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    "Three Famine" Approaching &Nbsp; Wenzhou Shoe Industry To Decline Or Rebirth?

    2011/10/6 12:42:00 40

    Footwear Market In Wenzhou


    Artificial cost increases more than 20%, 2 times a week from electricity peak, bank loan

    Interest

    Double expenditure.

    This year, these "red rose" seem to be in the wrong place - not in the stock market but firmly in the production factor market, bringing pressure and trouble to the manufacturing industry in Wenzhou.

    The footwear industry in Wenzhou is a big part of the manufacturing industry.

    In the "three famine" era, there were news about the failure of Wenzhou shoe enterprises, relocation, declining profits and difficulties in the media.

    Wenzhou

    As "China Shoes Capital" is gradually declining.

    Wenzhou system

    footwear industry

    Is there any way to fight the challenge? Where is the way out for the footwear industry in Wenzhou?


    Factor gains drive down profits


    Zhejiang Suye bird Shoes Co., Ltd. is a company specializing in the production of women's shoes. It integrates R & D, production and sales.

    In the more than 2500 shoemaking enterprises in Wenzhou, the size of the sewing bird industry belongs to the middle level, with an annual output of 3 million pairs.

    Liu Xiaobiao, chairman of the sewing industry, is still under 30 years old when he started his business at the age of 17.

    The simple and honest young man, speaking of the development of enterprises, said: "the environment of doing business today is not good, and it is hard to do business."


    Liu Xiaobiao said labor costs increased by more than 20% over last year.

    When electricity is the most stressful on electricity, there are 2 days in a week to generate electricity on its own, with an average cost of 1.5 yuan per pair of shoes.

    In peacetime, the electricity cost per pair of shoes is 1 yuan.

    In terms of credit, the annual interest rate has reached 12%, and it has to meet some additional requirements of banks.

    Credit interest expenses doubled last year.


    The rising cost of sewing industry is also a common problem for Wenzhou footwear industry.

    In June this year, a special survey conducted by the Municipal Bureau of statistics showed that small and medium-sized enterprises in our city, especially small enterprises and high energy consuming enterprises, were the key objects to stop power rationing.

    Meanwhile, the price of diesel in June increased by about 15% compared with the same period last year, and the cost of generating electricity increased.

    Due to the three factors, such as rising prices, relatively low number of migrant workers and continuous increase in employment demand of enterprises, the recruitment difficulties of Wenzhou enterprises continue after the Spring Festival, which has a great impact on the normal production of enterprises.

    In addition, about 16% of the surveyed enterprises in June believed that financing was very difficult, which increased by 3 percentage points from the previous month.

    The difficulty of financing directly increased the financial cost of enterprises. In 1-5, the financial expenditure of Industrial Enterprises above designated size increased by 43.6%, of which interest expense increased by 46.1%.

    In addition, raw material prices continued to rise.

    From 1 to May, the purchase price of raw materials in Wenzhou increased by 8.4% over the same period last year.

    {page_break}


    Production layout changes intensified


    Under the "three shortage", a number of shoe companies in our city have taken various measures to cope with the rising cost.

    Some of these measures are expedient, while others take into account the general trend of industrial pfer.


    Giant one group Co., Ltd. adopted this year's strategy of "fellow villager bringing the townsman". The old employee can be rewarded 200 yuan for each new employee.

    The award brought 800 new employees.

    stay


    In terms of treatment and retention, this year's largest worker has a maximum wage increase of 30%; in the old-age insurance, it has been more than 10 years of service and free of over 5 years; in addition, the giant one has also launched 180 couples' housing.

    In response to the rising cost, the giant one has invested about 20000000 yuan in the past 3 years to improve the production efficiency and reduce the unit cost.


    AOKANG shoe industry has also taken measures to improve employee welfare and energy efficiency to tackle the challenge of "three wastes".

    AOKANG front-line workers have raised their salaries by an average of 20% this year, and launched welfare measures such as housing allowance for their husband and wife, summer camp for their children, and establishment of Internet cafes for employees.


    In contrast to these small adjustments, many large shoe manufacturers in our city set up manufacturing bases in the central and western regions to solve the cost increase through space pfer.


    In terms of financing, shoemaking enterprises have also stepped up the pace of diversification, such as AOKANG, Kangnai, Dongyi, red dragonfly and other top ranking enterprises. This year, they have already increased their horsepower to fight the listing of enterprises, and through direct financing to solve the long-term capital needs of enterprises.


    Shoe industry usher in shuffle


    Xie Rongfang, executive chairman of Wenzhou shoe leather industry association, believes that the shoe making industry in Wenzhou is currently in the shuffling stage. There will be the one or two polarization phenomena of "strong Yu Qiang and weak weaker".


    Pan Jianzhong, general manager of giant one group Co., said in an interview with our reporter that in the next 20 to 30 years, the footwear industry in Wenzhou will remain a dominant area in China.

    This judgment is based on the strong scale advantage of the footwear industry in Wenzhou, which is incomparable to other regions in the short term.


    In June this year, the implementation plan of pformation and upgrading of footwear industry cluster in Wenzhou, commissioned by the municipal government, said that the high added value of footwear industry was concentrated in the aspects of style design, sales channels, brand marketing and so on.

    Wenzhou shoe enterprises will pform to R & D and brand direction, while some small enterprises that can not pform will be included in the "leading and matching" cluster development mode.

    As for the relocation of shoe companies, the government will strive to guide them to form the value chain structure of enterprises headquarters, R & D and sales in Wenzhou and production bases outside the city.


    The consensus reached by the shoe industry in Wenzhou is that the footwear industry in Wenzhou has the advantage of first generation in the 7 aspects of industrial scale, superior enterprises, R & D innovation, service platform, brand building, management development and regional characteristics.

    From this perspective, the "value chain structure of enterprise headquarters, R & D and sales in Wenzhou and production base outside the city" is also based on reality.

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