Dongguan Shoe Enterprises Bulk Write Off Caused New Industry Challenges

More than twice as much as write off.

It was reported yesterday that 65 footwear enterprises in Dongguan were cancelled in August.

Prior to that, Jiang Ling, who served as the Standing Committee and deputy mayor of the Dongguan Municipal Committee, said that in July, Dongguan had totally closed down 309 enterprises of all kinds.

Is it true that in August, there was only such a big turbulence in the industry of footwear?

Dongguan industry and Commerce Bureau yesterday responded that it should not just look at the cancellation data, but also should pay attention to the new data at the same time, and the number of new additions reached more than 200.

He said that this year's newly registered and cancelled footwear companies were in line with previous years.

Reporters yesterday through the Dongguan Municipal Industrial and commercial bureau official website query administrative examination and approval information was informed that, in August, Dongguan cancelled and revoked all kinds of shoe industry "enterprise" 104, the same period of newly registered footwear enterprises, the number of enterprises, more than doubled.

These cancelled and revoked footwear enterprises include shoe factories, shoe factories, shoe factories, including small shoe stores, processing shops, shoe marketing departments, and other market players.

According to the statistics of Nandu journalists, there are 27 enterprises in the 104 "enterprises" that are cancelled and revoked, and 4 of them contain the word "company".

Dongguan industry and Commerce Bureau official explained that the concept of "enterprise" was actually used on the website of the industry and Commerce Bureau, but these footwear enterprises included various types of market players, such as footwear processing and retail, including larger mobile individual businesses and so on.

The industry says the data are basically normal.

The reporter consulted the information of the previous two years.

In August 2009, Dongguan cancelled and revoked all kinds of footwear enterprises (including all kinds of market players, the same below), 84 newly registered shoes enterprises, and 259 canceling and revoking all kinds of shoe enterprises in August 2010, and 261 newly registered footwear enterprises in this month.

By contrast, the number of enterprises cancelled, revoked and increased in August this year is basically the same as that in 2010.

Zhang Hong, Deputy Secretary General of Dongguan Leather Footwear Association, thinks these data are basically normal.

"Shoe industry is very special. It's easy to open a factory, and it's easy to shut down the factory."

Because as long as we can get the order, we can start up without having to invest a lot. "

He said that the footwear industry chain in Dongguan is very complicated, so that individual businesses and enterprises can find their own living space.

Now there are no vacant berths in all kinds of shoes city and shoe material city. It can also explain that there is no "collapse tide" in this industry, but we do not have much cash on hand.

He also said that footwear industry in August

Industry analysis, "low value-added certainly can not stay".

Although the data are not as terrible as rumors, the deterioration of the economic environment this year is an indisputable fact.

Recently, a number of small and medium-sized shoe enterprises in Dongguan have gone bankrupt, and more companies have cut production.

"This year's economic environment is not good, nor is it a shoe industry's business."

Zhang Hong said that the footwear industry also has a cyclical nature. In the 2008 financial crisis, the shoe industry was not the worst. By the time of 2009 and 2010, there was also a climax period for overseas merchants to replenish their goods.

"Many brands are afraid to place orders. They all have a wait-and-see mentality. Most of them are small bills.

I reckon that the market will be better in the second half of next year. "

The reporter learned from the Whampoa customs that in August this year, the growth rate of footwear exports was the lowest among the bulk export commodities in Dongguan. The negative growth rate was 14.8%. over the same period last year, but Zhang Hong thought that although the decline was larger than other industries, the unit price increase was relatively fast, and the price of footwear exports increased by 25%.

He believes that the development trend of footwear industry is becoming more and more obvious.

"Low value-added links must not stay in Dongguan, for example, many of them have been moved to the mainland.

Talents with high added value and excellent shoes remain in Dongguan.

But the overall relocation is impossible, like Huajian group (the largest private shoe manufacturer in Dongguan) built a production base in Ganzhou, but its R & D and procurement is still in Dongguan, and its headquarters is still here, and it really makes money in Dongguan. "