Analysis Of The Fate Of China'S Shoe Enterprises

China's shoe industry has been hit hard: collapse, stop production, shift production, move...

One pile, one piece, is full of pains and pains of shoe owners, enterprise workers and related industry practitioners, and this is not caused by one or two simple reasons. The main policy and fundamentals of this net are briefly analyzed: the RMB continues to appreciate, and the speed of life and death of enterprises has been hurt by shoe companies. (1) the RMB exchange rate has been running continuously, which is only one step away from the 7 pass of the integer.

This year, in the 3 month period, the appreciation of RMB has risen to more than 4%, which exceeds the level of 2006, and is equivalent to the appreciation rate in the first 8 months of 2007.

Analysts in the industry believe that the RMB appreciation will increase by 1 percentage points, and the profits of shoe companies will drop by 1 percentage points. Up to now, the exchange rate has appreciated by more than 13%, not only causing the export slowdown, but also making the shoe making enterprises more difficult.

If domestic export enterprises have gradually realized the negative effects of RMB appreciation in 2006 and 2007, then the export industries such as shoemaking, which have traditional advantages in 2008, are undoubtedly being tested by unprecedented survival. Some people in the industry even use the "speed of life and death" to describe the serious challenges facing the entire industry.

The export tax rebate rate is decreasing, the cold wave is coming - the shoe enterprises' pains (two) in July 1, 2007, the country began to implement the new export tax rebate policy, and the shoes and boots in the adjustment list of export tax rebate rate were on the list, and the reduction rate reached 2 percentage points.

According to experts, the reduction of export tax rebate rate will undoubtedly increase the production cost of enterprises and have a great impact on the footwear industry.

On the one hand, the export cost of shoe enterprises will increase. In the international market, most of our export enterprises have no pricing power and can not pass the cost pressure. Even if there is a way to pass on the cost, they will weaken the competitive advantage of the products, thus losing the order and losing the market.

On the other hand, a lot of small and medium sized shoe enterprises do not have profits in order to produce products, but they earn only small profits from the national export tax rebates.

In the face of rising production costs, it is no doubt that the shoe companies, which rely only on export tax rebates, have broken their way.

Recruitment is difficult and employment is expensive. Shoe industry pains (three) footwear industry belongs to labor-intensive industries. It has been difficult to recruit workers for a year, and the cost of labor has kept rising labor costs.

The head of a factory in Wenzhou said helplessly that he had been doing business for more than ten years and never had a bad time finding workers like now.

At every factory gate in Wenzhou, there are almost all recruitment revelations.

Workers are unable to find satisfactory jobs, and there is a large shortage of jobs in enterprises.

In the Pearl River Delta region, there also appeared "labor shortage" and shortage of talents. Last year, the labor market in Houjie, Dongguan, conducted a thorough investigation of the footwear industry in Guangdong. The results showed that the talent gap in the footwear industry was quite large, and the number of people in Dongguan alone reached tens of thousands of people. This figure is likely to increase in the current year, and even if the enterprises raise their wages, recruitment is still very difficult.

The new labor contract law, which began in 08 years, is a new challenge to enterprises.

The cost pressure of the implementation of the new labor contract law to enterprises, Zhou Dewen, President of Wenzhou SME Promotion Association, said: "in general, different industries, on the average, if the labor law is strictly enforced, enterprises will increase the cost of 15% or even 20%, so for enterprises, their profits will not be so high in itself, so many SMEs now face enormous pressure."

Four) in addition to several major factors mentioned above, some of the following factors have made the shoe enterprises in crisis. First, the new batch of processing trade restricted catalogues issued jointly by the Ministry of Commerce and the General Administration of Customs in August 2007 were formally implemented. In addition to putting 1800 kinds of goods in the export restriction category, the bank margin account of the restricted category commodities was implemented by "real turn" management, so that the capital cost of enterprises increased by more than 10%. This undoubtedly increased the difficulty of cash circulation of enterprises, and it was even worse for small and medium-sized shoe manufacturers whose liquidity was not enough. In two and March 25, 2008, the central bank again raised the deposit reserve ratio of the deposit financial institutions by 0.5 percentage points, so that the deposit reserve rate reached a high level of 15.5%. Policy adjustment, rising costs, and enterprises feel hardship - shoe pains.

Facing the country's overall tightening monetary policy, the cash turnover of enterprises is becoming more and more difficult. Three, water prices, electricity prices, high oil prices, rising raw materials, land, environmental protection, energy allocation and other problems have come one after another this year, resulting in the rising operating costs of enterprises.

Four, in October 7, 2006, the EU took the final anti-dumping measures against our leather shoes. In addition to the anti-dumping duty rate of a market economy enterprise, the rest rate was 16.5%, and the duration of the measure was 2 years.

The implementation of the anti-dumping duty has resulted in the shrinking of China's footwear exports to Europe and the domestic market.

The anti-dumping measures are about to expire in October 7th this year. All the results of the review are all possible. If the tax rate is increased again, the future of the European shoe companies will undoubtedly be overshadowed.

A series of problems, to our country's shoe enterprises turns to hit, leading to the unbearable man has gone on the road, still persisting in the dying, even if the leader is on the line, looking for a new opportunity.

China's shoe industry has undergone unprecedented changes. What is the ripple effect caused by the waves?

How should enterprises face each other?