China'S Leather Capital: Where Is Spring In Winter?

"Every two bags on the market, there is one from Huadu Shiling", which is widely circulated, which vividly depicts the status of Shiling in the industry because of its package. Leather goods are a pillar of Guangzhou's light industry. Only Huadu Shiling has more than 8000 production enterprises, employing more than 400 thousand employees. 2 million leather goods and bags are sold to more than 130 countries and regions every year, and more than 18000 leather and leather goods merchants are gathered here. The annual output value exceeds 20 billion yuan.

Behind this group of public figures is the brilliance brought by leather industry to Shiling. In 2001, Shiling has been rated as "China's leather capital". It is one of the honorary titles of the national light industry special industrial base, which was first awarded by the China Light Industry Federation and China Leather Association. The famous Shiling leather products at home and abroad have also become a brilliant business card of Guangzhou light industry.

However, since 2014, with the "soft landing" of China's economy, coupled with severe foreign trade environment, weak domestic demand, sluggish external demand, and external difficulties, the leather and leather industry of Huadu Shiling has been in a big predicament. Although the brand effect of Shiling leather products has been accumulated for more than 30 years, it still remains. Shiling Enterprises and professional markets feel the same cold this winter.

Status quo: "CEO" of giant foundries

In Shilin's nearly 8000 production enterprises, mostly OEM OEM OEM enterprises, Shiling leather leather industry scale formation, these OEM enterprises are indispensable. But after twenty or thirty accumulated development and continuous spanformation and upgrading over the past few years, there are dozens of small factories that are still dozens of people, scattered and more than 300-500 people. In the smooth economic environment, these foundries can also be "born in peace", but in the face of the plight of the foreign trade market and the rising cost of raw materials and labor, they are more likely to be in the market wave.

"Just coming to Shiling, you may see different scenes in the streets: millions of luxury cars, all kinds of leather raw materials in the trunk, and rush there. When he sent the material back to the factory, he had to go to the street to buy vegetables for his employees. Maybe he bought a lot of dishes from the vegetable market and put them in the kitchen, and then he had to call for water. A designer who has been in the Shiling leather industry for many years has described the status quo of Shiling plant owner to earn a small sum of OEM.

Under the situation that the order cake is getting smaller and smaller, the Shiling leather industry is becoming more and more competitive. Cost competition has become the only competition for most of the Shiling enterprises. in order to Cost saving To get orders at low prices and make sure they do not lose money, CEO will have to work hard.

　　 dilemma This winter is really cold.

As the "wind vane" of China's imports and exports, the 116th Canton Fair ended last month brings the unpleasant message to the leather workers: after the 115th Canton Fair in the early part of the year, buyers and business turnover again appeared "double down". The traditional markets such as the European Union, the United States and Japan were weak, and the demand for emerging markets such as BRICs and the Middle East was weak, ranging from 4% to 9%. The short and small orders were even more prominent, especially in the emerging markets, where small and medium-sized customers signed tens of thousands of dollars, and some buyers cut the order into monthly settlement.

In recent years, with the European debt crisis continuing and trade friction continuing, foreigners are not willing to spend money. The newly issued PMI index of new export orders indicates a slowdown in China's export growth. In this global economic situation, Shiling leather leather industry is inevitably adversely affected. In China, with the gradual slowdown of China's economy, the shortage of money in small and medium-sized enterprises is difficult to alleviate at the moment, and domestic demand is generally weak. The growth of various cost costs is also eroding the already small profits. Many Shiling employers feel that this year's market is much worse than before. In the winter of 2014, people felt unprecedented chill.

Not long ago, when the Guangzhou Daily reporters visited the leather industry, more than 90% of the merchants felt the grim environment and complained. "Business is harder than usual this year, and now it is maintained." When the market is thin, merchants want to spanform, there are too many ideas, actions can not land, and where to go after the spanformation, but the pace of spanformation and upgrading can not keep pace with the development of the situation.