Wenzhou Lucheng Relies On Capital Market To Enlarge Shoes Industry

"Using intermediary organizations to help enterprises clarify the property rights structure, promote the pformation of the property right structure of the enterprise from the unit system to the diversification characterized by the family system, and gradually promote a batch of enterprises with mature conditions to go public."

In recent years, with the rapid development of shoe industry in some parts of the country, the development momentum of shoe industry in Lucheng District of Wenzhou has slowed down.

Wenzhou Lucheng District CPPCC suggested that the deer shoe industry should gradually enter the capital market.

In May this year, China's shoe line brand Belle International Holdings Ltd successfully launched in Hongkong.

The shoe brand will face the reshuffle brought by BELLE's listing. The Wenzhou shoe brand has to compare its own capital to several times or even tens of times its capital looters.

Red shoes, AOKANG and other Wenzhou footwear brand executives said on different occasions that they feel pressure on BELLE's listing and will accelerate the pace of their listing.

It is reported that Wenzhou Lucheng District Dongyi, Kangnai and other enterprises have also begun to plan for listing.

It is understood that at present, Lucheng has more than 1000 footwear manufacturers, including 210 sales enterprises with a sales income of more than 5 million yuan.

According to statistics, the total output value of footwear scale enterprises in 2006 amounted to 12 billion 582 million yuan, accounting for 42.4% of the total industrial output value of enterprises in the whole region, and the export value of footwear scale enterprises was 8 billion 261 million yuan, accounting for 68.9% of the export value of enterprises in the region.

According to the Lucheng District CPPCC "Research Report on the development of footwear industry in Lucheng" shows that raw material prices continue to rise in recent years, raw materials have accounted for 70% of the cost of a pair of leather shoes.

Workers' wages used to account for about 10%~15% of the cost of each pair of leather shoes. Now they account for 17%~20% of the cost of each pair of leather shoes, plus the endowment insurance and work-related injury insurance for each worker, and the labor cost accounts for 20%~23% of the total cost.

"The rising cost of products has repeatedly squeezed profit margins. At present, the profit margins of shoe companies in Lucheng district are very limited."

Lucheng shoe boss told reporters.

Lucheng District CPPCC has found that the international situation of shoe industry is becoming more and more serious.

It is understood that the EU anti-dumping and export of Russian freight increased (a container rose from more than 30 thousand US dollars in 2006 to 50 thousand US dollars this year), which seriously affected the export oriented enterprises.

The appreciation of RMB and the change of export tax rebate policy also reduced the profits of shoe companies.

To this end, the Lucheng District CPPCC has suggested that enterprises should be guided to make institutional innovations and gradually enter the capital market.

Marketing internationalization, product diversification, and socialization of property rights all need capital support. The external environment also promotes Lucheng shoe industry to move towards capital market. It is suggested that the government actively guide enterprises to carry out institutional innovation with breakthrough in the property right system reform, encourage open shareholding, use intermediary organizations to help enterprises clarify property rights structure, and promote the pformation of the property right structure of enterprises from the unit system to diversification of family characteristics, and gradually promote the listing of a number of mature enterprises, and rely on the capital market to continue to expand and develop Lucheng shoemaking enterprises.

At the same time, we should guide enterprises to link up with technical training schools across the country, strengthen the training of technical personnel, and provide excellent employees for enterprises.

At the same time, we should guide enterprises to strictly enforce the labor contract law, treat their employees well and improve their living and learning conditions, especially to enhance the learning and communication between advanced technical personnel and advanced technology in the field, giving them a full "charging environment", thus enhancing the technological level of enterprises and enhancing market competitiveness.

Enterprises should be encouraged to participate in the development of key personnel in the process of development.