Wenzhou Small And Medium-Sized Shoe Enterprises Spanformation Faces The Industry "Hollowing Out"

The soaring prices of raw materials, the rapid rise in employment and capital costs, and the appreciation of the renminbi and other factors have a small impact. Shoe enterprises The days are getting more and more sad, and the public opinion of the small and medium sized shoe enterprises in the Yangtze River Delta and the Pearl River Delta has been raging. However, the current small and medium-sized shoe enterprises are facing the problem of "how to ensure supply", rather than "how to find demand". These enterprises are actively shutting down rather than passive bankruptcy.

This is not the "two bottom finding". It is the continuation and extension of the pressure of corporate spanformation before the financial crisis in 2008. Transfer, spanfer, R & D, "escape"... These things that should have appeared two years ago are becoming clearer today.

Then, a regional economy's "defensive war" and "contention" are quietly emerging. Some of them rely on policies, some rely on resources, and others are spanforming ideas and relying on services.

Active shutdown rather than bankruptcy

The southern shore of the lower reaches of the Yangtze River is located in Lucheng, Wenzhou. 80%-90% of Wenzhou Shoemaking Factories are concentrated in this town.

"This month, 80% of shoe factories are in a state of shutdown." Jiang Feng, mayor of Shuang Yu Town, spoke truthfully about the current situation. He also stressed: "I am talking about stopping work, not bankruptcy, but in fact, there are few real bankrupt. There is still a big difference between the two, and the downtime and capacity are still there. "

Although the 5-8 month is the off-season of shoe factories, this year's situation is still special. Kang Ye is the largest shoe factory here.

"Last year, the number of shoemaking shoes was 75 thousand pairs a day, down to 55 thousand pairs this year, 20 thousand times a day." The head of the enterprise said. "The market for shoes this year can't be seen well. We can't push the market because of such tight funds." He said, "it's not that there is no list, but businessmen always want to talk about profits. Only when we look at the list of profits will we pick up."

"Enterprises are now adjusting the structure of orders, which have been exported before export, and many of them are gambling at home because they are too late to sell well. At present, enterprises are basically selling products for domestic sales, and there is not much money to be pressed here. There is not much profit, and they do not want to bet on it. An official of the economic operation Department of Wenzhou economic and Trade Commission said.

Data from 1-5 months of this year showed that the production and sales ratio of industrial products above Designated Size in Wenzhou was 97.11%, an increase of 0.37 and 0.15 percentage points respectively over the same period last year and the first quarter. "In fact, this also reflects that enterprises are not too bold to take long orders, basically they are receiving small bills and short lists." The official of the economic operation office said.

Jiang Feng said: "what we are doing now basically is the external orders, and the domestic sales list basically stops here. Many shoe companies take the initiative to shut down. "

Since this year, Raw material With soaring prices, rising labor costs and capital costs, the profit margins of shoe companies have been repeatedly compressed, especially in traditional labor-intensive industries.

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Regional warfare behind the shutdown

SMEs in the Yangtze River Delta and the Pearl River Delta have chosen to collectively "spend the winter" this summer.

The head of the above industry group analyzed: "the market for shoes before is Guangdong, Fujian and Wenzhou, and now there are more northeast, Sichuan, Chengdu and Taizhou." "There are more markets and more competition. In the traditional industries with high costs and very low profits, there is no advantage in the East. He said.

Wu Zhaoguang, deputy director of the Wenzhou Municipal Economic and Trade Commission's SME department, said: "many of Wenzhou's shoe companies do not want to stay here. In fact, the entire Zhejiang province is facing the same problem."

He said: "now many shoe owners take the money to do business outside the province, some people are putting these low profit factories in the first place, doing it or doing it, but there is not much investment. Some people take the entities such as the workshop as a financing platform, and then develop other businesses. Financing in Wenzhou is still relatively easy, and private lending is very developed, and is also taking the money to do business outside."

When the whole survival state of footwear industry is becoming difficult, local policies will become the driving force for enterprises to move to that area. "Now many shoe companies are moving to the central and western regions. The government there is also very active. Many preferential policies have been issued. The land is free and tax relief is very large. These things are not what we can give. " Wu Zhaoguang said.

Mr. Lin (a pseudonym) is the chairman of a large shoemaking enterprise in Wenzhou. He said: "in the second half of last year, there were frequent officials from central and western local governments who came to look for me. If they invest more than 2 hundred million, the land will be wasted. It's so difficult to do business now. I'm thinking about it. " "At present, it is the" intermediate spanition zone "in the spanformation of enterprises, and the government should do something to help enterprises in the spanformation and upgrading to a higher level. Xu Shundong, director of Wenzhou science and Technology Bureau, said: "now regional competition is very fierce. The external environment must be built by the government to give enterprises more room for development."

Experts analyzed that the spanformation of footwear enterprises in the face of the industry "hollow", did not form an effective industry replacement mechanism. Transformation still requires a variety of prerequisites. As long as we push ahead with spanformation, the economy is always upwards. The short run of profits is the price of spanformation. If the spanformation is successful, profits will rise naturally. Compared with 2008, there is no demand constraint for small and medium-sized shoe enterprises. The trouble of spanformation is acceptable, and there will be no malignant consequences.