development over the years.


    This is a postponed meeting.

    "Changing the way of economic development", the theme of the Millennium conference has long been established, but Yang Yimin has been wondering what to tell entrepreneurs.

    Some people have always held a different view: enterprises are the main body of the market, and they will make decisions independently according to the rules of competition. Why must the government take the lead in "changing the way of development"?


    "If there are people who hold different views before, but the impact of the global financial crisis has made a consensus among entrepreneurs in Jinjiang: the problem is no longer whether the economic development mode should be changed, but how to change it."

    Yang Yimin accepted the China Youth Daily reporter's exclusive interview.


    "

    Order

    "Pick up" brings new problems


    On the afternoon of April 19th, China (Jinjiang) shoes Fair organizes foreign trade fair.

    Lin Qingyu carried a travelling bag with sample shoes waiting for him to be lonely outside the hall.

    "Orders for this year are better than last year, but they are becoming more and more difficult."

    He said.


    Order profit is small, raw material prices rise, labor costs are rising sharply.

    Lin Qingyu, who runs a small shoe factory, has been struggling with fingers.

    At this time last year, the impact of the global financial crisis on China gradually deepened, many Jinjiang.

    Shoemaking

    Business orders fell 30% on average, spreading panic.

    Over the past year, orders have been picking up and new problems are following.


    "The shortage of orders is not terrible, the most terrible is lack of labor."

    Lin Qingyu's shoe factory needs nearly 150 workers, and although he works all the year round, there are only 100 workers.

    On a production line, workers can work overtime only 80%.

    Even if there is a heavy profit order, Lin Qingyu will not dare to follow up the whole production.


    Under the shortage of workers, the average wage of workers increased by 20% to 30%, which further weakened the small profits of shoe factories.

    Chen Dai Town, a shoemaking factory in the shoe factory, has been engaged in shoe making for more than 20 years. What Lin Qingyu did not understand is that in the past, migrant workers queuing up for recruitment were not sure where they went.

    "Not only is my shoe factory like this, but there are also some famous big businesses around."

    He said.


    Huang Hongwei, managing director of Jinjiang Hengda import and Export Co., Ltd., told reporters that some enterprises lack more than 20% jobs, which resulted in the delivery cycle of OEM enterprises less than a month later than in previous years.


    The cheap labor that once seemed to provide unlimited supply has provided surging impetus for the rapid development of Chinese enterprises and economy, but in the foreseeable future, labor supply is bound to become increasingly tight.

    "A few years ago, I began to worry about this problem."

    In Yang Yimin's view, it is the labour force and many other productive factors that have changed dramatically, forcing Jinjiang enterprises and the economy to take the initiative to make adjustments.


    There are about 1 million 400 thousand industrial workers in Jinjiang, and more than 60% of migrant workers, some even up to eight to 90%.

    "It is hard to imagine that if there is a large area of migrant workers returning home," what kind of situation will Jinjiang industry fall into? "

    Yang Yimin said, this shows that labor supply is moving from "buyer's market" to "seller's market" gradually. The "good days" of developing manufacturing industry relying on cheap labor force is in the past. It also shows that there is hidden trouble in Jinjiang's labor structure which relies heavily on migrant workers.


    In fact, not only labor, land, water resources, carrying capacity of the environment, but also have a rigid constraint on the traditional mode of economic development in Jinjiang.

    Yang Yimin calculated the accounts: only 0.53% of the total land area in Jinjiang was Fujian, and the total water resources accounted for only about 0.4% of the province's total.

    Relying on such a poor family property, by 2009, Jinjiang carried 4.4% of the province's permanent population, creating 6.5% of the province's gross domestic product, 9.74% of the industrial added value and a large part of its exports.


        


    Jinjiang, which is densely populated, is vulnerable to environmental capacity. Tanning, stone, ceramics, bleaching and dyeing, electroplating and other industries have seriously damaged the environment and the contradictions have been sharpened.

    "If we continue to pursue the traditional development mode in the future, and still remain a labor-intensive industry, how can Jinjiang's very limited natural resources be carried?"

    Yang Yimin warned entrepreneurs here that if labor intensive industries fail to achieve pformation and upgrading, the prospects are worrying.


      “小拉鏈”攀向產業高端


    On the afternoon of April 18th, Jinjiang Fujian Shenzhen stock company (11.07, -0.29, -2.55%), the machine roared and the workers were busy.

    "In the future, we will realize automatic production by machine instead of manual operation as soon as possible."

    Zhang Tian, general manager of Xun Xing Fujian company, said.


    Xun Xing Fujian company currently employs nearly 4700 people. In addition to some of the production links have been replaced by machines, the rest still can not do without labor.

    Zhang Tian said the machine is Xun Xing independent research and development of dedicated production equipment, one is worth about 1300000 yuan.


    Zipper industry, Japan's YKK group is the world's leading leader in the world, producing 8 billion 400 million zippers a year, accounting for 45% of the world's high-end zipper market.

    Xun Xing ranked the second, but accounted for only about 15% of China's high-end market share.

    The gap is so amazing that the key is that YKK has mastered the core technology of the high-end zipper production equipment, and has applied for a patent. Other enterprises should not use it.


    Zhang Tian counted the accounts. In YKK, a worker can manage 20 machines, and Xun Xing can only manage one worker to operate two machines at present.

    If YKK machinery and equipment are added, workers' quality is better than Xun Xing, and so on, the production efficiency of YKK is 10 times higher than that of Xun Xing.

    This helped YKK greatly offset the disadvantages of Japanese workers' high wage level, and gained competitive advantage of China zipper companies such as xunxing.


    Luckily, Xun Xing began to attach importance to R & D very much.

    Sale

    More than three percent of the total spend on R & D.

    With patience and dedication, the enterprise, which was founded 20 years ago, originally used manual zippers, finally had its own automation equipment.

    What's more exciting for Xun Xing is that in the past 7 years, it has invested about 30000000 yuan in R & D, and finally made breakthroughs in high-end precision metal zipper technology.


    At the beginning of April, Lexus Group China decided to brand some of its brands.

    clothing

    Try Xun Xing metal zipper.

    Lexus group, which has world-famous brands such as ONLY and VEROMODA, has annual sales volume of US $30 billion. The zipper supply in the past was almost monopolized by YKK.

    Now, Jinjiang famous brands including seven wolves (31.79, -1.21, -3.67%) and Li Lang have begun to purchase Xun Xing metal zippers on a large scale.


    Compared with nylon,

    Plastic

    Zipper, high-grade metal zipper has the highest added value. One such zipper is 5 to 10 times the price of nylon zipper.

    "In the next few years, the sales revenue of Xun Xing Fujian company can double, most of which will be the contribution of high-grade metal zippers."

    Zhang Tian said.

    In the past, the high price YKK finally began to lower its status and compete with Xun Xing.


    Through independent research and development, constantly upgrading machinery and equipment and improving the technological content and added value of products, Xun Xing is just a microcosm of many Jinjiang enterprises' efforts to upgrade to the high end of the industrial chain.

    Yang Yimin reminded Jinjiang entrepreneurs that the competition of traditional industries in the future will be the competition of equipment and technology in a sense.

    In order to upgrade and pform the enterprises in Jinjiang, it is the equipment renewal and technological pformation that bear the brunt. The second is to enhance the quality of human resources and optimize management.


    Yang Yimin hopes that Jinjiang enterprises will aim at emerging industries, e-commerce, two markets at home and abroad, and green economy, so as to seize the commanding heights of future development.

    "In fact, it is not the question of" turning "or" not turning "before us, but the question of" quick turning "or" slow turning "," active turning "or" passive turning ".

    Yang Yimin said, "different choices will lead to different future and different destinies."


      內銷救活了外銷型企業


    At 4 p.m. on April 21st, the closing time of the Hongkong stock exchange.

    Hu Chengchu, a vice president of the company, subconsciously took out his cell phone. The screen showed that his shares rose 4.75% on the day, closing at 9.7 yuan, setting a new high of 10.1 yuan after the launch.


    Hu Chengchu sighed.

    In September 25th last year, the official listing of the company was affected by the panic of the global financial crisis, and it fell below the issue price that day.

    It is amazing that in the past six months, the price of Le Lang has not only recovered the issue price, but also doubled.

    The global financial crisis has led to a sharp contraction in external demand, and the average export orders for export oriented enterprises have dropped by 30%. However, Jinjiang's domestic brand enterprises, such as Anta, 361 degrees, Li Lang and seven wolves, have benefited from China's economic stimulus policies. They have been growing against the trend, and their turnover has generally maintained a growth rate of around 30%.


    The 2009 performance report released by Le Lang showed that the turnover of the company was 1 billion 560 million yuan, an increase of 37.4% over the same period last year, and the net profit for the whole year was 303 million yuan, up 96.6% from the same period last year.


    The impact of the global financial crisis on China has deepened. Yang Yimin once was very worried about the pressure of Jinjiang enterprises.

    But the performance of domestic brand enterprises has given him the heart.

    Jinjiang enterprises, which started early as domestic brands, have not only greatly enhanced their compressive strength, but also helped to revive a number of export oriented enterprises.

    Jinjiang has more than 100 domestic brand enterprises, and the government encourages these enterprises to allocate OEM production to local SMEs.

    This is just like laying down the sampan for the export oriented small and medium-sized enterprises in the wind and waves, helping them gradually realize the "export to domestic sales" and get through the impact of the financial crisis.


    Statistics show that as of the end of 2009, Jinjiang has 334 enterprises with over 100 billion yuan in output value and 67.7% of the total industrial output value of the city.

    Among them, Heng An Group has an operating income of over 10 billion yuan, and Anta group has an operating income of over 6 billion yuan.

    The output value of 85 brand enterprises accounts for 32.5% of the total industrial output value.


    In the middle and late 90s of last century, the stories of Anta, seven wolves, Li Lang and other enterprises to venture and create brand were repeatedly played by the later generations.

    Jinjiang brand advertising full of TV screens was once known as the "Jinjiang phenomenon".

    Known as the "brand city", Jinjiang has a group of well known enterprises: Anta, XTEP, 361 degrees in sports shoes and shoes, Heng Heng group which produces "heart seal" paper towels; garment industry includes Li Lang, Qipai, xingba, seven wolves, Jiumu Wang; zipper industry leader Xun Xing; food industry Crayon Shin, pan pan, kin; motorcycle industry has three li, Nanti Ke......


    Compared with the dependence on foreign trade, which is close to 100% in Dongguan and Kunshan, the figure in Jinjiang is only 55%.

    That is to say, only 55% of Jinjiang's economic growth depends on imports and exports, not only lower than the southeastern coastal areas, but also lower than the national average of 65% of foreign trade dependence.


    During the global financial crisis, although many small and medium-sized export enterprises were lucky enough to get rid of the "small sampan" of domestic enterprises, the risk of the period forced these enterprises to explore ways to save themselves from pformation.

    Yang Yimin reminded Jinjiang enterprises to sum up past successful experience and make full use of the "two markets".

    On the one hand, we should optimize the structure of export products, improve the quality of export products, vigorously explore new export markets; on the other hand, we should seize the opportunity of the state to start domestic demand, and further intensify the efforts to expand the domestic market.


      政府角色如何定位


    According to the latest statistics, Jinjiang has a small county-level city, that is, 23 listed companies and 78 reserve listed companies, accounting for 32.44% of the total fiscal revenue in 2009.


    From 1995, Jinjiang began to implement the strategy of "quality based market", and put forward the strategy of "brand building market" in the late 90s of last century, and then to the strategy of "enterprise listing" at the beginning of this century.

    The Jinjiang people who like to sing "love to fight and win" have been breaking through and clearing a clear path of regional economic upgrading and pformation.


    Yang Yimin, who was pferred to Jinjiang in 2003, witnessed this process.

    In his view, the core of Jinjiang's experience is the traditional Jinjiang people who love the "lower Nanyang", love innovation and adventure, and the local Party committee and government can find out new ways for enterprises to break through in a timely manner, and promote and guide them smoothly.

    In the meantime, good interaction between government and enterprises is indispensable.

    "For the various beneficial attempts of the people, the government has played a leading role in promoting and not hindering its innovation."

    Yang Yimin said.


    There is always a different understanding of how to pform the mode of economic development and what role the enterprise and the government should play.

    Yang Yimin believed that a place should pform its economic development mode, and the enterprise is the main body and the government is the leading factor.

    "Only when the two aspects of strength are unified and coordinated can we turn early, turn well and turn smoothly."


    In 1998, Anta made a successful brand. Jinjiang put forward the strategy of "brand building city" in a timely manner, launched incentive policies, created a well-known trademark in China, rewarded 1 million yuan, and awarded different grades to enterprises that create national export inspection free products and Fujian famous brand products.

    So far, Jinjiang has fulfilled its reward of more than 100 million yuan.


    In the same year, Heng An group went public in Hongkong and opened up the mainland private enterprises to visit the Hongkong stock exchange. Jinjiang set up a "listing office" in 2001 to encourage and support qualified listed companies.

    The company's successful listing will receive a financial reward of 3 million 300 thousand yuan.


    Yang Yimin believes that economic upgrading and pformation is the government's "long-term plan".

    The government that grasps resources must play a leveraging and guiding role in policy.

    For example, enterprises that seriously damage resources and pollute the environment must be closed down according to law. Enterprises that occupy the land and do not produce land must take the right to use land according to law.

    "Strict supervision can not only eliminate inferior enterprises, but more importantly, we can make available limited resources to high-quality enterprises."

    He said.


    Over the past few years, the economy of the southeast coastal areas has continued to grow rapidly, but the environment has been seriously damaged and the urban public construction has lagged behind.

    This not only reduces the quality of life of local residents, but also weakens the local continuous attraction for capital, talents and technology.

    In Yang Yimin's view, this is exactly what Jinjiang needs to make up for arrears, and it is also what the government can do in the pformation and upgrading of the economy in the future.


    In the blueprint of the latest plan, Jinjiang is a beautiful coastal city with suitable business and livable business. There are not only upgrading industrial clusters, but also a variety of technology centers and educational parks.


     

    Economic upgrading and pformation is a profound change in the economic field, which will inevitably lead to adjustment of development concept, factor allocation, vested interests and so on.

    "Regardless of government departments or enterprises, we must resolutely break away from ideological barriers, further emancipate our minds, boldly break the old mode of thinking and the constraints of traditional development paths, and be able to stay ahead in the new round of competition based on early turning, quick turning and active turning."

    Yang Yimin said.


     


    Source: Sina blog

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