Dongguan Houjie Footwear Pformation And Upgrading Initially Achieved Results

In the first half of 2012,

The GDP of the city grew by 2.5% over the same period last year, a rise of 1.3% over the first quarter.

But the survival data of enterprises are still worrying.

On August 2nd, at the summing up meeting of the annual review of the city of Dongguan, the Secretary of the Dongguan Municipal Bureau of letters, Xian Zhou En, revealed that the current earnings situation of Dongguan enterprises was not satisfactory, and the deficit of enterprises was enlarged.

Although the labor pains in the whole city have continued to this day, the performance of individual towns is commendable.

One of them is Houjie Town, known as "shoes city" and "famous furniture town" in Dongguan.

In the context of Guangdong's dual pfer, Houjie Town's industrial pformation and upgrading have achieved initial success.

Data show that the town completed 12 billion 780 million yuan in the first half of this year, an increase of 13.2% over the same period last year.

Among them, the leading industry's driving effect is obvious, and the three emerging industries become a new growth pole.

For the traditional shoe making and furniture manufacturing industry, which is still under impact, Houjie is promoting a series of "rearing" measures through convention and exhibition.

Pressure on traditional manufacturing industry

"We have two famous things here, one leather shoe and one piece of furniture."

A taxi driver proudly told reporters on the Wando Avenue, which leads to the international furniture material market in Houjie, Dongguan.

The signs that can be seen from the car are mostly related to shoes and furniture.

Shoemaking and furniture manufacturing have always been a traditional pillar industry in Houjie town.

Take furniture as an example, Houjie was selected as "professional furniture town in Guangdong province" in 2001. Now there are nearly 400 furniture enterprises and more than 10 specialized furniture markets, and the number of employees is over 100 thousand.

But in Dongguan's large furniture manufacturing and production base Houjie Township, reporters failed to see the anticipated boom of the machine and busy workers. Some factories were closed, and the walls were full of advertisements for factory rental.

In the first half of 2012, the economic downturn at home and abroad impacted Guangdong's traditional manufacturing industry.

Houjie Town

And furniture manufacturing is also affected.

As early as April and May of this year, the news of the collapse of the famous furniture AI son manor broke out on Houjie street.

Then, in July, the famous brand of mahogany furniture was removed from the furniture Expo Center of Houjie first city.

Rumors of "collapse of furniture business in Houjie" are beginning to circulate.

In this regard, Wang Lieyu, Deputy Secretary General of Dongguan famous furniture club, thinks that it is alarmist. "Only under the condition of the global economic slump, the furniture enterprises of Houjie will inevitably have difficulties."

One of the manifestations of the "dilemma" is the marked reduction in orders.

According to a sample survey conducted by Houjie government, the shoe orders in the first half of the year were reduced by about 10%, and furniture manufacturing orders were reduced by about 20%.

Li Huiqin, Secretary of the Houjie Town Committee and chairman of the town people's Congress, said that the two major traditional manufacturing industries of Houjie street shoes and furniture were mainly concentrated in Europe and the United States. Some enterprises had insufficient orders, mainly due to the slow recovery of the US economy and the impact of the European debt crisis.

Another industry analysis, the purchase of real estate policy began in 2010, the impact on the furniture market is also quite serious.

Internal and external sales tend to balance

Because of its small profits and no pricing power, Qi Qi Sheng, a thick street shoe manufacturer for others, has introduced high-end brands from Italy, and has given up foreign sales and embarked on the road of domestic sales.

According to Ye Dehui, assistant director of Qisheng shoes industry, the market bottlenecks are encountered when touching brands, and the popularity of products is not high enough, so domestic sales are not easy.

But with the support of all kinds of exhibitions in Houjie Town, in 2011, 100% of the enterprises were converted to domestic sales, and there were more than 180 brand stores in the whole country.

In order to change the risk of a single enterprise market, Houjie broadens its domestic sales channels by means of various docking platforms such as exhibition.

In recent years, Houjie Town has established a distribution network covering more than 2000 large and medium-sized cities and Hong Kong, Macao and Taiwan regions, as well as Southeast Asia, through the exhibition.

Nearly more than 50 countries in Europe and the Middle East, the "international furniture marketing headquarters" has begun to take shape.

This year's success has been upgraded to a national exhibition fair. It has become an important platform for domestic sales. The 211 exhibitors in the town are the largest in Dongguan.

The expansion of Houjie Town's domestic sales also benefited from a series of tax policies encouraged by the Dongguan municipal government to encourage domestic sales.

In July 2009, the city issued a number of policies on dealing with the impact of the financial crisis and supporting the development of the private economy. It issued new incentives for value-added tax, and rewarded the private enterprises with a certain percentage of their domestic sales growth.

In the first half of this year, the number of domestic sales enterprises increased from 40 in 2008 to 123, and the total domestic sales amounted to 4 billion 30 million yuan, an increase of 12.2% over the same period last year.