Industry Thinking Triggered By Augustus Bankruptcy

< p > Augustus < a href= "http://www.91se91.com/news/index_c.asp > > shoe industry < /a > the main reason for bankruptcy is not the quality and sales of the main products, but the breakup of the capital chain.

There are many reasons for Augustus's capital chain breakage: investment in real estate, the loss of many brands of children's shoes, the construction of new factories, the increase of capital shortfalls, the joint insurance of enterprises, the aggravation of capital shortage by banks, and the increasing number of debts owed by usury.

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< p > > a href= "http://www.91se91.com/news/index_p.asp" > Wenzhou < /a > Augustus Shoes Co., Ltd. submitted an application for bankruptcy to the Longwan District People's Court of Wenzhou on 12 March. This is Wenzhou's bankruptcy after liquidation of a group of well-known enterprises, such as Yue hare group, Hai He pharmaceutical and Xintai group.

After the news came out, small and medium-sized enterprises in Wenzhou, especially in the footwear industry, caused a great shock. Some of them sighed, some worried about Wenzhou or set off a business bankruptcy. But the most important thing is to make a deep analysis and Reflection on the reasons for their bankruptcy and learn from it.

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< p > "Augustus" was originally the nephew and adopted son of the great emperor of Rome, and was formally designated as the successor of Kaiser. He defeated every opponent one by one with a very bold hand, ended a century of civil war, established an autocratic head of state politics, created the Empire of Rome, and ruled Rome for 43 years with very prudent wisdom, so that the Rome Empire entered a glorious period of peace and prosperity for a long time.

After his death, the Rome Senate put him in the ranks of "gods" and designated August as the "Augustus" month. Therefore, "Augustus" means "sacred" and "noble" with religious and theological meanings.

Naming the company name and product brand as "Augustus" shows that the owner has good intentions and ambitious ambitions.

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< p > Wenzhou Augustus Shoes Co., Ltd. was founded in 1995. It attached importance to product innovation design and quality. In 1996, it was selected as the sole footwear quality tracking brand by the "China Quality Newspaper" in 1996. In 1999, the enterprise passed the ISO9002 quality assurance system certification, and successfully developed Augustus nano healthy leather shoes, and won the national utility model patent. In 2001, through the appraisal of Zhejiang science and technology achievements, Augustus's "antibacterial elite" leather shoes became famous.

In 2000 and 2001, the national footwear quality inspection and testing center has been awarded top quality products for two consecutive years.

Augustus Industrial Park covers an area of more than 10000 square meters, has 4 advanced production lines, and has 12000 pairs of mid and high-end men's and women's leather shoes. The market network covers more than 180 large shopping malls and more than 1500 stores and shops in the country, and the "Augustus" trademark has been registered in 21 countries and regions such as France, Italy, Russia, Australia, Japan, Vietnam, Denmark, Sweden, Germany, the United Kingdom, Norway, Holland, Spain and Hongkong.

It is understood that the company uses only about 2000000 yuan a year to collect fees from the various provincial agents.

Last year, sales of Augustus in Sichuan, Shandong and other places reached nearly billion yuan, and about about 1000000 pairs of export shoes.

Such business performance is not a leader in the footwear industry in Wenzhou, but it should be said to have a place.

While many enterprises are undergoing severe tests of survival and development, and when the comprehensive business situation is stabilizing and picking up, Augustus is heading for bankruptcy.

What are the reasons and what lessons should we learn from it? < /p >

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< p > the main reason for the failure of Augustus footwear industry is not the quality and sales of its main products, but the fragmentation of the capital chain.

There are many reasons for Augustus's capital chain breakage: investing in real estate and making a lot of losses in the brand of children's shoes; building new factories and increasing capital shortfalls; joint insurance companies, banks lending more capital, and borrowing more and more debts by usury. Finally, a href= "http://www.91se91.com/news/index_cj.asp" > capital chain breakage < /a > has to make bankruptcy decisions.

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< p > the bankruptcy of Augustus footwear industry should draw profound lessons from many small and medium-sized enterprises in pition.

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< p > 1. Enterprise development requires both ambition and strength.

Making the enterprise bigger and stronger is the goal of the enterprise and the aspiration of every entrepreneur.

But the development of enterprises is often influenced and restricted by various environments and conditions.

If we go too far in pursuit of expansion and development speed, we will not be able to go beyond the actual capabilities and needs of enterprises, or even damage the vitality of enterprises and affect healthy development.

Augustus's shoes entrepreneurs have fully expressed his ambition and ambitions for the names of enterprises and product brands, and enterprises have been developing rapidly. Unfortunately, they are not sure of their moderation.

Augustus shoes industry already has an area of 10 acres of factory buildings. In order to expand the scale, regardless of the actual situation of enterprises, and requisition 17 acres of land, borrow money to build new factories. In the global economic downturn, it has been built for 3 years, causing serious shortage of funds and heavy burden.

Therefore, the development of enterprises, especially the current emphasis on speeding up the pformation process, must proceed from reality. We should adjust the business positioning and development strategy according to the needs of the market and domestic and international economic environment according to our own characteristics. We must make a correct estimation of the company's own funds, technical strength and human resources, and never blindly engage in it.

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< p > two, doing solid work on the ground is the foundation for the sustained and healthy development of enterprises to live longer.

Looking at the lifespan of world enterprises, the average life expectancy of enterprises in Europe and America is 40 years, and the average life expectancy of Japanese enterprises is 58 years. The average life expectancy of Chinese SMEs is only 2.5 years, and the life expectancy of group enterprises is only 7-8 years.

Japanese companies have the longest life expectancy. According to relevant data, there are 21666 enterprises in Japan over 150 years old, while there are only 5 enterprises in China over 150 years old.

The reason why Japanese enterprises have a long life has an important factor. It is the business idea that Japanese enterprises attach great importance to their business and stick to the long stream and continuous, and do not pursue the immediate interests.

Japan's family businesses rarely operate across borders, and many small and medium-sized enterprises focus on one field for a hundred years.

If the company started its business in 1899, it has always produced tomatoes related products.

Even in 2002, the acquisition of "snow seal Rabbi" has entered into the lactic acid industry, in order to combine the beneficial ingredients of tomatoes with the immunity possessed by lactic acid bacteria.

China's small and medium-sized enterprises and entrepreneurs do not lack courage and courage. What is lacking is the persistent dedication spirit of Japanese entrepreneurs. This is often the mistake that this mountain looks for when it is high and easy to make quick gains and gains.

Augustus's shoe industry went bankrupt.

Augustus nano health leather shoes is a good innovation, and has won the market and reputation quickly.

Unfortunately, enterprises are not persistent and dedicated. They do not succeed in carrying forward their achievements, continue to be strong and strong, but scatter their energy and financial resources into the real estate industry. They also abandon the domestic market operation, hand over their brands to others, and act on behalf of others as a child's shoe brand.

SMEs in pition need to take this lesson seriously.

Transformation does not necessarily have to change jobs. It should learn from Japanese enterprises' dedication to their profession and rely on science and technology to do fine and strong jobs so as to remain invincible.

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< p > three, it is the bounden duty and urgent task of the government to solve the financing difficulties and financing problems of small and medium-sized enterprises.

The boss went on the road, the business went bankrupt, and ten of the eight or nine were related to private lending and usury.

Augustus's shoe industry bankruptcy is no exception. When the capital turnover of enterprises is difficult, bank loans are not yet mature. They have to borrow 10 million yuan from Guarantee Corporation's high interest, and they can not get loans after they are returned to banks. The result is 6 yuan interest 10 million yuan loan, interest 8 million yuan, principal repayment of 4 million yuan, and up to 6 million yuan principal.

Such high interest loans, SMEs engaged in manufacturing can not afford to sustain, bankruptcy is inevitable.

Therefore, accelerating the pace of financial reform, creating a good financing environment for small and medium enterprises, and solving the problem of financing and financing are important responsibilities and urgent tasks of the government, and also the most effective measures to support SMEs.

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