Market Downturn Shaoxing Keqiao Enterprises Bitter Support

On the morning of January 14, 2009, around the China Light Textile City in Keqiao, Shaoxing, the owners of tricycles waiting to pull the goods business gathered to play poker together in twos and threes. The merchants pulled up the stalls of the stalls, hung up all kinds of fabrics, and stamped their feet in a dull way. "The second half of 2008 is the worst period I have ever experienced." Xiao Mao, who has made 6 years' Plush business in Textile City, told reporters. In the past December, he had to do some business, but he did not do it this time. Now, the factory for Xiao boss's fabric OEM has already left early. Xiao boss even has to receive small bills, and he will have to wait until later. In 2008, like many of the businesses here, Xiao boss also suffered losses. But this loss is not just a reduction in business volume, but also an important aspect of rent. "The rent in 2008 was 300 thousand yuan, and it dropped to 150 thousand yuan in 2009 when it was renewed. Last year's high rent has widened our losses. " Mr. Shaw calculated an account and said that the net expenditure would be 500 thousand -60 yuan, which would bring him great financial pressure. Mr Shaw said at the same time that although he was under a lot of pressure, there were few merchants who took the initiative to withdraw from the textile city. He explained, "merchants have accumulated a lot of goods in their hands. In this downturn, it is hard to get out of the market, and they can only burn slowly." It is understood that under such circumstances, many merchants began to raise funds in a variety of ways. In January 13th, the Shaoxing Municipal Industry and Commerce Bureau promulgated the "opinions on promoting the steady and rapid development of enterprises". The first is to relax the registration conditions for the establishment of enterprise groups. At the same time, we should encourage powerful enterprises and natural persons to participate in the establishment of small loan companies, Guarantee Corporation and pawnshops, and guide enterprises to standardize their operations according to law. Relax the Guarantee corporation registration requirements and allow Guarantee Corporation's minimum registered capital to be reduced from 30 million yuan to 10 million yuan. In order to promote capital circulation, the business sector also expanded the scope of equity pledge registration. After talking to reporters, Xiao boss is going to go to neighboring county Zhuji to collect debts. His partner Liu boss told reporters that under this environment, enterprises with less loans can survive because they can choose to do more or less, or even do nothing, to keep cash in hand. Those who rely on highly indebted businesses are at risk of breaking up the capital chain at this time. Mr. Liu said that he would not accept the orders placed by foreign trade companies because he was worried that the other party was a "bag company" and could not recover debts. And the factory orders, because of fixed assets in support, relatively good, but if the factory is rented, there is also a great risk. Lan Jianping, director of Zhejiang Institute of industrial economics, believes that Zhejiang's economy will still be more difficult in 2009, which is determined by Zhejiang's economic system and economic quality. Zhejiang enterprises need to be fully prepared for this. Transformation and upgrading is imminent. Next, SMEs should put their overall quality improvement in a prominent position, strengthen enterprise management, and explore how to establish a modern enterprise management system under the clear framework of property rights system. Besides, OEM SMEs in Zhejiang must also innovate in business mode. "OEM has brought tremendous opportunities and wealth to Zhejiang, but if the first advantage is gradually lost, if we do not innovate and upgrade, especially in combination with the current network economy, we will inevitably be eliminated." Wang Xiaonan: editor in charge