After The Cold Spell, Chinese Shoe Companies Are Going To The World With High Profile.

I remember that when I was at University, some classmates insisted on "taking a cold bath" in autumn and winter in order to keep fit and healthy.

At first, the sound of howling was heard every time. Later, most of them came out of the shower with humming tune.

These people have rarely had a cold since then.

At present, many enterprises in China have encountered difficulties in operating because of the rising labor costs and the appreciation of the renminbi.

For example, according to the results of a survey conducted by the footwear association of Asia, about 200~300 of the more than 1000 shoemaking enterprises in Dongguan have been closed.

Not only the labor-intensive enterprises, especially the small and medium-sized enterprises, are facing great pressure to survive, but other industries, such as real estate and even network communications, are not optimistic.

Previously, Vanke, HUAWEI and Alibaba have issued the sound of preparing for the winter.

Undoubtedly, many enterprises in China are being forced to take a cold bath.

Compared with the hot market data of the previous two years, this "cold bath" has come rapidly and fiercely.

Perhaps a lot of enterprises will catch a cold because of this cold bath, sneezing, and even because of improper treatment.

But from another perspective, this "cold bath" is beneficial to the cultivation of endogenous viability of enterprises.

Enterprise viability is a theory put forward by Professor Yifu Lin, which means that in an open and competitive market, a company with normal management can survive without external support and protection, and get the expected profit rate acceptable in the market, because it has made the best choice in the open and competitive market and realized the maximization.

Generally speaking, the self generating ability of an enterprise comes from two aspects: endogenous and exogenous.

Before that, most enterprises in our country were born from exogenous factors.

For example, the huge labor force pferred from the countryside supports a large number of OEM enterprises. The relative undervaluation of RMB has promoted the rapid development of China's export trade, and the government's preferential policies in tax rebate, land and energy have greatly reduced the nominal cost of enterprises.

Now, these exogenous factors have changed, wage costs have increased, the renminbi has appreciated, the government has given less concessions, and the problems of enterprises have also been exposed.

From the theory of corporate viability, it can be concluded that if an enterprise fails to get the expected normal profit rate in the actual operation, it is due to the lack of normal management mechanism, which may have corporate governance problems, incentive mechanisms or property rights problems, and there may be improper government intervention factors in the operation of enterprises.

The current "cold bath" fully reveals the inadequacy of endogenous viability of most enterprises.

For example, the absence of technology in terms of technology, cost control, R & D, design, and brand makes many enterprises struggling to compete in the "Red Sea" of low competition. When winter comes and is forced to take a cold bath, they immediately catch a cold and have a fever.

To cultivate endogenous enterprise viability, we should start from two aspects.

First of all, from the perspective of enterprises themselves, we should clarify their comparative advantages in different stages according to the development of the global industry.

In the near future, we should increase investment in patents, design, and brand, sort out the process of internal management, and improve the ability of cost control.

Fortunately, many industries and enterprises have taken action in this area, such as footwear industry in Dongguan and hardware and tools industry in Danyang.

Real estate leader Vanke said that in the past two years, "the company is more important than making products", Alibaba's Ma Yun said that "two years do not set the company's operational indicators."

Secondly, taking advantage of this "cold bath" opportunity, for the government, it is promising to guide enterprises to cultivate endogenous viability.

If we take advantage of the entry into force of the antimonopoly law, we should vigorously promote the construction of a unified and orderly market, timely promote the price reform of the factor market, and comprehensively utilize the measures of Taxation, credit and exchange rate to promote the structural optimization and upgrading of enterprises.

If you wait for this cold bath, there will be a large number of Chinese enterprises humming a cheerful tune to the world stage.