Wenzhou Shoe Industry Is Facing Difficulties And Industrial Upgrading Can Help Enterprises Get Out Of Difficulties.

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It seems to be in a world of light industrial products.

Here, 10% of the country's clothing, 20% of the shoes...

Here, there are more than 30 light industrial clusters, including "China Shoes Capital", "China lock capital" and "China skin capital".

However, nowadays, these industrial clusters that have greatly improved industrial competitiveness and promoted the rapid development of regional economy face unprecedented challenges and are faced with upgrading and breaking through.

Experts from the China Light Industry Federation point out that Wenzhou's light industrial clusters are epitome of the rise of "made in China" in terms of scale and market and brand.

In recent years, especially this year, they are affected by the United States.

RMB appreciation, rising raw material and fuel prices, rising labor costs, export tax rebate adjustment, increasing interest rates, raising deposit reserve and other national macro-control measures to further implement the impact of other factors, facing many difficulties.

According to the survey of Wenzhou SME Development Association, there are about more than 30 or so SMEs in Wenzhou who are in a state of 20%% downtime or half stoppage. This means that 6 000 enterprises are facing a survival crisis.

These enterprises are important components of light industrial clusters.

Data show that in recent years, the number of enterprises in Wenzhou lighters has decreased at a rate of 30% per year, and now it has dropped to 600 from around 600 a year ago.

The analysis report on the economic operation of shoe leather industry in the first quarter of 2008 shows that the shoe making enterprises have reached more than 70 enterprises in Wenzhou since the beginning of the year, and the shoe enterprises have dropped from 5000 in 2003 to 2600 this year.

According to the survey, this year, Wenzhou glasses, small household appliances and other industries are also worrying.

An expert from China Light Industry Information Center told reporters that over a long period of time, enterprises in Wenzhou's light industrial clusters appeared excessive competition and showed the situation of "a thousand armed forces across a single timber bridge".

The direct consequence of excessive competition is that there are too many low price competition, and the production and operation of enterprises are difficult. The industry continues to be in a low profit margin state, which affects the subsequent development ability of enterprises and seriously leads to atrophy and extinction.

For example, there are nearly 2000 or more than 10 thousand production enterprises in Wenzhou lighting industry, with a total industrial output value of nearly 3 billion yuan.

The current plight of small and medium-sized enterprises represented by Wenzhou has attracted the attention of China Light Industry Federation and national decision-makers.

The experts of the China Light Industry Federation, which has long guided Wenzhou's economic development, pointed out that the enterprises in Wenzhou light industrial clusters are basically small and medium-sized enterprises. At present, Wenzhou's industrial clusters are facing difficulties and breakthroughs. It is urgent to cultivate innovative industrial clusters, change the current situation of traditional industries, mainly SMEs, and the products are low technology and low added value. With the breakthrough of "characteristic industrialization, industrial characteristics and characteristic industry scale", we should vigorously develop circular economy, focus on fostering the leading characteristic industrial clusters with competitive advantages, and promote the scientific, intensive and sustainable development of the industry so as to realize a new leap from "quantity economy" to "quality economy" and then to "brand economy".

For example, CHINT group cooperates with General Company to build an international electric manufacturing base; AOKANG has cooperated fully with the world shoe giant GEOX Italy to build an international brand production base; Kangnai group has entered the Far East of Russia.

Insiders pointed out that more than 70% of China's tax revenue was created by small and medium-sized enterprises, and about 80% of the employment was settled by small and medium-sized enterprises. In the case of the continuous improvement of national revenue, in the period of stagnation of economic growth and inflation, the state may be loosening up the small and medium-sized enterprises. Tax reduction, tax rebate, exchange rate, credit, subsidies and other policies may be adjusted. However, these policies are only "palliative" for alleviating the dilemmas of enterprises in Wenzhou's industrial clusters, and only industrial upgrading can help enterprises get out of the predicament.