Shiling Leather Capital Upgrade

At 9 in the morning, the roaring bulldozer sounded in the revitalization village of Shiling Town, Huadu District, where the owner of the local small and medium-sized enterprise Chen (the pseudonym) was built for half a year.

His housing is illegal construction, and when the yuan began to appreciate, labor costs rose year by year, and state policy tightened, Chen boss first felt the pressure from the market environment.

And Shilin, a flower maker with low-end leather products, is facing confusion for the future.

Entering Shiling, some people are optimistic and frustrated, and the local government has also sounded the horn of upgrading.

They say that the next 35 years will decide whether China's leather capital is lion or dragon.

"Foreigner said, there is no order over there. Here, RMB has appreciated again."

In Shiling leather city, when a reporter asked Chen Xiaopeng, sales manager of Reggie Oxford cloth Co., Ltd., recently, when he was doing well in business, he replied categorically: "it is not easy to do that, the appreciation of RMB is too fast, and the export price is high, so the foreigners who come to get goods are much less, even if they come, they complain too much."

Chen Xiaopeng spent five years in leather city.

He said that the business started poorly in the second half of last year. "In the first half of last year, we still had 30% of our profits. Last year to the end of this year, we had only 15%~20%.

The closure of some small factories, the moving house, the small handbag factory and the processing plant are all stuck. They are willing to rent the stalls to other people, and the moving factories are moving to Vietnam, which is the cheapest now.

Business is getting worse and worse, but Chen Xiaopeng can see clearly that "the industry needs upgrading and the market rules are in order. There is no way to do that."

But is the pace too fast? "

He sighed and said, "the exchange rate has become too fast. At the beginning of last year, the RMB exchange rate against the US dollar was 7.8, and now it is 6.8. No wonder foreigners complain."

However, even if business becomes harder and harder to do, Chen Xiaopeng will not choose to close: "the price of traditional products is very small, so we have to find new ways to develop new products."

Li Jingli (a pseudonym) of a leather goods company and Chen Xiaopeng's ideas are basically the same: "business has become more and more difficult in recent years, especially since the beginning of this year. After the appreciation of RMB, the price of raw materials has gone up. We are doing traditional products, and the price is hard to mention. Profits are naturally thinner. The former 10% is now less than 5%."

Manager Li smiled lightly and said, "there is a high tide and low tide in the market rules.

However, the general direction of upgrading the industry is good, but the timing of the specific operation may be inappropriate and a bit too fast.

Chamber of Commerce: gross profit margin has generally fallen by 2%. Huang Yaoxin, Secretary General of Shiling leather leather Merchants Association, has made a list of such difficulties: the first is RMB appreciation, because the manufacturing enterprises in Shiling Town 60%~70% are mainly outside orders; the second place is the rise of raw and auxiliary materials prices, while the raw materials and auxiliary materials have increased by 5% when the selling price of leather goods is lacking, and the last is the increase of labor cost.

At present, Shiling has hired a worker, giving a salary of around 1200 yuan, raising 10%~20%.

Such difficulties are not confined to the manufacturing enterprises of the industrial chain terminals, but also spread to the entire industrial chain, both raw and secondary suppliers, or traders in the middle, whose gross margins have dropped from about 10% to 6%~8%.

"There are dozens of small and medium enterprises (bankrupt), but there is no large-scale or large-scale enterprise collapse or pformation in Dongguan."

Xiao Jiaxing, executive vice president of the chamber of Commerce, told reporters that the business difficulties of Shiling leather and leather enterprises were highlighted after April and May.

Although there are no statistics on bankrupt enterprises, from the current situation, orders for large enterprises are decreasing, and small businesses have no orders, so they can only withdraw at last.

The reason why there is no collapse or pformation of scale enterprises should be said to benefit from the government's industrial guidance.

The most direct example is that since the beginning of this year, large enterprises have been much easier to recruit.

Xiao Jiaxing said that the pformation of small and medium-sized enterprises, in fact, is conducive to the emergence of more standardized competition pattern and the stable profit margin of the industry, which is in line with the needs of industrial development.

On these two days, he is always concerned about Wang Qishan's trip to the United States.

In his view, the quality of the market environment in the second half of this year is largely determined by the ongoing consultations between China and the United States.

However, whether the market environment is good or bad in the second half of the year, SMEs will face the pressure of outgoing, while the regulatory model and brand oriented enterprises will become stronger and stronger.

Mayor's interview: doing business is profitable, making quick money is bad. "It's a good thing for those who do business as a career." for those who want to rely on "leather goods city" to get credit, get money and make quick money, it must be a bad thing.

Shiling Town Mayor Xu Weixin ended his interpretation of Shiling's future industrial policy in this sentence.

In the more than 2000 leather and leather manufacturing enterprises in Huadu District, about 40%~50% are small and medium-sized enterprises with a scale of less than 100 people, or even several car clothes, and seven or eight workers can start a small stall.

This is the origin of Shiling development. It is also a major feature of Shiling manufacturing.

From the development of Shiling Town, it must go through such a stage as soon as possible.

Unlicensed and non-standard small workshops and small businesses, though being a grass-roots economy, can solve certain employment problems, but the low cost of production actually undermines the fairness of the market, equals unfair competition, and is not conducive to the breakout of brand enterprises and the sustainable development of the whole industry.

As a result, Xu Weixin has prescribed two prescriptions, one for brand enterprises, the other is for joint ventures and acquisitions.

At present, there are two hundred or three hundred small businesses in Huadu, such as AOKANG and so on.

In the past, brand enterprises did not consider these small businesses or even small workshops to operate in accordance with the law.

In the future, we should encourage brand enterprises to acquire or pool small businesses, standardize the development of small enterprises from the market level, expand production capacity, raise the price advantage, strengthen the brand or standardize the market, and form orderly competition.

Another prescription is for small and medium enterprises, called "one village, one product".

Shiling Town's small and medium-sized enterprises, mostly concentrated in the synthesis village, Yicheng village and other places.

The core of the strategy of "one village, one product" is to solve the problem of small and medium-sized enterprises' brand creation by registering and using collective trademarks, and guide them to form an orderly competition around the integration of resources and production capacity around collective trademarks.

The effect of these two prescriptions is not well judged.

But Xu Wei said that Shiling manufacturing, "no progress, is equivalent to regress!"

Shiling enterprises must have their own brands.

Products without brands are destined to be products with low added value and no pricing power, and are destined to be eliminated by the market.