Dongguan Footwear Enterprises Face Huge Challenges Of Pformation And Upgrading

Dongguan's Taiwan invested enterprises Saint & amp; adornment Co., Ltd. started from the second half of last year, the total profit fell from 35% to 8%, and the sales way changed from department store to "one yuan shop".

Yuan Mingren, consultant of Dongguan Association of Taiwanese businessmen, recently told this newspaper that orders for Taiwanese business enterprises are generally down by three or four over the previous period, and that some enterprises may only have three or four.

This is also the general situation of many small and medium-sized enterprises in Dongguan under the background of falling external demand.

Some enterprises engaged in traditional processing trade began to turn to the domestic market. However, due to the difficulties of product positioning, intellectual property protection and domestic cost, there are many obstacles to the road of pformation.

Dongguan, known as the "world factory", as the representative of the traditional economic model of the Pearl River Delta, is facing enormous challenges of pformation and upgrading.

Order reduction

Dongguan's industrial development goal in recent years is to become the Pearl River Delta region.

The strongest City, but now it is under tremendous pressure.

Statistics show that Dongguan's industrial added value showed a negative growth of 12.5% in 1-2 this year.

At the same time, Dongguan, which has a strong export oriented economy, showed a low growth rate in the first quarter.

Statistics show that the city's foreign trade imports and exports are about US $30 billion 400 million, up only 4% over the same period last year.

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Although the GDP has not yet been released in the first quarter, our reporter understands that its growth rate is expected to be below the national average of 8.1%.

On the analysis of the first quarter economic situation held by the Dongguan municipal government in April 11th, the Secretary of the Municipal Bureau of letters and communications, Xian Zhou En, introduced the survey results of the production and operation of the 200 key enterprises.

There were signs of improvement, and 75.6% of the enterprises indicated that orders increased or flat compared with last month, of which 8 of the export orders increased or remained unchanged.

While officials have revealed that "big businesses have bright growth", SMEs are struggling to survive.

Recently, Huang Yi, deputy director of the Dongguan Municipal Bureau of letters and deputy director of the Municipal Bureau of small and medium sized enterprises, revealed that after the investigation of the operation of more than 540 small and medium-sized enterprises in the city, it showed that in 2011, the pressure of production and operation of small and medium-sized enterprises in Dongguan was relatively large, and the development situation was more severe. It showed 6 characteristics: "rising production costs, stable production of enterprises, compressing of enterprise profit space, financing difficulties of enterprises, increasing labor gap of enterprises, and tight electricity supply".

Data show that as of the end of December 2011, the added value of small and medium-sized industrial enterprises above Designated Size reached 130 billion 370 million yuan, accounting for 72.5% of the added value of Industrial Enterprises above designated size. The growth rate was 3% over the same period last year, down 15 percentage points from the 2010 growth rate.

Dongguan's Taiwanese enterprises, which contribute almost 1/3 of the local economy, are also not optimistic.

Yuan Mingren said that the orders of Taiwanese businesses in the city were generally reduced by three or four compared to the previous ones, and the demand for foreign markets was gone.

"If there is no further support, there may be a more embarrassing situation."

Ren Xinhe, Deputy Secretary General of Dongguan municipal government, said recently.

Domestic marketing problems

"I hope our public opinion can temporarily ignore Dongguan's GDP and give Dongguan a little time."

Recently, Zhang Yongyan, deputy director of the Dongguan Municipal Bureau of statistics, said in an interview with the media that Dongguan's industrial restructuring took time. "The international economic situation is still uncertain. Dongguan's economy is expected to improve after the first quarter, but the external demand has not recovered, and it is difficult to fundamentally improve."

"Transformation and upgrading" and "expanding domestic sales" are the government's prescriptions for traditional manufacturing industries.

Some export enterprises began to try to sell domestic products under the pressure of the situation.

Liu Xuming, general manager of leach group, has been handling stationery for more than 10 years in Guangdong, and Lech stationery has been exported almost before 2009. Now the number of orders at home and abroad is 6:4.

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At the 2012 Dongguan Taiwan famous fair held in April, the new paper furniture of Ge environmental protection home Limited has won the favor of purchasers.

The general manager of the company, a Taiwanese who worked hard for nearly twenty years in mainland China, said that he was prepared to put 50%-60%'s energy in the domestic market and use the price advantage to increase sales.

However, when interviewed by a number of Taiwanese funded enterprises, our reporter found that "different product positioning, intellectual property protection and domestic sales increase costs" troubled enterprises to expand the domestic market.

Zhang Zhaozong, general manager of the limited company, said that Christmas ornaments are too small in the domestic market and "no hope of domestic sales". He will focus on the management of bread chains at present.

Yuan Mingren believes that "export to domestic sales" sounds very beautiful, but facing the already fierce competition in the mainland's domestic market, Taiwanese exporters want to get a slice of the cake, which is still very difficult.

Among them, "the market order is not good, the product is easy to be copied" is the number one problem that Taiwan businessmen regard as domestic sales.

Yuan Mingren said that many enterprises are worried that domestic sales have not been done, and even export markets are being grabbed by counterfeit products.

Recently, the mayor of Dongguan, Yuan Baocheng, said that the focus of Dongguan's recent investment promotion has been on the "three aspects" of key projects, major platforms and major science and technology projects. But Dongguan will never abandon the small and medium-sized enterprises. At present, it is studying a series of policies for reducing the burden of small and medium-sized enterprises and supporting the pformation and upgrading of small and medium-sized enterprises.