Analysis Of The Economic Operation Of Wenzhou Shoe Leather Industry In The First Quarter Of 2008

In the first quarter of 2008, Wenzhou shoe leather enterprises actively responded to challenges such as increased production costs, appreciation of the renminbi, the implementation of the new labor contract law, the EU's anti-dumping against leather shoes, etc., vigorously adjusting the product mix and striving to improve the product quality, so that the whole industry continued to maintain the trend of rapid growth, good operation quality, improved export efficiency and overall strength.

First, export and gross domestic product data and analysis, according to the first quarter data released by the customs, showed that in the first quarter of 2008, Wenzhou exported footwear 584 million US dollars, an increase of 13.95% over the same period last year, accounting for 24% of Wenzhou's total foreign trade export value, and its export value ranked first among all kinds of export products.

Among them, exports of injection shoes were 375 million dollars, leather shoes 138 million dollars, and textile shoes 55 million dollars, up 13.79%, 11.17% and 19.84%, respectively, while the number of footwear exported to the EU was 47 million 817 thousand pairs, amounting to 207 million 62 thousand and 700 dollars, an increase of 5.53% over the same period.

Among them, footwear exports in March amounted to $144 million 100 thousand, an increase of 85.94% over the same period, higher than the 6.75% increase in Wenzhou's single month exports.

According to the statistics of Wenzhou Municipal Bureau of statistics, the total output of 770 Enterprises above Designated Size reached 9 billion 100 million yuan in the first quarter, and the output was 120 million pairs, an increase of 11.5% over the same period last year.

Among them, output value was 3 billion 500 million yuan in March and output was 45 million pairs, an increase of 16% over the same period last year.

The above data show that the economic performance of the shoe leather industry in Wenzhou in the first quarter was good in 2008, and exports and domestic trade maintained a certain increase, and accounted for 24% of the total value of Wenzhou's exports, ranking first in the total value of all kinds of export commodities. The growth of export leather shoes, leather shoes and textile surface shoes also remained above 13%, while the growth of textile surface shoes increased by nearly 20%. However, the export growth of footwear products exported to the EU slowed down to only 5.53%.

Due to the differences in the time of delivery and the time of production, the export in the first quarter may only reflect the production status of the foreign trade enterprises. The specific conditions need to wait until the two quarter's export data are available.

The gross domestic product value of Wenzhou shoe leather industry reached 9 billion 100 million yuan in the first quarter, and maintained an increase of more than 10%.

Two, economic operation and cause analysis 1. Economic operation: in the first quarter, enterprises above Designated Size started to work well, production and sales were flourishing, the so-called strong and constant strength, small enterprises were struggling, first, orders were reduced, two were difficult to recruit employees, and some enterprises had three lines, and only one line could be opened.

Labor costs rise by about 20% to 30%, and some jobs are even more.

According to the survey, in the first quarter, more than 70 of Wenzhou shoe making enterprises went bankrupt and converted to production. With the increase of various pressures, the enterprises that converted and closed down will increase.

The implementation of the new labor contract law has resulted in an increase in the labor costs of enterprises. The rising raw materials, the appreciation of the renminbi, the reduction of the export tax rebate rate, the anti-dumping measures in Europe and the United States and the tight monetary policy have further squeezed the profit margins of enterprises, especially those mainly exported (mainly OEM processing), and conservatively estimated at least squeezing over 15% of the profits.

In terms of international trade, the brand influence of Wenzhou shoes is still very weak. The number of independent brands is low, and two is not well-known.

One of the main reasons is the lack of market research and inaccurate product positioning. The two is the serious homogenization of products, the lack of distinct personality and the inability to innovate. Three, the price competition is fierce, and Wenzhou shoes are sold in the US market for twenty, thirty US dollars or even lower, but they still can't compete with Wenling shoes with lower price.

The shortage of foreign trade talents is the bottleneck that restricts the foreign trade business of Wenzhou shoe making enterprises.

First, there is no domestic training base for foreign trade in footwear. Two, it is more difficult for enterprises to cultivate themselves. Time is a problem, and a more crucial problem is "making clothes for others".

2, reason analysis: standing at the height of China's big economic environment and industry development trend, we think: China is in the turning point of the industrial revolution. Both the central government and local governments are vigorously optimizing the industrial structure, enhancing the scale of the industry through upgrading and integration, and the multiple pressures of the international economic and trade situation have prompted us to speed up industrial upgrading, and the Chinese shoe leather industry is also in the stage of reshuffling.

In this sense, the failure of enterprises to change production is also a normal phenomenon, which is beneficial to the optimization and industrial upgrading of the shoe leather industry, and also accords with the objective law of economic development.

Specific reasons we think are as follows: (1) the price increase of raw materials has squeezed the profits of the products; second, the increase of labor costs has diverted the profits of enterprises; third, the implementation of the new labor contract law has increased the expenses of enterprises; 4. The tightening of bank loans has increased the difficulty of capital turnover; 5. The reduction of export tax rebates has reduced the profits of enterprises; the pressure of RMB appreciation has raised the price of products and the competitiveness of enterprises; the subprime mortgage crisis in the US has reduced the demand for Chinese products gradually, and the consequences are gradually showing; EU anti-dumping and trade frictions are still intensifying.

Recently, domestic media have reported the "collapse tide" of the light industry and textile industry, claiming that "thousands of shoe enterprises in Guangdong have gone bankrupt and closed down", "1/3 domestic textile enterprises are facing closure" and "Qingdao 103 Korean enterprises fleeing at midnight" have attracted widespread attention at home and abroad.

We believe that these closures will not be staged in the shoe leather industry of Wenzhou, because the majority of the bankrupt footwear enterprises in Guangdong are mostly Taiwanese or foreign investment enterprises, while Wenzhou's shoe enterprises are native local enterprises, together with the industrial chain advantage of Wenzhou shoe leather industry and the marketing advantages of Wenzhou businessmen. We have reason to believe that the Wenzhou shoe industry will be difficult in the near future, but this situation will not happen.

The shoe industry in Wenzhou is experiencing a new lease of life, and it will soon be renewed.

Three, actively respond to the strategies and suggestions under multiple pressures, Wenzhou shoe leather industry is facing new opportunities and challenges. Wenzhou shoe enterprises are also actively taking action to seek countermeasures.

1, technology is the primary productive force, and enterprises should enhance their capability of scientific and technological innovation and R & D; 2, speed up the upgrading and upgrading of industrial structure; 3, timely pformation, including pformation of industries, pformation of products, pformation of marketing methods, pformation of market models, etc. 4, the integration and complementarity of resources, such as mergers and acquisitions, joint ventures, etc., 5, strengthen the construction of independent brands of foreign trade, gradually reduce the processing of OEM, encourage enterprises to choose their brands from multiple angles and markets, and enhance their market competitiveness; 6, actively respond to the new situations of international trade change, such as market pfer, pfer of bases, build factories and build bases abroad.

Such as Kangnai group in Russia to build the first overseas industrial development zone - Far East Kang Ji industrial park; Kazakhstan shoe industry set up 3 factories and 8 subsidiaries in the world, invest in factories in Nigeria, become the largest shoe maker in West Africa, and are planning to invest in the construction of the African shoe capital Industrial Park.

7, enterprises should go out in various ways, integrate into the world leather industry chain, and create a win-win cooperation mode.

8, it is suggested that the government should rationally grasp the rhythm of policy release, maintain the stability of regulatory policies, and introduce policies and measures to reserve adequate response space for enterprises.

9, appropriately relax the implementation of relevant policies, and suggest that in the detailed rules for the implementation of the labor contract law, 1 to 2 years of pition for labor-intensive industries can be considered.