Review Of The Survival Situation Of Shoe Leather Enterprises In Wenzhou In 2010

Like Ali, many Wenzhou private enterprises.

Two years ago, during the financial crisis, the export of many Wenzhou enterprises dropped sharply, resulting in some enterprises shutting down, halting production and halting production.

The situation in 2010 is different. Last year, the pressure of a large number of traditional enterprises in Wenzhou mainly came from rising labor costs, rising raw material prices and appreciation of the renminbi.

In the context of inability to pform and upgrade, some enterprises can only choose to "leave the field".

According to statistics from relevant departments, more than 2000 enterprises in Wenzhou were revoked business licenses in 2010, of which half were manufacturing and manufacturing related enterprises.

Although this is better than the cancellation of more than 3000 companies in 2008, the "big reduction in profits" still makes the business situation grim.

Sales growth and profit decline

In December 26th last year, he couldn't eat dinner and pport a sofa to a larger dealer store more than 80 kilometers away.

Ah Sheng said that last year his sofa sold well and sales increased by two or three over the year before. "This kind of sofa with high cost performance is easy to be welcomed by shops and customers."

He said that since the second half of last year, the prices of major materials for sofa have risen sharply, for example, the price of a package of spiketes was 450 yuan in April last year, and the price rose to 670 yuan in four or five months. Now the price has dropped to 550 yuan.

Forced by raw materials to rise more than 20%, ah Sheng proposed sofa price rise, the result was opposed by dealers.

Ah Sheng said that in order to maintain the operation of the enterprise, he could only "small profits but quick turnover".

Zheng Chenai, chairman of the Wenzhou clothing trade association and the chairman of Zhejiang's Austrian Garments Co., Ltd., said that from 1 to November last year, the output value of more than 300 enterprises above Designated Size reached 26 billion 400 million yuan, an increase of 30% points over the same period last year, and exports increased by more than 20%. However, enterprises generally reflected that "profits have been very few".

In Wenzhou's "China Shoes Capital", a shoe leather enterprise leader pointed to a workshop, said there were 14 production lines, and now 4 have been stopped, mainly because they can not recruit workers.

He said that the wages of workers were 1200 yuan / month, and now it has risen to 1500-1800 yuan / month. Even so, there are still not enough workers.

It is understood that at present, enterprises in Wenzhou are generally short of labor. Taking clothing and shoemaking enterprises as an example, there is widespread employment gap in 10%-20%, and there is no large-scale unemployment problem among migrant workers.

In addition to a slight decrease in 2009, the rent of industrial housing still rose by more than 5% compared to the same period in 2010.

In addition, raw material has risen by about 20%, and the profits of Wenzhou shoe leather enterprises have dropped from the original 8% to 2% to 3% now.

A large Wenzhou lighter company official said that in 2010, the company had little profit, and now it is still continuing to take orders to maintain the stability of the management team and make the employees have a good job.

It is understood that Wenzhou's metal lighters, which occupy 80% of the world's market share, have almost doubled their raw materials, copper and zinc alloys, over the past few years.

On the contrary, Wenzhou lighter manufacturers reduced to less than 80 from more than 500 before the financial crisis.

"The sales volume of enterprises has risen sharply, and the profits of their products have dropped sharply. This phenomenon is more common in Wenzhou's labor-intensive industries last year."

Ye Zijian, chairman of Wenzhou glasses business association and chairman of ocean glasses company, said.

Ye Zijian said that in 2010, the profits of Wenzhou eyeglasses enterprises dropped by about 30% compared with that in 2008, resulting in three main reasons for the decline in profits: first, the rise in labor costs; now the salaries of workers in glasses enterprises are almost 1800 yuan / month, which is almost double that of 2008, even though it is still difficult to recruit workers; two, the price of raw materials is rising, which is different from the sharp rise and fall of raw material prices two years ago. Last year, raw materials rose all the way, and generally rose by more than 20%. Three was the appreciation of the renminbi, and the depreciation of the US dollar and the euro caused the profits of export enterprises to be virtually damaged.

There are signs of increased tax revenue under the sharp reduction in corporate profits.

A Wenzhou Industry Association official said, in order to complete the tax task, some departments require enterprises to pay taxes for the next year.

"Tax burden is relatively large."

The person in charge thinks that the tax burden level of Chinese enterprises is among the best in the world, which is higher than most developed countries.

In addition, energy saving, emission reduction and interest rate increase are also increasing production costs.

In mid September of last year, the relevant departments in Wenzhou monitored the operation of 129 key industrial enterprises in the city. Compared with the two quarter of the year three, only 33.3% of the enterprises' profits increased.

An industry and Commerce Department in Wenzhou analyzed that last year, because of the rising costs, manufacturing enterprises such as hardware, clothing, leather shoes, gifts and so on, the phenomenon of "reverse slash profit" was quite common, and affected the related enterprises such as trade related to manufacturing enterprises.

In the revoked business license enterprises, manufacturing and related enterprises accounted for half. For example, more than 300 enterprises and related enterprises, such as hardware, clothing, shoe leather, gift and so on, were in the more than 500 enterprises which were revoked the business license in Lucheng District.

"When sales price is difficult to upgrade, enterprises can only bear the pressure of rising costs themselves."

Wu Jianhai, founder of Cameroon China Commodity City, said that unlike the profits of manufacturing companies, his business profits were better than those of the financial crisis, but far below the level before the financial crisis.

A former South African businessman said that the profit margins of clothing, shoes and caps were less than 1/10 in 2000, or even lower, because the price of goods was serious.

One phenomenon is that the Yiwu small commodity market, which is closely related to the export of Wenzhou products, also has many embarrassing situations that many private enterprises are afraid to sign orders.

{page_break}

New vicious circle

Asheng said helplessly, it is becoming increasingly meaningless to be an enterprise. He is considering whether to leave the sofa industry which has been in operation for many years. "Continuing to do it means waiting for death."

Zhou Dewen, President of the Wenzhou Association of small and medium enterprises, said that in the case of substantial increase in costs and sharp reduction in profits, a new round of large scale semi stoppage, stoppage or even closure of Wenzhou SMEs will probably erupt this year, even more than in 2008.

At the same time, it also forced enterprises to accelerate pformation and upgrading.

"A sharp drop in profits will help promote pformation and upgrading of enterprises."

Zheng Chenai said that about 30% of the garment enterprises above Designated Size, because the product positioning is relatively high-end, brand marketing is doing better, the current survival is relatively good.

At the same time, about 30% of the more than 2000 garment enterprises in Wenzhou have their own production bases in the Midwest.

Zheng Chenai said he is optimistic about the prospects for the development of the clothing industry, but good companies will be better in the future, and poor enterprises will face pformation and upgrading.

He said that even in 2010, domestic clothing consumption was growing at a rate of 30%. "As long as the consumer market exists, the survival of the fittest will be normal."

"There are not many feasible ways."

Ye Zijian said that in order to cope with the pressure of rising costs, some of Wenzhou's eyewear enterprises had gone to investigate in the field. Once they moved to or set up factories in the central and western regions, although the cost of recruitment and land was low, supporting facilities and management costs would also increase significantly.

Ye Zijian said that after the closure of some small eyeglasses enterprises, Wenzhou eyeglasses enterprises are more large-scale and standardized, and the production of the existing enterprises is relatively stable without the reduction of market demand.

In the process of pformation and upgrading, some Wenzhou enterprises have chosen to enter the high-tech field, such as CHINT entering the solar energy industry, AOKANG starting biological medicine, Conch Building hepatitis B immunoglobulin project and so on.

Unfortunately, such pformation and upgrading enterprises have not sprung up in Wenzhou. On the contrary, a large number of Wenzhou enterprises focus on real estate.

Among the top 100 enterprises in Wenzhou, 2 other Real Estate Company and 6 construction companies, more than 40 other manufacturing enterprises have been involved in real estate development in 2010.

Taking the enterprise as a financing platform to get a large number of bank loans and invest in real estate and other industries, this phenomenon is relatively common in Wenzhou.

In addition, there are at least 7 large scale real estate development companies founded by manufacturing enterprises in Wenzhou, with a capital scale of over 3 billion yuan per household.

With the help of industrial capital, Wenzhou's housing prices and land prices are among the highest in the country.

In 5-8 months last year, the average price of commercial housing in Wenzhou was about 28 thousand yuan per square meter, ranking first in all major cities in the country.

At the end of November last year, the original "Wenyuan normal college" plot was taken down by the real estate and the floor price was as high as 37 thousand yuan per square meter.

It is understood that the trust property is a large real estate development company founded by a number of Wenzhou manufacturing enterprises.

Thus, a clear chain of circulation is presented in front of the eyes: enterprises are hard to do - capital pfer to real estate - rising house prices - increasing costs and falling profits - it is more difficult for enterprises to do so.

"The pressure of rising costs of private enterprises should be highly concerned by the government and society."

Zhou Dewen said.

Zhou Dewen said that the state should introduce policies to guide private capital investment as soon as possible, and put these policies into practice.

Our new 36 article has been coming out for another year. Up to now, I haven't seen the dawn very well. So these policies, we are very much looking forward to the ministries and commissions, the local governments can come up with very good implementation rules, and can launch very good projects.

But unfortunately, so far, I do not think such good news has yet appeared.