Wenling shoe-making industry: transformation and upgrading rebirth

On June 26, the number of companies dropped from 11,000 to 6,063, a decrease of 45%, and the number of employed workers was reduced by 105,000.

This is the comparison of the footwear industry in Wenling City as of the end of May. Does this mean that one of Wenling's pillar industries has entered a downturn in the footwear industry?

On the contrary, in the first quarter of this year, the Wenling shoe-making enterprise's total output value was 2.21 billion yuan, and local tax revenue was 49 million yuan, an increase of 6.0% and 21.13%. From January to May, the land tax revenue of shoe enterprises increased by 14.36% year-on-year, the national tax revenue increased by 25.24% year-on-year, and the shoe industry output value was 4.024 billion yuan, a year-on-year increase of 8.75%.

After “1·14”, the Wenling footwear industry is undergoing an unprecedented transformation: transformation and transformation, and rebirth.

Remediation: Breaking down the low-end locking and transformation upgrades

As soon as the platform machines were started, the “wild weed style” business model in which the rented houses were set up was once a place for Wenling to become a paradise for private entrepreneurship.

The total output value of Wenling's footwear industry is 12.5 billion yuan, accounting for 17.9% of Wenling's total industrial output, and it is also one of Wenling's leading industries. Among them, there are 4,000 shoe-making enterprises in Hengfeng Street, most of which are workshop-style, family-style, and smaller in size. However, there are only 7 companies with more than 100 million yuan in the city, and 10,000 companies with more than 10,000 companies.

The "low-end lock" brought about by "low and small dispersion" has affected the quality of economic development. Especially in the footwear industry, the entire industry has a poor development environment and many hidden dangers in safety production. There is no output value, it is difficult to create profits and taxes, innovation is insufficient, and upgrading is weak. The development of the industry is always at the low end of the value chain.

At the beginning of this year, Wenling Dadong Shoe Factory had a huge fire and hurt the people of the world. It also caused the Wenling Municipal Committee and Government to make painstaking efforts to carry out major operations for safety production with unprecedented efforts. On the second day after the blaze, Wenling City convened a large-scale swearing-up meeting for the safety of people, and put forward the "four-stop, four-will-remove, four-responsibility" iron law. Wenling shoe industry must find a new way out of the ashes of the fire: More than 10,000 shoe companies have stopped production and reviewed each home. A three-in-one enterprise that integrates accommodation, storage, and production, and an enterprise that does not meet the conditions for safe production are all shut down.

As of June 10, the city of Wenling has already cracked 4,451,100 square meters of illegally-owned, banned 6,718 license-free companies, among which 3,443 were shoeless. A person in charge of a local shoe factory told reporters that before this, some unlicensed shoe factories only started in the “peak season” and disrupted the market order through short-term high-cost recruitment and malicious plagiarism of shoe-like ideas, and they squeezed market resources. Now, "The market is clean."

The "spring" of regular shoe companies arrived. This year, Taizhou Luyou Shoes Co., Ltd. ushered in a busy season: foreign trade orders suddenly increased by 30%.

The company started work on the 20th of the first month in advance. The head of the company, Li Xingzhong, is planning to recruit workers and open another production line.

Rectification is not just shutting down and rectifying, but it is also a re-optimization of resources. Wenling City eliminated and transferred a group of low-end and high-risk enterprises through “three reforms and one demolition”, freeing 208 lands after demolition.

"The limited resources will certainly serve high-quality enterprises," said Yu Haibo, secretary of the Party Committee of Chengbei Street Party Committee. In the subsequent demolition of land use, Yu Haibo listed several "ground" standards: the city's top 100 enterprises, holding provincial-level well-known trademarks, and then refer to some other conditions. Next, the street should also support some potential small businesses to “regulate” and encourage the optimization and integration among enterprises and even industries, and push the footwear industry to a higher level.

Li Bin, deputy secretary of the Wenling Municipal Committee and mayor of the city, said that when the low-end lock-up and transformation and upgrading are in trouble, they must go through heavy drugs and go through large-scale rectification operations to break the stalemate. The major rectification actions will be targeted and explosive in the short term. It is expected that the two sides will change their wrestling situation and the economy will quickly get rid of the low-end delays and accelerate its advancement. The Wenling shoe industry has been rectified for only four months and has effectively reversed the situation, which illustrates this problem.

Transformation: Conversion and Equipment Revolution

In the north of the Chengbei Sub-district, on the third floor of Zhejiang Biike Sporting Goods Co., Ltd., a brand-new footwear automation production line is under trial operation.

This is an automated production line that will be invested by more than 7 million yuan. It will be officially put into production at the end of June. Commissioner Hao Genwang told reporters that this production line can replace more than 60 workers and increase production efficiency by more than double.

After the “1·14” fire, on the one hand, “we encourage companies to replace manual operations with a fully automated, digital multi-station soft shoe production line, and a production line can reduce the number of operators by 70%.” Wenling City Bureau of Economics and Information Technology The Deputy Bureau Changjiang Sheng introduced. At the same time, select 15 city-level key shoe companies to carry out transformation and upgrading pilot work.

On the other hand, equipment reform is also the company's own development needs. The CEO of the company will tell the reporter that after the rectification, the local footwear industry reduced the number of workers employed, the labor costs rose, and even the phenomenon of “money to attract people” was once a phenomenon. A large number of small and medium-sized micro enterprises are passing People's means to achieve "rebirth" and catch up. "While waiting for other corporate transformations, it is better to preemptively, or else you will lose yourself."

The investment in new production lines brings visible benefits to businesses. "According to the annual salary of 40,000 yuan per worker, this line will save more than 2 million yuan in labor costs a year." Yuan Kangning told reporters that there are more than 450 people on one floor. To the workers, and the production capacity will not be reduced.

"Shut down, low and small, scattered," is a short-term pain, tolerance for backward production capacity is a long-term pain." Zhou Xianmiao, secretary of Wenling City, said Wenling earlier realized that the "low and small scattered" pattern of adverse effects, and actively guide the massive economy To the development of industrial clusters, a number of industries such as pumps and machine tools have successfully completed transformation and upgrading. Since 2012, it has made a series of deployments to strengthen the innovation drive for the promotion and development of the footwear industry.

Technology upgrades have brought about product quality improvement and brought more orders and profits. The Chengbei Sub-district has invested more than RMB 8 million to build a shoe quality inspection center, and introduced cultural innovations, feature designs, etc. from places such as Fujian and Guangdong, and also cooperated with Alibaba to raise the overall level of the industry.

In the course of transformation and development, some business owners have actively changed their lives, or have taken the initiative to change production, or to develop in groups, or to develop across industries, and actively seek to change their lives in the market. Jin Hongbing, who has been in the shoes for nearly 20 years, registered "Taizhou Bolu Electronics Co., Ltd." in April this year to produce tablet computer accessories for a local electronics company. What Lao Jin does not know is that the move he called “little slapsticks” actually represents the other direction of Wenling shoe-making enterprises in the tide of transformation.

During the rectification, Wenling actively guided some shoe companies to transition to e-commerce or cross-sectoral conversions by implementing various supporting policies and work measures for small-uplift. More "shoe owners" stay in the industries they are familiar with, and their approach is to "join the company." As resources are integrated, the market becomes bigger. According to statistics from the relevant departments of Wenling City, a total of 615 shoe market players achieved individual-to-business turnaround during the remediation period.

Wenling’s shoe renovation is still advancing. In the rectification, the space released by the illegal construction has been demolished. The first batch of 160 dismantling and utilization transformation points with a total of 4021 mu have been planned, and many of them will be built into high standards. The footwear industry park has realized the development of the footwear industry, specialization and branding.

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