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    The Cost Is Changed To "&Nbsp", And The Profit Margins Of Shoe Companies Continue To Shrink.

    2010/12/7 10:55:00 51

    Cost Shoe Enterprises Profit Margins

    It is understood that shoe upper leather, shoe polish, soles and so on.

    shoe materials

    Price rise (about 5% ~ 10%), plus more than 100 small shoe factories newly built in Tongxiang recently, in order to rob workers, the price of workers has been rising. Compared with the same period in the past year, the wages of workers have risen by nearly 20%, which greatly increased the production cost of shoemaking enterprises.

    However, compared with the sharp rise in wages of raw materials and workers,

    Finished shoes

    The factory price is difficult to raise.


    According to the manufacturers, the factory price of low waist cotton shoes in Tongxiang is about 120 yuan at present. The factory price of half leather and half leather boots is about 150 yuan. The price of full leather boots is above 200 yuan. The price of the boots is almost equal to that of the same period last year, and the space for the rise is very small.

    Although prices of some products are rising slightly under the pressure of rising production costs, profits are still slim.


    Dongguan City

    Seashell shoes

    Zhang Jie, vice president of finance, said, "at present, seashells are high-end footwear products, and the profits are generally around 10%.

    In the past 3 months, the appreciation of RMB has reached 3%, which is a great pressure on corporate profits.

    Although the seashore shoe industry has taken various measures to control cost mining profits as much as possible, the total domestic cost of raw materials such as leather and hardware has generally risen by 20%, and the final gross revenue will still decrease by 3%. "


    The rise in raw material prices and labor costs has also created a "magic spell" for the profit margins of the seashore footwear industry.

    Seashell shoes are made from genuine leather materials imported from South America and other regions. At present, the price has risen from $7.5 per square foot to $10.5, up 40%, while seashore's product price has risen by only about 7%.


    The rise in labor costs is also a major factor.

    Factory director Ren firmly revealed that at present, the per capita wages of seashore footwear industry has risen from 1000 yuan to 2000 yuan.

    Since June of this year, the wages of enterprises in Dongguan have increased by about three or four times, with an average increase of about 200 yuan.


    If the business is well managed, there is still room for profit to be built. "

    Said Zhang Jie, deputy general manager of Haibei shoes industry.

    She said frankly that raw material waste, workers' slow down, poor production organization and low efficiency resulted in waste of company's cost and artificial production capacity.


    In order to gain more profit space, the seashore shoe industry has changed the system of salary assessment and payment for workers, changed the original timing system into piecework system, standardized staff management system and strengthened supervision; in exchange rate risk, agreed with foreign merchants and banks on exchange loss sharing, and tried to hedge futures pactions; and suppliers in consultation with efforts to reduce costs, at least not to increase costs.


    An official from Dongguan's foreign trade and Economic Cooperation Bureau told reporters that the government is also encouraging export enterprises to sell domestically and help enterprises to connect with domestic customers.

    It is suggested that enterprises should be cautious in dealing with long lists and large orders and prevent exchange risks.

    In raw material procurement, reduce domestic procurement.


    Compared with some enterprises practicing "internal strength", more enterprises are hedging part of their losses by raising prices.

    Reporters interviewed a number of exhibitors to understand that this year's autumn shoe exhibition in Dongguan, most enterprises offer an increase of one to 20% compared to the spring shoe exhibition this May.

    However, due to the hidden worries of customer loss, it is hard to predict when the export enterprises will be able to hold up when prices are carefully raised.

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