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    "Dongguan Shoes" Strides In The Domestic Market &Nbsp, Shoe Enterprises "Collapse Tide" Said To Be Self Destructive.

    2011/10/19 9:45:00 119

    "Dongguan Shoes" Domestic Shoe Enterprises "Collapse Tide"

    Dongguan, as the "world shoe capital", has been widely interpreted by a number of footwear statistics released by the city's industry and Commerce Bureau in August. According to media reports, 104 shoe companies were revoked in August this year, but 261 new registrations were registered in that month. The number of newly registered enterprises is about two times the number of enterprises revoked.


      



     


    Employees of shoe factories are making shoes in the production line.

    In fact, a reporter found that the shoe companies in Dongguan, which were closed in August, had a factory, a self-employed person, and a person, Shoe machine factory Or shoe factories and so on. Nearly half of the newly registered shoe enterprises are "shoe stores" or "footwear business departments". In the case of foreign trade situation is not optimistic, Dongguan shoe industry is accelerating the layout of the domestic sales network.


    " Dongguan The shoe enterprises generally operate normally, and the bankrupt enterprises have every year, but when it comes to the closing tide, this is not consistent with the facts. City leather footwear industry association deputy secretary general Zhang Hong said.


    {page_break}


    New registered shoe companies in August


    Leading shoe companies still grow against the market


    Since September, the footwear industry in Dongguan has been pushed to the cusp of public opinion.


    In September 30th, the Wanli shoe factory of Houjie, Dongguan, was closed down on the same day by the second people's Court of the city, which triggered the rumor that the shoe industry of Dongguan was "closed down". Prior to that, media reports said that only in August, more than 100 shoe companies in Dongguan were canceled.


    Dongguan shoe industry really appears "Collapse tide" Is that right? The data may be more convincing.


    Reporters recently learned from the latest data released by the website of the Dongguan Municipal Industry and Commerce Bureau that, in August of this year, the city of Dongguan actually revoked more than 100 kinds of shoe enterprises, and the total number of revocation was 103. However, in the same month, new 205 registered shoe enterprises were registered, and the number of newly registered enterprises was about two times that of the hoisting enterprises.


    Wang Jinyang, deputy manager of Jin Jin shoes industry (Dongguan) Co., Ltd. admitted that although some small businesses have been shut down in the industry, large-scale business failures have not been found for the time being. Wang Guoquan, chief executive officer of Dongguan Emma Numerical Control Technology Co., Ltd. is even more blunt. "I don't know where the so-called collapse is."


    Emma NC is a professional shoe last production system supplier, downstream customers are mainly Dongguan footwear enterprises. Wang Guoquan believes that the outside world is too serious to judge the "collapse tide" of the footwear industry in Dongguan. He believes that the shoe industry in Dongguan is not as bad as it expected.


    Leading shoe companies still grow against the market


    "At least on this level, few shoe companies fail, and the company's performance is growing steadily." As a famous manufacturer of high-end footwear industry in the world, Ye Dehui, the head of Dongguan Qisheng Footwear Company, said that the collapse should be a small shoe factory with a small scale, no capital and technical strength, and no brand.


    Ye Dehui told reporters that the company's production and operation is normal, orders are also good. In particular, domestic products are expected to grow by 15% to 20% in the first three quarters of this year. Before the end of the year, Qisheng shoe brand brand store will be set up in Xingcheng, Humen, Changan and other towns in Dongcheng.


    And last Saturday, the world's top manufacturer of high-end ladies shoes Huajian group, also invited nearly 30 thousand global suppliers and partners, in Ganzhou, Jiangxi Huajian international shoe city long Chongqing wish the company set up 15th anniversary.


    "Leading enterprises and big enterprises are all good. Enterprises are developing steadily, and there are few failures in the industry." Cheng Yuqing, chief executive officer of Huajian group, said Huajian shoes industry has been developing well in recent years. As a leading enterprise, more orders may flow to Huajian shoe industry when competitors' orders are reduced.


    "Enterprises should build tens of billions of industries." Zhang Huarong, chairman of Huajian group, said that in the next 5 years, the company should strive to do three things well: to do well in OEM, to create the world's shoe production base in Ganzhou; at the same time to do well in ODM, to build a business platform for footwear enterprises on the platform of Dongguan world footwear industry headquarters; in addition, we should also do well in OBM, strive to build our own brand, and actively promote Huajian group's listing.


    {page_break}


    pressure


    Order less cost and high pressure on shoe companies


    Compared with two big shoe companies of Qi Sheng shoes and Huajian group, Dongguan Hong Ren shoe material company, located in Houjie, is a medium-sized Taiwanese shoe factory. The company, which once backed its "world shoe capital" and worries about overseas orders, is also facing enormous pressure on orders reduction and high cost.


    "Export is going from bad to worse, overseas orders are dropping sharply, and enterprises' profits are difficult. This is a stubborn disease of Taiwan funded shoe enterprises which are mainly exported." The manager of Dongguan Hong Ren shoe material company told reporters that he had been in the Pearl River Delta shoe industry for 10 years. This year's situation is even more difficult than in 2008. "Overseas orders are few and unit prices are very cheap. Even if the order is received, the profit is very low, so it can't be done at all."


    It should be said that there are several big mountains on the top of shoe companies. The most important reason is the decrease in orders, the high price of raw materials, the rising cost of manpower, and the difficulty of financing. In addition, due to the reduction of orders, fierce competition in the same industry, mutual reduction of prices has led to a continuous decline in the profits of shoe making, and some enterprises are in a semi closed state.


    As for the feeling of Zuo Cheng, Cheng Liangbo has also felt deeply in the shoe industry for nearly 20 years. "Last year we still had 5% to 7% profit, and now we are lucky to lose money." Cheng Liangbo is the general manager of Dongguan Mega Cheng shoe industry Co., Ltd.. He is now busy with two hands, grasping orders at the same time and grasping cost control at the same time.


    "Regret, did not control the cost well, we must lose millions of dollars this year." Cheng Liangbo said, such as gigantic shoe manufacturers, the difficulty now is that the order is unstable; with orders, it is very difficult to recruit a group of skilled workers suddenly. So factories often linger between starting and closing. Due to unstable orders, it was supposed to be the peak season for production in September, but the production of Jicheng company in that month was in a semi closed state.


    Footwear industry is coming quietly in winter.


    Two days of ice and fire can be used to describe the survival of large and medium-sized enterprises in the footwear industry in Dongguan. With the advantages of scale, brand, financing, order and so on, large enterprises can also open up territory to the outside world in a bad economic environment. For small and medium-sized enterprises, survival is the most important thing.


    "A small boat makes a good turn, so there are more openings and more closings." Zhang Hong, Deputy Secretary General of the leather footwear association, believes that the data on the cancellation and closure of Dongguan shoe enterprises released by the relevant departments should be specific to whether these enterprises belong to shoes manufacturers, shoe suppliers or other aspects. Most of the information he recently closed was small businesses, self-employed households and small processing plants, and most of them were small businesses.


    "Medium shoe enterprises are facing great difficulties in the next six months." Recently, the failure of some medium-sized footwear enterprises, especially the Taiwanese shoe manufacturers, has attracted the attention of Zhang Hong. Due to the size of fixed assets or the number of workers in medium-sized footwear enterprises, it is difficult to take small shoe enterprises to temporarily suspend business when orders are reduced. It is also very difficult to have such strong funds, technology, orders, manpower and other support from large shoe companies.


    He believes that once the order is reduced, or the capital chain breaks, it will easily collapse. And the medium sized foundry shoe enterprises which rely heavily on the European and American markets will be able to weather the coming winter.


    Zhang Hong suggested that at this time, the government should pay attention to the survival and operation of small and medium-sized shoe enterprises, and give corresponding policies to support them to help them tide over difficulties.


    {page_break}


    way out


    Shoe companies accelerate


    Domestic distribution


    "The weakening of overseas demand is more and more obvious, especially after the US debt and European debt crisis." a shoe company official who did not want to be named in Houjie, Dongguan said that the demand for European and American markets has been erratic and passive since the first half of this year. However, after the debt crisis in the US and Europe, large orders were significantly reduced, with orders and short orders placed mainly.


    In the case of foreign trade situation is not optimistic, Dongguan shoe enterprises are accelerating domestic sales. "The only way out now is to expand the share of domestic sales, otherwise we can only die."


    And from the data released by the Dongguan Bureau of industry and commerce, it also confirms the trend of Dongguan shoe enterprises to accelerate domestic sales. In August, there were 96 newly registered 205 footwear enterprises in Dongguan, including shoe stores and footwear business departments, nearly half of the total.


    In this regard, Jiang Lin, director of the Department of Finance and taxation of South of the Five Ridges College of Zhongshan University and deputy director of the research center of Hong Kong, Macao and Pearl River Delta, said that the current foreign trade situation is not optimistic. In the case of Dongguan vigorously promoting transformation and upgrading, Dongguan shoe enterprises have indeed strengthened their domestic sales offensive, and the tendency of domestic sales is becoming more and more obvious. However, he believes that only the formation of the network can really play a role in domestic sales. The opening of a single shoe shop has little significance to the domestic sale of shoes.


    expert


    viewpoint


    Write off failure


    South of the Five Ridges College of Zhongshan University


    Finance and taxation department director Jiang Lin:


    Write off failure


    In recent months, more than 100 brands of Dongguan shoe industry have been written off in recent months. The director of the Department of Finance and taxation of Zhongshan University and Jiang Lin, deputy director of the Hong Kong and Macao Pearl River Delta Research Center, believe that the cancellation of enterprises can not be confused with the failure of enterprises. Cancellation is not the same as bankruptcy. South of the Five Ridges


    Jiang Lin said that there are many situations in which enterprises write off and can not be generalized. He said that in recent years, Dongguan has vigorously promoted the transformation of "three to one supplement" enterprises, many enterprises have cancelled them, but at the same time registered many new enterprises. This part of enterprises has changed only in name, but has not changed in essence. Secondly, some enterprises have cancelled their original enterprises and registered new enterprises for better development, which will also lead to the increase of the number of cancelled enterprises.


    Jiang Lin believes that the cancellation of these two types of enterprises can not simply be identified as bankruptcy. Only those enterprises that are really bankrupt and write off can be truly closed down.

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