In recent days, a number of similar incidents have been reported by companies in fujian quan following confirmation of the loss of funds by mr. Ting fai, chairman of the board of directors of the hong kong-listed company noki (01350. Hk). Hoperise, a fast-fashion brand, and fo8. Sg, a singapore-listed company, all spread news of missing owners and unpaid salaries。
“this round of sme crises is more serious than it was in the 2008 financial crisis.” on 7 august, the chairman of the information technology board of fujian yunfung hall, rudd, made a statement to economic reporters for the twenty-first century. As a senior brand marketer who had served as executives in several shoe-wearing enterprises, the crisis had long been perceived as “the exposure of large firms with a certain influence, and the bankruptcy of many small businesses was beyond any attention and too much attention”
The collapse of traditional shoe-dressing businesses, however, would involve the entire industrial chain, and many small upstream suppliers, among others, would be bankrupt, and the chain reaction had led many small suppliers to hear some news and rush to the relevant businesses to collect their debts. “there is now fear of the sudden disappearance of its creditors.” according to one practitioner。
Noki is not a case
On 25 july, the hong kong-listed company fujianovich inc. (1353. Hk) issued an announcement stating that its chairman, ding fai, had lost contact with the company, just over half a year before it was listed。
At the beginning of this year, when the notch dress was on the market, it was referred to by industry as a “satellite launch” because, in the context of the decline in the traditional garment industry as a whole, noki was able to rise backwards and give confidence to many garment businesses. However, in such a company, the chairman of the board of directors had no sign of “disappearance” and many suppliers were still pursuing unpaid salaries。
It has been said that ting fai lost his money because of his poor business obligations, although to date the reasons for his failure are not clear, but the volume has been confirmed and premeditated。
On 31 july, the board of directors stated that on 27 january and 3 april of this year, the accounts of its wholly owned subsidiary, nooch fashion international, at the hong kong transport bank, totalled $8. 228 million, which was transferred to the accounts of a british virgin islands company, and that, on 27 january and 31 march of this year, ting fai instructed nooch to transfer 160 million yuan yuan and 2. 5 million yuan yuan in hong kong branch bank accounts of the transport bank to the bank accounts of nooch fashi international. This represents a cumulative sum of $228 million in the four transfers of funds from january to april. At present, nochi has reported to the police that, although it is operating normally, the door shop is in a state of clean-up, and some suppliers have stopped supplying。
The owner of another fast-fashion brand, “hoperise” in spring county, was lost last week. On 3 august, there was information that the owner of hopes, zhang shui, had lost contact and that the vendor had made a call. It was also understood that the brand was not operating well and that banks that had previously cooperated with the business had terminated their lending relationship with it. According to information from the south east morning newspaper, the company is still operating despite the company's loss of connection。
In fact, the failure of the boss was long-standing in quanzhou, but attracted media attention because noki was a listed company. In singapore's shoes, fujian jinjiang quelet group factory was also exposed to several months of shut-down, with no pay due from the end of last year, and no contact with its head。
According to the data, quatorette was founded in 1983, formerly the shoes hat factory, and quatorette claims to have made his first pair of sneakers. In 2008, guerrelet was listed in singapore, operating under multiple brands, with two major male brands, five lined-up production streams and over 2,000 employees。
However, it was revealed to the public that the company had been in arrears since before the end of 2013 and that the seniors had indicated that they would continue to operate after the holidays. However, the delay was half a year and, to date, employees have not received the outstanding salaries. Currently involved in the defence of human rights are employees of the quatorette light industries development co. Ltd. And its hemingway shoe industry。
An employee applied for arbitration in may, and the enterprise promised to pay back the outstanding salary by the end of july, but was happy again. According to economic journalists in the twenty-first century, the employees concerned are still in the process of defending their rights and have no access to business owners。
Three major factors crushing smes
In an interview with the economic coverage of the twenty-first century, the former head of a sports brand, wei hongtao, stated that most of quan's businesses were traditional shoes, and that most of them had not gone up to date in their previous rapid expansion, but were still operating in the traditional mindset。
“many small brands still think that branding is just opening and advertising. But that time has passed, and today, when it is necessary to target the retail market, business thinking is severely disconnected from market demand.”
According to published data, as of november 2012, the total number of industrial enterprises with an operating income of 20 million yuan from fujian jinjiang was over 5,200, and the cumulative value of production of more than 100 million yuan was 1580. In these companies, traditional shoe-wearing companies occupy more than half of the mountain, as can be seen from the fact that sports channels were once portrayed as the “sinjiang channel” and that the name of the star is everywhere。
Landway suggests that by 2008, a large number of small and medium-sized brands could have made a portion of the money by expanding and running in circles through channels, some of which had been on the market before the 2008 financial crisis and were now doing well; that a second group of firms had survived the financial crisis and had been able to do so on a more regular basis; and that in recent years, a third group of companies had appeared, but the brand was not well-established, barely on the market, and was unable to finance it with capital leverage。
There have been prior rumours that chairman nocchi was in debt too much before he was put on the market, leading to a loss of connection。
In addition to business practices and business models, shocks from e-commerce are frequently mentioned by wei red tao and land remote. According to wei hongtao, many small and medium-sized enterprises had not changed as a result of the internet, and were still operating in accordance with traditional door-to-door advertising patterns, with most of the money being wasted in invisible places and the target population not receiving effective information. “commercial product homogenization and traditional thinking patterns are currently being affected by e-commerce, with high costs.”
“last year, we were approached by a 200 million-sized female brand for brand advice, resulting in an inventory of over $100 million, with only 20% of a season’s clothing sold
Traditional shoe-wearing enterprises have become increasingly difficult to operate under traditional thinking patterns, and financial liquidity constraints have become the norm. According to a reporter from quanzhou for the economics of the twenty-first century, there are now seven points available to anyone on the loan of traditional shoe companies. And banks are more cautious about the traditional model of lending. “many businesses are now looking for intermediaries to borrow from banks. Not at all, not this year, but how can banks lend another year。
“traditional footwear enterprises within a 500 million dollar scale are at risk if they are not transformed, and it is actually difficult to operate now. If the tide goes down, it's possible for hundreds of families." he said。
Responsible editor: zhang dei
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