Domestic and foreign trade market orders double down SMEs were double attack

Apparel toy industry orders fell by 20%, raw material prices, higher labor costs, *** appreciation ... ... industrial owners lamented "disheartened."

Recently, the turmoil in the international economic situation once again pushed the small and medium-sized enterprises in China whose survival ability needed to be improved to the forefront. On the one hand, the international stock market and commodity market are spreading in the shadow of the European debt crisis. The deviation of US economic data affects public confidence. On the other hand, domestic prices rose, labor costs increased, the exchange rate continued to strengthen, the government tightened monetary policy, and private capital interest rates continued to rise. How do SMEs struggle to survive in the post-financial crisis era? The Yangcheng Evening News reporter conducted a survey of toys, clothing, leather goods, footwear and other industries in the past few days and found that the orders for SMEs in these industries were significantly lower than last year, and both companies, including foreign and domestic markets, faced enormous challenges.

Clothing and apparel industry orders fell by 20% "This year the entire garment industry is in a sluggish state. Not only is the order volume of foreign trade companies reduced, but the orders of domestic trade companies are also falling." The relevant person in charge of the Guangzhou Garment Industry Association told the reporter of the Yangcheng Evening News that according to the industry, Inside, the volume of orders decreased by about 10% to 20% year-on-year.

Wang Tie, secretary-general of the Guangzhou Toys and Gifts Industry Association, also stated that “in terms of the overall toy industry, order volume has decreased by about 15% from last year.”

The reporter visited a number of companies in the apparel, footwear, and leather goods industries on a daily basis and also reflected that the order situation was not optimistic. An owner of a clothing company that has been operating in Sanyuanli, Guangzhou, told the Yangcheng Evening News that “I have been doing export orders for foreign trade. In the first half of this year, orders have decreased significantly and it is expected to continue to decrease in the second half of the year, with a reduction of 20%-60%. ”

Relevant person in charge of the Guangzhou Garment Industry Association told reporters that in the past, upstream suppliers were willing to give production companies a certain amount of time for repayment. Now most of them require cash payments, which also puts enormous pressure on SMEs. There are currently more than 10,000 small and medium-sized garment enterprises around Guangzhou. Since the beginning of this year, some small businesses have closed because they did not receive orders.

The raw material “seafood price” has no single access to a part of the small and medium-sized enterprises, but the other part of the small and medium-sized enterprises is not able to meet.

Vice Chairman of the China Knitting Industry Association and General Manager Yiqi Bin of Foshan Nanhai Hoping Hosiery Garment Co., Ltd. reluctantly expressed to the reporter of the Yangcheng Evening News, “There is no one to dare to answer, and no workers can do it. Now it’s 80 years later. After 90, the demand is high. We can hardly manage it. To tell the truth, it is really disheartening to do it now."

Li Xihong, deputy chairman of the Guangdong Footwear Manufacturers Association and president of the Chaozhou Footwear Industry Association, also told the Yangcheng Evening News reporter; "According to statistics, China's footwear exports in the first half of 2011 were 19.01 billion U.S. dollars, an increase of 21.7%. Major export markets include The United States, the European Union and Australia and other countries and regions, but due to the increase in international raw material prices, *** appreciation, coupled with rising labor costs, we investigate the current shoe firm orders are still there, but it is not willing to accept large orders."

“This year, companies have given workers a 15%-20% increase in salary, which directly increases the company's operating costs. The most troubling part is that even if it is to raise wages, there are still some positions where skilled workers are not easy to recruit. There are also orders. Dare to pick it up.” Guo boss, who runs a medium-sized garment factory in Haizhu, told reporters.

Mr. Lu, who runs a plush toy, asked the reporter: “Now the raw material is seafood, and the exchange rate has continued to rise, and the period for a large single will take at least two to three months. How can we guarantee profitability? Whoever does not make money Will it be done?” According to a survey conducted by the Guangzhou Toys and Gifts Association, there are many SMEs who dare not take orders and can only wait and see.

Exploit domestic sales "three low" problems to be solved orders to be resolved, how to save themselves SMEs? A survey by the reporter found that some companies have started to march into the domestic market.

Guangzhou Yaohua International Leather City Planning Director Feng Yidong told the Yangcheng Evening News that in order to help companies expand their markets, the Guangdong Provincial Leather Goods and Luggage Circulation Association organized a delegation to the mall, hoping to find better business opportunities in the country’s most famous Zangyuangang shopping district. .

"Actually, we entered the Guangzhou Yaohua International Leather City, but also do not hope that one step can open the domestic market, but can help promote the product, but also increase the domestic sales orders." A leather dealer from Huadu told reporters.

The apparel industry has also begun to exert its power. On Thursday, the Guangzhou International Garment Exhibition and Trade Center (Old Guangzhou Liuhua Exhibition Hall) ushered in the second batch of contracted conventions for entering the business. Wang Jun, Secretary-General of the China Garment Forum, told the Yangcheng Evening News that the current crisis and challenges faced by the Chinese clothing market Very big. In particular, the entry of international brands, the impact of Chinese local brands can not be ignored, take the domestic sales channels, no brand is difficult to grow. Small and medium-sized garment enterprises have to choose passive orders to survive or take the road to create a brand.

"At present, China's footwear industry is facing the 'three low issues', that is, low-grade, low-quality, low prices. To change this situation and open up the domestic market, shoe enterprises must shift from quantity-based to quality-effective, using brand quality to obtain profits. "Li Xihong, deputy chairman of the Guangdong Footwear Manufacturers Association and president of the Chaozhou Footwear Industry Association, said.

“However, it is not easy to open up the domestic market. First, domestic orders are not well planned, and are particularly prosperous before the holiday season. They are usually relatively light. Now it is so difficult to recruit workers. Irregular orders cannot support a factory. Not to mention the existence of domestic sales channels. The problem of stocks being digested and the payment of money in arrears.” Toy dealer Lu also told reporters that it was difficult.

How should the problems faced by small and medium-sized enterprises in the flooded fish farming industry be solved? In the interview, many heads of SMEs and industry associations told the Yangcheng Evening News reporter that the drop in orders is only a symptom of the current difficulties of SMEs. The underlying causes are the economic recession in Europe and the United States, high domestic inflationary pressures, tightening monetary conditions, and labor costs. Rising, *** appreciation and other factors are more worrying issues. If these problems cannot be alleviated, the business will deteriorate further in the second half of the year.

According to Wang Tie, secretary general of the Guangzhou Toys and Gifts Industry Association, “The key to improving the external environment of SMEs is to reduce tax burden levels and increase support for private enterprises. The crisis faced by SMEs is a concentrated outbreak of long-term accumulation. The small and medium-sized enterprises that have been difficult to transform and upgrade have been exposed in the high-cost era. However, at present, some macroeconomic control policies are 'invariable across the board' and often hurt vulnerable SMEs.

The person in charge of the Guangzhou Garment Association appealed that, like the labor-intensive industries such as the textile and garment industry, the greatest pressure comes from rising labor costs. “It is good for the government to improve the treatment of workers, but policies like ** and ** have risen several times a year and SMEs can hardly afford it. I hope the government can consider returning some ** funds appropriately to help companies reduce costs. pressure."

During the interview, many small and medium sized business owners all told reporters in unison that SMEs had solved a huge employment problem. The government should adopt a “fishing and fish farming” approach on policy support to help SMEs tide over the difficulties and make appropriate efforts for SMEs. Decentralization of rights and benefits, and effectively reduce the company's unreasonable tax burden.

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