Behind The Gods Of The Streets And Alleys: Is The Jiangnan Leather Factory True?

"Zhejiang Wenzhou, Zhejiang Wenzhou, the largest leather factory Jiangnan leather factory closed down..."

A divine comedy "Jiangnan leather factory closed down" and the lyrics mentioned the "stall red man" Yellow Crane explosion red network, on micro-blog, WeChat cumulative forwarding number has exceeded one million.

Many of the words in the lyrics were unconfirmed. Liu Dian, the Divine Comedy author, issued a personal statement on Sina micro-blog in February 24th (micro-blog Name: why the girl wore short skirts), said he had deleted the video and apologized to a series of leather factories in Wenzhou.

However, the industrial and commercial information revealed that Huang crane, the boss of the running road, did exist, and the Jiangnan leather factory did exist. The company was revoked its business license in February 2013.

According to the statistics available, it is found that Jiangnan leather factory is only a microcosm of bankrupt enterprises in Wenzhou.

In 2011 alone, there were hundreds of businesses in Wenzhou where the boss was missing, the company went bankrupt, and the staff paid for wages.

In the bankrupt enterprises of Wenzhou in recent years, Wang Yuejin, one generation of shoe king, has brought Wenzhou to the top of the storm with the news of "ten kings of Wenzhou", one of "eight kings of Wenzhou", and 6 bankruptcy of Chuang Ji group.

As China's shoe capital, there are nearly 27 shoe brands in the national market in the peak period of Wenzhou.

In the foreign market, Wenzhou footwear industry represented by Dongyi once occupied 80% market share in Russia.

But this picture has become a thing of the past.

Since 2004, with the intensification of market competition, the global financial crisis and the rising cost of manpower, the manufacturing enterprises in Wenzhou have been closed, running, and constantly waiting for news.

"The private brand of Wenzhou footwear industry has been decreasing after 04 years. In 2008, the financial crisis accelerated the speed of elimination. Now there is no more than 6 brands in Wenzhou market."

Pan Xingjian, founder of Wenzhou Zhongwei shoes industry Co., Ltd., told I black horse.

But this is just a microcosm of the winter of China's manufacturing industry.

Today, with shrinking demand and rising costs, a large number of manufacturing bosses are being eliminated or selectively evacuated in the furnace of industrial pformation and upgrading.

"Manufacturing enterprises, especially light industrial products manufacturing enterprises, should change their development ideas and reshape the industrial chain. Wenzhou's shoe leather and other light industrial products can tap more value-added in the industrial chain."

Jiang Fangze, deputy director of Wenzhou Business Bureau, said in an interview with I's dark horse.

In the age of wilderness: the Chinese shoes capital is located in an industrial park in Shuang Yu village, Lucheng District, Wenzhou. Large and small number of shoe factories and shops are gathered here.

But Pan Xingjian said that as early as the 80s family workshop, Lucheng and Ouhai gathered such a group of people, his father is also one of them.

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Unlike modern streamlined operations, the shoe and leather industry in Wenzhou was mostly pre shop and post factory mode, and several relatives and friends could work at home.

Although the division of labor was not clear at that time, it was the first wave of golden age for the footwear industry in Wenzhou in the extreme shortage of materials.

However, this magnificent scene was quickly extinguished by a burning Wenzhou inferior leather shoes incident in Wulin Gate Square in 1987.

"At that time, Wenzhou did not have its own brand. The individual businesses of Wenzhou shoemaking usually sold shoes in Shanghai and Guangzhou, and the quality of the shoes produced was not good enough, which caused the incident of Wenzhou shoes."

Pan Xingjian said.

In the early 90s, shoes enterprises represented by Kangnai leather shoes began to establish local brands in Wenzhou. Then, a large number of Wenzhou local brands such as AOKANG, red dragonfly and spider king moved to the circulation market. Pan Xingjian's father's company followed the wave to start the real scale.

During the peak period of footwear industry, Wenzhou shoes and clothing enterprises registered up to more than 40 thousand businesses.

While the footwear industry is attracting countless workers, Pan Xingjian, the two generation of shoes and the three generation of shoes, have begun to support their father's career.

It is just that Pan Xing Jian has not been able to catch up with the development of the footwear industry in Wenzhou.

A global financial crisis in 2008 spread to all walks of life in China.

The most obvious performance is the sharp decline in orders, and the footwear industry in Wenzhou is also not immune.

In order to stimulate domestic consumption and stimulate economic growth, the state has promulgated the 4 trillion plan, lending has become the task that banks at all levels must accomplish.

Li Jianjiang, chairman of Zhejiang tring Light Industry Co., Ltd., in the description of loan in Wenzhou at that time, pointed out that if the enterprise did not lend money, the bank would cancel the qualification of the enterprise's future loan.

Pan Xingjian admitted that there were not many enterprises that secured loans in Wenzhou at that time.

But at that time, it was a joint guarantee loan. After the state tightened its monetary policy, this guarantee was like the Domino effect.

"The pressure brought about by the tightening of money, the exchange rate changes and the implementation of the new labor contract law are external reasons. The reasons for the decline of Wenzhou's manufacturing industry were manifold," Jiang Fangze said in an interview. Wenzhou's local constraints also exist. For example, Wenzhou's land is in short supply, the price is high, forcing enterprises to invest and build factories in other places.

The internal problem of enterprises is that Wenzhou's manufacturing industry is always extensive. Enterprises adopt low cost and low price competitive strategies. Most products fail to win by quality, resulting in insufficient brand effect.

No profit, loss, insolvency and bankruptcy seemed to be the positive cycle of Wenzhou's manufacturing industry.

Suffering: cold and warm, Ye Qing was not born in Wenzhou. 24 years ago, he was still a teenager. He came to Wenzhou to work as an apprentice in a shoe factory. In 2004, he founded the Wenzhou now, thanks to Technology Co., Ltd.

Ye Qing said his factory was located in Lucheng before, and the factory was completely shut down at the end of last year.

"We are a production and marketing chain. Now manufacturing is no longer an advantage for us. The products we produce are too single and energy is not enough, so we choose marketing as the main factor."

Ye Qing told I the dark horse.

Zhou Dewen, President of Wenzhou SME Promotion Association, said that at present, the profit margin of Wenzhou's manufacturing industry is only 1%-3%, and the traditional manufacturing industries such as clothing, footwear, glasses, lighters and so on are dying out every day.

The reasons for this are that the decline in market demand, the enormous pressure of environmental protection, the diversification of sales channels, the rising cost and the personalized demand of people are all making Wenzhou's manufacturing industry lose its aura.

Public data show that in 2013, the Zhejiang provincial court accepted 346 cases of enterprise bankruptcy, an increase of 145.07% over the same period, of which 198 cases occurred in Wenzhou.

In 2015, the bankruptcy data released by Wenzhou Court on the Internet showed that in 2015, Wenzhou handled 233 cases of enterprise bankruptcy, accounting for 37.64% of the number of bankruptcy cases handled in Zhejiang.

In recent years, some foreign trade enterprises have been moving away in Wenzhou.

The reason is that it is not difficult to build factories in a more perfect industrial chain in Vietnam. Low labor prices can make business better if they give profits to consumers.

Ye Qing and Pan Xingjian chose to stay in Wenzhou.

Ye Qing said he did not feel the trend of overall collapse of the manufacturing industry. In his view, the manufacturing industry itself was going up and down with the national economic development.

Now, with the gradual improvement of the labor law, the cost of labor is gradually increasing, and the cost advantage of personnel is not.

They still have confidence in the footwear industry in Wenzhou.

"At least the shoemaking industry is impossible to disappear. People who buy shoes will choose which brand to buy according to their living conditions. In such a development track, even if a group of enterprises in Wenzhou fall down, the other one will also come up."

Ye Qing said.

"The impact of manufacturing relocation on Wenzhou is inevitable. However, Wenzhou has to go with the trend, seize the needs of consumers and integrate resources, especially those of Wenzhou light industry products, which can fully tap more value-added in the whole industrial chain.

For example, you can implement machine replacement, product design, brand cultivation, Internet technology application, quality improvement, listing and financing, and so on.

Jiang Fangze said to I black horse.

Break through: where is the way out? Recently, Wenzhou announced the list of the top 50 tax enterprises in Lucheng district and Longwan District in 2015.

Although Wenzhou shoes, clothing, electrical appliances and other recent decline in recent years, but from the list of these two big tax payers, the traditional industry in the current industrial structure of Wenzhou still plays an important role.

In particular, 11 of the top 50 tax revenue companies in Lucheng are shoe making companies, accounting for 22% of the total.

"Wenzhou has a population of 9 million 200 thousand, which is the most populous city in Zhejiang province.

But manufacturing alone is hard to sustain the long-term development of the city, and Wenzhou will probably shift more to the R & D center of the manufacturing industry. "

Pan Xingjian said to I black horse.

Like Pan Xingjian, the owners of Wenzhou shoe companies have been trying to change traditional manufacturing in recent years.

Ye Qing pointed out that one of the characteristics of Wenzhou's manufacturing industry is production and processing, and the other is brand operation.

In terms of production and processing, how to control costs, better integrate with the Internet, and implement machine replacement is the direction of pformation we are exploring.

In brand marketing, how to pform from low to middle to high-end, sort out good channels, and make qualitative changes.

Enterprises in Wenzhou are also actively trying.

In addition, Wenzhou is also seeking to pform into a high-tech direction.

In 2015, some of the tax payers in Wenzhou became part of the new tax black horse.

But in Pan Xingjian's view, Wenzhou does not have the genes to do high-tech industries.

Wenzhou

There are few talents, but the local small land price and the large population of manufacturing industry make it difficult for the foreign population to settle in Wenzhou.

"The market will spontaneously shift to low-end manufacturing, and enterprises should cater to the trend of consumption, especially the upgrading of domestic consumption. To seize high-end manufacturing is not necessarily the introduction of high-tech industries. In fact, the pformation of traditional enterprises is more important."

Jiang Fangze said.

A hero's dusk, a cold blade cuts his neck.

In the eyes of many manufacturing businessmen growing up in Wenzhou, Wenzhou people like business and love adventure, but prefer to return to their roots.

They miss the best Wenzhou in 90s, but after several rounds of labor pains, they believe that the current difficulties will be over.

"It is the future of Wenzhou to improve the service facilities outside the manufacturing industry, so that enterprises and workers engaged in manufacturing can live and work in peace and contentment."

Pan Xingjian said.