Small And Medium-Sized Shoe Factories Pformed Into Trading Companies.

New mode of "winter": shoe factory changing Trading Company

Insiders say that small and medium sized shoe enterprises are helpless to change their way of existence.

Recently, Mr. Zhang, the shoe factory owner who lost 2 million yuan for 3 consecutive years, cleared up the company's debts, and returned the factory with a monthly rent of about one hundred thousand yuan. The other office in the vicinity of 20 thousand yuan a month rent a trading company.

According to the press survey, starting from July, many shoe companies in Dongguan have low profits, but there is hope for the development of the footwear industry. Some shoe enterprises are beginning to change their survival mode and expect to pass the cold winter.

Leaving backbone to make a comeback.

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Mr. Chang has been thinking about it for a long time as a trading company.

Because there are about 15 shoe businesses with whom he has business dealings, there is no doubt that the 15 shoe companies will also be affected.

10 years ago, Mr. Zhang set foot in Dongguan Houjie and set up a Xin shoe industry Co., Ltd., specializing in the processing trade of women's shoes.

This is also the model of most shoe factories in Dongguan at that time - "OEM", referred to as foundry.

"At that time, the cost of labor and raw materials in Dongguan was low, and the state had great tax preferences for OEM enterprises."

Mr. Zhang paid more attention to this mode of making money.

The OEM mode has a profit advantage. "A pair of shoes can earn more than ten yuan. In one year, processing two or two million pairs can earn tens of millions."

However, since 2006, the situation has dropped sharply.

In 2006, the domestic and international economic environment suddenly changed, the order decreased obviously; in 2007, prices rose; in 2008, the financial crisis broke out, the global demand was insufficient, all OEM orders fell by more than 10%.

Then the RMB exchange rate changes, so that the profits of OEM enterprises will be reduced.

In this case, the export of a pair of ordinary women's shoes in 2006 profits of about 30%, 10 dollars can earn 3 dollars, until the first half of this year, only less than 6%, 10 dollars can only earn 0.6 dollars.

With the capital chain stretched, a couple of months later, many shoe factories in Houjie went bankrupt, and some shoemaker owners directly rolled their money away.

"From 2009 to now, I lose about 2 million yuan a year.

After more than 10 years of thinking, I feel that I can't afford to lose my shoes, so I turn to a trading company for a survival mode.

Mr. Zhang said that although the name changed to a trading company, the name of the enterprise has not changed, and all the backbone of the designers have been left behind.

Change the company and shrink the manpower.

Dongguan Houjie Town has 432 shoe manufacturing enterprises, employing about 100 thousand people, and most shoe industry in Dongguan is concentrated in this town.

"As far as I know, the shoe factory pformed from a shoe factory to a trading company is not a minority in the shoe industry in Dongguan.

I know 8 of my peers. "

Mr. Zhang said that it would be able to keep the strength of the trade company, and the second order could be continued.

The main point is that we can continue to maintain a place in the industry.

He believes that in the second half of the next year, more and more shoe factories will change their way of existence.

In addition to being a trading company, shrinking business mode is also one of the ways to "winter".

The Dongguan Taiwanese Investment Enterprise Association once conducted a survey of small and medium sized shoe enterprises in Houjie, Dongguan. Its chairman, Xie Qingyuan, said that last year some Taiwanese shoe factories in Houjie began to implement contraction strategy, and shoe factories contracted thousands of people to more than 1000 people.

A certain footwear industry Co., Ltd. was established in 2000. "The volume of shoemaking in the year before last was 1 million 500 thousand pairs. Last year it dropped to 900 thousand pairs, and it was 600 thousand times short."

The head of the enterprise said.

"The market for shoes this year is not optimistic."

He said, "orders are still available, but businessmen always talk about profits. Only when we look at the list of profits will we receive."

"No profit makes many shoe factories shrink."

Zhou, who is a veteran shoe manufacturer in Dongguan for many years, said that the footwear industry is now faced with the problem of low productivity (difficulty in recruiting people) and unstable quality (resulting in large turnover of personnel). If one of the big orders is out of order, it will lead to shrinkage or closure of the enterprise. According to his understanding, a shoe factory in Dongguan, a shoe factory, and a shoe factory should be contracted to varying degrees.

Experts say: everything is for survival.

"Shoe enterprises themselves are not optimistic about the future, they feel that the market is not good, shrink or pform into a trading company, and survive in another way."

Jiang Lin, director of the Department of Finance and taxation of South of the Five Ridges College of Zhongshan University and deputy director of the research center of Hong Kong, Macao and Pearl River Delta, said that most of the shoe enterprises in Dongguan are still mainly exported. Before the European debt crisis, consumers in Europe and the United States had money to spend, such as buying four pairs of shoes in one year, and sales were considerable.

But under the economic impact, consumers may reduce their spending and buy only two pairs of shoes a year. This means that the sales volume of the shoe industry will be reduced by nearly half, the market demand will be reduced, the production volume of shoe enterprises will be reduced by half, and the orders of downstream suppliers will also be reduced by half.

Therefore, as a large number of small and micro enterprises in Dongguan, it is inevitable to survive.

"Being forced to pform or change the way of life, to tell the truth, is to survive."