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Current situation and future development trend of handbag industry

Publish Date 2021-03-18
Since last year, tens of thousands of low-tech and manual intensive enterprises have closed down in the Pearl River Delta region, of which the largest proportion is the handbag factory. The remaining enterprises have also taken measures to reduce the number of employees or turn to the trade-oriented mode, relying on orders to send out empty factory houses for rent, so as to reduce the burden of enterprises to support and tide over this bad environment. There are three reasons for this dilemma
First, the US economic crisis and COVID-19's influence on the entire foreign trade market led to a sharp decline in foreign trade orders, and the appreciation of the renminbi, coupled with the corresponding increase in all aspects of the tariff, also resulted in a considerable number of orders being lost overseas.
2、 Domestic materials have been rising all the way, and the US dollar exchange rate has been plummeting all the way. The estimated profits when receiving orders have been reduced to very little by this rise.
3、 In recent years, the rise of domestic prices and the shortage of labor force have led to the increase of workers' wages. The implementation of the new labor law not only increases the burden of enterprises, but also encourages some workers who do not work seriously and have bad ideological character to exploit the loopholes of enterprises in disguise, which brings great difficulties to enterprise management.
The above three aspects are the main factors for these enterprises which mainly rely on manual operation to get into trouble. However, many people think that it depends on the endurance of enterprises at present. As long as they can get through this difficult period, the surviving enterprises will usher in another spring. Not yet! It's true that, according to the rule, any industry will inevitably fall into the trough after the three stages from emerging to mature and then to the peak. At this time, a large number of enterprises with poor foundation will be eliminated, and the enterprises that can walk out of the trough will have a new round of rise and development. This is the natural law. However, in China, the handbag industry can not be regarded as a routine industry for the following reasons:
1、 After the reform and opening up, the handbag industry was created by foreign businessmen. At that time, the employment cost in China was 10% of that in Hong Kong. In addition, at that time, the Hong Kong dollar of 100 yuan could be converted into RMB of 108 yuan or more. Under such favorable conditions, no matter who came to the mainland to open a handbag factory, it was difficult to make money, so it grew up quickly. However, the management models of these enterprises are those of Hong Kong or Taiwan in the 1980s. They have management characteristics that are not suitable for Chinese workers. Today, they have not been improved after 30 years. However, the thinking and understanding of workers have changed dramatically. Can the old management methods be able to control the current employees? How can an enterprise adapt to the new situation and have no management methods for mainland factories talk about redevelopment?
Example 1: many factories still implement piecework pay, more work, more pay. But the difference is that before 2000, no matter whether the wages given by the factory were high or low, the workers would work hard, because they were afraid of being fired or other penalties if they didn't do it. But now, the workers are slowly consuming their wages if they don't publish them. If they are not satisfied with the wages, they would not do it. When they settle their wages, they should not be lower than the minimum standard set by the state. Imagine, at this stage, if there is no new system and method, can the factory develop?
Example 2: in recent years, due to the difficulty in recruiting workers, many factories are greedy for small and cheap jobs. When recruiting management personnel, they do not pay attention to the actual ability and character of the personnel, but pay attention to whether they can bring workers and how many workers they can bring. In the end, the gain is not worth the loss. Many factories are even manipulated by department heads or team leaders, and they lose control. There are many factories in these situations. If this situation can not be changed, it will be very difficult for them to survive. How can they develop?
Example 3: some factories are well aware that there are many problems that need to be improved, but they can't find an implementation plan, or they have a reform plan, but they just can't implement it. Because many bad problems are deeply rooted, there are usually two or three factions in these factories. Each of these factions has its own team of staff. They are usually in peace and have their own place, but if someone advocates reform The reform will inevitably damage the vital interests of some people, who will form a group to set up difficulties and confrontation with the reformers, so that the other party can not carry out their work and get off the horse, and finally end up in failure. Even a new system can not be implemented, even if spring comes, spring will not shine on such factories!
2、 Enterprises generally call out that "quality is the life of the enterprise and the foundation to win the market". However, many factories still think that putting two or three more QC on each production line can improve the quality and control the quality. However, without a set of systematic and thorough quality control management system, no matter how many QC are put on the production line, they will be useless. Many handbag factory QC are many, but from top to bottom throughout the year also did not have a page of inspection records or reports on file. In the actual operation, QC found out that the unqualified products produced by a worker exceeded the routine, but the worker did not accept the rework, and the QC staff had no choice but to let it go. The same problem is reflected over and over again. Nowadays, the inspection factories of large companies or foreign firms do not depend on the proportion of QC according to the number of people, nor on the quality of a single product, but on whether the factory has established a perfect quality control system and inspection procedures, whether the procedures have records submitted and filed, and whether a perfect and effective quality management system has been established.
I have been engaged in the handbag industry for more than 20 years, and I know that there are common management defects and bad habits in this industry, and I can never change them. In the current difficult environment, the factories that can keep the original state and keep the camp are not necessarily healthy and promising, because a considerable proportion of the factories used to seize the opportunity to earn money and own large factories built by themselves. Now there are fewer workers and the scale has shrunk. Empty factory houses are rented out. It's no problem for these factories to survive on their old costs, but they can't develop again Yes, there's a problem.
Therefore, vikeyi handbag factory increases investment in developing new products, improving market competitiveness and added value, pays more attention to factory management, improves staff's technology and quality, creates true, good and beautiful products, and better serves customers and society.







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