Pearl River Delta Survey: Leather Industry Wants To Go Out Of The Cradle Of Foundry

Liu Qiqun, holding a deep yellow leather shoulder bag, pointed to the position of the seam at the bottom edge, and said to the people around him, "it is the car here that requires a higher point, 9 yuan / hour. Who can do it?"

And the people gathered around to touch the seams and weigh their skills.

This is the dialogue between the temporary workers and the factory heads who are taking place in the human resources market in Shilin Town, Huadu District, Guangzhou.

Looking for temporary rescue sites

In Shiling Town's human resources market, the space is divided into two parts, one is the normal recruitment place, the inside is empty, and the other side is a temporary recruitment market, which is crowded with applicants, motorcycles, vans, cars and orderly workers.

Liu Qiqun, director of Shilin, a small leather factory, said recently that he came here very often, mainly at the end of the year, to take orders from some large factories, and badly needed a group of hands.

Wu Qiang is one of the temporary workers. He said that he had worked in Shiling factory in the past few years. After two months, the boss ran off the road. The 2800 yuan salary that he should have earned has soaked the soup. Since then, he has become a full-time temporary worker.

"Every day you get your work done and get your hands on it," he said. Wu Qiang said he did the work of high cars. He could get almost 100 yuan a day, and now he could rush to work for 120 yuan or 130 yuan in the new year, and there was nearly $3000 a month later.

A local reporter told reporters that the bustling scene of the temporary labor market began in the year of the financial turmoil. When too many bosses ran away in the middle of the night, the migrant workers found themselves faced with the danger of not getting paid, and were unwilling to enter the factory for a long salary thereafter.

However, even under the influence of the financial crisis, Shiling leather products are still advancing vigorously. Wang Shicheng, vice president and Secretary General of China Light Industry Federation, told the newspaper: in 2008 ~2010, Huadu Shiling leather leather industry exports increased by 30.72%, 22.97% and 36.5% respectively.

At present, there are more than 8000 leather leather production enterprises in Shiling Town, nearly 300 thousand employees in leather and leather goods industry, and more than 700 million leather products each year, with an annual output value of 18 billion yuan, accounting for more than 50% of China's luggage market, accounting for more than 70% of the popular popular luggage market in Europe.

Similar to other manufacturing clusters in China, lack of jobs has become the norm.

In the Eleventh China (Shiling) leather leather Festival, a leather bag enterprise official told reporters that at the beginning of this year, Shiling employment was very tense. Some small factories were tempting workers with high wages. Many workers were unwilling to enter factories as contract workers, preferring to do temporary work, which aggravated the shortage of labor.

The responsible person believed that a large number of small workshops with only a few people flourished the temporary labor market, which made the employment market abnormal. This unstable employment situation not only aggravated the shortage of migrant workers, but also increased the cost of the industry.

Out of the OEM cradle

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, a boss of a leather bag manufacturing enterprise in Shiling Town, has calculated an account to our reporter. Since this year, leather has risen by about 20%, and cowhide has risen by 50%, and artificially increased by about 15%. Nowadays, a worker's monthly salary is 2500~3000 yuan, plus the appreciation of the renminbi has several points. These costs are counted in the finished products, and the leather bag of an OEM only earns 1~2 yuan.

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 said that the turnover of the entire company is still a large contribution to the OEM export. It is expected that the turnover of the OEM export will reach 200 million yuan this year, while the private brand will strive to achieve 1 hundred million 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.

In addition to funds, there are market resources.

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.

On the domestic market, Guangzhou's Tamar takes the road of e-commerce. "We have set up our own e-commerce team, cooperating with the major websites and e-commerce platforms such as Taobao, and entered the domestic TV shopping channel."

Li Gang said that next year, the company will open its own chain stores in the face of growing business.

At the same time, Li Gang also believes that the current consumer recognition of domestic brands is not high enough to be one of the challenges that domestic sales need to overcome. For this reason, they choose to play a differentiated business card to produce women's bags with intelligent anti-theft function.

In this regard, Su Chaoying analysis, pformation and upgrading can be 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 the small investment, 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.

Today, Ye Zhifeng, a member of Shilin Town Committee of Huadu District, is worried that Shiling's leather products are always cheap and cheap. Even though some brands have been produced in recent years, they can not get rid of this feeling.

"Therefore, in recent years, we have been heavily promoting the development of the three aspects of brand, marketing and quality, and the government has created the environment, trained enterprises and guided them."