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    Shoe Enterprises To Enhance Profitability Is The Key To A Permanent Cure.

    2011/10/22 14:07:00 33

    Profit

    Usury funds break, Wenzhou boss run...

    Recently, the focus of public opinion on small and medium enterprises has become an explosive manifestation of the difficulties of domestic small and medium enterprises and the development of internal and external troubles this year.


    There is no doubt that SMEs are an important force in China's national economic and social development. Recently, the Executive Council of the State Council decided to support financial and fiscal policies and measures to support the development of small and micro enterprises. Local governments at all levels also supported small and medium-sized enterprises through the establishment of special funds and support from banks and enterprises.

    It can be said that these measures can temporarily alleviate the financial crisis of small and medium-sized enterprises, and reduce the temperature of private lending, which can play a role of "reducing fever" in the short term. But what is more important and should attract people's attention is "guiding and helping small and medium-sized enterprises to operate steadily, enhance their profitability and develop their stamina."


    From the shoe industry, the problem of small and medium-sized enterprises is the problem of capital chain on the surface: many enterprises' funds are not properly returned, leading to the chain breaking of capital chain such as ordering, purchasing, and technological pformation of enterprises, and the survival of enterprises is difficult to sustain.

    However, a survey of 300 small and medium-sized foreign trade enterprises shows that enterprises with financial pressure to make orders do not exceed 10%, while 90% of enterprises' development pressure comes from not receiving orders.

    The weakening of the market environment leads to the reduction of orders, which is another major factor that puzzles the development of enterprises.


    Many small and medium enterprises say that when the external demand continues to be weak, the capacity to digest excess capacity can only focus on the "domestic market".

    But lacking brand, terminal, and at the same time facing so many large enterprises' competition, for the shrinking of orders, the urgent task is how to solve the channel and solve the problem of sales. They urgently need a good environment suitable for small and medium-sized enterprises to expand their market.


    In addition to the short term bailout of funds, it is more important to establish a long-term benign mechanism of self-development for SMEs: to help enterprises find orders, expand the market and gain more profit sources, so that production, supply and sales will form a chain of continuous production chains and complete the self hematopoiesis and blood pfusion of enterprises.


    For now, first, we need to further encourage SMEs to achieve product differentiation through technological innovation. This road is full of thorns, but we must go.

    At present, most of the small and medium-sized enterprises in China are still in the lower reaches of the international industrial chain. SMEs need to accelerate innovation in technology, products and management, forming innovative thinking in the links of R & D, manufacturing and services, forming the core competitiveness and competitive advantage of enterprises.

    At the same time, in the financing policy, government funding support to innovative small and medium-sized enterprises vigorously tilt.


    Two, we should dredge the upstream and downstream industries through industry cooperation to reduce circulation costs and raw material costs.

    From the start of cooperation and mutual orders, and then a number of enterprises to build vertical integration industry chain, the formation of agglomeration effects of various industries to enhance the competitiveness of SMEs.


    Three, starting from the marketing cost and selling cost of small and medium-sized enterprises, we should improve efficiency and open up and expand the market channels for small and medium-sized enterprises.

    "Originally, our marketing cost exceeded 3% of sales, and the average small and medium-sized enterprises could not afford it.

    Now our marketing costs account for only 1% of sales, but orders have increased by 4 times.

    A head of small and medium enterprises in Wenzhou, which specializes in shoe making machines, is talking about why it is still doing well in this trend.

    It is reported that 75% of the enterprises now rely on the Internet for search marketing.


    According to the data provided by Baidu, Wenzhou's Zhejiang province employs nearly 7 Baidu search and marketing services, and more than 40 in the country, with an annual investment of no more than 20 thousand yuan.

    CNNIC "2010 small and medium-sized enterprise network marketing survey report" shows that 85% of SMEs are willing to continue to invest in this field, and the number of SMEs who use the Internet for marketing or sales has reached 42.1%.


    The innovative marketing method based on frontier information technology has helped a large number of enterprises to embark on a healthy development mode and better face today's various pressures.

    Compared with the traditional market, the Internet has no boundaries and equality, which effectively reduces the threshold for small and medium enterprises to enter the market. China has the largest number of Internet users in the world, making full use of the characteristics of the Internet to get through the link between netizens' demand and small and medium-sized enterprises.


    In recent years, due to the influence of domestic and international economic environment, the average profit return of Chinese small and medium shoe enterprises has been decreasing year by year, and the prosperity of enterprises and the confidence index of entrepreneurs continue to fall.

    If industry continues to shrink, China will have to face the danger of industrial hollowing out.

    Changing the way of economic development and building an innovative country will be impossible.


    Therefore, temporary difficulties in shoe enterprises need assistance, but what is more important is to build a good environment for enterprise development so that enterprises can play an active role in production and management, enhance the vitality of enterprises and promote the development of productive forces.

    And never allow companies that create wealth to become objects that often need to be rescued.


     
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