Nearly 200 Shoe Companies In Huidong Are Closed.

The billboards in the streets of Jilong Town, Huidong, are full of brand advertising which is not required by the bankrupt shoe companies.

Huidong, which has the reputation of "the city of women's shoes in China", is suffering from a severe financial crisis.

In Huidong, the most developed shoe industry in Jilong, a small town with a population of 30 thousand, more than 4000 registered in the trade and Industry Bureau at the peak of two years ago, and some 6000 were not registered.

But since the beginning of this year, nearly 200 shoe companies have been closed down in the most developed shoe industry in Huidong, and nearly 100 shoe factory owners have fled.

"How to spend this winter" has become the most concern of Huidong footwear industry.

"Opening the door and closing the door" this year's opening is new, and the shoe factory is closed.

- - Mo's driver, Wu Hong, November 8th, Jilong, Huidong.

The first rain since the beginning of winter has made the dust of Huidong's Jilong yellow port much less.

The shoe materials on the street are still standing, and trucks and motorcycles are crossing them. Shopkeepers do not see the smiles on their faces.

"The biggest news here today is the opening of yongxun garden."

Knowing that someone was visiting, Wu Hong, a driver from Mo in Henan, was positive.

On this day, dozens of people gathered around the new town of Jilong Town, and more than 100 workers gathered around the gate to ask for wages, and more than 10 police stations kept order, but they failed to attract many people to watch.

"The opening of this year's development is new, and the shoe factory's closing is not new."

Wu Hong said with a big mouth that everyone knew that the house was not good enough to sell, and that the house of Jilong was even more unbought. In those days, he wanted to sell his house in Jilong. Now the opening was very fresh. In the past two years, I heard the news of the shoe factory owner running around and saw the workers asking for wages.

"I am not coming back. You are responsible for assisting the local government in dealing with the related matters after the shoe factory closures."

- the owner of Jia Hao shoe factory is not far away from the Jilong exit of Shenzhen Shantou expressway. The sign of the shoe factory of Gao Hao stands high on the roadside.

Factory sluice gate closed, leaving a small exit, more than 10 security officers in the door to maintain order.

On the first floor, the gate was locked. Many workers were guarding the room, looking out of the window, and the shoes mold and papers scattered all over the place.

The manager, he Cai Rong and the workers have not seen eye for two days and two nights, and the suppliers constantly come to the house to make a debt.

He recalled that he saw the last side of Gu Jia Hao in November 3rd.

On the same day, He Cairong was going to go out by motorcycle. He found that 3 motorcycles were gone. They were all rode away by his relatives. One of them was allocated to him by the shoe factory.

In the evening, another shareholder of the shoe factory was going to sneak away some of the shoe factories and was discovered by the workers.

He Cairong felt wrong and telephoned Gu Jiahao, the boss. "I am not coming back," said Gu Jia Hao on the phone. "You are responsible for assisting the local government in dealing with the related matters after the shoe factory closures."

The crisis in the industry, the scene inside and outside the shoe factory, has been staged many times in Huidong recently.

"In fact, the signs of the shoe industry crisis in Huidong appeared 2 years ago, but the financial crisis has exacerbated the crisis, which has exposed the contradictions in the development of footwear industry for a long time. This is not the root cause of this crisis."

Luo Weiming, director of the Economic Office of Jilong Town, Huidong County, has been dealing with shoe manufacturers for a long time. Over the past 10 years, he has been paying close attention to the development of footwear industry in Huidong.

In his view, the financial tsunami is only the last straw of some small and medium-sized enterprises, and this is precisely the best opportunity for Huidong shoe industry to carry out structural adjustment.

Vicious competition compresses overall profit margins. Business started poorly in the second half of 2007.

Most of these foreign investors are exporting. With the depreciation of the US dollar, the RMB exchange rate is increased, the export cost is increased, and the profit margins of export enterprises are compressed.

"2 years is a novice, 3 years is a good hand, 5 years can be a boss."

Because the technology content of shoe industry is not too high, to a certain extent, many skilled workers are unwilling to continue to work.

Therefore, in recent years, shoe manufacturers in Huidong have sprung up like mushrooms, and the momentum of expansion is fierce. Many shoe factories have appeared in Pingshan and Daling.

More factory shoe factories have not been registered in the industrial and commercial tax department. So, "how many shoe factories do we have?"

The direct consequence of low access threshold is vicious competition. The result of vicious competition is the overall profit space compression.

With the increasing number of shoe factories, small workshops have joined the competition. Customers do not have to pay first, and 30 days or even 90 days after they arrive.

That is to say, the shoe factory should first pay 3 months' wages, advance all the materials of the goods, and wait for the seller to recover the money after selling the goods. Once a link is out of order, the shoe factory will not be able to return to the sky after the capital chain breaks. Most shoe factories have to wait for death.

Besides, the new labor law has greatly affected the footwear industry in Huidong.

Mainly reflected in the increase of labor costs, the data provided by hundred shoe industry show that only manpower costs increase 7%. after the implementation of the new labor law, and more importantly, the bargaining power of workers gradually increases, leaving shoe factory owners helpless.

After the implementation of the new labor law, workers know their own interests and can negotiate with their bosses to increase wages.

"The former workers were afraid of not working, but now the workers are afraid of doing too much, which is also a change in the values of the workers."

Luo Weiming said, for business owners, according to the "fixed time, fixed price, fixed quality" to complete the task is to follow the guidelines, and to achieve "three fixed", many times rely on overtime to achieve.

10 years ago, the workers did not complain about overtime work. Now the workers are mostly single children after 90 years. Their values are different.

In 2003, there were 78 local shoe companies with an annual output value of over 5 million, and the number of shoe companies has dropped to 50 since 2006.

It is understood that so far this year, nearly 200 shoe enterprises in Jilong town have closed their own businesses, and about 100 shoe factory owners are running away, most of which are smaller shoe factories.

According to the relevant departments, the shoe factory of the Yankee is generally the owner of the province, which directly leads to the workers' pay to the town government.

There is also a lot of difficulty in government management for the current status of the shoe industry that is formed spontaneously in Jilong yellow port.

Because the shoe industry is not unified in the park, the employment of enterprises is not standardized, the commuting time is not uniform, and the mobility of workers is large.

Many of the original family workshops were built by farmers who washed their feet on the fields. A building was a factory. Later, a master built a workshop, and many skilled workers were unwilling to work again. After familiarization with the process, they started a new job, or even went directly to the original shoe factory, thus forming a vicious competition directly.

On the one hand, many small workshops have no licences and the government can hardly control them. On the other hand, there is a tacit agreement between the shoe factories and the workers, and no labor contracts are signed. The workers only find the government after problems arise, which makes it difficult for the government to supervise.

Huidong has been supporting the key enterprises and encouraging enterprises to participate in the exhibition as the half of the economy of Huidong. The shoe industry has always regarded the footwear industry as its economic pillar.

As early as 2 years ago, government departments devoted to the development of footwear industry. At the beginning of this year, the implementation of 100 shoe making enterprises was specially introduced.

In the future, the "bail out" action will be carried out step by step.

Two 5 million indicate that the most powerful measure of Huidong county government since February this year is "two 5 million".

"Two 5 million, which shows the government's attitude towards the development of footwear industry."

Chen Shaobo, deputy director of Huidong SME Bureau, said that the government allocated two 5 million, of which 5 million were invested by the government as a risk factor for Guarantee Corporation to support the financing guarantee of shoe enterprises. The other 5 million was allocated 5 million by the government each year to support 100 key shoe companies for technological innovation.

The "shoe culture festival" played Huidong brand. In from November 2nd to 16th this year, Huidong County launched the "shoe culture festival" in Guangzhou to provide a platform for local shoe manufacturers and foreign customers to meet.

A total of about 5000000 funds were invested in brand promotion, and the government invested 3 million 380 thousand supporting and subsidized footwear enterprises to participate in the exhibition, and the enterprise invested 1 million 950 thousand.

Chen Shaobo, deputy director of Huidong SME Bureau, said, "we are flexible and do not let foreigners lead our noses!"

The government should encourage enterprises to go out. "Enterprises should go out in the most difficult times. Difficulties are difficult, but confidence is still enough."

At the beginning of the preparations for the exhibition, shoe companies were worried and worried that the exhibition could not achieve any result. After the government introduced the subsidy policy, more than 100 enterprises actively participated in the exhibition. During the 5 day ordering period, customers came to visit and negotiate with them.

According to statistics, the shoe culture festival has received more than 40 thousand people from all over the world, including more than 30 thousand foreign businessmen from the United States, the European Union, Southeast Asia and other countries and regions, and 471 contracted projects. The contract orders 16 million 692 thousand pairs of shoes and the total amount is 344 million 730 thousand yuan.

Among them, there are 53 orders contracts, 692 thousand pairs of shoes ordered, 14 million 730 thousand yuan in turnover, 418 in intention contracts, 16 million pairs of shoes ordered, 333 million yuan in value.

In addition, the Huidong county government has collected and collected some foreign customers' data of the shoe culture festival and the Canton Fair, and intends to set up a customer database. According to the actual situation, it sends cards to the people's Government of Huidong County on Christmas and new year's day.

Chen Shaobo said, "let foreigners have such a concept of" Huidong ".

It is difficult for Huidong shoes enterprises to get together and get warm.

The eastern Guangdong (International) shoe material market is now attracting investment. It aims to build the largest "one-stop" shoe material market in Southern China. The market is expected to be put into use in April next year, which will reduce the cost of shoe material circulation.

In addition, in order to improve the footwear industry chain, Huidong plans to build 4000 acres of "Chinese women's shoes production base" demonstration park near the county seat, not only to solve the problem of difficult land use, but also to give full play to the cluster effect of the park so as to enhance the status and popularity of Huidong footwear industry at home and abroad.

"Financial tsunami has a great impact, but it's not as horrible as it might be."

Chen Yu, chairman of the Huidong footwear industry association, said that the chamber itself also organized research to understand that orders for shoe enterprises were reduced by 30%, and some enterprises that had business dealings with Europe and the United States were more serious, while those with business contacts with Southeast Asia and Africa were slightly damaged.

At present, the government has initiated relevant policies to help enterprises tide over difficulties, and this policy can continue to intensify.

The shoes that are "frostbite" are not only the bosses and employees of shoe companies, but also in the economic ecological chain formed by these enterprises in the long term, due to the damage of this ring, other links are also affected.

The driver is ready to find another way out. "The shoe factory is short, the workers are gone, and the business is bad."

It's almost 10 o'clock in the evening. Zhao Hua hasn't done 100 dollars yet.

Zhao Hua, 38 years old, is a Neijiang native in Sichuan. She worked in Huidong for more than 8 years.

He first made a living by driving a motorcycle, and now he bought a second-hand car with his friends and flew between Jilong and Huang Bu.

In the past, when business was good, it could run more than 400 pieces a day and 80 yuan to 100 yuan.

Business is hard now. He can earn 30 yuan a day. He is very satisfied.

It used to be at least 10 yuan from the head of Jilong bridge to the Huang port shoe industry chamber, and now there is no business in 8 yuan.

He said that the villagers around him had gone a lot, and he was prepared to find another way out.

There is a lot of difference in advertising business. The advertising is located in Jilong Huang Bu Town. Haifeng boy Peng Yixian runs the stall here independently.

There are 10 advertising light boxes in front of the stalls, most of which are shoe factory signs.

Peng Yixian said that the business was better in the first two years, but it was much worse last year.

In the past, an average of more than 10 new light boxes could be made per month, and now there are only five or six. Most of them are made for old customers in shoe factories, but many of them are making brand names because of the relocation of shoes factories.

Some old light boxes were refurbished, but no one came after taking them.

The shopping mall is no longer crowded. The shopping mall is a larger shopping place. The street in front of the shop sells various kinds of clothes, snacks and accessories, attracting a large number of shoe factory workers to come and shop.

With the downtime, the TV will be opened and the door workers will be crowded with shoemaking workers.

The owner of a Fujian tea company said that he wanted to drive in and unload the goods for half an hour, but now he can step on the street with 100 meters.

The rent is cheap, 1/3 has no business, and there are many advertisements for rental housing on both sides of Jilong bridge.

Li Xinyue is a Jilong people who used to depend on rent only.