The "Wolf Age" Of The Pearl River Delta Leather Industry

"The price of leather is increased by 2 yuan per foot, and our leather goods factory will pay more than one million yuan a month for this purpose."

Lin Jinkun, who has been in the export business for more than 10 years, has never been so depressed as he has been in the past two months. He was full of confidence in making money during the Spring Festival. Now he is worried that if the environment deteriorates further, whether the factory can survive this year is still unknown.

Six factors, such as RMB appreciation, rising price of raw materials, rising labor costs, increasing environmental costs, changing the export tax rebate policy, and the subprime mortgage crisis in the United States, are also at the same time, and the impact on export enterprises is fatal.

In his words, "six Swords" dance at the same time, at the same time, they will go to the processing trade enterprises, and the strong "man" will fall down.

Lin Jinkun said, "wolf used to be a metaphor for powerful foreign brand invasion, but now we are facing too many difficulties. This is a real wolf era."

In fact, in the course of investigation, Lin boss's practice of "lying down and preserving strength" is unusual.

Experts estimate that the export cost of Chinese enterprises has increased by 20%~30% this year, and the export price of leather shoes trading companies can only be increased by 30%~45% to keep costs.

The cost is rising and the enterprises are in urgent trouble. Many small and medium sized enterprises in processing trade are mainly exported, and the traditional labor-intensive industries are the main industries.

In the past few years, these enterprises relied on scale effect and cost advantage to earn meager processing fees. They could still survive. But over the past two years, the cost of raw materials and manpower has continued to rise, and many enterprises have begun to hold back and dare not take orders from abroad.

Zhang Sanfeng, the head of the Ding Ding leather goods company, was also helpless about the rise of raw materials.

"Now domestic prices are rising, raw materials are rising, wages are rising, profits are so much, the state eats a little, prices rise and eat a little, and the rest of this makes you walk on thin ice."

Zhang Sanfeng calculated an account to reporters. With his company's number more than 100 workers, the monthly production cost is close to 2 million, of which 70% of raw materials such as fabrics, 30% of wages, wages, water and electricity, factory rent, pportation and so on.

Since last year, the price of domestic leather goods has increased by more than 10%, and the cost of labor has increased by 3%. According to the current trend of RMB appreciation, the cost of this entry is 6%, and the impact of export tax rebates on the processing enterprises has increased by 8% at least. Their enterprises need to increase their cost by at least 27% this year.

What makes him more helpless is that the purchase price of international leather goods has not been raised correspondingly. "Some international bulk procurement activities that have been adopted by bidding and bidding mode have made producers compete with each other in price competition. They dare not raise the price of two words at random, and the extra" cost "can only be carried on their own.

He said that according to the current situation, only the export price will be raised by about 30% to keep the cost, but foreign buyers have not fully accepted this magnitude.

Wang Jianxin, director of Guangdong Leather Industry Association, said leather goods exports, for example, increased domestic CPI costs.

"Many SMEs have not yet understood what is going on, they have been eliminated, and industry reshuffle is intensifying."

The RMB appreciation has not been able to meet the rapid appreciation of the renminbi. Many export leather and leather enterprises are considered to be another important factor leading to the industry's dilemma.

According to statistics, in the first quarter of 2008, the appreciation of RMB against the US dollar reached 4.49%, which surpassed that of 2006 and 2007 1~7.

"Now all trades and professions are very bad. There are no orders. Now I would rather earn less and take orders from OEM, because there is no risk, so I can deliver the goods."

The boss of Amy Rosa shoes is no longer willing to pick up orders from European and American shoe stores and traders. In his view, this is too risky.

Chen boss said that the current export of independent brands is basically settled in US dollars. If we do not want to deal with it, 10% or even more exchange rate losses will squeeze less than 10% of export profits.

In addition, from the order to delivery, it usually takes 1 to 2 months, and the price of the product is calculated at the time of the order, and the enterprise must bear the risk of exchange rate fluctuation after a few months.

Therefore, the situation that enterprises dare not rush to take orders from foreign countries is beginning to appear. Some of them have changed long-term orders to short-term orders, large orders have been changed to small orders, total orders have decreased sharply, and export volumes have declined.

According to customs statistics, in the 1~5 month of this year, the Pearl River Delta exported 940 million pairs of shoes, down 25.7%.

Guangdong exported 1 billion 350 million pairs of shoes, 15.5% lower than the same period last year, and the export value was 3 billion 970 million US dollars, an increase of 9.4%.

Wang Jianxin said that although the export products were increased, they were immediately eaten up by the appreciation of the renminbi. This slow pace of appreciation is a chronic impact on enterprises.

Workers' wages are rising, and labor costs are rising.

Over the past two years, the minimum wage in Guangzhou has increased by 14%.

Pei Haishan's factory has repeatedly reduced the number of workers employed in the production of luggage and bags, and the cost continues to rise.

According to his statistics, labor costs, including wages, social insurance contributions and other benefits, have increased by about 25% over the past two years.

The average wage of workers in the Pearl River Delta region has increased by more than 20%.

He believes that the reasons for the rising labor costs are: on the one hand, the lack of labor. In order to retain skilled workers, Pei's factory raises its wages by about 10% a year.

Not only that, all kinds of insurance and improvement of workers' work and living environment and other expenses, on average, cost more than 300 yuan per person per month.

Since the beginning of this year, the operating costs of hydropower, factory rent, pportation and so on have been rising, and the selling price of products has hardly increased, and the profit margins are getting smaller and smaller.

If the wages of workers are greatly increased, enterprises will be overburdened.