Wenzhou small and medium-sized shoe and clothing enterprises face "cost pressure crisis"

Difficulties in financing, rising raw materials, appreciation of the renminbi, and shortage of migrant workers.... According to industry sources, small and medium-sized enterprises such as Wenzhou shoes and apparel are facing a cost pressure crisis, and some companies will either partially stop production or stop production.
Some people say that well-developed SMEs will continue to develop well and are not afraid of being hurt because they lack resources such as capital and manpower, and are good at controlling costs. The added value of product brands, technology, etc. is already relatively high, affordable, and poorly developed. Nature's nature falls into a vicious circle or does not mix. actually not.
Enterprises in distress should see the "accidents" in the crisis. Zhu Jian put it plainly that in 2006 he felt that the development of the footwear industry was difficult to make major breakthroughs, and he decided to leap into a new industry, LED, relying on talent and technological innovation to achieve transformation and upgrading. Three months ago, it was also identified as "Provincial Technology-based SMEs." He suggested that SMEs, based on their own situation, can be involved in emerging areas at a proper time.
“The SMEs in our city have deep-seated problems in enterprises, products, markets, technology, capital, talents and industrial structure. This is also the source of constraints on the transformation and upgrading of SMEs. Resolving these issues is a long-term and continuous process, not in the short term. However, in the current economic environment, there will be a half of the medium-sized and medium-sized enterprises in Wenzhou, which will suspend production or suspend production.” Zhou Dewen, president of the Wenzhou SME Development Association, said that the impact should be resolved according to the development stage of SMEs and their own conditions. And constraining the outstanding issues of the transformation and upgrading of SMEs, and strive to build institutional mechanisms conducive to the scientific development of SMEs.
In particular, the issue of funding structure is a bottleneck that has long puzzled the development of small and medium-sized enterprises in Wenzhou. Zhou Dewen suggested that the government authorities continue to encourage banks to increase credit support, support local financial service innovation, strive to expand direct financing channels, develop financing insurance services, strengthen financing service platform construction, strengthen credit guarantee system construction, promote the transfer of property rights transactions, and establish loans. Risk-relief mechanisms, etc., to improve the financing environment for SMEs and ensure their follow-up development capabilities.
Relevant experts said that the transformation and upgrading of small and medium-sized enterprises in Wenzhou is now much more difficult than the original business. It is a systematic project that requires the government, the enterprise, and the market to form a joint force to jointly achieve this strategic goal. That is, the government sets up a stage, the company sings, and the market guides. In terms of government departments, it is necessary to continuously improve the service system for small and medium-sized enterprises, help them integrate and upgrade, and gradually improve the environment for the development of small and medium enterprises.

Skills are not afraid of "injury"

Faced with the pressure of the economic environment, there are still many companies that are not afraid to stand in the water.
The footwear industry is a representative industry of small and medium-sized enterprises in Wenzhou. Huang Gaowu, chairman of Zhejiang Yinxin Bird Shoes Co., Ltd., answered an interview with reporters and firmly answered "No problem." Huang Gaowu said that in January this year, the company also invited South Korean popular star Jonah Nora as spokesperson, to Wenzhou women's shoes brand to build even louder.
In the increasingly fierce market competition, development requires strong brand promotion. Huang fully recognized this point and is strengthening brand strategy training and terminal training. While Xie Zuowei, Chairman of Zhejiang Fifth Avenue Fashion Co., Ltd. introduced the American brand “Keenfive”, he also relied on brand strategies and design teams to create new menswear brands and accelerate store expansion.
"The shoe and clothing industry depends on the brand to beat the world, and the hardware industry depends on the technological content of products to win the market." Jia Peng, general manager of Zhejiang Chuncheng Locking Co., Ltd. told reporters that they have developed leading products such as fingerprint locks for more than 30 years. There are more than 30 patents. The project has taken the lead in intellectual property.
Fuda Alloys Co., Ltd. is not worried about this external economic environment at all. Because the company has become the leader in electrical contact products in the electrical industry chain, it is still an outstanding supplier of "predators" such as Zhengtai Electric.
Zhu Jianping, chairman of Zhejiang Concentration Technology Co., Ltd., used to only make shoes. Since 2006, he has been involved in "LEDs (Light Emitting Diodes)" that have been hailed as Chaoyang and Blue Ocean industries. He quickly recruited and cooperated with the Chinese Academy of Sciences and spent a lot of money to establish a LED driver power R&D center in Europe. He successfully solved the key problems that plagued the LED industry, such as heat dissipation and power supply life.

Corporate cost "stressed"

From April 6, the central bank raised interest rates again, and the one-year benchmark lending rate has reached 6.31%. In fact, when enterprises borrow money from banks, the monthly interest rate has already approached one point. If the loan is not worth the money, it will have to take the private lending route.
"Private lending rates are much higher than bank lending rates. Many companies do not have the financial resources to invest and face the risk of capital chain fractures." A number of SME owners admit to the reporter that the most sharp sword that currently straddles enterprises is Don't know where to go for working capital.
Reporters visited a number of banks also saw that many business owners are close to the credit manager, the credit manager proposed purchase funds, financial products and other additional conditions, one promised. However, the credit manager still shook his head, but also "queued". As for the month or month, nobody knew.
In Wenzhou Economic and Technological Development Zone, Bohai Economic Development Zone, and Lucheng Industrial Zone, some enterprises have closed their doors.
"Fabric lining rises. It takes only 1,800 yuan a month for the general workers to eat and pack food. It is difficult to keep recruiting, and the start of feed intake is equal to a loss." The owner of a clothing company that asked not to be named told reporters It is said that if the enterprises are underemployed, they will be seen by the banks and the loans will not be able to be borrowed. He also said that although the minimum wage in Wenzhou has been raised to 1,310 yuan from this month, in fact, most companies have already paid more than this standard.