Why Did Small And Medium-Sized Garment Enterprises Fall Into The "Collapse Tide"?

Since the outbreak of the global financial tsunami in 2008, the momentum of "collapse tide" has been increasing. Small and medium-sized garment enterprises started to operate along the coast due to difficulties in operation and failure of transformation. In the near future, Wenzhou, which has always been a scenic spot, is also beginning to see the phenomenon of "abnormal failure" and "running away" by the boss. And most of the owners fled after paying a lot of salaries, loans and debts.

What causes the small and medium-sized garment enterprises to fall into the "collapse tide"?

The cause of enterprise's "life and death robbery" has internal causes and external causes.

One is the rise in labor costs. In the past, enterprises that took advantage of cheap labor as competitive advantage were hit hard. "The upgrading of enterprises has not been completed, competitiveness has not been realized, the advantages of cheap labor have been lost, the relocation of enterprises and strategic transformation have become inevitable." Cui pan, general manager of Huamao International Garment Industrial Park, said.

The two is due to domestic macro regulation and monetary tightening. The state has constantly raised the reserve requirement ratio of banks and reduced the scale of loans. This has led to the difficulties in loans and financing for small and medium-sized enterprises, resulting in a large number of small and medium-sized enterprises in financial difficulties due to lack of funds and inability to upgrade and transform industries.

The three is a substantial appreciation of the renminbi. Since 2005, the renminbi has risen sharply, which has directly caused the death and death of export enterprises. The original profit was completely offset, even negative, in exchange rate movements. Zhou Peng, director of marketing at Huamao International Garment Industrial Park, said: "some enterprises still have profits when taking orders, and when they check out, they lose money. The only remaining path is the establishment of industrial transformation and new channels. Some enterprises do not have the strength, and enterprises who do not want to move out only choose to go bankrupt.

The four is the price rise of raw materials. Under the increasingly tense domestic environment, for Chinese enterprises, rising prices of raw materials and sharp increase in production and operating costs caused by international oil are exacerbated.

Five, the tax and invisible costs of enterprises are too high. Economist Lang Xianping once said: "China's tax burden is the second place in the world after France, but the domestic market environment is not as good as France's maturity and national welfare." The state has introduced many policies to help small and medium-sized enterprises, but the implementation of them is very different. At the same time, the corruption and work style of various local government departments will undoubtedly increase the invisible cost of enterprises.

Six, the business environment is poor. Rents rise, transportation prices rise, business costs increase, water and electricity prices rise, energy supply is tight, manufacturing costs rise, clothing enterprises informatization is not up to development, industry reshuffle trend is obvious.