Made In China, Come On! Chinese Shoe Enterprises, Come On!

Editor's note: in the past half an hour, we have reported the silk business capital of Jiangsu, Wujiang, China Shoes Capital Fujian Jinjiang, China leather capital Zhejiang Wenzhou water head town, and the first operation of China's furniture export, Guangdong Dongguan Daling mountain. The basic situation is very similar.

Manufacturing in China is the pride of China's economy and a key link in the global economic chain. China's GDP has climbed to the fourth place in the world through cheap Chinese goods. Foreign consumers enjoy a low price and high consumption life. However, under the environment of rising labor costs, rising raw material prices, increasing RMB exchange rate and bank interest rates, traditional Chinese manufacturing has also encountered unprecedented pressure.

Jiangsu Wujiang textile enterprise is facing the collapse of the silk capital. It is located in Shengze Town, Wujiang City, the southernmost part of Taihu province in Jiangsu province. It is one of the four largest silk cities in China with Suzhou, Hangzhou and Huzhou. It has tens of thousands of sets of leading production facilities at home and abroad. The town produces 6 billion meters of textile products every year, which is equivalent to producing one metre of fabric for the world each year. The ancient silk capital has become an important world-class textile production base.

But since last year, with the accelerated pace of RMB appreciation, the textile industry of Shengze town has changed suddenly. In the small town of Shengze Town, small and medium-sized textile enterprises gathered together, the original traffic was no longer. Only one or two cars were seen passing through the wide streets. The door of a factory's factory was closed. From the outdoors of the fence, the workshop was empty and seemed to have been shut down.

The factory doorman told reporters that the factory was shut down.

Enterprises like this are not only on this road, but also in a factory building not far away.

How far is the impact of Shengze on the silk capital? How many enterprises are forced to stop production now?

Reporters in Wujiang Textile Industry Association learned an astonishing figure.

Miu Hangen, vice president of textile industry chamber of Commerce: "hundreds of discontinued production."

The plight of the textile industry is a microcosm of the difficulties faced by the entire Chinese manufacturing sector.

There are adjustments in the export tax rebate policy and the implementation of the new labor contract law, with the depreciation of the US dollar and the rising cost of raw materials, as well as the participation of Vietnam and other countries in the competition between low price and low labor costs.

At present, the crisis we are facing has really put pressure on many manufacturing enterprises. On the other hand, it also provides an opportunity to upgrade products, technologies, brands, vision and concepts.

We need to know that globalization needs not only cheap but also high quality.

Only by upgrading our products and brands can we win profits and respect in globalization.

What happened in Wujiang? What is China's shoe capital Jinjiang? What has caught the foot of China's footwear industry?

China shoes are probably the most famous Chinese products in the international market. China is the largest footwear producing country and exporter in the world. According to the statistics of the United Nations Industrial Development Organization, our country's shoe production accounts for 63% of the world's total. If the average calculation is made, every person in the world can wear a pair of Chinese made shoes every year.

However, since last year, Chinese shoes have encountered an unprecedented cold wave in overseas markets. First, the export of leather shoes has declined for the first time in more than ten years, and exports 1 billion 300 million pairs, down 6% compared with the same period last year. Then, in the first quarter of this year, the export volume of the whole shoemaking industry decreased by 5.3% compared with the same period last year. What kind of threshold did it bring to Chinese shoes?

Mr. Xu, a dealer in Jinjiang, has been doing shoe material business in Jinjiang for nearly ten years. He told reporters that the price rise of raw materials and accessories for shoes this year is obviously higher than before.

In the face of such a reality, the shoemaking enterprises that had not been able to carry on in the past had ceased production or went bankrupt in 2007, and by the Spring Festival of 2008, it became a barrier for many shoemaking factories to pass. Chen Dai town is one of the main production bases of shoe enterprises in Jinjiang. The output value of footwear industry accounts for 64.2% of the total output value of the footwear industry in the city.

In the chamber of Commerce in Chen Dai Town, reporters learned that there were about more than 20 small and medium enterprises that went bankrupt before and after the Spring Festival. According to the official statistics of Jinjiang, in the first quarter of 2008, 309 of the 712 taxpayers of the shoemaking enterprises in the city had 309 National Tax warehouses declining or zero warehousing, down 32 million 770 thousand yuan compared to the same period last year, down 40%. Ding Ronghua told reporters that Jinjiang's shoemaking enterprises generally reflected that a variety of factors were playing a central role, and the enterprises had reached the most difficult juncture in history.

Ding Ronghua, vice president of Jinjiang chamber of Commerce, said: "including the depreciation of the US dollar, the increase in the price of petrochemical industry, the increase in the wages of workers, there is a lot of money tightening in banks, and a lot of things are concentrated together. If it is simply a thing, it is easier to handle, and now it is concentrated, so the pressure of these export enterprises is very great. At this time to survive, not to seek development, and how to properly manage the enterprise to tide over this difficulty."

In the program, we also found that the leading brands represented by Anta were not only defeated by the crisis, but grew stronger in the crisis and began to take part in the direct competition between the international market and Nike and Adidas.

As many fans know, there are several Yao Ming teammates in the Houston rockets, who came out to advertise for Anta.

Most importantly, some leading brands in the domestic shoe industry have caught up with those multinational giants in technological R & D, and technological innovation and brand innovation have pushed Chinese shoe manufacturers to make another magnificent turn.

The experience of Nike and Adidas tells us that sneakers are labor-intensive industries on the one hand and high tech and high added value industries on the other hand.

Only those companies with brand and technology can get the highest profit through the competition in the upstream industry chain.

For Jinjiang and even China's shoemaking industry, this story is not only a successful wealth story, but also a mirror that encourages itself to innovate through technology and brand, and actively participate in the upstream competition of the industrial chain.

"Carp jump Dragon Gate", risks and opportunities always exist side by side.

Wenzhou Pingyang County, Wenzhou Pingyang County, is the largest pig leather processing base in China, which is called "Chinese leather capital". The production of skin is 1 / 4 of the country, the output value is up to 4 billion yuan a year, and the fiscal and taxation of more than 1/3 in Pingyang county depends on this town.

In the water town, there are more than 550 enterprises engaged in leather making, of which 6 are worth more than 100 million yuan. The Baoli leather goods company we saw before is one of them. However, nowadays, there are not a few enterprises in the water head, such as Baoli, which are in a state of shutting down or semi stopping production. The whole water town is also somewhat deserted because of the recession of the leather industry. How did the fur making city that thrive a few years ago become so depressed in a flash?

The management of the Feng Li factory told reporters that the price of live pig and pig skin that they bought this year increased from thirty or forty yuan to eighty yuan, and the time of one year has doubled. However, a well processed pig skin can split into three layers of leather. All the three layers of leather together can be sold for about 100 yuan at most, and the wages of factory workers have increased by nearly 30%. In an office of a factory, the reporter found the boss Huang of the factory. He said that because there was no business to do now, he would sit here watching TV for most of the day.

Fourteen years ago, Wenzhou held a ten thousand people congress to announce the "quality of the city". After that, Wenzhou manufacturing gradually went out of the credit crisis and occupied the national and global market by good quality and low price.

But the good times are not long, trade barriers, RMB appreciation, labor costs continue to rise, and environmental protection pressures are increasing. Wenzhou's manufacturing has gone down step by step, and has finally reached the difficult juncture of today's life and death.

How can we find the way out in Wenzhou?

Wang Chu, who introduced the production line to Vietnam in our program, is also experiencing difficulties.

It seems that Wenzhou's manufacturing idea, which is won by quality and cost, is no longer feasible in China or in other countries.

Dongguan's Daling mountain town, the first town of furniture export, has been struggling for a long time. The town of Daling mountain, Dongguan, Guangdong, has more than 500 large and small furniture factories. Every year, 90% of the furniture is exported to overseas markets.

In 2007, the furniture export of Daling mountain town reached US $2 billion 150 million, accounting for about 1/10 of China's furniture exports. It was called "the first town of Chinese furniture export".

However, by this year, furniture exporters feel sad.

Yuanda furniture is a relatively large scale in the private sector of Daling mountain, with more than 1000 employees. The reason why they are so frugal is that in 2007, the company once lost money, which made Zhu Buddha Zhang very nervous.

Zhu Fozhang: "according to the RMB, our sales volume is about ten million in one month, and RMB appreciation is now 1 million 500 thousand less than a month, 14% or 15% less. On this concept, it will be 1500 to 18 million less a year."

Our country has become the largest furniture production base in the world. There are about more than 50 thousand furniture enterprises and about 5000000 employees. In 2007, the output value of China's furniture industry reached 540 billion yuan. However, most furniture enterprises in China were in a low level of competition, and there were not many famous brands. Many export furniture was OEM production. When the international market was bruised, it was deeply affected. But in the town of Daling mountain, not all enterprises were in a state of distress. Which companies would be the lucky ones in this crisis?

In July 23, 2007, the Ministry of Commerce and the General Administration of Customs jointly issued the catalogue of processing trade restricted commodities, which further restricted export of furniture, and faced more difficulties for export enterprises. Nevertheless, many enterprises understood that crises and opportunities are always twin brothers and sisters.

Shang Yourong: "every industry has every industry's reason, this factor is caused by many reasons, not just a bad market, you will not run a boss may not necessarily be a good company, your product development, improvement, innovation consciousness can not keep up, may also be eliminated by this industry."

The half hour observation of the furniture industry: refueling, China, refueling, China manufacturing economy for half an hour commented that in the past fifty years, many Asian countries and regions have experienced difficulties faced by China's manufacturing, some have successfully broken through, the economy has reached a new stage, and others have been unable to overcome the difficult situation of a long period of economic downturn.

In 1960s, it was first made in Japan and sold well in the world with good quality and low price. Ten years later, Hongkong made and Taiwan made its rise. In 90s, it was made in Indonesia and made in Thailand. Then the world entered the era of China made.

Today, however, the export giants who dominate the world are faced with entirely different results. The famous Japanese Brand Company, who are rising in Japan, have led Japan through crises again and again. Their achievements in high technology and technology have helped Japan maintain the status of an economic power. After losing the advantage of manufacturing industry in Hongkong, China has successfully pformed into a world's best financial, trade, tourism and shipping city by convenient tariffs and high-quality services. Taiwan, China and Indonesia and Thailand, after losing the whole market, have experienced one after another economic and social crisis, and have never been able to embark on the fast track of healthy development.

For a brief review of this history, we can find two problems. First, your product occupies the whole world today, which does not mean that you can sit back and relax. In fact, the road to success that has always depended on low cost is not going to work. Two, if you can not plan and prepare as soon as possible, the whole national economy will pay a price.

What's the future of China made in detail? Here we quote the Chinese favorite words of the Wenchuan earthquake, refueling China!