The 114th Canton Fair, which just ended, has experienced varying degrees of decline, regardless of the volume of transactions or the number of buyers. Recently, a research report on more than 1,000 small and medium-sized foreign trade enterprises in the Pearl River Delta shows that 20.09% of the more than 1,000 small and medium-sized foreign trade enterprises in the Pearl River Delta region have pushed down orders due to exchange rate fluctuations. . Since 2013, the average amount of orders that companies have pushed off has reached $578,000.
The reporter of "China Times" recently visited the foreign trade enterprises in the Pearl River Delta and found that behind the single-handedness, the foundry enterprises are constantly being compressed. Today, most manufacturing companies are in the midst of a period of transformation and upgrading. Companies are focusing on reducing costs, building brands and expanding sales channels.
However, this government-led enterprise transformation and upgrading is encountering bottlenecks. To complete the transformation of the manufacturing industry, in the eyes of many business people, further reforms are needed. The current upgrades only stay on some skills and means. The real technological innovations are not supported by the lack of policy guarantees. Enterprises are looking forward to the policy of truly enhancing the enthusiasm of enterprise transformation and upgrading.
Small step upgrade
The transformation and upgrading of the enterprises in the Pearl River Delta has begun to appear in Shenzhen Huaqiang North and Dongmen Commercial Circle.
According to Director Cai of the Economic and Technological Office of Songgang Street, Bao'an District, Shenzhen, who is responsible for serving the enterprise, many foreign trade enterprises continue to do OEM work after exporting to domestic sales, while they start to make their own brands to enter the domestic shopping mall counters, and some are still in Taobao. Create your own brand online.
Located in Baoan Shiyan, the Virginie clothing company was originally designed for the international underwear high-end brand "Victoria's Secret". After mastering the technology, it started to build its own brand in China last year and opened a specialty store in a large shopping mall. The company's employee Miss Luo told this reporter that the same quality of a underwear, foreign brands are more expensive than domestic brands five or six hundred dollars, the added value of the two brands are far apart.
Liu Wenhu, general manager of Guangzhou Haoye Leather Co., Ltd., recently relied mainly on compression costs to improve the corporate environment. According to him, the gross profit of the leather goods industry has dropped from 50% to 30% three years ago. The original high profit is mainly due to lower labor costs, raw materials and logistics circulation costs. Now that the cost has risen, the selling price has not been raised, and the company has no way to upgrade its technology and must rely on labor.
"We have peers transferred to Vietnam for production, and profits can return to 50% or 60%, mainly because of the low labor costs there," Liu Wenhu said. Like many companies in the Pearl River Delta, they began to shift from their own production to key orders, then organized raw materials, and then subcontracted to some small factories. Because relatively, the management costs, site rental costs, and production costs of small factories are much lower than those of large factories.
Nowadays, in the Guanlan Foxconn factory, various small and medium-sized factories are stationed. After receiving orders, Foxconn will subcontract to small-cost enterprises with lower costs in order to reduce costs.
The three factors of labor cost, rising raw materials and appreciation of the renminbi are common problems faced by the current generation of industrial and foreign trade enterprises.
The reporter interviewed a number of manufacturing companies and found that the OEM-based manufacturing industry mainly strives to upgrade through technology by compressing costs, building brands, and expanding sales channels and other small-step upgrades. To increase product added value.
Guangdong Shunde Shunyan New Material Co., Ltd. was transformed from the former Shunde District Shunyan Plastic Co., Ltd. in Foshan City. The owner Fu Manhua is improving the efficiency by changing the management method, allowing employees to enjoy the company's internal shares, participating in corporate dividends, and improving employee treatment. Significantly improved the company's production efficiency. In the plastic production R & D technology, some products can increase the added value and sales price of the products after winning international awards.
"Improve the technical content and performance of products, do high-end products, do a lot of things that the peers can't do for a while, so that enterprises will have pricing power, and profits will naturally rise," Fu Manhua said.
Long pain period
At the just-concluded Autumn Canton Fair, the export value of the second phase of Guangdong Province was 120 million US dollars, down 4.1% from the previous session. This is not surprising for the Chinese manufacturing industry, which is in the process of transformation and upgrading.
Baoan Guanyi Yichangchang garment factory Qiu factory director told reporters that now customers will compare the prices of some countries in Southeast Asia, it is clear that Vietnam, Thailand's labor costs are lower than China.
"The wages of workers there are less than one thousand yuan a month." Chen Junxie, who works at VTC Group in Vietnam, told reporters that he was often able to see reports of Chinese companies investing in factories in Vietnam from local news in Vietnam.
Today, China's manufacturing industry has entered a period of transformation and upgrading. Most of the respondents reported to this reporter that for most SMEs with insufficient capital, R&D investment is too large, and small enterprises lack strength to upgrade technology. At present, we can only start with minor improvements, and upgrades cannot be completed in one step.
Director Cai told reporters that in the past, because foreign trade was too good to make money, enterprises were reluctant to spend energy to build brands. However, after foreign trade deteriorated in recent years, the pressure of domestic sales competition was too great, and the market recognition of brands was getting higher and higher.
But it's easy to build your own brand. A leather bag ex-factory price of three or four hundred, and to the mall can sell for three or four thousand yuan, Liu Wenhu knows that this is the value of the brand. But he didn't have the courage to come up with tens of millions to invest in this bottomless pit. "To find a storefront, you have to advertise, there are no four or five million don't want to start, and the follow-up will continue to invest, but I don't know when it will pay off. I might as well take the money to invest in real estate and shops." Many enterprises in Shenzhen have transformed into the tertiary industry such as entertainment, catering and golf courses after closing the factory.
According to Director Cai, there is a foreign trade enterprise that produces sofas. The price of the products is about 20,000 yuan or 30,000 yuan. Last year, the company rented a shop in Shenzhen Century Center, with a monthly rent of 100,000. But I don't know how long it will last.
But there are also many successful people. Baoan Guanyi Yichangchang garment factory Qiu factory director told reporters that a colleague of their factory came out alone, initially lost nearly 10 million, but he did not give up, but spent millions of annual salary from South Korea to hire two designs The teacher specializes in Korean clothes, and then spends three or four million yuan to ask for models and publicity. Now he has received two hundred customers to join.
However, Qiu’s factory is still insisting on doing OEM work. “The current market is sluggish, the transformation is difficult to survive, and the large-scale investment is too risky. The transformation really needs the courage and courage of the strong man, and sufficient capital support,†he said.
"Now I can only continue to be the old customers, not accepting new orders, and even dare not accept big orders." Qiu factory director said that the more you do, the more you lose.
Peng Qinwen, vice president of photovoltaic lighting in Shenzhen, told reporters that the company has been improving its R&D and innovation capabilities after its listing, especially in the electronics industry, such as reversing the water. However, any enterprise transformation has a long-term process. It is difficult to make money in the early stage. It is quite difficult to be eliminated. In the past, it can occupy a certain share.
Director Cai said frankly that the Pearl River Delta region is encouraging the transfer of production workshops, leaving research and development and high-level manufacturing, which is inevitably a process of survival of the fittest.
Looking forward to further policy
Ding Li, director of the SME Competitiveness Research Center of the Guangdong Academy of Social Sciences, told this reporter that the company is in a period of pain, and the living space is not big. If you want to further develop, the resistance lies in the government's management. "Transformation and upgrading is not the government's guidance to solve, the key depends on market competition, but there are many opaque and unfair problems, and the transformation still lacks a good environment."
Although the reform of commercial entities launched by the State Council recently effectively stimulated the enthusiasm of private entrepreneurship, the implementation of the “National Six Articles†of foreign trade has saved enterprises the cost of commodity inspection and accelerated the export speed. However, in the eyes of many business owners, these changes in rules cannot solve the fundamental problem.
According to the research report of Datong, the credit payment methods of the export-oriented small and medium-sized enterprises are still lacking, which leads to the loss of a large number of large orders for small and medium-sized foreign trade enterprises. 33.22% of the enterprises have the phenomenon that “the order is lost because the payment method cannot be agreedâ€. More than 70% of the enterprises have a funding gap, and the average monthly gap is 675,500 yuan.
What is even more serious is that the capital gap is still expanding under the condition that the overall order has not increased significantly. Many companies have suggested that effective financing services are crucial for small and medium-sized foreign trade enterprises in the future. Nearly half of the companies have clearly stated that they need continuous financing. The main purpose of financing is to produce equipment renewal, new product base research and development, raw material stocking and Marketing promotion.
In addition, Zhang Wenpei, director of Meifu Precision Manufacturing Shenzhen Co., Ltd., told reporters that the company’s sales abroad have dropped by 30%-40% this year, while the domestic market has just been developed. The company’s lack of motivation to do its own research and development is an important reason. There is no property rights system protection in China and no talents can be retained.
Another LED manufacturing company, Liu Boss, also believes that China's piracy is too powerful, which makes people reluctant to spend time on research, and cooperation with state-owned enterprises in central enterprises is too cumbersome and urgently needs reform.
In fact, companies have transitioned from low-end to high-end, and Europe, Japan, and Korea have all experienced the same process. Ding Li believes that due to differences in the system, China faces greater difficulties. “A lot of projects have power behind them. What companies think is not innovation, but how to make good relations with officials, how to cut taxes, reduce rents, and get subsidies.â€
The reporter of "China Times" recently visited the foreign trade enterprises in the Pearl River Delta and found that behind the single-handedness, the foundry enterprises are constantly being compressed. Today, most manufacturing companies are in the midst of a period of transformation and upgrading. Companies are focusing on reducing costs, building brands and expanding sales channels.
However, this government-led enterprise transformation and upgrading is encountering bottlenecks. To complete the transformation of the manufacturing industry, in the eyes of many business people, further reforms are needed. The current upgrades only stay on some skills and means. The real technological innovations are not supported by the lack of policy guarantees. Enterprises are looking forward to the policy of truly enhancing the enthusiasm of enterprise transformation and upgrading.
Small step upgrade
The transformation and upgrading of the enterprises in the Pearl River Delta has begun to appear in Shenzhen Huaqiang North and Dongmen Commercial Circle.
According to Director Cai of the Economic and Technological Office of Songgang Street, Bao'an District, Shenzhen, who is responsible for serving the enterprise, many foreign trade enterprises continue to do OEM work after exporting to domestic sales, while they start to make their own brands to enter the domestic shopping mall counters, and some are still in Taobao. Create your own brand online.
Located in Baoan Shiyan, the Virginie clothing company was originally designed for the international underwear high-end brand "Victoria's Secret". After mastering the technology, it started to build its own brand in China last year and opened a specialty store in a large shopping mall. The company's employee Miss Luo told this reporter that the same quality of a underwear, foreign brands are more expensive than domestic brands five or six hundred dollars, the added value of the two brands are far apart.
Liu Wenhu, general manager of Guangzhou Haoye Leather Co., Ltd., recently relied mainly on compression costs to improve the corporate environment. According to him, the gross profit of the leather goods industry has dropped from 50% to 30% three years ago. The original high profit is mainly due to lower labor costs, raw materials and logistics circulation costs. Now that the cost has risen, the selling price has not been raised, and the company has no way to upgrade its technology and must rely on labor.
"We have peers transferred to Vietnam for production, and profits can return to 50% or 60%, mainly because of the low labor costs there," Liu Wenhu said. Like many companies in the Pearl River Delta, they began to shift from their own production to key orders, then organized raw materials, and then subcontracted to some small factories. Because relatively, the management costs, site rental costs, and production costs of small factories are much lower than those of large factories.
Nowadays, in the Guanlan Foxconn factory, various small and medium-sized factories are stationed. After receiving orders, Foxconn will subcontract to small-cost enterprises with lower costs in order to reduce costs.
The three factors of labor cost, rising raw materials and appreciation of the renminbi are common problems faced by the current generation of industrial and foreign trade enterprises.
The reporter interviewed a number of manufacturing companies and found that the OEM-based manufacturing industry mainly strives to upgrade through technology by compressing costs, building brands, and expanding sales channels and other small-step upgrades. To increase product added value.
Guangdong Shunde Shunyan New Material Co., Ltd. was transformed from the former Shunde District Shunyan Plastic Co., Ltd. in Foshan City. The owner Fu Manhua is improving the efficiency by changing the management method, allowing employees to enjoy the company's internal shares, participating in corporate dividends, and improving employee treatment. Significantly improved the company's production efficiency. In the plastic production R & D technology, some products can increase the added value and sales price of the products after winning international awards.
"Improve the technical content and performance of products, do high-end products, do a lot of things that the peers can't do for a while, so that enterprises will have pricing power, and profits will naturally rise," Fu Manhua said.
Long pain period
At the just-concluded Autumn Canton Fair, the export value of the second phase of Guangdong Province was 120 million US dollars, down 4.1% from the previous session. This is not surprising for the Chinese manufacturing industry, which is in the process of transformation and upgrading.
Baoan Guanyi Yichangchang garment factory Qiu factory director told reporters that now customers will compare the prices of some countries in Southeast Asia, it is clear that Vietnam, Thailand's labor costs are lower than China.
"The wages of workers there are less than one thousand yuan a month." Chen Junxie, who works at VTC Group in Vietnam, told reporters that he was often able to see reports of Chinese companies investing in factories in Vietnam from local news in Vietnam.
Today, China's manufacturing industry has entered a period of transformation and upgrading. Most of the respondents reported to this reporter that for most SMEs with insufficient capital, R&D investment is too large, and small enterprises lack strength to upgrade technology. At present, we can only start with minor improvements, and upgrades cannot be completed in one step.
Director Cai told reporters that in the past, because foreign trade was too good to make money, enterprises were reluctant to spend energy to build brands. However, after foreign trade deteriorated in recent years, the pressure of domestic sales competition was too great, and the market recognition of brands was getting higher and higher.
But it's easy to build your own brand. A leather bag ex-factory price of three or four hundred, and to the mall can sell for three or four thousand yuan, Liu Wenhu knows that this is the value of the brand. But he didn't have the courage to come up with tens of millions to invest in this bottomless pit. "To find a storefront, you have to advertise, there are no four or five million don't want to start, and the follow-up will continue to invest, but I don't know when it will pay off. I might as well take the money to invest in real estate and shops." Many enterprises in Shenzhen have transformed into the tertiary industry such as entertainment, catering and golf courses after closing the factory.
According to Director Cai, there is a foreign trade enterprise that produces sofas. The price of the products is about 20,000 yuan or 30,000 yuan. Last year, the company rented a shop in Shenzhen Century Center, with a monthly rent of 100,000. But I don't know how long it will last.
But there are also many successful people. Baoan Guanyi Yichangchang garment factory Qiu factory director told reporters that a colleague of their factory came out alone, initially lost nearly 10 million, but he did not give up, but spent millions of annual salary from South Korea to hire two designs The teacher specializes in Korean clothes, and then spends three or four million yuan to ask for models and publicity. Now he has received two hundred customers to join.
However, Qiu’s factory is still insisting on doing OEM work. “The current market is sluggish, the transformation is difficult to survive, and the large-scale investment is too risky. The transformation really needs the courage and courage of the strong man, and sufficient capital support,†he said.
"Now I can only continue to be the old customers, not accepting new orders, and even dare not accept big orders." Qiu factory director said that the more you do, the more you lose.
Peng Qinwen, vice president of photovoltaic lighting in Shenzhen, told reporters that the company has been improving its R&D and innovation capabilities after its listing, especially in the electronics industry, such as reversing the water. However, any enterprise transformation has a long-term process. It is difficult to make money in the early stage. It is quite difficult to be eliminated. In the past, it can occupy a certain share.
Director Cai said frankly that the Pearl River Delta region is encouraging the transfer of production workshops, leaving research and development and high-level manufacturing, which is inevitably a process of survival of the fittest.
Looking forward to further policy
Ding Li, director of the SME Competitiveness Research Center of the Guangdong Academy of Social Sciences, told this reporter that the company is in a period of pain, and the living space is not big. If you want to further develop, the resistance lies in the government's management. "Transformation and upgrading is not the government's guidance to solve, the key depends on market competition, but there are many opaque and unfair problems, and the transformation still lacks a good environment."
Although the reform of commercial entities launched by the State Council recently effectively stimulated the enthusiasm of private entrepreneurship, the implementation of the “National Six Articles†of foreign trade has saved enterprises the cost of commodity inspection and accelerated the export speed. However, in the eyes of many business owners, these changes in rules cannot solve the fundamental problem.
According to the research report of Datong, the credit payment methods of the export-oriented small and medium-sized enterprises are still lacking, which leads to the loss of a large number of large orders for small and medium-sized foreign trade enterprises. 33.22% of the enterprises have the phenomenon that “the order is lost because the payment method cannot be agreedâ€. More than 70% of the enterprises have a funding gap, and the average monthly gap is 675,500 yuan.
What is even more serious is that the capital gap is still expanding under the condition that the overall order has not increased significantly. Many companies have suggested that effective financing services are crucial for small and medium-sized foreign trade enterprises in the future. Nearly half of the companies have clearly stated that they need continuous financing. The main purpose of financing is to produce equipment renewal, new product base research and development, raw material stocking and Marketing promotion.
In addition, Zhang Wenpei, director of Meifu Precision Manufacturing Shenzhen Co., Ltd., told reporters that the company’s sales abroad have dropped by 30%-40% this year, while the domestic market has just been developed. The company’s lack of motivation to do its own research and development is an important reason. There is no property rights system protection in China and no talents can be retained.
Another LED manufacturing company, Liu Boss, also believes that China's piracy is too powerful, which makes people reluctant to spend time on research, and cooperation with state-owned enterprises in central enterprises is too cumbersome and urgently needs reform.
In fact, companies have transitioned from low-end to high-end, and Europe, Japan, and Korea have all experienced the same process. Ding Li believes that due to differences in the system, China faces greater difficulties. “A lot of projects have power behind them. What companies think is not innovation, but how to make good relations with officials, how to cut taxes, reduce rents, and get subsidies.â€
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