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    Is It Possible To Transform Shoes And Garments At Present?

    2011/8/2 13:51:00 26

    Investment In Transformation Enterprises

    In transition Economics Under the background of the development mode, the old profit making mode of small and medium-sized shoes and garment enterprises mainly engaged in manufacturing and processing is facing unprecedented challenges. Facing the difficulties of transformation and upgrading, facing the great challenge of industrial transfer, facing the temptation of changing investment, how to clear up the way of continuous development has become a common puzzle faced by many small and medium-sized shoe and clothing enterprises.


       Transformation Hopefully not.


    Relying on cheap labor to grab profits, relying on resource consumption production to expand scale, relying on OEM, OEM, cheap export to maintain market production and operation mode has been declining. The era of independent research and development and independent brand transformation has arrived. However, under the forced transformation, many small and medium-sized shoe and clothing enterprises have an unbearable weight.


    "Enterprises have to transform in order to continue their development, but where to turn, how to turn, what to turn?" When it comes to "transformation and upgrading", enterprises are very helpless.


    In this regard, He Zuoxian, deputy director of Guangdong SME Bureau, said that enterprises need capital for transformation and upgrading. technology However, small and medium enterprises such as shoes and clothing are lacking in these factors. This makes the transformation and upgrading of small and medium-sized shoes and clothing enterprises more difficult. Some small and medium-sized shoe and clothing enterprises reflect that there are concerns about the additional investment in enterprises, especially in the new equipment investment, because the future will not necessarily produce benefits, especially in industries with short product cycles.


    The pressure of survival makes small and medium-sized shoe and clothing enterprises see that they must transform, but the confusion they face makes it difficult for them to realize the desire of transformation. Problems in the choice of capital, talent, scale and industry restrict the transformation of small and medium-sized shoe and clothing enterprises. How to transform this "impossible but impossible" transformation into the next step to solve the survival and development practice of shoes and clothing enterprises requires upgrading the environment of transformation and upgrading, and strengthening the guidance of transformation and upgrading.


       Transfer is easier said than done.


    Faced with rising land and labor costs, industrial transfer to the central and western regions has become an important choice for labor-intensive enterprises in southeast coastal areas in recent years. However, the lack of infrastructure, supporting services and industrial chain construction has made this transfer a seemingly easy and difficult task.


    Yu Hongfeng, a Dongguan time fashion company, told reporters that in recent years, he has transferred half of the factory's capacity to Jiangxi. "Basically, there are left behind labor force there, and wages are 1/4 lower than here. But the quality can not be so good here, and it will be troublesome to send someone to check it. No transfer is allowed. All the matching is here. "


    Among the many small and medium-sized enterprises along the southeast coast, Yu Hongfeng's ideas are quite representative. Theoretically speaking, the transfer of labor-intensive industries to the Midwest with lower labor costs has a significant effect on reducing the production costs of enterprises. However, due to the existence of logistics costs and the increase of management costs, the advantages of labor cost formation have been quickly eliminated. Not only that, because the industrial chain is not perfect, the matching degree of infrastructure construction and policy environment is not as good as that of the southeast coast.


    "In Dongguan, the rent of workers' wages and factory buildings is high, but our upstream and downstream businesses are here. More importantly, a complete industrial system and service system has been formed here. Even if the machine only needs to change a screw and make a telephone call, someone will deliver it in less than ten minutes, which is unimaginable anywhere else in the country. Zhang Weidong told reporters that even the enterprises that have been transferred are mostly transferred from expansion and market oriented.


    "Enterprises not only look at the actual cost reduction, but also look at the reduction of implicit costs. To create a more relaxed development environment and public service environment for enterprises is sometimes more important than simply lowering rent and lowering wages. " A shoe manager in Dongguan told reporters.


       China's manufacturing industry is facing challenges.


    According to He Zuoxian, according to the latest statistics, 80% of small and medium enterprises in Guangdong now show that the total production cost has increased over the same period, of which 19% of the enterprises reflect more than 20%.


    Behind the joke is the helpless reality faced by small and medium-sized footwear manufacturers. Even after working overtime every day and driving at full capacity, the manufacturing owners still feel that they are losing money in the face of the double squeeze from upstream suppliers and downstream customers.


    "China's small and medium-sized shoe and clothing business owners have been very stubborn, but why have they paid so much effort, whether they are technology or scale, they are always in the same position, unable to produce big manufacturing giants like Germany, Japan and the United States?" Wang Shengwu has been thinking about such a problem -- brutal competition, not yet completely rationalized market environment, too heavy tax burden on the hands of small and medium-sized enterprises. Is industry really worth continuing?


    In fact, many owners of the first pot of gold have begun their own road of change. When the survival environment of the manufacturing industry is deteriorating, the impulse of such transformation seems to be more intense. Yu Hongfeng told reporters that the industry of shoes and clothing processing is too bitter now. Many small and medium business owners have closed their doors, instead of investing in bunk shops and stir frying stocks.


    For the current stage of China's economy, the "world factory" is still a role that can not be abandoned nor abandoned. However, when a large number of funds choose to leave the manufacturing industry such as shoes and clothing, and a large number of enterprises choose to escape from the real economy, the foundation of the four words "made in China" is facing a huge test.

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