Financial Crisis Hits Hundreds Of Hundred Shoe Factories In Chengdu

2008 the third international procurement festival of the Chinese women's shoes city closed yesterday. The impact of the financial crisis on the footwear industry in Chengdu is still showing: there is no single connection. Chengdu's hand-made small factory has closed down hundreds of businesses.

No one can pick up a small shoe factory.

Founded in 1997, Chengdu is a large shoe manufacturer whose main export market is Europe and America.

Affected by the financial crisis, "my partners in the United States have dropped 10%~20% in local orders, and our products are of high quality. Our partners promise to shrink coastal orders to ensure our business here in Chengdu".

According to Wu Deqing, chairman of Prof LAN.

But the handicraft factory is not so lucky.

These enterprises can only accept the superfluous orders of large enterprises. Now that big businesses are afraid of being fed up, where can they be ordered?

Many small handicraft factories have to choose "holiday" or even go bankrupt.

According to one data, about 10% of the thousands of shoe manufacturers in Chengdu have gone bankrupt.

There are also export-oriented clothes, toys and other enterprises.

Chengdu Hemei clothing is a company based on Europe and America, engaged in the production and development of leather garments, and exported more than 500 thousand pieces of pig leather, sheepskin and cowhide.

Last year, the price of raw materials and the recent financial crisis reduced the number of overseas orders by 50%.

"East shoe westward shift" Dachang orders do not decline instead of increase

There are also opportunities under the crisis.

According to the data provided by China Women's shoes capital industrial operation center, the number of shoe industry orders in Chengdu is expected to increase by 30% this year, almost entirely due to the pfer of coastal shoe enterprises.

But most of these are pipeline orders, manual enterprises can not digest at all, and only those powerful enterprises can take orders.

"If we switch to the assembly line, the handmade companies may still have a turning point."

Wu Deqing said.

Relative to the coastal enterprises, the biggest advantage of Chengdu shoe enterprises lies in the abundant labor force.

Wu Deqing believes that labor shortage is an important factor for the failure of coastal shoe enterprises.