Focus on the survival crisis of Wenzhou shoe and clothing enterprises outside the "money shortage"

As we all know, the cases of the closure of small and medium-sized shoe and clothing enterprises in Wenzhou have occurred from time to time. On the surface, it seems that the shortage of money has forced small and medium-sized shoe and clothing enterprises in Wenzhou to the corner. However, money shortage is really the root cause of the survival crisis of small and medium-sized footwear enterprises? Recently, the reporter once again conducted an in-depth investigation into Wenzhou, and found that the survival crisis of small and medium-sized shoe and clothing enterprises in Wenzhou was far from the “money shortage”.

This is a large-scale footwear export enterprise in Lucheng District, Wenzhou City, focusing on foreign trade markets in Europe and the United States. Into the production workshop, heat waves hit people. However, in such a high-temperature summer, the person in charge of the company feels an unprecedented chill from the market.

Wang Xianhao, deputy general manager of Wenzhou Taima Shoes Co., Ltd., told the reporter that 48 foreign trade industries are now on the verge of low profit, and (profit) has been relatively low, that is, between 2% and 5%.

Wang Xianhao said that since the beginning of this year, labor costs have risen by at least 20%, and the two major raw materials for shoemaking, leather and rubber, have risen by around 20%. Coupled with the continuous appreciation of the renminbi, the three-pronged approach has caused companies to fall into an unprecedented situation. Dilemma. Even more troublesome for companies is that although production costs have risen, products cannot raise prices.

Wang Xianhao, deputy general manager of Wenzhou Taima Footwear Co., Ltd., told reporters that it should be said that our foreign trade companies have pursued their troops after interception. There will be some pressure on anti-dumping trade barriers in front, and the development of Indonesian footwear industry in Southeast Asian countries will increase. This will have an impact on our industry. They have a cheaper labor force and lower land costs.

At the end of the interview and sending the reporter out, Wang Xianhao said that the air-conditioning in their corporate administration building had not been opened until 367 degrees in the last few days. In this way, there is only one purpose of frugality, and every effort is made to reduce the operating costs of the company and maintain a meagre profit. The reporter learned that the company has 3,500 employees and can start at least 300 days a year. Last year, the annual output value was 400 million yuan and the net profit was less than 20 million yuan. Calculated on the basis of a net profit of 20 million yuan, one employee’s hard work can only provide 19 yuan in return for the company’s profits. Slight profits have caused more and more industrial companies to lose confidence.

Xu Yongfeng, chairman of Wenzhou Zhiben Investment Consultant Co., Ltd., told reporters that the bosses I had more contact with complained that it is really difficult to do business nowadays. Many companies do not want to set up factories, rent factories to Other people, and collect fixed rents. .

During the interview, the reporter learned that regardless of foreign trade or domestic sales, Wenzhou's labor-intensive enterprises in shoes and clothing are faced with the difficult situation of meagre profits. According to the monitoring of the Wenzhou Municipal Economic and Trade Commission, in the first three months of this year, the output value of 35 export-oriented enterprises such as glasses, lighters, pens, and locks fell by 7% year-on-year, and profits dropped by about 30% year-on-year. More than one-quarter of these companies have lost money, and only 30% of the company's profits have grown. There are less than 10 companies with an industry average profit margin of 3.1% and a profit rate of more than 5%. With the reduction of the demographic dividend, the days of low wages and low prices of production factors and the large amount of money earned from processing were becoming history.

Imagine that a worker can contribute 19 yuan in profits by working one day. There is no doubt that with the replacement of cheap labor in Southeast Asian countries, the previous labor price advantage of our shoe and clothing companies is long gone. "Recruitment and expensive" and "recruitment difficulties" are forcing companies to shift manufacturing links to the central and western regions one after another.

Right now, Anhui, Henan, Sichuan, Chongqing and other provinces and cities in the central and western regions are becoming the focus of attention of many Wenzhou shoe and clothing companies. These concerns are centered on people. First, the Midwest has abundant labor force and can meet the needs of enterprises for employment; Second, the cost of labor is relatively low.

Aokang Group Co., Ltd. Chairman Wang Zhenyu told reporters that we also have about 20-30% of Aokang’s difference between Wenzhou and Chongqing. Chongqing is relatively cheap, because of the low cost of living and the high cost in Wenzhou.

Wang Zhenlu said that the difference between the cost of the two or three percent in different regions, the cost of labor accounted for the majority. Taking the general industry as an example, the wages of general workers in Wenzhou are at least about 1,500 yuan per month, about 1,200 yuan in Guangzhou, and only 1,000 yuan in the central and western regions. The salaries of skilled workers are even more.

Aokang Group Co., Ltd. Chairman Wang Zhenlu told reporters that the general shoes, (cost) Guangdong is similar to Wenzhou, Fujian and Chongqing than Wenzhou, the cost is lower, a pair of shoes to be low 3-5 dollars, looks very small, because We have a large amount of money. If a pair of shoes is worth a dollar, Aokang has 20 million pairs of shoes a year. This amount is very large.

The biggest feature of Wenzhou is the industrial cluster development. However, the institutional advantages that Wenzhou has fully utilized have disappeared.

Ma Jinlong, president of the Wenzhou Economics Association, told reporters that with the changes in the supply structure of factors and changes in the market structure, in fact some industries in the city may decline.

Aokang Group Co., Ltd. Chairman Wang Zhenyu told reporters that at the beginning, when it started low, they were all labor-intensive industries, shoe clothing and electrical appliances, etc. When they were doing, they did not consider long-term planning and could only earn a meager amount of money. Suddenly discovered that the time did not want to jump.

At present, the decline of some industrial clusters in Wenzhou can be summarized as the following types. Some industrial clusters lose price competitive advantage due to higher factor costs in Wenzhou, such as the plastic weaving industry; some industrial clusters face remediation due to high environmental costs, for example, Leather industry; Some industrial clusters encounter technical barriers in the international market due to lack of independent innovation capabilities, such as the lighter industry; some industrial clusters lack brand competitiveness due to failure to control the high point of the industry, such as the razor industry.