CCTV: Crossroads How to "Luxury Turn" - The Dilemma of Wenzhou Manufacturing Transformation

What would you think of when talking about Wenzhou? Clothing, shoes, glasses, lighters, or real estate group, underground bank? As the birthplace of China’s private economy and Wenzhou’s reputation as a manufacturing capital, the Wenzhou model is a standard sample of Chinese manufacturing. However, in recent years, due to the appreciation of the ***, limited foreign trade, coupled with rising wages and raw materials, inflationary pressures and industrial restructuring in the short term difficult to achieve, Wenzhou manufacturing industry is in an unprecedented dilemma. In a dilemma, where do many Wenzhou manufacturing companies go? The lack of high-end manufacturing and emerging strategic industries in Wenzhou, how will the future development? CCTV Financial Channel host Chen Weihong and famous financial commentator jointly commented on Song Song and Liu Ge.

The transformation of manufacturing in Wenzhou has encountered difficulties and a field investigation by reporters. It is difficult for small and medium-sized enterprises in Wenzhou to upgrade.

Wu Zhike: We cannot raise enough workers to raise wages (Assistant Manager of Zhejiang Yinxin Bird Shoes Co., Ltd.)

We originally had 14 production lines, and now we have stopped 4 lines. In 2009, we were normally producing. Now we have 4 lines, and employees have about 500 to 600 people.

Li Jianjiang: There is almost no profit in 2010 (chairman of Zhejiang Trane Light Industry Co., Ltd.)

Our profit in 2010 can be said to be almost none. The reason why we can continue to accept orders now is to maintain the management team and allow the employees to have a good job.

Huang Fajing: There are fewer than 80 lighter companies from more than 500 to present (Wenzhou Lighter Industry Association President)

We have more than 500 lighters before the financial crisis, and now there are less than 80 left. In the words of seeking truth from facts, we are also growing.

Liu Ge: Only the “hollowing out” of certain industries is not a “hollowing out” of the urban industry.

("Observation Today" commentator)

I specifically went to Wenzhou and saw many phenomena. For example, there are 500 companies in the lighter industry. Now there are less than 70 or 80 companies. However, this industry has its particularity, because Europe now prohibits smoking and smoking is very powerful. It's the "mouse hits everyone in the street," so the lighter culture is dying too. On the other hand, in the past few years, the industry has been quietly transferred to the internal, for example, there are a large number of production lines in Shaodong, Hunan. Therefore, for the lighter industry, the so-called "hollowing" trend exists. In some of the manufacturing enterprises in Wenzhou, the factory buildings are still there, the production line is still there, and people may have left, so people say they are "hollowing out." In fact, people are employed by other companies. Many companies still have a large gap in employment. From this point of view, they can only be said to be "hollowing out" of certain industries, and cannot be said to be "hollowing out" of a city. ".

Xiang Songxi: Wenzhou is now in an analgesic mode of transformation ("Observation Today" commentator)

I feel that using "hollowing" to describe the current situation in Wenzhou is not very accurate. The so-called "hollowing" refers in principle to two concepts: one is the "hollowing out" of manufacturing from a country, such as the "hollowing out" that occurred in Japan and the United States in the 1980s and 1990s. That is, many manufacturing industries have not produced any. The low-end manufacturing industries in the United States have all been transferred to developing countries. Former workers in the manufacturing industry must be unemployed. This is a very painful process. Especially in Japan, several million jobs are gone in a few years. Another "hollowing out" is that the company's factory is still there, but the factory has been abandoned. I think that Wenzhou is not "hollowing out" now, but is in a painful analgesia of transformation. The accurate description is the analgesic of transformation.

Zhu Jianping: Mainly the transformation of traditional industries (Chairman of Zhejiang Juguang Technology Co., Ltd.)

For the transformation, we mainly consider the transformation of traditional industries, in terms of the current situation and factors of the entire world.

Zhou Wei: Added value for new production lines and R&D enhancement products (Aokang Group spokesman)

As long as you walk past our land, your foot data will be stored on our computer. We want more and more customers to get customized foothold products.

Liu Ge: Wenzhou used different ways to find its own breakthrough point ("Observation Today" commentator)

I visited several companies, some companies are in transition, some are in transition, such as Aokang has now introduced a set of foreign equipment, intends to set the next step in each city to set up such a mode of custom-built shoes, so as to improve Its added value, this is a transformation. There is also a transfer. The deputy director of the China Merchants Bureau in Suzhou, Anhui Province, has successfully opened several factories in Suzhou for several well-known shoe manufacturers, including Kangnai, Belle, and Dongyi. However, after these enterprises went, they only built a new factory in Suzhou, and the old factories still existed in Wenzhou, and all of them still operated the original industry. Another more interesting shift is the development of a completely new industry. For example, Congguang Technology originally made shoes, and now it has done LED. This is because the son of the boss learning the economy does not like the footwear industry, and has chosen a new direction of development for LED light sources. Therefore, in Wenzhou, it has different ways to constantly find its own breakthrough point according to its own status, although there are many analgesics in the process.

In addition, there are two groups of Wenzhou businessmen, one is more than two million Wenzhou people all over the country and even the world. The money they earn in many other places will flow back to Wenzhou, and the other is the local enterprises of the 140,000 Wenzhou SMEs. At home, the two funds are mixed around and left and right, but many local entrepreneurs did not abandon the manufacturing industry completely. Only part of the money was taken for investment, or they entered a new industry.

Xiang Songjing: Wenzhou people will also occupy a very important position in the manufacturing industry ("Observation Today" commentator)

We must not underestimate the wisdom of Wenzhou people and their ability to take risks and innovate. Before the reform and opening up, nobody thought that Wenzhou would become a pioneer in the private economy in China. In many industries, the market's most important dominant position is Wenzhou. Wenzhou people actually have the foresight. Many years ago, they had realized that manufacturing was difficult to sustain for a long time. So they entered the mining and property markets, such as Wenzhou real estate speculators in Beijing, Shanghai, Shenzhen, Guangdong, and even as far as Dubai, Abuda. Than to fry the house. Recently, they began to invest in the most advanced financial investment methods, such as venture capital, private equity.

Wenzhou actually has a lot of transformation methods. One is that if the industry profits are too low, it will not be done, for example, from making shoes to making LEDs. Another way is that the original manufacturing industry, and now to do investors, so Wenzhou people are actually exploring a variety of ways. Regarding the transformation of Wenzhou, I have a conjecture. I think that in the future, Wenzhou will also occupy a very important position in the manufacturing industry. This is determined by Wenzhou's cultural background and entrepreneurial mentality. Wenzhou people will certainly take a very important share in the manufacturing industry.

The scarcity of land and scarcity of resources are what restricts the transformation of manufacturing industries in Wenzhou? *** Appreciation of appreciation, rising labor costs, how will the Wenzhou model survive the transition crisis?

Xiang Songqi: Wenzhou's reserve of brands, technologies and talents is not enough ("Observation Today" commentator)

We usually analyze the strengths and weaknesses of a company, and considering Wenzhou as a whole, its advantages are very obvious. First, Wenzhou people have the adventurous spirit to dare to be ahead of the rest of the world. He has no language, but he can go to Europe to do business and develop the market very well. Secondly, after more than 30 years of development, many countries have distribution stores for Wenzhou's corporate products. Its market network is very extensive. We can see Wenzhou businessmen all over the world. Third, Wenzhou people have sufficient funds and underground finance in Wenzhou is also very developed, which is very important to Wenzhou's economic development.

So where are the weaknesses of Wenzhou? This weakness, many Wenzhou entrepreneurs see it very clearly, is after so many years of development, but Wenzhou does not have a world-class big brand, not many national-level big brands, so the brand's reserves are not enough. The second is technology. To transform the industry, it is necessary to buy advanced technology abroad. Third, I think there is a bigger problem, that is, Wenzhou's talent reserve is not enough, because the industry restructuring rely on the previous simple production and processing lines, and these wage earners, migrant workers is difficult to achieve technical transformation.

Liu Ge: There are two different trends in the future of Wenzhou (“Observation Today” commentator)

In Wenzhou, it is the spirit of entrepreneurs that embodies more of the entrepreneurial spirit of entrepreneurs. On the one hand, it is flexible, but flexible, it contains impetuous, such as a company in Wenzhou, the first floor is a 4S shop, the second floor is a clothing production company, is a boss, which is common in Wenzhou, every company is doing a few Kind of industry. But if you want to be a brand, really want to make your own basic industry into a century-old shop, you need to focus on the spirit, many famous brands, family businesses, international big names, are a family, from generation to generation Passed down, very specifically created. Therefore, the future of Wenzhou has two directions: one is like Hong Kong, which started as a manufacturing industry and finally became a financial center; the other is like Italy, which used to be a manufacturing industry, and it still has a very large one. The light industry manufacturing system is among them, but it is very high-end and has great brand value.

Yuan Gangming: The state should give greater support to Wenzhou SMEs (Special commentator, "Observation Today", Research Fellow, Institute of Economics, Chinese Academy of Social Sciences)

In this case, the state should first give greater support to the SMEs in Wenzhou, and the most important thing is that the tax on SMEs should be further reduced so that SMEs can have more surplus funds and be allocated to workers. , but also to their own business investment and development, with financial support. Secondly, with the support of SMEs, China’s private banks or small and medium-sized banks have not developed enough. SMEs do not have a proper financial institution to provide support. Therefore, the state must develop more small and medium-sized banks for SMEs, or people. Financial institutions to provide financial support to SMEs.

Liu Ge: Wenzhou people will surely find a way to transfer and upgrade China's traditional low-end manufacturing industries to high-end industries (“Observation Today” commentator)

We recall that 30 years ago in Wenzhou, when many people began to do business and small factories, many people said that Wenzhou should be planted. Now that Wenzhou is facing a new transformation, it has raised the worries of such an industry as “hollow” but I don’t think it’s really worth worrying. I’m sure that Wenzhou people will find a way, a model, that is, the low end of Chinese tradition. In the manufacturing industry, we will wait to see how we can transfer upgrades to new and high-end industries. We also give them high hopes.

Xiang Songjing: The success of Wenzhou's industrial transformation in the future will have a benchmark significance ("Observation Today" commentator)

One thing is certain that Wenzhou's current industrial transformation is much more difficult than it was in the previous year, and if Wenzhou's industrial transformation can be successful, it will have a benchmark significance for the future development of other regions in China.