Shoe Clothing Processing Enterprises Intensified Vicious Competition Elimination

As the latest item arrives at hand, as a garment factory owner who has an annual turnover of tens of millions of dollars, Liu Jian intends to use the money to buy some financial products and then pfer to the company's account. "The salary of a part of such a turnover company will come a year."

Liu Jian told reporters that, like him, many factory owners have turned to real estate or finance. "These money come much faster. In order to maintain the factory's survival, we can only rely on these more profitable ways."

A boss who runs a factory similar to Liu Jian told reporters that the profits of the factory have basically disappeared. We can only shut down some production lines and use other channels to maintain the factory's operation. This has become the norm in the bosses of Wenzhou and Ningbo.

In the Yangtze River Delta region, the cost of raw materials continues to rise, and workers' wages increase by 30% every year. In addition to these, there are also enterprises that are troubled by the tightening of loans and changes in the US dollar exchange rate.

Vicious competition

The annual Canton Fair, Liu Jian will lead the company employees, and the company's booth is relatively large, the location is also outstanding.

"At the beginning, participants could still pull some customers, but later we discovered that in fact, our participation here is just bringing benefits to foreign buyers."

Reporters learned that foreign buyers like to take the same clothes to goods three, in order to win orders, domestic factories once and again, and three to reduce prices, and ultimately even win the order basically all gave profits to foreign buyers.

Their own lack of experience also makes their living space smaller and narrower.

Kang Jie, chief marketing consultant, said in an interview with reporters, "most clothing and

The processing enterprise unreservedly announces its own information on some B2B websites, and the result is that foreign buyers have more sufficient contrast, and the profits of enterprises disappear in this invisible price war.

According to a data from the Ningbo clothing association, the proportion of generation processing in the Pearl River Delta is higher than that in the Yangtze River Delta. The factories in the Yangtze River Delta region have begun to develop into foreign trade companies.

And let the Yangtze River Delta shoes and clothing factory headache and the cost of cliche.

Since last year, 30 provinces in China have raised the minimum wage standards, most of which have adjusted to around 10%, and some have reached over 25%.

Liu Jian told reporters, "although some production lines have stopped, I do not dare to lay off workers, and I hope the market will improve, which will greatly increase my operating costs."

Aggravating the new round of elimination

A strange phenomenon is taking place in the manufacturing industry of the Yangtze River Delta and the Pearl River Delta. The export volume of clothing and footwear continues to rise, but export enterprises are declining.

According to statistics, China's footwear exports from June 2010 to June 2011 amounted to US $39 billion 850 million; in the first two quarters of 2011, total exports of US $19 billion 10 million increased by 21.7% compared with the same period last year; in the 2 quarter, exports of US $9 billion 580 million, up 21.6% over the same period last year, and rose by 14.9%, while the volume of footwear exports from January 2011 to June continued to grow steadily.

However, the number of enterprises exporting footwear has declined slightly. The Guangzhou customs statistics show that from January to May, there were 2428 footwear export enterprises in the Pearl River Delta region, a sharp decrease of 2331 over the same period last year, and nearly half of the enterprises did not export real products this year.

Despite the sharp decline in export enterprises, footwear export performance has not been greatly affected.

Such data contrast shows the corresponding changes in the industrial structure adjustment of China's footwear export enterprises, and exports are gradually concentrated on products upgrading, quality and service oriented enterprises.

We are experiencing the test of survival of the fittest.

Kang Jie told reporters that "the manufacturing industry is facing the two extremes of" one high and one low ", and the manufacturing industry is developing and upgrading to the high end, eventually developing to the private enterprises with a certain scale and foundation, and the development of these enterprises needs huge financial support.

He told reporters that frequent overseas has become a common phenomenon of Chinese business owners.

"At the beginning of this year, many factory owners I know often go abroad, so it's hard to get through their phone calls.

The purpose of their choosing to go abroad is to attach importance to foreign investment and to invigorate the factory through investment.

"In the second half of the year, as the European and American markets continue to shrink, a new round of elimination of manufacturing industry has begun."

Kang Jie pointed out that if there is no thought for the way out, enterprises will only be faced with the result of bankruptcy.