Su Chaoying: Leather Industry'S Profit Growth Is Not Enough.

Mr. Su Chaoying, vice chairman and executive secretary of the China Leather Association, delivered an important speech at the awards ceremony of the second best selection of leather and footwear industry in the "leford Cup" Huicong net.

Su Chaoying also said: "the decline in profit margins is warning us that it is not enough to just be satisfied with the bright surface of the industry. It is not feasible to continue to produce low value-added products and share profits. We must profoundly reflect on the problems existing in the industry, speed up the guidance of the industry to readjust the economic structure and pform the development mode, otherwise, with the complication of the international situation, the cost of domestic manufacturing industry will be reduced.

Since last year, with the recovery of the global economy and the rising oil prices, the price of main raw materials has increased, which has affected almost every link of the leather industry chain.

It is estimated that since the end of last year, the cost of only a single pair of shoes has increased by more than 5%.

Tanning enterprises have been hit harder in this round of rising raw materials.

Now many tanning enterprises are in a state of small profits or zero profits. On the surface, orders are good, and they are doing very well. But in fact, profits have been depressed to a very low level, and it is very difficult.

In 2010, with the difficulty of recruitment as the starting point, the Foxconn event as the leading line and the minimum wage standards raised by major cities as the starting point, leather enterprises had to bear the huge blow brought by the soaring labor costs.

Affected by this, the total cost of many product enterprises increased by 8% to 20%.

From the international environment, technical barriers to trade have also increased exports.