Hard Turning Of The Water Head Of "China Skin Capital"

The cost of leather making workshop is soaring, the exchange rate is rising, the order is shrinking, and the products are low. These are the sword of Damour, who has broken the profit of pig skin.

The government is considering the current predicament and hopes to find a way to overcome the crisis.

It seems to be a key word in front of the head of water business.

This key word may be refined to a less open light, merge two processing links, combine three "smelly cobbler" wisdom, expand the four sides marketing channels......

And through these efforts, can the water head enterprises get a rising space?

In order to achieve beautiful turn?

Low level competition, insufficient credit and lack of service level are the water crisis in the eyes of Argentina businessmen. As long as the market is developing, such a crisis is very normal.

The difference is that these dangers appear and stack at the same time.

Argentine Tosi Juan Carlos said that he had been deeply impressed by China's business experience for so many years.

"For foreign trade enterprises, the devaluation of the US dollar for a long time has seriously affected them."

Tosi introduces that the export to Argentina, for example, will take at least 3 months from negotiations to products, and there are too many uncertainties in the 3 months.

If a $1 million bill was signed in the US dollar against 1:7.2, the exchange rate would become 1:6.8 after a few months, so the company lost at least 400 thousand yuan in this operation.

"Light factor" may make production enterprises totally without profit.

He and his partner Particial have been running leather for 16 years, and he knows them well.

"We know that the operating costs and operational risks of the water head enterprises are increasing, and the deterioration of the economic environment will also reduce the profits of the enterprises. But we will not increase the purchasing prices because of these, otherwise we will lose competitiveness as distributors."

"The biggest advantage of leather is the price. The increase of workers' benefits reduces the profits of enterprises, and enterprises try to raise their prices.

If the manufacturer increases the price to a certain extent to make it lose its advantage, we will abandon the water head and choose other places. "

Particial also said that they had no way to solve this problem, because their pressure and risk in taxes, freight, import fees, time and so on were also increasing synchronously, so they had to help themselves solve these problems first.

"As an enterprise, we must bear the changes of internal and external factors. Now the increased cost must be digested by ourselves.

As middlemen, they do not have the obligation to help manufacturers by losing their profits. "

He emphasized that when the technological quality of leather products in the water head was not greatly improved, they would not raise their purchasing prices because of difficulties encountered by manufacturers. They had to maintain their profits.

"We have a leather renovation project. In the past three months, we have contacted more than 300 enterprises in Wenzhou because of finding partners. More than 1/2 of them are willing to talk further.

This shows that leather enterprises are eager to change their unfavorable situation.

Particial believes that most of his business owners have realized that the low level of product technology is the main reason for low competitiveness and the loss of the market. Achieving product development at a high level will help enterprises overcome difficulties.

"I think the water head enterprises should solve the three problems of technological improvement, credit and service level improvement."

The pformation of Jiangxi's new industry and veteran leather merchants is in Linping, a small and medium-sized manufacturing enterprise. In recent months, more than 300 leather goods and shoemaking enterprises have been discontinued.

In addition to the background of economic weakness, the price increase of leather materials in upstream enterprises such as Wenzhou's water head, leather making and other leather enterprises is also an important reason why they stop.

"Pig skin is too expensive for enterprises to bear."

Qi Jian Gong is the head of a leather garment manufacturer in Linping, Hangzhou, with hundreds of people in scale. He told reporters that the main raw materials of the company came from the water head of Wenzhou, and the price of the local pigskin is directly related to their survival.

"As soon as the water head enterprises change, our production will change accordingly."

Qi Jian Gong said raw materials were their lifeline. He had a headache after years of soaring fur prices. He said that the cost of raw materials accounted for 70%~90% of the cost of fur clothing.

The raw material is controlled by the Wenzhou water head Market 450 kilometers away.

In July 2nd, reporters saw a lot of billboards on the way to Shui tou town in Wenzhou, and the CEO of the company had already switched to a new project with a total investment of over 100 million yuan in Jiangxi last year.

Zhang Zhiqiang, the boss of leather Co., Ltd., said: in recent years, the water head has begun to concentrate on tannery enterprises, and a number of enterprises have been shut down without finding new outlets.

At the beginning of the renovation, Zhang Zhiqiang began to pform gradually and tanning became leather.

"Almost 70% of the business owners have chosen the pformation and capital pfer, while the tannery industry is standardized, and the production cost of the water head enterprises has also increased."

As for the impact of cost increase on downstream enterprises, he said, upstream enterprises have been unable to cope with difficulties. When faced with a shutdown, downstream enterprises are bound to be implicated, especially the chain nodes, a bit sluggish, the whole line collapsed.

The increase of material prices in upstream enterprises will result in lower cost of downstream enterprises.

And the drop in demand makes the upstream enterprises raise the price of the single products, which is a vicious circle.

Zhang Zhiqiang left the leather industry for the first time.

"A lot of leather enterprises started to reduce profits in the second half of 2006, with small profits to zero profits and zero profits to losses."

In the summer of 2007, Mr. Zhang decided to enter the new field after a long consideration, and quickly locked a resource project in Yingtan, Jiangxi. In December of that year, the project with a total investment of more than 100 million yuan was officially launched.

He said that this is also a helpless move, from leather to leather goods to resources in the three or four years, if all the equipment, technology, infrastructure, management and marketing network input is involved, the company may be in the red.

"No one is willing to change when the industry is good, but now, no pformation can not be done."

He thinks this is a kind of self rescue behavior.

Raw materials: looking for imports; factories: moving to Vietnam; settlement: a breakthrough sample of "two generation leather Wang", Wang Xuan (a pseudonym), who is 33 years old, is cautious about the interview.

As the leader of the second generation leather products, he not only made anticipation of a series of bottlenecks from raw materials to exchange rate, but also had plenty of time to prepare dry food for the winter.

He said that the profit of nearly 3 million yuan last year will make this "winter" relatively stable.

Reporters suddenly realized that his experience could be a solution to many difficulties facing enterprises.

"In early 2007, we began looking for cheap leather materials everywhere."

In those days, Wang Xuan and his purchasing Corps almost ran around Zhejiang, Sichuan, Hebei, Henan and other places, and even flew to Korea, India, Pakistan and other places.

"Generally speaking, the imported leather is cheaper than the domestic 10%~20%."

In the first half of last year, he was almost looking for leather materials, with total purchases exceeding 3 million dollars.

"The US dollar settlement makes the company get an extra profit from the appreciation of the renminbi."

"The increase in labor costs is common to all business owners. In the second half of last year, we concentrated on moving our processing headquarters to Vietnam."

He said local employees also used the US dollar to settle wages, which was 15% lower than that of the water head.

"The pressure of exchange rate changes is not small, there are not many ways."

Wang is considering improving the way of settlement.

"TT (telegraphic pfer) settlement, letter of credit and DP (payment by documents) settlement may be a more feasible way. At present, the company has at least 60% of the business cancelled DA (documents against acceptance) settlement."

"Management should be strengthened and waste should be reduced, but the key is to improve product quality and establish new sales channels."

Wang Xuan knew that the first generation leather king's processing and sample processing had been unable to adapt to the current market, the development of their own brands or the development of big brands is inevitable.

Wang signed an agreement with an internationally renowned Brand Company before adding $6 million in July last year to expand the scale of the enterprise. Apart from the brand share, Wang Xuan could still get 35% of the sales profits.

"The company's own brand products have been set up in Vietnam and Brazil after they have been technically revamping, and the network that is being developed is conducive to the long-term development of the company."

He predicts that the establishment of overseas sales companies will directly gain the profits of 20%~30%, which was previously raised by middlemen.

It may be Wang Xuan's various preparations and anticipation that last year, most of the leather and leather goods enterprises managed difficultly. Last year, he could still realize hundreds of thousands of Yuan's profits, and the large amount of raw materials that are still stored in the warehouse can bring more profits to him.

It is the three way that the water head leather enterprises can refer to to improve, go out and pfer funds to the professors.

Zhang Yili, Professor of business school at Wenzhou University, has been concerned about the development of China's leather city.

"Now their plight is an inevitable outcome, a microcosm of the current economic difficulties that are commonly encountered."

Zhang Yi Li has been paying attention to Wenzhou's private economy for more than 30 years.

He believes that superficially, the pain caused by changes in the economic environment is actually a matter of labor intensive, low technological content and no innovation.

Water head is an early development of the private economy in Wenzhou. "When the wind is full, the problem of low-level industries is partially buried. Once the macroeconomic regulation and control and economic environment change, it will be at a loss."

Professor Zhang said.

The predicament of enterprises is not only overnight, but also difficult to solve. It has become very important to solve the problem of survival.

"For the time being, the three way that enterprises can refer to is internal improvement, going out and capital pfer."

Internal improvement includes management of cost reduction and technological pformation, and the way out is an immediate way to reduce land use and labor wages, and capital pfer is strictly not a solution to enterprises, but a way to save money.

Reporters also learned from the Wenzhou chamber of commerce that the practice of rescuing funds has been followed by many people: only 60% of Shanxi's small and medium-sized coal mines have the right to operate in Wenzhou's hands, and their 20 million tons / year coal output accounts for 4.5% of the total annual output of coal in Shanxi. More than 30% of these owners are water heads.

"The original method of adventure has been useless, the key is to choose a more suitable way for the development of water head, after all, this difficult period needs at least 5~10 years."

Taking root in the locality, finding new comparative advantages, upgrading services and brand marketing are upgrading directions; changing ideas, moving from simple price competition to value competition, and paying more attention to core values to enhance the profitability of enterprises are another supplement.

He mentioned in particular that the combination of the first generation and the second generation of PI Wang will stimulate many business sparks.

"Through the struggle of the first generation of leather people, capital accumulation and sales network already have a considerable scale. Through the second generation of international information mastery analysis, production concept and capital operation, enterprises are likely to be more successful when they are" over the threshold ".

"Small and medium-sized enterprises have been eliminated from the market, the rest must be better and must be more competitive.

Otherwise, once these leading companies are closed, the industry will disappear.

Water head leather has been in the ascendant, and the crisis now facing is not "Wenzhou characteristic". It is the embarrassment that many labor intensive enterprises encounter in many places.

Small and medium enterprises, because of lack of funds, technical personnel and sales network, can only accept the outcome of fading out of the market - 100 thousand yuan invested in 1 years to make 1 million yuan, not because of good projects, but not because of advanced management, but at the expense of losing the environment - such enterprises are bound to be eliminated, and this group has disappeared in the war of "reducing drums".

Enterprises have already done their best, and they must fight for the future in any case.

"Journey to the west", Dragon King, three Prince Edward Ao Ching in the West and East China, was watched by Yin.