Getting Out Of The Low End: The Life And Death Proposition Of Chinese Shoe Enterprises

Hangzhou is often immersed in winter days at the end of the year.

The small and medium enterprises conference held here is a group of data that will cover the heavy fog of people's minds for a long time. This year, small and medium-sized enterprises above Designated Size have realized industrial added value, industrial gross output value, export delivery value and so on.

This group of data conveys information: in 2011, the private enterprises in Zhejiang were generally good.

Even at the cusp of Wenzhou, enterprises

Facing difficulties and facing doubts, steady growth is the best answer.

An enterprise, like a boat that runs in the vast sea of Commerce, is sometimes pushed onto the cusp and sometimes falls into it.

Looking back on 2011, we can easily find numerous bumpy UPS or even sunken businesses:

They are trapped in increasingly narrow living space - fluctuations in raw material prices, a sharp rise in wages, appreciation of the renminbi, recruitment difficulties, electricity shortages, and tight capital chains.

They are forced by the pressure of energy saving and emission reduction. More than 200 lead-acid battery enterprises were shut down because of pollution this year, and the backward production capacity of 74 enterprises must be eliminated.

They may suffer from sudden changes in the international market. Taking photovoltaic enterprises as an example, the European PV policy adjustment, coupled with the debt crisis, led to a downturn in the market and the rise of protectionism in the US market, which caused the industry to be hot and cold this year.

They were "sudden death" because of the fragmentation of the private lending chain. Some of Wenzhou's bosses' "running" events attracted widespread attention, revealing the chaos of private lending.

They are mostly similar in their trajectories: large investments in real estate, large amounts of private usury, complex debt chains, short loans and long investments, blind diversification, and a major loss of main business.

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Ups and downs, life and death, survival of the fittest, this is the normal market economy.

Even in the US, the NASDAQ delisting enterprises accounted for more than 2/3 of the total number in 10 years.

Interpreting death is often more meaningful than praising success, because every business will be branded on one industry at a time.

Following these difficult steps of private enterprises, our thinking is becoming clearer and clearer: the deep-seated reasons for the difficulties encountered by enterprises are still low-end locking.

The vast majority of processing trade and labor-intensive small and medium-sized enterprises are in the low end of the industrial chain, with low technology content, low added value, lack of brand and R & D design, making it unable to get the "right to speak" in the fierce market competition, and it is also difficult to digest the pressure on the upper and lower reaches.

The escaping of industry from some industrial people in Wenzhou reflects the turning point of an era: the "golden age" that is at the low end of the industrial chain and relying solely on the low cost advantage to grow at a high speed has passed, and the "made in China" for many years in the world market is facing new challenges.

Transformation and upgrading, sustainable development, occupy a place in the high-end industry chain, become Zhejiang private enterprises will inevitably face the proposition of life and death.

Rooted in industry needs the persistence of wisdom.

In the unusual 2011, contrary to the "running road", more private enterprises are sticking to it, sticking to the industry and sticking to the main business.

Industry is the foundation of a country's economy.

Japan, Germany and South Korea have achieved today's success because they have a large number of private enterprises with strong international competitiveness.

After the baptism of the international financial crisis, from Obama's announcement of the "return of manufacturing industry" to the establishment of the $1 trillion investment plan for 5 years, and the establishment of the "manufacturing Policy Office", it shows that the United States has an unprecedented commitment to revitalize the manufacturing sector.

From Zhejiang, manufacturing is still our advantage and there is room for improvement.

Sticking to industry is not only a powerful province but also a wise choice for strengthening itself.

For some enterprises, abandoning the main business to engage in sideline production and abandoning the entity to engage in virtual phenomenon requires correction.

Perseverance is a spirit.

This spirit is most vividly reflected in Wang Changtu, chairman of Cixi Changhua Beijing Great Automotive Components Company Limited.

From 1985 to the present, Wang Changtu has never thought of doing other industries. He has not even fired stocks. "I just want to make the main industry a hundred years' industry."

No. 18, bulli Road, shoe city, Wenzhou, has been replaced by Zheng Zhicheng's Hongcheng shoe industry.

"Bully" is Zheng Zhicheng's old club, because blind investment leads to the fragmentation of capital chain.

After seeing too many enterprises recovering and getting lost, Zheng Zhicheng chose to move his factory to the original production building of "Buli Li" after having his own strength.

Persistence is a kind of culture.

In Zhouxiang, Cixi, no matter what ABC's more than 80 households regulate, corporate loan customers or rural cooperative banks nearly 400 small and micro enterprises loan customers, there has been no bad debt this year.

In the eyes of locals, the most important reason is Zhouxiang's pragmatic commercial culture genes. Enterprises generally focus on their main businesses, and are not so keen on making hot money and fast money. They do not blindly diversify their investments and manage their risks well.

Looking at it, the average life expectancy of SMEs in Europe and Japan is 12.5 years in the long run of world enterprises. The United States is 8.2 years, and Germany's 500 outstanding small and medium enterprises, 1/4 of them have survived for more than 100 years.

This is a cultural accumulation.

Persistence is the test of wisdom.

It is a microcosm of many private enterprises in Zhejiang to seek opportunities from bad luck and to turn bad things into good deeds.

We must rely on the courage and wisdom of entrepreneurs to see the long term, resist temptation, and make progress.