Comprehensive Analysis Of The Current Survival Mode Of Shoes And Clothing Enterprises

In recent years, triggered by subprime debt in the United States.

Take small and medium-sized enterprises in Zhejiang, Fujian and Guangdong for example, these places are mostly labor intensive enterprises, most of which are concentrated in the field of shoemaking and clothing survival.

The bigger impact is the export oriented footwear and garment enterprises, which are facing losses.

The shoe and clothing enterprises in the domestic market will be better.

However, the difficulties faced are also very great. Raw materials continue to rise, labor costs become more and more expensive, and even there is no place to find workers.

Shoes and clothing enterprises' small profits lead to diversification investment, resulting in financial difficulties.

The author recently went to Wenzhou, Zhejiang and Fujian, Quanzhou, Guangdong and other places, through field visits and communication with industry people, especially clothing and shoemaking enterprises are already small profits, facing 3 high and low (high raw materials, high labor costs, high enterprise costs, low profits) phenomenon.

Shoes and clothing enterprises should protect workers' minimum wages, otherwise workers will have too much liquidity, regardless of whether the enterprises have produced these costs.

There is also the difficulty of corporate loans. Banks are icing on the cake.

It is unreasonable and unscientific to slam the gate and restrict the normal production of the enterprises. Is it just to save energy and reduce emissions?

We should not only ask who killed the footwear manufacturing industry in China, but also affected by the economic environment at home and abroad, the small and medium-sized shoe and clothing enterprises in Dongguan are facing enormous pressure to survive.

The "three big mountains" of foreign demand being sluggish, orders decreasing, labor and raw material costs soaring, and RMB exchange rate rising are now under way.

Shoes and clothing enterprises are facing such a harsh living environment. Only by finding another way, capital has always been the most profitable place to flow to.

It is understood that many enterprises are half working or half stop or simply go out of business, and a large number of private capital escapes from the real economy, which is bound to be detrimental to the development of the industry, which may lead to the hollowing out of the industry and the hollowing of the real economy.

Shoes and clothing enterprises are investing in other fields. Stock market, real estate, mineral resources, energy, art collection and so on become the investment choices of enterprises.

The main business is becoming hollow, and the money that shoes and clothing enterprises borrow from banks is not used for production.

Investment risks must exist, and high profits will have high risks.

Small and medium-sized shoes and clothing enterprises are just like two mothers born children.

China's low labor force pattern has changed radically, and the era of high manufacturing costs has arrived. Leading government is far from being able to shift to a service-oriented government. Banks are still banks with icing on the cake.

The premise of enterprise pformation is to let enterprises get rid of difficulties before they can talk about pformation.

Therefore, the development of new industries should have multi-level financing system support, such as equity investment, venture capital and so on.

To have a multi-level capital market, China's capital market is different from that of the US capital market. There are many listed companies on the main board, while small and medium sized boards, gem and new three Board companies are few. It is difficult for SMEs to obtain funds through the current capital market. The US attaches great importance to the development of small and medium-sized enterprises, such as the number of small and medium-sized enterprises cultivated by the US NASDAQ.

We should actively guide and regulate private finance, and enable private lending funds to become more and more popular through the development of small financial institutions.

We can not demonize private lending. The development of SMEs can not be separated from private capital lending.

Facts have proved that private capital lending has an indelible effect on the early stage of SMEs.

The government should guide and promote the flow of social capital to new industries.

The government needs to play a role as a forerunner, leveraging social capital with financial input and tax incentives to guide its investment in start-ups and growing enterprises.

Banks should make rational allocation of resources, whether large enterprises or small and medium-sized enterprises are contributing to the national economy.

Compared with large enterprises, our small and medium-sized businesses have less money to borrow from banks, and the loan threshold is also much stricter.

Large enterprises are like children born in the main rooms, and small and medium-sized enterprises are just like two mothers born children.

Small and medium-sized enterprises are the basis of social stability, the source of entrepreneurial innovation. 75% of China's employment depends on small and medium enterprises, 90% of new jobs are small and medium enterprises, 65% of the whole society's patents, more than 75% of technological innovation and more than 80% of new products are also developed by small and medium-sized enterprises.

Comprehensive analysis of the current survival mode of shoes and clothing enterprises

To make long-term preparations, it is inevitable for these shoes and clothing enterprises to change their business models and production methods. They should actively expand their sales channels. The traditional sales mode has exploited the meager profits of the shoes and clothing enterprises. The network sale is a very important option and a future development direction; changing the production mode to solve the labor cost, and the mechanized era will come; the application of new materials will be the trend of China and even the world in the future; improving the management level of shoes and clothing enterprises can reduce the operational risk, improve the equity incentive mechanism, cultivate talents and retain talents, so as to ensure the sustainable development of shoes and clothing enterprises; give up the traditional thinking of making shoes and clothing enterprises, abandon the traditional thinking of making chicken heads and do not make phoenix tail, and take the joint stock system of shoes and clothing to absorb social capital, so as to reduce the financial dependence on banks. China's economy is going up for a long time, shoe and clothing enterprises.