Shilin Leather Goods Appeared "Labor Shortage" &Nbsp; Industry Problems To Be Solved.

"Second five year plan" to upgrade again

Deng Yeming, chairman and general manager of Guangzhou perfect Jun bag manufacturing Co., Ltd. seems to work.

"2003~2008 is the golden age of China's processing trade. At that time, only 10%~20% products could be made by processing PU products.

Wang Ling, a leather bag manufacturer in Shiling Town, has calculated an account. Leather has increased by 20% since the beginning of this year. The cowhide has risen by 50%, and the labor has risen by about 15%. Nowadays, a worker's monthly salary is 2500~3000 yuan, plus the appreciation of the Renminbi for several points. These are counted in the finished products, and only one 1~2 bag is earned.

Deng Yeming believes that pformation and upgrading is an inevitable market rule. China Hongkong and Taiwan have set a good example. Smart companies will seize the time to pform, and the impact will not be great.

His ambition was to build his own "perfect steed" brand leather bag into a famous brand in China before 2014.

In Guangzhou perfect Jun Bag Making Co., Ltd., Deng Yeming's office is facing employees' dormitories, and the blank spaces on each floor of the dormitory are marked with red slogans such as "brand, standardization and standardization".

Deng Yeming said that when he started his business in 2003, he had completed the "Five Year Plan". In 2003~2008, it was the "golden period" of processing trade. During that time, he turned the old house factory into a standardized and standardized processing enterprise.

The second five year plan, which began in 2008, reinvested in profits earned by processing trade, and entered the brand operation process when both soft power and hard equipment were ready.

Deng Yeming is a typical leather industry boss in Shiling Town. Before and after the financial crisis, he has gradually realized that the stage of industrial processing is coming to an end, and the era of high profits has ended. Turning is inevitable, but they can not get rid of the cradle of processing and manufacturing at present.

Deng Yeming introduced that the turnover of the whole company is still a great contribution to the OEM export. It is expected that the turnover of the OEM will reach 200 million yuan this year, while its own brand is to reach 1 hundred million of the turnover in the next three years.

"More than a year ago, 70% of our capacity to do OEM for others, 30% to do its own brand, now the proportion just pferred, 30% OEM, 70% is its own brand."

Li Gang, director of the domestic channel director of Guangzhou Tamar leather products Co., Ltd., told reporters that the continued downturn in foreign economy made the women's leisure bag production company adjust its business strategy.

"The profit of doing OEM for foreign countries is now reduced by 10%~15%."

Li Gang said that in addition to circumvent the losses caused by the international market downturn, the company gradually turned to domestic sales, and another reason was to take a fancy to the "big cake" in the domestic market.

Transformation in the "three high era"

In 2011, domestic and foreign raw material prices rose, RMB appreciation and labor cost increased. China has entered the "three high era". Many small and medium-sized enterprises, including leather goods industry, have fallen into the most serious development predicament since the financial crisis.

At the same time, the cost of continuous rise can not be extended to the finished product link. In the face of depressed European and American economies and bargaining merchants, terminal price increases are almost impossible.

Foreign trade margins are slender and the domestic market is in the ascendant. Turning around is the only choice.

However, the pformation is not easy, Deng Yeming said, OEM OEM is only a simple production process, and the brand is to solve the problem of channel, inventory and sales, from the beginning to the end, we need to take a lot of capital to support.

Li Gang also admitted that the road of domestic sales is not smooth.

First, it needs a lot of money to run its own production team and sales team, as well as the pressure to digest inventory, while OEM processing is based on order production without inventory worries.

Su Chaoying, executive director of China Leather Association, believes that the consumer market is diversified, and it can also adopt e-commerce platform besides directly facing consumers.

In this regard, Su Chaoying told our reporter that pformation and upgrading are divided into several levels, not necessarily high investment to do, China's small and medium-sized OEM enterprises are very large, and the funds are not enough, they can actually start from small investments, do their products well, and make the market sophisticated.

In addition, management and efficiency can also be improved to improve management level, personnel quality and labor productivity. These are also part of pformation and upgrading. Transformation and upgrading are not impossible, nor must they be invested.

"Second five year plan" to upgrade again

Deng Yeming, chairman and general manager of Guangzhou perfect Jun bag manufacturing Co., Ltd. seems that processing trade prevailed in the late 80s of last century. At that time, 3~5 people could open factories. But over 20 years later, many small businesses are still repeating the same things, and 35 people can also open factories. This is a problem.

"2003~2008 is the golden age of China's processing trade. At that time, only by processing PU products, we could earn 10%~20% profits. Now, if we calculate the depreciation of equipment, OEM will be almost unprofitable."

Wang Ling, a leather bag manufacturer in Shiling Town, has calculated an account. Leather has increased by 20% since the beginning of this year. The cowhide has risen by 50%, and the labor has risen by about 15%. Nowadays, a worker's monthly salary is 2500~3000 yuan, plus the appreciation of the Renminbi for several points. These are counted in the finished products, and only one 1~2 bag is earned.

Deng Yeming believes that pformation and upgrading is an inevitable market rule. China Hongkong and Taiwan have set a good example. Smart companies will seize the time to pform, and the impact will not be great.

His ambition was to build his own "perfect steed" brand leather bag into a famous brand in China before 2014.

In Guangzhou perfect Jun Bag Making Co., Ltd., Deng Yeming's office is facing employees' dormitories, and the blank spaces on each floor of the dormitory are marked with red slogans such as "brand, standardization and standardization".

Deng Yeming said that when he started his business in 2003, he had completed the "Five Year Plan". In 2003~2008, it was the "golden period" of processing trade. During that time, he turned the old house factory into a standardized and standardized processing enterprise.

The second five year plan, which began in 2008, reinvested in profits earned by processing trade, and entered the brand operation process when both soft power and hard equipment were ready.

Deng Yeming is a typical leather industry boss in Shiling Town. Before and after the financial crisis, he has gradually realized that the stage of industrial processing is coming to an end, and the era of high profits has ended. Turning is inevitable, but they can not get rid of the cradle of processing and manufacturing at present.

Deng Yeming introduced that the turnover of the whole company is still a great contribution to the OEM export. It is expected that the turnover of the OEM will reach 200 million yuan this year, while its own brand is to reach 1 hundred million of the turnover in the next three years.

"More than a year ago, 70% of our capacity to do OEM for others, 30% to do its own brand, now the proportion just pferred, 30% OEM, 70% is its own brand."

Li Gang, director of the domestic channel director of Guangzhou Tamar leather products Co., Ltd., told reporters that the continued downturn in foreign economy made the women's leisure bag production company adjust its business strategy.

"The profit of doing OEM for foreign countries is now reduced by 10%~15%."

Li Gang said that in addition to circumvent the losses caused by the international market downturn, the company gradually turned to domestic sales, and another reason was to take a fancy to the "big cake" in the domestic market.

Transformation in the "three high era"

In 2011, domestic and foreign raw material prices rose, RMB appreciation and labor cost increased. China has entered the "three high era". Many small and medium-sized enterprises, including leather goods industry, have fallen into the most serious development predicament since the financial crisis.

At the same time, the cost of continuous rise can not be extended to the finished product link. In the face of depressed European and American economies and bargaining merchants, terminal price increases are almost impossible.

Foreign trade margins are slender and the domestic market is in the ascendant. Turning around is the only choice.

However, the pformation is not easy, Deng Yeming said, OEM OEM is only a simple production process, and the brand is to solve the problem of channel, inventory and sales, from the beginning to the end, we need to take a lot of capital to support.

Li Gang also admitted that the road of domestic sales is not smooth.

First, it needs a lot of money to run its own production team and sales team, as well as the pressure to digest inventory, while OEM processing is based on order production without inventory worries.

Su Chaoying, executive director of China Leather Association, believes that the consumer market is diversified, and it can also adopt e-commerce platform besides directly facing consumers.

In this regard, Su Chaoying told our reporter that pformation and upgrading are divided into several levels, not necessarily high investment to do, China's small and medium-sized OEM enterprises are very large, and the funds are not enough, they can actually start from small investments, do their products well, and make the market sophisticated.

In addition, management and efficiency can also be improved to improve management level, personnel quality and labor productivity. These are also part of pformation and upgrading. Transformation and upgrading are not impossible, nor must they be invested.