Fujian shoe companies don’t talk about “winter” but talk about development
Most of the bankruptcies were small and scattered enterprises, and enterprises above designated size were not affected
Small and medium-sized enterprises in the industry chain of leading enterprises are currently having a better time
“For every four pairs of shoes exported from China, one pair is produced in Fujian.” Fujian’s shoemaking industry is a tripartite with Guangdong and Zhejiang. Currently, there are more than 4,000 shoe companies in Fujian Province, nearly 1,200 of which are above designated size, employing over one million people.
Since the beginning of this year, affected by multiple factors such as the U.S. subprime mortgage crisis, RMB appreciation, and rising costs, export-oriented companies have had a difficult time, and shoe companies are the first to bear the brunt. According to statistics from the Fujian Provincial Department of Foreign Trade and Economic Cooperation, from January to September, Fujian Province’s footwear exports amounted to US$3.9 billion, a year-on-year increase of 10.83%, and the growth rate has slowed down. Customs statistics show that in the first half of the year, the number of shoe exports by foreign-funded enterprises maintained growth, while the total export volume of shoes by state-owned and private enterprises declined.
With the support of policies successively introduced by the central and local governments, Fujian shoe companies have made full use of the policies on the one hand, and on the other hand, they have strengthened their muscles and bones to effectively cope with the “cold wave”!
Leading enterprises: strengthen muscles and bones to meet challenges
In Quanzhou and Putian cities, where the shoemaking industry is concentrated, there are reports of shoe companies closing down and suspending production. However, after half a year, a review found that most of the bankruptcies were small, scattered, family-run small businesses, and there were no enterprises above designated size. Not affected.
The three major characteristics of diversified product structure, diversified marketing markets, and diversified marketing methods give enterprises above designated size a greater room for maneuver in this response. More than 30 Fujian shoe companies with an output value of over 100 million yuan have accumulated experience in the experience of international trade frictions and have a certain amount of advance in response.
Anta, a sports shoe company with the core concept of “never stopping”, plays its brand role and supports both domestic and international markets. In the first three quarters of this year, orders increased by 30%, and the average profit this year remains at 30%. above.
60% of Quanzhou Shishi’s Fuguiniao Shoes market is abroad. Chairman Lin Heping said that the Western European market is dominated by high-end women’s shoes, while the Russian market is dominated by self-operated brands. These two moves were forced out of the international anti-dumping war in recent years, but this time they helped the company avoid market turbulence. This year’s external sales increased by 10% year-on-year. This year, Fuguiniao built two new factories and imported 10 assembly lines from Italy in September. He said that the biggest challenge for enterprises now is to absorb costs.
Many shoe companies in Jinjiang, Quanzhou, adjusted their export structure in a timely manner. Previously, most of them received orders from the United States and settled in U.S. dollars. Now they are gradually turning to exports to Europe and countries that settle in euros. Exports to the EU increased by 220%. Although the batch size and total number of exports have decreased, the average price has increased by more than 10%, and the unit price of exported shoes has increased by 13.4%.
Professor Liu Yun, director of the Enterprise Research Center of Zhejiang University, who came to Fujian to attend the seminar, said: “I visited Quanzhou and entrepreneurs did not talk about how to survive the winter. ‘, talk to me about how to develop.” Challenges and opportunities coexist, and many large companies in Quanzhou hold this view. They “resisted the earthquake” while accumulating new energy. From January to September this year, seizing the opportunity of RMB appreciation, 31 companies in Jinjiang purchased advanced foreign equipment, amounting to 2.55 billion yuan, which greatly reduced the cost of replacement.
Small and medium-sized enterprises: stay together and find markets
Facing the test of this “cold wave”, small and medium-sized enterprises are the ones who are in the most difficult position.
Fulian Shoe Plastic Co., Ltd. is the first shoe company in Jinjiang to enter Wal-Mart in the United States. The reporter saw that three of the company’s six production lines have been suspended. General manager Zhang Xiangsheng said that part of the orders were distributed to other small businesses. First, everyone would have something to eat, and second, it would save labor costs.
On the day of the interview, a local company immediately canceled a European order under negotiation due to exchange rate changes and unprofitability; at the same time, they discussed organizing a group to go to Guangdong to take over a large number of jobs left behind after the relocation of local companies. Orders with profit margins.
Fujian enterprises have always had the concept of “better to be the head of a chicken than the tail of a phoenix”. In the past, when there were difficulties, they were used to staying alone to keep warm, but now everyone works together as a team. Many small and medium-sized enterprises take the initiative to provide supporting processing or OEM production for brand companies. At 361 Degree Company, the number of local small and medium-sized enterprises doing OEM production for it has increased to 5. Some small and medium-sized enterprises have become supporting workshops for large enterprises through equity participation and other methods.
Leading companies will hold on and the entire industry chain will be stable. In response to this dilemma, the industrial chain has played a particularly obvious role in supporting small and medium-sized enterprises. Dozens of companies in the industry chain such as Anta and Fuguiniao are currently having a relatively easy time.
On June 20, Jinjiang City established a guarantee agency led by large enterprises, focusing on providing financing guarantee services to brand processing small and medium-sized enterprises, upstream product suppliers and other partners.
The shoe industry is also a major industry in Putian City. There are more than 200 local enterprises above designated size. At present, they are preparing to build the overall image of “Putian Shoes”.��Participate in international exhibitions and expand the market.
Government departments: services are in place and policies are fully utilized
Due to the increased risk of trade exchange collection caused by the U.S. subprime mortgage crisis, in the first half of this year, Fujian Province’s foreign trade enterprises’ unwritten-off foreign exchange collection amounted to US$500 million, nearly double the same period last year. Wang Jian, deputy director of the Fujian Provincial Department of Foreign Trade and Economic Cooperation, said that Fujian Province has increased subsidies to encourage enterprises to participate in export credit insurance. The premium subsidy standard has been adjusted from the previous 20% to 25% to 40% to 60%. , and launched a credit insurance policy financing discount policy to enhance corporate financing capabilities, and many shoemaking companies have benefited greatly.
Government departments have emphasized that services are in place to help companies make good use of the policy. The “Guiding Opinions on Financial Support for Foreign Economic and Trade Development” recently issued by Fujian requires that the bank-trade collaboration mechanism be fully utilized and commercial banks and enterprises be encouraged to establish a bank-enterprise consultation system. The national tax, state inspection, customs and other departments also work together to deliver information in a timely manner to facilitate enterprises’ export collection and settlement, tax refunds and customs clearance.
Brand and technology are becoming the magic weapons for shoe-making companies to strive for greater profit margins. Yang Yimin, Secretary of the Jinjiang Municipal Party Committee, said: “The government must provide a support system for enterprises to build their brands and promote technological innovation.” Under the promotion of the government, Jinjiang enterprises have established 252 R&D centers in the first half of this year alone and invested more than 1 billion yuan in technical transformation funds.
“Challenges and opportunities coexist. Enterprises must seize the opportunity to transform and upgrade.” Wang Jian said that the international market demand has weakened, but the demand for daily consumer goods will not decrease, and Fujian’s shoemaking industry still has great potential. However, Fujian’s own brands in export commodities are not strong enough, so the Department of Foreign Trade and Economic Cooperation will strengthen its role in promoting export brands. Among the 115 export brands recently selected for key cultivation and development in Fujian, a number of shoe-making related companies such as Fuguiniao and Peak were shortlisted
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