When Does Spring Shoe Enterprise Come?

The stock market fell, but the CPI index was still on the rise.

At the 103rd Canton Fair recently opened, both buyers and sellers are whispering: how far is spring?

The rising price of raw materials and the rising cost of labor have made China's manufacturing killer, the price, losing its edge in competition.

A large number of enterprises have been pferred or even closed down, becoming a scene in this round of competition elimination tournament.

For the growing world factory, this may be just an opportunity, a chance to reflect on its direction of development and develop its structure.

It is dangerous to be organic.

With the survival of the fittest, those enterprises with export crisis Say No can really guide China's manufacturing to maturity.

On April 15th, large and small exhibitors walked into the 103rd Canton Fair Exhibition Hall.

Because of the most stringent security measures in history, exhibitors lined up a long queue at the entrance of the exhibition to wait for security check. In a slightly tense security atmosphere, there was a dark cloud in the minds of the exhibitors waiting for security inspection, and the word "crisis" became the most frequent word in their mouth.

What crisis?

First look at a set of data: in 2007, China's cumulative trade surplus was US $262 billion 200 million, of which China imported 69 billion 380 million US dollars from the United States, exported US $232 billion 700 million, and the surplus amounted to US $163 billion 320 million.

This means that half of China's exports are consumed in the US market.

However, as the consumer crisis triggered by the US subprime mortgage crisis began to spread from the end of last year, the latest survey showed that the US consumer confidence index in March was only 64.5, the lowest level since 2003, which has dropped sharply for third consecutive months.

With the globalization of the world economy, a large number of Chinese foreign trade enterprises are gradually feeling the external pressure.

In addition to tighten the wallet, the total appreciation of RMB rose to 6.42% in 2007, two times that of 2006. The direct result of the increase in the cost of business is rising.

The winter of 2007 is extremely cold for Chinese enterprises still relying on exports.

Order competition is not only in the exhibition "we have done sanitary ware export" for nearly 10 years, but in recent year, the environment has changed so fast that we have been reluctant to support the business.

But after the abolition of the export tax rebate, we can not insist on making a single loss.

In an office building in downtown Xiamen, Fujian, manager Liu, a company engaged in bathroom products and foreign trade, is preparing to go out of business.

"Recently, business is getting worse and worse, and Kanmon Ooyoshi has no choice."

Liu manager said.

At the moment, he is pferring the two offices bought by the company to recover the cost.

It is understood that a medium-sized enterprise like him can earn $4000 a few years ago for exporting a container, but now even the cost can not be guaranteed, and naturally the order can not be obtained.

This overburdened enterprise is only a microcosm of the internal worries and difficulties of Chinese enterprises in the past year.

In addition to failing to get the order, the new labor law was implemented in 2008, forcing enterprises to pay various welfare benefits for employees. It is the old accounts that enterprises used to maintain low price competition in the past and ignore the protection of employees' interests.

In Qingdao, Shandong, Liu Xiaomin, director of the Trade Department of a self marketing auto parts enterprise, said, "our products are vehicle mounted air purifiers.

In the past two years, the total production cost of the company has increased by 30%, due to the impact of raw materials and the new labor law.

In addition to closing down, more companies are beginning to find ways to move factories to areas with lower operating costs to maintain their existing profit margins.

In the Pearl River Delta where enterprises are concentrated, 37.3% of the 8 Hong Kong enterprises are planning to move all or part of their production capacity away from the PRD, and more than 63% of them plan to move out of Guangdong.

According to statistics, in 2007, the Pearl River Delta collapsed and shifted to small and medium-sized enterprises and labor-intensive enterprises, mainly concentrated in hardware, shoemaking, toys, clothing and other low value-added products industry, involving tens of thousands of workers.

The loss of Shenzhen's processing trade direct export and deep processing carry over to export amounted to 17 billion 100 million US dollars, and more than 8000 of the processing trade enterprises affected, accounting for 60% of the number of processing trade enterprises.

According to the relevant person of Shenzhen processing trade enterprise association, if this trend is developed, there will be 1.2 processing trade factories enterprises closing down.

Just training skilled technicians and re locating factories will not be achieved in the short term. What should we do?

Many enterprises know that to solve difficulties, the key is to look for orders.

The 103rd Canton Fair has been the largest in scale.

In fact, many exhibitors at the Canton fair said they had contacted the customers before they had seen the goods on the spot.

In the information world where e-mail, QQ, MSN and other communication tools interweave, competition for orders between enterprises is not just happening at exhibitions.

A group of enterprises that used e-commerce earlier began to have direct dialogues with buyers, which led to many peers in time, so that buyers and buyers had reached a consensus on prices before many adverse factors such as raw materials had risen.

Through the long standing and mutual trust relationship accumulated by foreign businessmen, these e-business forerunners have greater detour in terms of profits or negotiations.

Xiamen blueprint Albert Industrial and Trading Company is such an enterprise.

Liu Hui, general manager, chose to stay in the office while he was in full swing.

The color masterbatch production enterprise with annual turnover of over 12 million yuan has set the main mode of business negotiation on the Internet.

"We started online by looking for suppliers, and at the beginning we didn't expect to sell products on the Internet."

Over the past few years, Liu Hui, the general manager, has made the two relocation of the blueprint industry through the profits brought by online sales. The factory area has changed from the original 100 square meters to the current more than 4600 square meters.

"The market volatility is normal, and the cost of going to the exhibition is tens of thousands, but it can not guarantee that it will get the order. Under the current market conditions, enterprises have to find ways to digest and control their own costs."

The expansion of factories has brought about an increase in labor costs, but Liu Hui did not feel that it was too heavy a burden, because in the years when the blueprint went online for business, most of the customers contacted Liu Hui directly through the Internet, which saved many intermediate links.

Because the staff size is limited, the cost of the blueprint has increased, but the profit margin is still relatively large, and the paction is still guaranteed.

The opportunity for survivors is that before the exhibition of steel household tool products at the fair this year, the German importer Weil Todd walked away with the price quoted by the manufacturer.

He told reporters that the price was 40% higher than that of last year's Canton Fair.

"Of course I understand that this is the inevitable result of rising international steel prices, but it is far beyond what I can afford."

This is the fourth time that traders in the Canton Fair have said that it is likely that their choice will shift from steel products to aluminum products.

Obviously, the prices of "made in China" all over the world have risen, and the lives of foreigners are not good enough. The tens of thousands of processing factories and suppliers that have been forced to disappear have made a difficult problem for those hopeful purchasers: how to find suitable suppliers as soon as possible.

For China's manufacturing export crisis, Xu Jianfeng, vice president of China manufacturing network, once said: "crisis is dangerous and organic."

This situation has brought new opportunities to companies that survive in this round of cost knockout.

Foshan Hongzhi pottery factory is an active striving for filling the empty space.

Lai Zhiyuan, general manager of the craft factory, is busy updating his product data on the website of every handicraft industry website, hoping to seize the opportunity to win more customers looking for new suppliers.

"Because of the rising raw materials and the increase of labor costs, many local factories that originally made pottery have been pformed into domestic products such as ceramic floor tiles and other building materials.

Over the past few decades, hundreds of local factories engaged in pottery have been accustomed to doing business through trading companies. In the face of the present situation, trading companies will not consider the interests of factories at all. The factory's attempt to make up the cost of production by raising the selling price can not be recognized by trading companies at all.

Lai Zhiyuan said.

Due to the Internet marketing in the handicraft industry website in 2006, and the production team of hung Tao Tao, led by Feng Weimin, a famous local pottery production master, the products of their factories have been popular in the market, and most of them are sold directly to Southeast Asia and Taiwan, China.

After many of its competitors have switched careers, Lai Zhiyuan is working hard to expand the scope of marketing on the Internet to search for those free buyers who lose their fixed suppliers.

As the Internet has crossed the intermediate links with local foreign trade companies, Hong Zhi Tao has increased profit margins invisibly.

Although the cost of production has gone up, the external price of the products of the craft factory has not changed, and of course, it has more competitive advantages than its counterparts.

"At present, there is a marked increase in the volume of enquiries by customers in Taiwan area. I think this is obviously due to the" problem "of the supply channels of these Taiwanese businessmen.

Lai Zhiyuan said.

Under the propaganda slogan of "stabilizing exports, actively expanding imports and balancing foreign trade structure" at the Canton Fair, Weil Todd opened the laptop that he carried with him. He told reporters that he had just looked at a booth product and wanted to go online to see if there was still a lower supplier.

Whether buyers or profit margins are enough Internet marketing forerunners, or those who want to expand their market share in the process of change, they start to rely on e-commerce.

He is playing the characteristic of convenience and efficiency.

Perhaps in the winter when the world economy is being suppressed, some people are not far away from spring.

The self redemption of an industry as an important category of China's exports, textile and garment industry has been on the cusp of export crisis since China joined the WTO.

However, in this traditional industry, an innovative enterprise like PPG has appeared in recent years. In this industry, Internet e-commerce has gradually become an opportunity for the industry to redeem itself.

"I am not a waiting person, I always respond quickly to the market."

Wu Jinrong, sales manager of Guangzhou Jing Yi Garment Accessories Co., Ltd. has no secret of his confidence in market changes.

When the survival crisis of the clothing industry is not so prominent now, Wu Jinrong has made a big improvement on his own business: he has thrown away the low-end products that occupy 50% of the turnover, instead of concentrating his capital and energy on the production of high-end products.

Guangzhou Jing Yi Garment Accessories Co., Ltd. is a garment manufacturer specializing in providing garment accessories, ribbons and ropes to the foreign trade garment factories. The garment factories in the upstream have reduced the price of Jing Yi to lower prices due to the decrease of foreign trade profits.

Under the pressure of double price increases of labor and raw materials, the profits of enterprises are becoming thinner.

Almost all the orders Wu Jinrong received were zero profit orders.

Obviously, this is like an elephant walking on a tightrope.

For enterprises such as Guangzhou Garment Accessories Co., Ltd., even if it is to expand sales, business is still in danger of falling down. In 2007, the incident of jumping off the building of Zhang Shuhong, the boss of Lida toy factory in Foshan, was a precedent.

Is there no other way to survive when we wait for bankruptcy?

In the second half of 2007, Wu Jinrong was under pressure to persuade his boss to invest a total of 7.8 million yuan to buy a batch of new machines and start producing more high-end products.

It was a rather reckless move at that time that it received good results in a few months.

In the process of negotiating business, the salesperson of Yi clothing found that although the industry was relatively depressed, but because its products began to supply some brand manufacturers, as the few high-end suppliers in the market, their bargaining power was stronger than before.

"Compared with low-end garment factories, the foreign trade profits of high-end garment factories have been reduced a little, and their requirements for garment accessories are mainly about quality rather than price, and not a little bit of money."

Wu Jinrong said.

Due to the stripping of low value-added businesses as soon as possible, the impact of Jing Yi company is far less than that of its peers. Many people are curious about whether Wu Jinrong really has the foresight of the prophet.

"In 2007, I worked as a moderator of the Alibaba financial edition for a year. I collect a lot of information about the fund, the stock market and the clothing industry every day, and sometimes I look for other people's questions first.