2014 Challenges For Dongguan Shoe Enterprises In Winter

Act as Footwear industry of Dongguan's sixth traditional pillar industries This year, it has experienced a brutal challenge. Many shoe companies carried the financial crisis in 2008 but did not carry it in 2014. News of the shoe factory shutting down and the boss running away came one after another. Both material suppliers and factories are cautious. In order to ensure the safety of the capital chain, they changed their business habits in the long run, all cash operations, first collected money and then shipped out, or they switched off factories to trade companies and sent orders out. However, with the rise and maturity of manufacturing industries in Southeast Asia and other countries, the international ordering of food has made a huge impact on the footwear industry in Dongguan.

Dilemma:

The cost of internal worries is soaring.

In shoe factories, it is a common practice to raise wages every year after coming back every year, otherwise enterprises will not be able to recruit people.

Dongguan's demand for factory purchases of social security has also increased this year. Last year, the number of employees insured by enterprises reached 50%. This year, it is required to buy social security for 75% employees, and the social security base has increased by more than 100 yuan. This year, the employees' social security is raised to 598 yuan a month, of which the factory burden is about 400 yuan. Even so, many workers are reluctant to buy social security. Workers reflected that after returning home, social security could not be turned back. Seeing a doctor has to go to a designated hospital, and the rate of referral is different. Enterprises should pay money for workers to buy social security, and do their work one by one. As for the factory's corresponding hardware facilities, environmental protection, labor insurance, employee health examination and so on, the government departments only inspected individual enterprises before this year, and this year is a comprehensive inspection.

Foreign orders reduce profits decline

The living environment of factories is becoming more and more severe. This year, the market is not good. Orders are not only reduced, but also customers are constantly pressing the unit price, averaging a further reduction of $0.5 from the original basis. and The profits of a pair of shoes are already thin. A few dollars, too. Shoe factories also have traditional peak seasons, such as three or four, eight, and September. The four months' off-season should be filled out in other months. Ordinary raw materials processing basically no room for survival. Most shoe factories this year are either guaranteed or lost.

At the same time, foreign customers' requirements for environmental protection are constantly improving. Now customers are required to see the test report before shipment. This year, it is a thread, even if it is the glue line, all customers send pictures to ask for rectification.

Answer:

Cash operation

In order to ensure the safety of the capital chain, they changed their business habits in the long run, all cash operations, first collected money and then shipped out, or they switched off factories to trade companies and sent orders out.

Many shoe factories in Huizhou receive orders from foreign trading companies, but if there is a problem with the trading companies, the factory can not receive the money and the capital chain breaks, so it can only go bankrupt. Now, factory orders are more discreet and cash sheets are as large as possible. Factories want to make cash, do not want to go through trading companies, because through trading companies do not do cash, there is a capital turnover period, enterprises are afraid to take orders.

Outward order

　　 There are fewer shoe factories in Dongguan this year. But there are more trading companies. Because the factory has orders, but the production costs are high, and people can't be recruited. They can only take the factories, do the trade orders and send the orders out. Due to the high maturity of the shoe market in Dongguan, enterprises are more willing to keep purchasing and research and development in Dongguan, such as Houjie street, leather street, and this year there are many trading companies.

Dachang small factory

Turn off factories and make orders, and factories are transformed into trading companies. In Wang Yongpei's view, powerful people and sensitive people did so 3 years ago. And shrinking scale, relocation and relocation, big factories and small factories are also a big trend this year. In addition to some of the collapsed Taiwanese funded factories, most of the powerful Taiwanese capital factories moved to other places where Southeast Asia and other labor costs are cheaper. The factories that remain at home shrink production lines, and many shoe factories shrink from hundreds of thousands of factories to hundreds of people every year.