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    The Best Way And Effect Of Quanzhou Footwear Manufacturing Industry To Deal With The European Debt Crisis

    2015/3/5 20:55:00 16

    QuanzhouFootwear Manufacturing IndustryEuropean Debt Crisis

    "We have been placing orders in recent months.

    At present, some shipments to European and American countries have been completed.

    A manager of the production department of a foreign trade footwear company in Luojiang District of Quanzhou told reporters: "at the end of last year, the company has invested a lot of money in buying a number of brand sewing equipment, expanding the scale of production, and preparing to meet the peak of production this year by increasing production efficiency."

    As one of the largest export bases in China's footwear industry, Quanzhou, under the influence of the European debt crisis, exported its shoes and clothing to Europe.

    Reporters in-depth investigation interview found that this "curative effect" is mainly because Quanzhou shoes and clothing enterprises are good at catching up.

    crisis

    Business opportunities are "turning danger into opportunity".

    In Quanzhou, some raw materials used in production of textile, footwear and other enterprises need to rely on imports.

    Taking chemical fiber with great demand as an example, because of the large import volume of raw materials, the cost of raw material procurement will be reduced with the appreciation of RMB.

    For example, polyester raw materials rely heavily on imports, most of which are made in dollar terms. Because of the appreciation of the renminbi, the intangible cost of the polyester factory dropped by $20 / ton, and the dollar in this province became a profit. "Now the renminbi is worth the money, and the same money can buy more goods."

    A trader who specializes in polyester raw materials said.

    In addition to valuing the cost of exchange rate changes, Quanzhou enterprises attach more importance to the increase of added value of products.

    The European debt crisis has prompted some shoe companies in Europe to sell their products at a low price. In addition to the appreciation of the renminbi, the price gap between the international environmental protection shoe materials and the domestic ordinary shoe materials is currently less than 30 cents on the cost of a pair of shoes.

    "Because the use of environmentally friendly materials, it is easier to get the favor of European and American businessmen. Therefore, the imported shoe products can sell nearly 10 yuan in price than ordinary shoes."

    An insider told reporters.

    It is understood that at present, Anta, XTEP, 361 degrees, and other Quanzhou footwear industry's first-line brand, and more and more attention to the use of imported functional fabrics brought additional value.

    The cost of raw materials and the added value of products, which are reduced by the appreciation of the renminbi, are the main driving force for these enterprises to achieve net profit growth.

    In addition to raw materials, Quanzhou enterprises have also moved a lot in reducing labor costs.

    Taking into account their own strength and the advantages of matching with the domestic industrial chain, some enterprises have chosen to pfer the production base to the inland.

    "Inland cities are more convenient in terms of recruitment, and the combined costs are lower than those in coastal cities.

    In the future, some low profit orders will be processed in the inland factories to ensure the company's benefits.

    An enterprise official said.

    Reporters learned that many enterprises in Quanzhou are actively docking with the processing enterprises in Henan, Anhui, Jiangxi and other central and western regions, pferring part of the orders to local production.

    "Many factory bosses used to be employees of our factories. After they learned the technology, we not only supported them to go home to run factories themselves, but also gave them some financial help, so now it is more successful to cooperate."

    Said Mr. Cai, a garment factory owner of Shishi.

    Apart from the domestic market, many

    Quanzhou

    Shoes and clothing enterprises are also looking abroad for low-cost solutions.

    In 2008, when the global financial crisis came, some enterprises began to study Southeast Asian and South Asian markets through visits to Vietnam markets and consulting firms outside factories.

    They found that importing some semi-finished products from Southeast Asian and South Asian countries and then processing and selling them were much cheaper than in China.

    "We found many countries in Southeast Asia.

    Textile and clothing

    The industrial chain has been gradually improved in the past two years, and semi manufactured products and lower end products can basically be produced locally from source to finished products.

    Among them, Vietnam and Bangladesh's textile industry is developing most rapidly.

    Moreover, they have great cost advantages in raw materials and labor, which makes their semi-finished products much cheaper than ours.

    Therefore, we began to import semi-finished products from Vietnam and Bangladesh, and then buy them for later processing, so that the whole process costs less than that produced by ourselves.

    Mr. Cai said.

    In the interview, the reporters found that many visionary local shoe and clothing enterprises were preparing for rainy day in coping with the European debt crisis.

    In Quanzhou, some big shoe clothing enterprises use the opportunity of RMB appreciation to carry out equipment upgrading and upgrading, so as to reduce the cost of upgrading.

    "At this time, the cost of importing these advanced equipment is relatively low, the price is cheaper, and the cost performance is greatly improved.

    At present, the most fundamental way to deal with crises is technological progress, independent innovation, and the improvement of the quality of enterprises and the core competitiveness of enterprises.

    According to accounting, enterprises can introduce new equipment at this time, which will save about 10% of the cost.

    More importantly, the efficiency of the equipment has been greatly improved since it was put into use, and the benefits it brings is considerable.

    Fujian Fengtai Footwear Co., Ltd., the head of the enterprise said.

    Reporters learned that Shishi, Jinjiang and other Quanzhou textile and garment industry gathering enterprises have also purchased domestic and foreign equipment and technological pformation, by changing the production process and promoting fast flow production, not only improve production efficiency, but also reduce operating costs, and have more advantages in market development.

    In the first half of this year, the demand for shoes and clothing enterprises in Quanzhou did not show a marked decline, due to the shrinking demand in Europe and the United States, the rising labor costs and the rising cost of raw materials.

    It also shows that opportunities are also born in crises.

    Although the European debt crisis is still spreading, most shoe and clothing enterprises in Quanzhou are ready to deal with them fully. They are busy with upgrading their hardware and software while promoting their income and expenditure. They believe that when the crisis comes, they should be enterprising instead of waiting for death.

    Just like people in Southern Fujian can sing "love to win", "three points are doomed, seven points depend on hard work".


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