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    The Cost Of Fujian Shoe Enterprises Will Suddenly Rise.

    2008/4/10 0:00:00 10299

    Fujian Shoe Enterprises

    Although there is no definite data support, under the background of the increasing pressure of the export tax rebate rate, the appreciation of RMB and the rising labor cost, the development prospect of Fujian's small and medium-sized shoe enterprises is not optimistic.

    The survey data from the chamber of Commerce of the import and export trade association of shoes and hats showed that the comprehensive cost increased by 10% - 15% as a result of the decrease in export tax rebate rate and RMB appreciation.

    "Many small businesses are now facing the situation of survival of the fittest, reorganization and integration, and the profits of large scale enterprises are also greatly reduced."

    Recently, the head of the provincial footwear industry association affirmed the above statement when interviewed by our reporter.

    The profit of small and medium-sized enterprises will be squeezed recently. Under the influence of the 2 percentage point reduction in tax rebate rate adjustment and the subprime crisis in the United States, the footwear industry as one of the main export industries in Guangdong is quietly retreating.

    In the first two months of this year, the export of footwear industry in Guangdong decreased by 20% compared with the same period last year, while the enterprises in the Pearl River Delta region also dropped to 1512, which was 1855 less than the same period last year, less than half of the same period last year.

    What is the situation of shoe industry in Fujian?

    According to the data provided by Fujian inspection and Quarantine Bureau to this newspaper, from January 2008 to March 26th, the export and footwear of Fujian exported to Xiamen (excluding Xiamen) were 53010 batches and 1 billion 201 million 380 thousand dollars, respectively, increasing by 5.4% and 6.7% respectively.

    On the surface, the situation in Fujian shoe enterprises is not as bad as Guangdong, the overall export is still growing, but it has declined from the increase of last year, and the minimum export batch has been negative growth.

    "Under the combined pressure of export rebate rate and RMB appreciation, the production cost of enterprises has increased by at least 10% to 15%.

    Coupled with the appreciation of the renminbi, the price of raw materials continues to increase, and the low-end products simply can not afford it. This has really brought greater challenges to the footwear industry of our province. "According to the judgment of Pan Yangzheng, Deputy Secretary General of the import and Export Chamber of shoes and footwear, the profits of some small and medium-sized enterprises are likely to be squeezed out of the superposition effect of the above policies.

    An industry insider's statement corroborated Pan Yangzheng's statement. "Under the combined pressure, taking women's boots as an example, the cost of labor alone is 30 yuan per person this year, an increase of more than 50% compared with 5 years ago."

    Zheng Liuhe, chairman of Quanzhou Baofeng Footwear Co., Ltd., who has been engaged in shoes industry for 19 years, has also felt the pressure that he never had before. He told our reporter that he said frankly, "over 90% of our products are exported to the United States, and every year, 20 million pairs of slippers are exported to the United States. One of the ten people in the United States wears our company's slippers.

    We used to be proud of it, but now our exports are facing an almost zero profit embarrassment.

    The speech of the head of the footwear industry association is similar to that of Pan Yangzheng. "When the export tax rebate rate falls and the RMB appreciates, many enterprises are afraid to sign foreign orders. This is because the exchange rate changes are too big, and companies can not afford to lose their contracts.

    Now the shoe market is basically a buyer's market, and the buyer has the initiative to take the initiative in the market.

    This is mainly in the shoe market, in addition to the domestic market competition pressure, is also facing Vietnam, Philippines and other neighboring countries' competition.

    He stressed at the same time that "after the introduction of the new labor law, it is necessary to protect the fundamental interests of the workers, but at the same time, the labor cost of the labor force has increased, and many enterprises are unable to adapt to it in the short term.

    This is what our industry association can do nothing. What we can do is to guide enterprises to start from energy saving, reduce costs, and improve the utilization ratio of raw materials, but only by relying on internal consumption reduction, the cost reduction is very limited.

    All in all, the shoe industry in Fujian is now living in a difficult situation.

    It's hard! "

    Based on the above analysis, the footwear industry association leaders think, "now shoe enterprises are facing a turning point of development, small businesses collapse is very natural."

    When the reporter asked whether our province had already seen the collapse of small businesses, he blurted out without hesitation, "yes!

    Survival of the fittest, this is the natural law! "

    The reason why the leaders of the footwear industry association made such judgments, in addition to the various reasons mentioned above, there is another reason: "now the labor force is more efficient in the management of employment. The small enterprises are not as big as the enterprises in terms of wages, production, living environment and so on. Therefore, a lot of small business employees are running to big enterprises. Small businesses are going to go bankrupt because there is no one and the operating rate is not enough."

    Brand capacity upgrading, the only way for shoe enterprises to be weighed down, what is the future of Fujian shoe enterprises has become the focus of attention of the industry.

    In the view of the head of the footwear industry association of Fujian, under the current situation, shoe enterprises have no choice but to start with adjusting the product structure and creating brands, improving the technological content and added value of products, increasing the variety of products, developing functional and personalized products, and subdividing consumer groups, thus enhancing the competitiveness of enterprises.

    "Nowadays, many consumers recognize brands when they buy goods.

    There are three thousand or four thousand shoe companies in Fujian.

    Moreover, those famous brands have spent a lot of time and money building, creating brands is not so easy! "

    The relevant person in charge of the footwear industry association of Fujian believes that under such circumstances, the survival of small enterprises is only the path of OEM processing for large enterprises, which is the inevitable result of social division of labor.

    If it can not be OEM for others, it can only take the middle and low end of the rural market.

    However, the rural market is now gradually demanding quality and brand. "

    Stress is sometimes a driving force.

    Everything has two sides. The pressure at the moment is also an opportunity to upgrade and pform the footwear industry.

    "A company with long-term vision will work hard to strengthen management, enhance brand and increase added value, and those enterprises that are not standardized and can not keep up with the times will be eliminated in competition. This is not a bad thing for the whole industry. This survival of the fittest will encourage our footwear enterprises to learn from foreign experience, such as high value-added products and business management concepts, so as to enhance the viability of enterprises and continuously enhance their brand."

    This kind of light industrial product is mainly rely on quantity to win. If the enterprise fails to achieve a certain amount of production, it can not survive in the market.

    To this end, at the beginning of the new year, the most important industry location of footwear industry in Quanzhou province has sprang up a strong capacity upgrading trend. Several famous sports brands such as PEAK have launched one after another, completing the foundation or expansion of the new industrial park, providing conditions for the new round of competition and reserve strength.

    Among them, some of the newly built PEAK Huian South Industrial Park were completed and put into trial production. The 361 degree (China) Co., Ltd. invested 5 hundred million of the science and Technology Industrial Park. Some factories are expected to be put into operation this year. Fujian Gold Lake sports products company has completed the relocation to the Gold Lake Industrial Park; the modern industrial park, which cost 390 million yuan in China, has also completed the relocation; the Hongxing Erke group has also completed the relocation of the new factory building in the high-tech electronic information park. "Fujian"

    The relevant leaders of the footwear industry association of Fujian disclosed to reporters the latest development trend of the leading enterprises in Fujian footwear industry.

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