Export Oriented Shoe Enterprises Face Pformation Difficulties

Just as entrepreneurs in Wenzhou feel the heavy pressure brought by the appreciation of the renminbi, the small and medium-sized entrepreneurs in the Pearl River Delta region are under the same pressure.

According to a statistics from the Asian Footwear Association, there are already thousands of shoe making and supporting enterprises in Guangdong in the first three quarters of 2007.

A real difficulty hit the manufacturing industry in the Pearl River Delta: according to statistics, Dongguan's shoe production accounts for 25% of the country's total output, accounting for 10% of the world's output.

This data shook many small and medium-sized enterprises in the Yangtze River Delta and the Pearl River Delta region.

Zhou Dewen, President of Wenzhou SME Development Association, told reporters that Wenzhou's development has met with bottlenecks. The current speed of development has returned from the forefront of Zhejiang to the latter.

The difficulties encountered by entrepreneurs are highly similar in the two major export areas: export losses caused by the appreciation of the renminbi, the cost pressures brought by the CPI rise, the rising land and labor costs, and the profits of products greatly reduced.

According to Zhou Dewen analysis, Wenzhou has the characteristics of "one village, one product" and "one Township, one industry". This is beneficial to the low cost and large-scale expansion of the regional economy to a certain extent, but now there are several weaknesses.

The main features are: small enterprise scale, weak ability to resist risks, single product, serious industrial convergence, low technology, low level, insufficient funds and poor financing channels.

Zhou Dewen believes that government guidance is very important to solve the current difficulties faced by export-oriented cities.

He said that at present, SMEs have received less help from the government. Therefore, the government should improve the external business environment of small and medium-sized enterprises, and formulate plans for the implementation of small and medium-sized enterprises.

Zhou Dewen said, "the burden of small and medium-sized enterprises still appears too much, and taxes and taxes constitute the external burden of small and medium-sized enterprises generally account for about 3% of sales revenue. Most SMEs are unable to bear the burden."

A more important task is to enhance brand and technology.

Zhou Dewen analyzed, "at present, China's economy is in the process of pformation of the economic system and the pformation process of economic development.

The government should guide and encourage small and medium-sized enterprises to adjust their industrial structure as soon as possible, accelerate the pace of technological pformation, and realize the pformation from quantity expansion to quality competition and efficiency improvement.

At the same time, he also suggested that the government should help SMEs expand their international market.

Facts have proved that the government's positive guidance measures will achieve obvious results.

In Ningbo, although the renminbi appreciation and other factors have also affected enterprises, the problem is much more relaxed.

Ding Haibin, deputy director general of Ningbo Municipal Bureau of foreign trade and economic cooperation, said that Ningbo has a large surplus in foreign trade, and its export volume is large, and its export structure is mainly labor-intensive products.

But in the past few years, the government of Ningbo has been trying to guide enterprises to change their growth patterns. The measures adopted include strengthening research and development, building marketing networks, creating brands, and guiding the expansion of different markets in Europe and the United States.

Ding Haibin said that measures have already had an impact on export enterprises.

For example, brand building, after three years of guidance, a lot of private enterprises that have launched their own brands have already begun to take shape in Ningbo.

Zhou Dewen, President of Wenzhou SME Development Association, admitted that the situation of Ningbo enterprises was much better than that of Wenzhou. An important reason is that Ningbo has become more and more scale businesses, and has produced more brands.