Putian'S Innovation And Pformation, Success In Manufacturing Industry Wins The Turning Point

Located in the southeastern coastal city of Putian, Fujian has a larger proportion of traditional industries such as shoes, clothing, textiles and food, and the majority of OEM enterprises are affected by labor costs and foreign trade environment.

Under the new normal economic situation, how to pform and upgrade Putian's manufacturing industry and turn it into a crisis?

In the paint industry with fierce competition and overcapacity, the tri tree coatings Limited by Share Ltd has turned out a brilliant report card: the business revenue has increased by 75% over the first quarter of this year on the basis of 20% growth last year.

"The key to growth is to innovate."

In the view of Hong Jie, chairman of the company, in the case of serious excess capacity in the industry, winning the market must have distinctive products and services.

The health and environmental protection of coatings is the most concerned problem for consumers.

In the research and development center of the three trees, bottles and cans of various kinds of coatings were placed without any pungent taste.

Technical staff told reporters: "the volatile organic compounds, free formaldehyde and other toxic and harmful substances to a minimum is the focus of R & D.

Take free formaldehyde as an example, the national standard is less than 100 mg per kilogram of paint, and most of the products of the three trees reach below 5 mg per kilogram, some even do not detect free formaldehyde.

Hong Jie said: "in recent years, we have also innovated the business mode, from selling products simply to buying and selling, delivering goods, fitting out construction and so on one-stop service, and consumers only need to click the mouse order on the website.

This mode alleviates the fatigue of consumers' decoration and is welcomed.

Three trees are a vivid example of innovation driven pformation and upgrading of enterprises in Putian.

Some entrepreneurs in traditional industries such as footwear, coatings, food, arts and crafts, interviewed by reporters, said that only sunset products, no sunset industries, and adapting to the new normal economic situation, should be driven by innovation to improve the supply structure and better adapt to the needs of the market.

Shoe making is the traditional dominant industry in Putian, with more than 500 thousand employees.

In 2015, 260 shoe manufacturers of above scale in Putian produced more than 600 million pairs of shoes and achieved 60 billion yuan in scale industry output value.

Fabric shoes and leather shoes account for about 7% of the country's exports.

Behind the boom, many shoe companies are having a hard time.

The head of the footwear association of Putian said: "Putian shoe enterprises mostly do the foundry work for overseas famous sports shoes and clothing brands, lack of innovative ability, lack of core competitiveness, at the low end of the value chain, and earn only three or four yuan for exporting a pair of shoes. This mode has no way to continue."

The way out lies in innovation and pformation.

Chen Wenbiao, chairman of Fujian double Chi Industrial joint stock company and President of Putian Footwear Association, told reporters that in recent years, some enterprises have built up their own brands with the help of the electronic business platform, and vigorously explored the domestic market.

Chen Wenbiao said: "in the past, raw materials, sample processing, R & D and innovation are short boards. Now many shoe enterprises have their own R & D team, continue to increase investment in innovation, improve brand reputation with product quality, and win market recognition."

Some enterprises have gained a share in the value chain by independent innovation.

A pair of sneakers, with 3D printing technology, can not see any glue gluing and stitching marks on the vamp. It is molded at one time, energy saving and environmental protection.

In the highly competitive textile industry, Putian Huafeng Textile new material company has become the only supplier of fabric suppliers that has won the world's three most famous sports brands at the same time. All the product orders have been discharged until 2017, and some of the orders of independent intellectual property products have been discharged to 2020.

"We are not producing according to the requirements of these international footwear and apparel giants, but by developing and innovating, leading the needs of these enterprises, so that we have a strong bargaining power and then seize the high-end value chain."

Fang Huayu, chairman of Huafeng Textile new material company, told reporters.

The advanced design concept and continuous technological innovation are the main points of Huafeng: continuous introduction of advanced equipment and technology from Germany, Japan and Italy. R & D expenditure has maintained an annual growth rate of over 60%. R & D funds account for 8% of sales revenue, which is higher than the average of 5% of the top 500 enterprises.

In the view of Zhou Lianqing, Secretary of the Putian municipal Party committee, the enterprises such as Huafeng and three trees represent the direction of pformation and upgrading of Putian enterprises.

"For Putian," he said.

In a relatively large manufacturing market, it is particularly important to promote structural reforms on the supply side with industrial pformation and upgrading, reduce inefficient and low-end supply, expand effective and high-end supply, speed up the process of "power switching", and promote economic upgrading.

In order to support enterprise innovation, relevant departments in Putian have been making concrete moves.

We should intensify our efforts to support technological pformation of enterprises, provide technical subsidies for enterprises with market orders, and subsidize them by 5% of investment. We will subsidize the implementation of "machine replacement" through financial leasing, and subsidize enterprises that implement informatization and industrialization in a "two way integration" by 10% of investment amount, and subsidize the implementation of "machine replacement" for footwear enterprises by 20% of investment amount.

As early as 2014, Putian set up the "336" project to promote industrial pformation and upgrading, namely, building three hundred billion yuan output value pillar industries of chemical textile and chemical fiber, food processing, arts and crafts, cultivating three new 50 billion yuan output value of electronic information, high-end equipment and medical health, and constructing 6 parks, such as Shimen Bay and Xinghua bay south bank.

Zhou Lianqing told reporters that despite the recent downward pressure on the economy, but thanks to the earlier adjustment of industrial structure and pformation and upgrading of enterprises, Putian's economic and social development still maintained a relatively fast pace and the quality continued to improve.

Innovation driven

New impetus to economic growth is emerging: in 2015, Putian's GDP grew by 10.5%, its growth rate was second in Fujian, and 9.3% in the first quarter of this year.