subject: Wenzhou Enterprises Legacy Of Trouble - Waterproof Mens Watch Manufacturer - China Outdoor Sport [print this page] There are 60,000 enterprises in Wenzhou, about 20% of total enterprises in the suspension or semi-shutdown state. Currently, these options lay-off lay-off or semi-state enterprises are suffering.
Wenzhou enterprises in distress from the characteristics of view, mainly as follows: underemployment, sluggish sales backlog, triangular debts prevalence of cash flow difficulties, or even collapse of many SMEs and entrepreneurs escape the serious situation. Through careful analysis of the phenomenon we are in trouble because of Wenzhou enterprises, including:
From the internal perspective, first of all, the Wenzhou economy is a typical regional "economic block" in a certain area, the relative concentration of production of similar products or products, but because of the weak industry self-regulation, market competition means emphasis on price competition, and the vicious competition obvious, for example, several companies together to do the original lighter, not much each firm, I make a spring, you make a case, we made add up to a lighter. They abide by the agreed upon business rules, trading relations between each other, through market transactions, assembly, business is booming, all-win. Now, suppose to do business or do spring shell companies, that together produce lighter already created huge profits, and thus break the cooperative situation, and raise their prices by the production of components, then combined to produce lighter bound to price increases out to ruin the competitive advantage. Or, suppose an enterprise large enough, and that it is completely by its own production of lighter parts to assemble a larger profit margin, then the results on the one hand this may affect the quality of lighters, on the other hand is bound to trigger the competition for joint venture chain, declining prices of lighters, so now we finally are not confused, so that profits Wenzhou enterprises in distress to tell us the lesson: the rules for compliance, we can bring more lasting benefits. Go it alone, vicious competition will suffer.
Second, most SMEs in Wenzhou, a large number of workshops developed from the family, and implementing a family management, the main duties of enterprises by family members as, business decision-making focused on the business owners, due to historical reasons, the main Wenzhou's Zhongxiaoqiye generally lower education level, even without the system of modern management knowledge training, international market, the domestic economic changes of the strain is not strong, Zai business development process is inevitable detours, set somersault.
Moreover, family business, "rejection" of making small and medium enterprises to foreign talent "natural" be rejected, the original company to the worker's wages is not very high, and now the new "Labor Contract Law", a more cautious business owners and employment therefore, difficult to retain workers in Wenzhou enterprises. There is no outstanding technical workers, the most modern enterprises emphasize "innovation" is difficult to achieve. Should be said that the plight of labor is declining competitiveness of enterprises in Wenzhou aspect.
Of course, the struggling company in Wenzhou objective external factors, mainly the yuan to appreciate more rapidly engulfed corporate net profit, so that many small and medium enterprises in Wenzhou face export problems, in particular, are most obvious enterprises are mainly concentrated in the shoe, clothing, lighters, glasses, mechanical and electrical, etc. industries affected more directly. Changes in the international economic environment has also to some extent affected the foreign trade enterprises in Wenzhou, business development, the U.S. subprime mortgage crisis the U.S. economic downturn, also contributed to the reduction of its spending power, a number of foreign products face price cuts U.S. customers requirements, making small Wenzhou prices of export products of enterprises by the pinch at both ends.
It is noteworthy that not only are experiencing a crisis of Wenzhou enterprises in the Yangtze River Delta is also some light manufacturing more developed areas, are facing the same dilemma. Wenzhou is the earlier and the economically developed areas, there are many places worth learning, but I remind that we are in the development process can not blindly apply the "Wenzhou model", but also many difficulties from its development to learn in some reflections inspired by detours.
