The Collapse Of The Tide Hits &Nbsp; The Cowboy Capital Evaporates Nearly 100 Factories In Foshan Half A Year.

"Junan Town, Foshan City, Guangdong province is known as"

However, according to the latest statistics of the Economic Development Bureau of Junan Town, nearly 100 cowboy enterprises have closed down in the past six months.

In the face of seemingly mild and lethal factors such as the appreciation of the renminbi and the increase in production costs, will the old halo of the Junan Town slowly fade away?

The boss abandoned the factory and left.

Du Min's company is located in Junan Town, Shunde District, Foshan. The factory is named Jin Changsheng, but the name of Geely does not make the enterprise escape the doom of bankruptcy.

After the beginning of the year,

In August 15th, Du Min and his colleagues came to the local labor bureau, hoping that the government departments could help to recover nearly 300 thousand yuan of wages owed to the factory.

Today, they have been on the run for a full half month.

"In August 1st, everything was normal. At 6 in the evening, we were still eating in the factory. There were several overtime workers who came to work at 10 o'clock in the evening, and there were more than 900 items on the same day."

Du Min told the daily economic news (micro-blog) reporter.

Du Min did not expect this to be the last day of her work in the factory.

"During the night, several people suddenly moved to the factory to find the equipment. After being discovered by the doorman, we all rushed over and reported the police."

Du Min said.

The workers immediately called the company's financial officer (the uncle of the boss), but unexpectedly, there was only one sentence "everything will be over tomorrow".

From then on, the number could no longer be connected.

On the second day, the workers found that the factory was really over. The goods that had been sold the night before were sold by the boss, and the rest was a pile of cloth that had not been processed and dozens of old machines.

The boss and his uncle disappeared since then.

The boss left a letter to the staff, which is probably: Thank you for your support for this period of time. Thank you for your support. At present, the clothing factory is no longer able to continue to operate. All the equipment entrusted by the labor department to auction the factory will pay you.

According to the revised regulations, another day, August 3rd, the Kim Chang Sheng garment factory has to pay the workers' wages in June.

At the last minute of payroll, the boss of the factory chose to leave the factory.

Why should we emphasize the revised provisions?

Because, according to convention, workers' wages should be paid at the end of every month. He Guangzhen, the worker, told the daily economic news reporter that in July 31st, the factory posted a notice to postpone the payment from the end of the month to August 3rd.

Now, apart from the boss and the staff around him, others can not know why the boss postponed the payment time for 3 days, perhaps the last effort to save the garment factory which is close to collapse, or just to get more time for running away.

In August 14th, the "daily economic news" reporter entered the factory which was originally hired by Kim Chang Sheng.

In the processing workshop, iron has been used to control the door. The administrative office is full of scattered papers, and the unfinished jeans are left at will.

A security officer sent from the village looked at the machinery and equipment that should have been sold and temporarily sold.

Du Min said that wages in June and July were not paid.

Most of the workers came only in March, that is to say, they only received wages in April and May.

"The landlord also urged us to pay the rent."

Du Min confirmed to reporters that there are now more than 10 workers who can only sleep in the streets because they have no place to live.

Kim Chang Sheng is only one of the 2000 cowboy manufacturers in Junan Town.

According to statistics from the Economic Development Bureau of Junan Town, nearly 100 enterprises have been shut down for various reasons this year.

It is worth noting that all the bankrupt enterprises included in the statistics are companies registered in the local industry and Commerce Department, while the "black households" enterprises without licenses are not in the statistical range.

At the same time, when Kim Chang Sheng went bankrupt, the owner of another Wan man Ming garment factory in Junan Town suddenly disappeared.

It is understood that it owed more than 30 suppliers nearly 20 million yuan loan.

Chen Haiping, manager of run Yue garment factory, is worried about the market trend this year.

"From now on, the peak season will not be prosperous."

He said.

This year, Chen Haiping's most obvious feeling is that the number of customers is less and less, the price is getting lower and lower, and the demand is higher and higher.

"When business was good, customers took cash to grab goods, even if there were some small quality problems."

There are more than 100 people in Chen Haiping's clothing factory. He is in a medium scale and can not get enough orders. He can only make workers not work overtime at night and work less during the day.

Although the market is dull, but when some small pieces of pure processing come over, Chen Haiping dare not answer.

"If we fail, we will lose money and profit is too thin."

He told reporters that compared to those small factories and garment factories that had only a dozen or even a few workers, his enterprises were equipped with a more complete variety of jobs, so that one problem was that after processing the small sheets of pure processing, there would be no jobs outside the processing.

Chen Chao, manager of the garment factory in the town, feels the same way.

She told reporters that both orders and profits declined this year, and the situation is not very optimistic.

To this end, she has also registered information on an e-commerce platform, but at present, it has not brought more orders to the factory.

In Huafeng village of Junan Town, there are large and small denim clothing factories on both sides of the street, some of which are not even factory names.

Amid the smell of cloth floated, a workshop owner told reporters about the "depressed reality" of declining profits.

"When the market is good, the net profit of a pair of jeans can reach 3 yuan, but now it can only get 1 yuan, even worse, even 8 to 9 cents."

An official who did not want to be named in an Economic Development Bureau of Jun'an Town, told reporters in an interview with "daily economic news" that the cost accounting of the processing enterprises is very accurate now, and the net profit left to the local enterprises is only about 3% to 5%, so the enterprise's ability to resist risks is relatively weak.

An extreme example widely circulated among Du Min's workers is that a worker has changed 6 factories continuously this year, but these 6 factories have closed their doors or changed their bosses.

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Who moved them?

When Du Min and his colleagues looked for local government departments to solve their wage problems, in August 15th, the central parity rate of RMB against the US dollar was 6.3950, and the four consecutive trading day rewrote the new record high since the reform.

Du Min did not believe that the closure of the factory had anything to do with the RMB exchange rate.

However, such invisible things are becoming one of the important factors for them to lose their jobs.

According to the officials of the provincial Economic Promotion Bureau, the export volume of the town's jeans reached 90%, but it has now fallen to 70%. As the exchange rate of the renminbi continues to go high, profits have been eroded, and many enterprises have turned to domestic sales.

For the average profit of only 3% to 5% of the average profit of the cowboy processing enterprises, the appreciation of the RMB is undoubtedly a knife to the heart.

Gao Yong, vice chairman of the China Textile Industry Association, said in an interview last year that the average net profit margin of the entire textile industry is now at 3%~4%, and will not exceed 5%. If RMB appreciation exceeds 5 points, more than half of the enterprises will die.

Although "more than half of the enterprises die" is somewhat exaggerated at the moment, the status quo of the safe cowboy enterprises has shown that more and more garment processing enterprises are unable to sustain the SMEs.

Chen Haiping, manager of run Yue garment factory, said that only a small portion of his foreign trade is to be done now, and the rest is through domestic sales.

Cost control is also a big problem.

According to the relevant officials of the Economic Promotion Bureau of Junan Town, the fuse for the closure of nearly 100 enterprises in the town is the instability of cotton prices.

Cotton prices soared all the way last year, and this year has been on the decline. Many enterprises hoarded a lot of cotton during the price rise. When the price of cotton fell, these high priced raw materials immediately became hot potatoes and directly impacted the profits of enterprises.

Of course, the reason why these garment processing enterprises can not continue to operate is the manpower cost factor.

The payroll of a local garment processing company, which was obtained by the daily economic news, shows that the highest paid workers have exceeded 6000 yuan monthly income.

Du Min said that their monthly average wage is more than 3000 yuan.

Tang Pinghua, a partner in management consulting and clothing industry research expert, told reporters in the daily economic news that in fact, the appreciation of the renminbi and the rising cost, including the tight cash supply and the shortage of small and medium-sized enterprises, are still external reasons. The deeper reason is that these enterprises are in the lower reaches of the value chain and can only earn low processing fees, and the products have no bargaining power.

Confusion in enterprise pformation

Foshan Shunde District Li Gao Clothing Co., Ltd. is a larger clothing enterprise in Junan Town. Its annual sales volume is more than 100 million yuan. However, in the light of the gloomy market situation, Liu Xiaoxiang, the chief executive of the company, has no good idea.

He told reporters that garment processing industry is a typical traditional industry, some high-tech can not be applied in this industry, and the newly introduced equipment can only improve speed and accuracy, and the dependence on manpower is still very high.

"Because the threshold of this industry is not high and investment is not big, it will create a lot of problems. At present, to improve profitability, we can only rely on old methods such as reducing waste and expanding business volume."

He said.

Although nearly 100 of the more than 2000 enterprises have fallen, the proportion is not very large, but Chen Haiping still feels that the crisis is becoming more and more serious. In order to reduce the loss as far as possible, some enterprises can do everything possible to reduce costs.

"Use cheaper cloth or simplify process steps."

Chen Haiping said.

However, this approach is inappropriate for Liu Xiaoxiang. "This is actually a shoddy way of doing things, not only can not solve the problem, but also may cause worse results."

Liao Donghua, manager of Dong Wang garment factory in Junan Town, also expressed his confusion when accepting the daily economic news reporter's interview. He said that the cost of garment processing is actually difficult to pfer through other forms, and the actual cost is there, and it is not easy to compress.

Peng Peng, executive vice president of the Guangzhou Academy of Social Sciences and the Guangzhou Private Economic Development Research Association, told reporters in the daily economic news that there are only two ways for such an enterprise to go, or to pfer or upgrade, that is, to turn the production base to a lower cost place, or to look for other markets outside Europe and America, while upgrading is mainly reflected in the establishment of brand and upgrading to the two ends of the manufacturing industry chain.

However, these two ways are not feasible for most small workshop enterprises.

Chen Haiping said he could not think of what the future would be like.

At the same time, Tang Pinghua said, compared with the brand of casual wear, the cowboy clothing has not yet made many brands, which is also an opportunity.

Junan's denim clothing enterprises can learn from the experience of branding of casual clothes and get the pformation.

In August 17th, the coordination result of Du Min and other Kim Chang Sheng employees from the local labor department was that they could only get 50% of their wages, but the workers were not satisfied with the result.