Wenling'S 20% Shoe Companies Shutting Down

The three session of the Wenling shoe and leather industry association held in July 18th, how to survive is the topic most discussed by business owners. Statistics show that, due to the RMB appreciation, raw material prices, export tax rebates and other multiple factors, already about 20% shoe enterprises shut down. Sheng Jianyong, the newly elected chairman and 34 year old chairman of Zhuo Ling shoes industry, said that the chamber of Commerce will give full play to the work of coordination, self-discipline, guidance and demonstration to help enterprises out of "unprecedented difficulties".

Li Weijuan, director of the provincial Leather Industry Association, who attended the meeting, said that the average production cost of shoe manufacturers in Wenling increased by more than 25%. According to her analysis, in the final analysis, the development of footwear industry must go out of a low, small and scattered situation as soon as possible, so as to enhance competitiveness.

Faced with difficulties, many enterprises have accelerated the pace of transformation. The shoe industry has strengthened internal control and reduced production costs. Enterprises such as Zhejiang nore and good brothers have also signed long-term settlement agreements with banks, and strive to extend the time limit for forward settlement. Through the way of discounting the US dollar loans, the loss of exchange rate appreciation has been reduced. The shoe industry has gone from a single European market to a global market, and its exports have increased by more than 80%. The sturgeon footwear industry has registered foreign companies in Uganda, Chile and other countries.

However, members also acknowledged that SMEs face greater pressure than large-scale enterprises, and the "big shuffle" has just begun.