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Labour Shortage Will Affect Footwear Retailers.

2010/7/12 14:58:00 34

Hong Kong media reported that labour shortages caused by low wages in factories in the mainland had begun to affect some of them.

Retailer

Sales and operation.

Daphne (00210) told the securities industry that its outsourced factories affected the company's inventory due to labour shortages, thereby affecting the second quarter sales.

However, BELLE International (1880), which also outsourced most of the production, did not encounter the same problem.

BELLE means nothing.

After meeting with Daphne management, UBS issued a report, which quoted Daphne management as saying that the same store turnover increased by only 1% to 3% in the first half of the year, which was mainly affected by the shortage of labour in the second quarter, which made the company's stock tight. This also led to the failure of the first half of the year to reach the expected target.

Dahua followed display

Daphne

The management also released a report confirming that Dongguan's outsourcing companies were affected by labor shortages. The proportion of Daphne's different brands accounted for 20% to 60% of the total sales, while the company originally planned to open 500 new sales outlets this year, but by the end of June only 140 additional ones had been set up.

BELLE, who also produces and sells leather shoes, has pointed out that there is no labor shortage in the company itself or its outsourcing factories, according to fund managers who had contacted them earlier.

It is understood that BELLE accounts for 30% of the total sales ratio.

All production and procurement were awarded to the surplus group of Dongguan manufacturers (1386), and Zhu Xianwen, chief financial officer, admitted that

Shoemaking industry

The situation of robbing workers does exist. Especially after the start of the wage increase, "there are factories that have problems of supply due to shortage of workers. But we have 40 to 50 suppliers, and the supply of goods is very scattered, so there is no effect."

Daphne has become the first retail enterprise to be hurt by the rise in workers' pay, and retail analysts say it has not heard about the similar situation in other listed companies.

Yuyuan salary will increase by more than 1.

As the world's largest footwear manufacturer, Yuyuan industry (551), which has relatively simple production processes, says that the monthly salary of the employees in the group is between 1300 yuan (RMB. The same below) to 1500 yuan, which is higher than the minimum wage stipulated. Therefore, there is no shortage of sports shoes.

Yuyuan employs 330 thousand staff, about half of whom work in the mainland.

Yuyuan also said that the wages of workers all over the country rose sharply this year. The main reason was that there was no adjustment in salary last year. The mainland's total wages will be raised by a low double-digit rate next year. However, if the mainland's minimum wage is really raised to 2000 yuan as Foxconn (2038), it will not only affect Yuyuan, but also affect the entire Chinese industry.