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Hot Pursuit Of The "Hollow" Truth Of Small Footwear Industry

2011/7/22 16:24:00 46

Dongguan Textile Industry

Recently, the "collapse tide" of small and medium-sized enterprises such as shoes and clothing has been widely heard, but it is hidden in "

Collapse tide

What is the truth behind it?


Dongguan's financing difficulties


In recent days, there have been repeated media reports about small and medium-sized shoes and clothing in Dongguan.

enterprise

With the news of the collapse and the news of workers' wages being raised sharply, will the small and medium-sized shoe and clothing enterprises repeat the "cold current" of 2008? Is there any individual phenomenon in Dongguan?


According to the latest reports from other media, the boss is missing because of company failure.

Dongguan

More than 200 workers from a company in the city gathered in front of the Dongguan municipal government 19 days ago.

It is understood that workers have been paid arrears for more than a month, and they hope that government departments will come forward to coordinate their efforts to recover wages.


When the industry in Dongguan talked about the cold current of enterprises, the pressure of shoe and garment enterprises this time was similar to that of 2008.

Three problems remain: appreciation of the renminbi, rising wages and rising raw materials.


In the current "cold current" of manufacturing industry, Dongguan shoes and clothing enterprises, like the shoes and clothing enterprises of the Yangtze River Delta, are indeed the most dangerous period since 2008. If the situation is worse, any pressure may become the last straw, which will overwhelm many shoe and clothing enterprises.


Official response denied "collapse tide"


Recently, reports about "Dongguan's collapse" have been overwhelming.

Many reports quoted people from the textile industry association as saying that this round of manufacturing difficulties led to 10% of Dongguan's textile enterprises overwhelmed.


Does Dongguan report the "failure of enterprises" in the above report? Huang Yi, director of Dongguan SME Bureau, responded: "this may be only a few phenomena, but needs to be understood again."

Chen Xiangyou, vice president of Dongguan toy industry association, also denied the "collapse tide". He said that every year there were businesses failure, and every industry would have such a phenomenon. At present, the closure is only one or two, and it can not explain any problems.


It is understood that the rise of raw materials, increased labor costs, and the tightening of the silver root make the enterprises in Dongguan difficult.

In addition, the shortage of funds has always been the "pain of the heart" of small and medium-sized shoe and clothing enterprises in Dongguan.

According to insiders, Mr. Xian revealed that nearly 90% of the small and medium-sized shoe and clothing enterprises in Dongguan are suffering from the shortage of funds, so they will also use other methods to ensure the circulation of capital, that is, the exchange of raw materials.


Zhou Dewen, President of Wenzhou Association of small and medium enterprises, said: "at present, not only is the Pearl River Delta, the Yangtze River Delta footwear and other small and medium-sized enterprises, but the national small and medium shoes and clothing enterprises have reached a new round of survival crisis."


Worries about Wenzhou's Industrial Hollowing


Shortly before the second China private enterprise investment and Financing Conference held in Zhejiang, the moderator asked the guests from all walks of life of the government and Industry: in the next two or three years, the number of small and medium-sized shoe and clothing enterprises in Zhejiang will collapse. The answers to the questions are more concentrated. Most of the guests wrote: 20%.


"If we reach 20%, the collapse will come.

If the government has good policies, the failure of enterprises will not rise to 20%. If there is no policy, it will deteriorate further.

Economist Gu Shengzu reminded him at the meeting.

In fact, in Wenzhou, many shoe and clothing brand entrepreneurs tell us that in recent years, people have long been reluctant to do business.

From the real economy, some of the money is concentrated in real estate, stocks and resources, while the other part goes to usury, private equity, capital operation and other fields.


But according to official statistics, the "collapse tide" may have attracted eyeballs.

However, the majority of shoe and clothing enterprises are operating in a meager profit, losing money, and even reducing the production scale to the limit. This is an undisputed fact.

A survey by the Wenzhou economic and Trade Commission showed that in the key export oriented enterprises, the loss accounted for 1/4, while only 30% of the enterprises maintained a profit growth.

The average profit rate of the industry is 3.1%, and the profit margins exceed 5% of the enterprises are less than 10.

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