Sales Of Shoes And Clothing Enterprises In Wenzhou Are Increasing, But Profit Margins Are Getting Lower And Lower.

Two years ago, during the financial crisis, the export of many Wenzhou enterprises dropped sharply, resulting in some enterprises shutting down, halting production and halting production.

The situation in 2012 is different. Last year, the pressure of a large number of traditional enterprises in Wenzhou mainly came from rising labor costs, rising raw material prices and appreciation of the renminbi.

Many private entrepreneurs in Wenzhou reflect their 2012

In the context of inability to pform and upgrade, some enterprises can only choose to "leave the field".

According to statistics from relevant departments, more than 2000 enterprises in Wenzhou were revoked business licenses in 2012, of which half were manufacturing and manufacturing related enterprises.

Although this is better than the cancellation of more than 3000 companies in 2011, the "big reduction in profits" still makes the business situation grim.

Sales growth and profit decline

In Wenzhou's "China Shoes Capital", a shoe leather enterprise leader pointed to a workshop, said there were 14 production lines, and now 4 have been stopped, mainly because they can not recruit workers.

He said that the wages of workers were 1200 yuan / month, and now it has risen to 1500-1800 yuan / month. Even so, there are still not enough workers.

It is understood that at present, enterprises in Wenzhou are generally short of labor. Taking clothing and shoemaking enterprises as an example, there is widespread employment gap in 10%-20%, and there is no large-scale unemployment problem among migrant workers.

In addition to a slight decrease in 2009, the rent of industrial housing still rose by more than 5% compared to the same period in 2012.

In addition, raw materials increased by 20% or so, Wenzhou shoe leather enterprises.

There are signs of increased tax revenue under the sharp reduction in corporate profits.

A Wenzhou Industry Association official said, in order to complete the tax task, some departments require enterprises to pay taxes for the next year.

"Tax burden is relatively large.

"The person in charge thinks that the tax burden level of Chinese enterprises is among the best in the world, which is higher than most developed countries.

In addition, energy saving, emission reduction and interest rate increase are also increasing production costs.

In mid September of last year, the relevant departments in Wenzhou monitored the operation of 129 key industrial enterprises in the city. Compared with the two quarter of the year three, only 33.3% of the enterprises' profits increased.

An industry and Commerce Department in Wenzhou analyzed that, last year, because of the rising costs, manufacturers of clothing, shoe leather and other manufacturing enterprises "increased the SLR profit" phenomenon is quite common, and affected the manufacturing enterprises related to the trade and other related enterprises, many enterprises are difficult to continue.

In the enterprises whose business licenses are revoked, manufacturing and associated enterprises account for half of them. For instance, in Lucheng District, more than 300 enterprises, such as clothing, shoes and leather, and related enterprises have been revoked in more than 500 enterprises.

"When sales price is difficult to upgrade, enterprises can only bear the pressure of rising costs themselves.

Wu Jianhai, founder of the China Commodity City in Cameroon, said that, unlike the decline in profit from the production enterprise, his business profit is now better than the financial crisis, but far from the level before the financial crisis.

A former South African businessman said that the profit margins of clothing, shoes and caps were less than 1/10 in 2011, or even lower, because the price of goods was serious.

One phenomenon is that the Yiwu small commodity market, which is closely related to the export of Wenzhou products, also has many embarrassing situations that many private enterprises are afraid to sign orders.