Haining Leather Industry Takes The "Creative Economy"

"Apart from raw materials, the profit of a foreign trade leather garment is only 40-50 yuan, but the labor cost has risen substantially this year. The annual salary of an ordinary lathe worker will be 6-7 yuan, and it will cost more than 100 yuan for each leather garment. Now many enterprises are supporting at a loss, expecting the rebound of the trade market in the second half of the year."

Said a person in charge of a leather enterprise in Haining.

Recently, the "market Herald" reporter in Zhejiang leather industry Haining interview, learned that, in the face of increased labor costs, foreign trade market low pressure, many enterprises are actively seeking pformation, looking forward to pull out a beautiful smile curve.

Labor costs harass Enterprises

Haining, located in the center of the northern plain of Zhejiang Province, has developed leather industry since the 90s of last century. From a place without any raw materials, it has developed to the most important leather production base and trade distribution center in China, which has more than 400 thousand square meters of China Leather City, more than 2000 leather enterprises and 73 thousand employees.

Leather industry has become one of the three pillar industries in Haining.

Every March and April, it is generally

Zhejiang snow leopard Garment Co., Ltd., located in the capital Road, the first half of the year.

"At this time of year, leather enterprises in Haining will have such worries, but this year's situation is even more serious than before."

Zhu Weixiang said that many workers in leather enterprises belong to technical jobs. No one or two years' experience is very difficult. With the return of large numbers of skilled workers in the past, the newly recruited workers are not skilled in technology, so the staff gap is very large, and the capacity is also not up to date.

The reporter also learned in the interview that many leather enterprises in Haining even gave a lot to them.

Haining Yum Sheng leather products

"Now, many companies are taking orders, many of them may be at a loss. The goal is to maintain factory operations, retain workers, and wait for the second half of the domestic market to pick up."

Shen Xinhua said.

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"Acting group" engulfed profits

A lot of leather enterprises are suffering from high labor costs and low profits. A lot of headaches have been followed by many enterprises.

Reporters learned that in the second half of last year, leather in Haining

They are all skilled workers in leather enterprises. They do not belong to any enterprise, but they can help the enterprises when they have heavy orders and short employment.

After finishing hundreds of orders, they will look for the next business.

The key is that their salaries will be twice as large as those of the original employees.

In Shen Xinhua's view.

Although such a "generation group" can solve the problem of orders, but the high processing fees will swallow up the original profits are not high.

"There is another problem that needs to be noticed, that is, it affects the normal labor relations of enterprises."

Shen Xinhua said that many employees will think that the same job, why their wages can be so much higher.

Moreover, the quality of these people and the level of technology need to be considered. After all, enterprises still attach great importance to quality inspection.

"There may be no way out for the" acting group ".

Shen Xinhua said that in Haining, if the order of the enterprise is really busy, the general way is to issue the contract. Thousands of leather manufacturing enterprises in Haining will have a relationship network between them, even in the peak season of production, they can also find the processing enterprises.

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Transformation, from production to design

On the edge of Haining Leather City, the leather brand fashion center consisting of 72 multi-storey small single family buildings, a clubhouse, a 12 storey high-rise and a high-rise building was delivered in the first quarter of last year.

The multi-storey single family is the main body of the project. Each building arranges a brand enterprise to enter, and the single building area is between 1700-3270 square meters.

Relying on the advantages of leather city and planning, designing, building and operating according to the concept of modern headquarters business, the leather brand fashion center will create a modern leather industry headquarters business area with display sales, design and research, brand marketing and business office.

"Danba La" is the first to move into the fashion center of a number of enterprises.

Spent about 10000000 yuan from the leather park to the broad and luxurious leather city fashion center, Feng Haiming, general manager of Haining Danba fur Co. Ltd., is not just changing the environment so simple.

Feng Hai said that "Danba La" entered the fashion center not only to improve the office environment, but also from the "production economy" to the "creative economy".

Feng Hai Ming's pioneering story was already well known at that time. It started from the two sewing machine's leather clothing factory. After its operation, the small workshop grew into a leather factory, and made OEM processing for nine famous clothing enterprises such as nine posture, Ying Ying, pink Marie and so on. The output value of the enterprise was over ten million, too.

But in the Ming and Qing Dynasties, we realized that as long as sewing machines can produce leather garments, the profit margins of leather processing will be gradually reduced as the cost of raw materials and labor costs rise.

In 2004, just as the business was booming, he made an astonishing move: shutting down all production lines, specializing in two industrial links of fur design and sales.

"Garment enterprises must be separated from the pure comprehensive factory mode, which must be separated.

In this way, a part of enterprises are engaged in design, part of their production, part of them in marketing, giving full play to each enterprise's expertise, and the road of enterprises and even industries will get wider and wider.

Feng Hai Ming's idea is to adhere to the two ends of the smile curve.

It is such a persistent pformation that brings higher value-added products to Danba.

The gross profit of Danba fur increased from 8% to 12% to 20% to 30%, and individual fine goods also reached 50% gross profit.

At present, the enterprises turn from fur clothing to mink garments and take the high-end line. Danba mink garments have already ranked the top ten in the industry.

In the snow leopard dress, the earliest leather production enterprise in Haining has begun to extend to the upstream of the industrial chain. The enterprise has organized a design team of over 20 people. It has more than a thousand samples in one year, about half of which will eventually appear on the market.

And these high-end products for the benefit of enterprises is sales increase 30%~50% per year. "

In Haining, more and more leather enterprises begin to extend to the two sides of the industry "smile curve", like Danba pull, creating new core competitiveness in creativity, design and marketing.

Entrepreneurs' righteousness

About housing prices:

@ Yuan Yue (zero point consulting chairman): at present, the real estate finance is very hot. Because of regulation, many developers have to go to the ground or underground financial institutions to raise money or borrow usury. A master of loan money laughs at me and says to me, "tune it up later".

@ Ren Zhiqiang (Chairman of Huayuan Group): house prices may drop by 10%.

Two years later, all the problems in the affordable housing project will be exposed.

If the present policy continues for a long time, it is not the developers, nor the banks, but the local governments that first fell down.

The current policy may not be able to move forward next year.

In the short term, people may expect high, but in the end, they will be disappointed.

@ Cao Fengqi (director of Finance and Securities Research Center, Peking University): I think the regulation of high housing prices is right, mainly regulating speculative speculation in the real estate market.

Re regulate prices, ordinary people can hardly afford high priced commercial housing.

It is necessary to continue to develop the real estate market, that is, to develop the supply housing market.

The development of the housing market can not only solve the housing problem of the ordinary people, but also create great business opportunities, which will promote economic development.

@ Zhao Xiao (Professor of management at University of Science and Technology Beijing): insurance funds are very important in many of the funds invested in affordable housing.

Insurance - the first building of affordable housing will start in Shanghai.

But according to the securities institutions, the annual yield of public rental housing is only about 3%, which is far from the annual yield of 5% to 10% of insurance funds.

Therefore, in addition to a small number of first tier cities, local financial discount, discount, or further tax concessions, the general location is still difficult to implement.

@ Ren Zhiqiang (Chairman of Huayuan Group): the terrible thing is to protect the housing as a basket, which houses are loaded into the interior, which has lost the real meaning of protection, instead, it has mixed more corruption.

Enterprise management sentiment:

@ Jiang Xipei (Chairman of the Far East Group): Chinese entrepreneurs, such as Wu Renbao, Lu Guanqiu, Niu Gensheng, Zhu Xinli, Feng Lun and others, are mostly grassroots entrepreneurs.

When I was in the most difficult time, my wife said, "sell the pig that you raised at home. Maybe there is something else to do."

God is fair, and life is beautiful because of hardships and frustrations. With this optimistic attitude, I walked step by step to today.

@ Li Dongsheng, chairman of TCL group Limited by Share Ltd, most of China's enterprises and entrepreneurs come from grass roots. But it is this kind of grass roots that makes Chinese enterprises strong and firm and firm. This is China's business and characteristic since ancient times.

In today's era, while we uphold our business principles, we should join in an open and inclusive way.

Only in this way can Chinese enterprises go to a new realm.

@ Yan Jiehe, chairman of the board of China Pacific Construction Group Co., Ltd. I have said that the biggest charity for entrepreneurs is not to make donations everywhere, but donations are just a show. Real charity talks about gratitude and enriching people, which is to make employees of their enterprises more redundant and serve their employees better.

Only by making the employees redundant, can the employees' family members become more prosperous, can the whole society be promoted.