Exhibitors Reduce, Order Profit Reduction Or Cost Shoes Exhibition Features

The fourteenth Dongguan shoe show November 1st, reporters heard at the scene.

The number of exhibitors in this shoe exhibition is about 10% less than that in the shoe area.

* some shoe companies claim that the profits from foreign trade orders have shrunk substantially, and that the increase in raw materials and manpower costs is the main reason.

The fourteenth China Dongguan international shoes exhibition, shoe machine exhibition, shoe material exhibition (hereinafter referred to as "Dongguan shoes exhibition") was yesterday in Dongguan Houjie Guangdong modern.

Dongguan Shoe Fair has always been a barometer of the footwear industry in Dongguan and even the Pearl River Delta region. At yesterday's opening of this shoe exhibition, some shoe companies said that the profits of foreign trade orders had shrunk considerably. It was obvious that the owners of shoes enterprises who had hoped to raise funds for foreign trade orders to support domestic sales were self-evident, and even the shoe business owners described the current situation as "eight sides of Chu songs".

According to the organizers, there are about 450 exhibitors in the Dongguan shoe exhibition, and last year's autumn and the end of April this year, the number of exhibitors has reached 500.

That is to say, the number of exhibitors dropped by about 10% this year, which is rare in previous Dongguan shoe exhibitions.

More notable is the structural change of exhibitors.

The shoe exhibition is divided into 3 thematic exhibition areas, namely, the finished shoe area, materials, leather and accessories area and shoe machine area.

Reporters found in the list of exhibitors, there are less than 100 enterprises in the finished shoe area, and the rest are enterprises in materials, leather and accessories area and shoe machine area.

Regarding this, Zhu Yulun, chairman of the Hongkong style Exhibition Service Co., Ltd., the organizer, said that the shift of the finished shoe exhibitors and shoemaking and shoe materials enterprises is the trend of the recent shoe exhibitions. This shows that Dongguan and even the whole country's finished shoe enterprises are undergoing the pain before the pformation.

On the contrary, with the rise of labor costs, footwear manufacturers are willing to adopt more advanced shoe machines, resulting in the shoe machinery business booming.

What is the profit status of foreign trade orders that shoe companies expect? The past Dongguan autumn shoe show is a good time for shoe makers to fight for Christmas or second years of overseas orders, but this year's looks are not good.

"The order can still be received, but the profit is very thin."

This is the most widely heard statement at the shoe show.

Xie Yang, general manager of Yiyang (China) Footwear Co., Ltd. has just signed two orders at the shoe exhibition, and buyers are all from Russia.

Xie Nuan told reporters that compared with the same period last year, the average profit of each company's foreign orders was reduced by about 2/3.

Xie Nuan believes that greater profit pressure comes from inside, and the rising cost of raw materials and manpower is the main reason for the shrinkage of profits.

Xie Hao said helplessly: "for some pure foreign trade shoe enterprises, it may be light to say" besieged on all sides "." eight sides of Chu songs "will be more appropriate.

Two market "eat" shoe enterprises increased

The shoe show organizers will "label" the exhibitors at all previous shoe exhibitions. There are conspicuous labels in front of each booth to tell buyers whether they are in the international market or in the domestic market, or both.

Zhu Yulun told reporters that the shoe exhibition showed that he was a "edible" shoe manufacturer in the international market and the domestic market, which showed that under the foreign trade environment where the European debt crisis continued and the European and American markets continued to weaken, more domestic shoe enterprises were shifting some of their energy and resources to internal sales.

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In fact, not only some shoe companies in China are keeping a close eye on the huge domestic market, but also at the shoe exhibition site, reporters saw some Portuguese, Turkey and other non traditional European and American markets in the exhibition, hoping to enter the Chinese market.

The industry expects that Dongguan and even domestic shoe enterprises will face more intense competition in the domestic market.

Shoes talk about pformation

"The pace of domestic sales is not too big."

Yi Yang shoes industry is a typical enterprise from OEM OEM to domestic market.

Yiyang shoes industry, which has more than ten years' experience in OEM production, has been produced for more than ten years. Two or three years ago, eight or nine of the resources were put into production of OEM. But after the financial crisis in 2008, the enterprise began to plan to attack the domestic market. After 3 years of efforts, Yi Yang shoes products have reached "half and half" in foreign trade and domestic sales.

Although the situation seems to be very good, the company's general manager, Xie Hun, believes that the company needs at least 3 to 5 years to make profits or break even in its domestic sales.

In the past 35 years, most of the shoe companies that are interested in pformation can only "keep inside".

"To do domestic sales, the first thing is to have enough capital flow, because you will have capital pressure brought about by brand operation and accumulation of goods," Mr. Lin, director of Heng Ying shoe industry Co., told reporters. "A lot of these funds come from the profits of foreign trade orders, so keeping foreign trade orders is also necessary for business pformation."

"We dare not go too far. Under the current situation, we must not burn the money."

Xie is also very cautious.