Southeast Of Shoe Tycoon Sounded The Alarm For Chinese Foundry Enterprises

With the change of economic environment, the low cost advantages of Chinese enterprises no longer exist, and the mode of development has been difficult to sustain. There are many bottlenecks in the development of enterprises.

Scholar entrepreneurs

Zhou Haijiang, President of the group, summed up five bottlenecks faced by China's private enterprises: Labor bottleneck, environmental bottlenecks, land bottlenecks, strategic bottlenecks and institutional bottlenecks.

First, the cost of industry, labor and so on.

Secondly, environmental protection is another important topic in the development of enterprises.

The ecological environment has increasingly become a constraint on economic development. The development path of "two high and one capital" industry has been difficult to adapt to the current situation of China's ecological environment.

Third, with the rapid development of the economy, land resources are increasingly becoming the bottleneck of many enterprises because of their scarcity and non renewability. How to deal with this bottleneck has become a problem that private entrepreneurs must face.

Fourth, for Chinese enterprises pursuing diversification, how to create the core competitiveness of enterprises is "Dao"; finally, how to break through the chronic diseases of the original enterprise system and explore the modern enterprise system with Chinese characteristics is the most profound system bottleneck.

Under the constraints of the five bottlenecks, the pace of development of China's private enterprises is slowing down, and there are many strange situations.

First, there is a hollowing trend in the real economy. The phenomenon of "going manufacturing" and "going industrialize" are serious, and industrial competitiveness is declining. The two is weak supervision, poor quality of products, bad money drives out good money, and three, enterprises are in the low end of the industrial chain and difficult to upgrade. The roles and positioning of the assembled cars have been difficult to change for decades. Four, the manufacturing industry is out of line and the loss is serious.

The above problems are independent and interrelated, and play a common role in China's economy and enterprises.

Among these five bottlenecks, the most serious problem is the bottleneck of labor force.

The rise of labor costs has led to the whole body. In the past 30 years, the competitiveness strategy of Chinese enterprises has been built on the basis of low cost, so as to form a price advantage, and then increase the sales and market share by copying and expanding the scale.

However, when the cost of labor has risen irreverably, the cost of raw materials and capital has increased, making the comparative advantage of China's exports declining.

As China, which relies on demographic dividend to create economic miracle of reform and opening up for 30 years, the future strength of labor will no longer be a great challenge.

UN forecasts

The population will be close to 1 billion 400 million in 2030, reaching the peak of population and will begin to decrease thereafter.

Last year, the working age population at the age of 15~64 accounted for 74.4% of the total population.

Cai Fang, director of the Academy of Social Sciences and director of the Institute of population and labor economics, said that this will mean that China's labour force will no longer increase in the future.

As a hard core of the workforce, the 15~59 year old workforce will begin to slow down from 2013.

The population of this age group can barely maintain around 900 million people before 2020, and then the rate of reduction will accelerate.

In fact, although low labor costs contribute to the competitiveness of Chinese enterprises, it is not a good thing in the medium to long term.

Chinese enterprises have been engaged in the production of low-end manufacturing processes, unable to achieve industrial upgrading, which is related to low wages.

If there is no stable industrial worker group, the production of enterprises will be affected.

Because a lot of time is spent in recruiting and training employees, the production efficiency of enterprises can not be improved, and pformation and upgrading is even more impossible.

Nowadays, the shortage of migrant workers, the fluctuation of work efficiency and the loss of large personnel in coastal areas are all the disadvantages and hazards behind low wages. The most direct consequence is the poor stability of enterprises.

Enterprises should conform to the trend of the times. They should regard human resources as an investment rather than a cost.

Such investment will lead to increased loyalty and efficiency of workers.

As we all know, due to the high cost of labor and so on, China's textile and apparel orders are rapidly exodus to Southeast Asian countries, which has become a major challenge for the home textile and garment industry.

Many domestic SMEs have closed down due to high cost and reduced orders.

Just a little while ago.

Plans to close a Chinese factory.

In fact, before Adidas, another industry giant Nike had already closed the Chinese production line.

As time goes on, Clarks, K-Swiss, Bakers and other international shoe giants have also set up production lines in Vietnam and Indonesia.

The "escape" of these foreign brand enterprises has created a huge survival crisis for many Chinese manufacturers. Why do these foreign enterprises choose to "run away"? Because they are the owners of the brand, whether in China or in Vietnam, the dominant power is entirely in the hands of Adidas and Nike, and power can not prevent them from changing the market. Only the gains and losses of interest measurement are the decisive factors for their choice of different markets.

The flight of Adidas and Nike has sounded the alarm for us. Foreign capital is also the biggest interest. Once there is no other market in a market, we will not hesitate to choose to leave.

In addition to adopting measures such as tax reduction and protection of labor rights and interests, it is more important to cultivate a large number of independent brands with core technology.

Only in this way can Chinese enterprises have the right to speak and price in the market economy, and then have the dominant power to divide the market.