The Export Volume Of Some Footwear Markets In Guangdong Was Cut By &Nbsp; 90% Shops Closed.

This is the peak season, but the coldest winter.

Over the past few weeks, journalists have visited some of the Pearl River Delta export oriented wholesalers.

Shoe city 90% shops closed

Tianfuxin city shoe city is located in the same city.

But in less than a year, earth shaking changes took place here.

In December 13, 2011, the reporter came to Tianfu new city shoe city, only to see that most shops on the first floor had been shut down, with a rough count, and there were less than 50 merchants who still opened their doors to do business.

Into it, the reporter also found that the number of sellers is more than buyers, and the businessmen who still stick to it are only "filming flies".

Warehouse 20% nobody cares.

The reduction in business is directly reflected in the utilization rate of the warehouse. Ling Zhiqiang, manager of the West Germany's shoe industry base, told reporters: "every year in October is the peak season for export. In 2010, the whole base warehouse was not enough, and many of the shoes waiting for export were stacked in the open air. In 2011, it was the peak season for foreign trade, but only 8 of them were warehouses for rent, and 2 of them were empty."

Problem 1 cash flow difficulties

The backlog of shoe products led to difficulties in turnover of some businesses and even went bankrupt. Lin Jianzhong, general manager of Guangzhou Xin Jia Shoes Co., Ltd. admitted that although their businesses were all normal, the closure of other enterprises suffered two losses.

"The first time was last June, because the foundry enterprises in Wenzhou went bankrupt, and the export shoes could not be delivered in time. According to the contract, shoes could not be exported in time to pay the penalty for breach of contract, and a total of 20 thousand ~3 dollars was fined."

Lin Jianzhong said.

"The second time was in September last year, the processing enterprises declared bankruptcy, the shoes could not be delivered in time, and they were also faced with a fine for breach of contract, and finally paid 20 thousand ~3 euros!" Lin Jianzhong said.

Problem 2 profit decline

Today, even if successful exports can't be made, Lin Jianzhong said that for his enterprises, exports in 2010 and 2011 were 15 million yuan, but the net profits in 2011 were much lower.

Lin Jianzhong told reporters that the European and American economic downturn, the United States did not have the desire to place orders; European climate is warm, so that some merchants in the second half of the year also canceled the original orders.

Domestic foundry enterprises, the cost of labor increased, raw materials and other factors, the general cost of foundry in 2011 increased by 5%~10%; and the European and American quotations, miserly offer is unchanged from 2010, the most generous price increase of only 3%, so that 2011 profits decreased by 2%~8%.

Both internal and external sales should be handled simultaneously.

This cold winter may change the fate of Guangdong's footwear export. Guangzhou's Huada shoe company's chief executive, once Wencheng felt the "cold bone" of footwear exports, sighed to reporters, "the way to give up exports to domestic sales in 2011" is right.

After the financial crisis in 2008, business in Southeast Asia, the Middle East and Europe and America began to be difficult.

Zeng Wencheng began to try the two leg walking method of "both domestic sales and export sales".

"At present, 8 provinces across the country already have our products."

Ceng Wencheng said that although the domestic sales in 2011 were "numb", the company had already developed a development and design team, which has more than 1000 plates for every province dealer every year.

Experts: the footwear industry in Guangdong has entered the throes of pformation and upgrading.

China produces more than 10 billion pairs of shoes each year, accounting for six or seven of the world's total, of which Guangdong footwear industry accounts for about 4 of China's total.

He Guiling, President of the Guangdong Footwear Manufacturers Association, told the newspaper yesterday that the encounter of Tianfu new city shoe city and Xicheng Tong De shoe base was not surprising.

In the past few months, the export growth of Guangdong's footwear industry has been declining for several months in the past few months, thanks to the economic downturn in Europe and the United States and chaos in the Middle East.

Among them, the impact of economic crisis in Europe and the United States on Guangdong is the biggest, and the footwear industry in Guangdong can be described as "foreign trade, but also foreign trade".

After many years of dominance, the footwear industry in Guangdong is entering the throes of pformation and upgrading.

He Guiling said that more than 70% of Guangdong's shoe enterprises are organizing production and sales in the form of processing trade. With the increase of land resources, labor costs, raw materials, energy, pportation and financial costs, the profit of small and medium enterprises in footwear industry has decreased from 8%~10% to 2%~3%.

The processing trade is prevalent and the independent brands are scarce. According to preliminary estimates, the overcapacity of the footwear industry in Guangdong is over 30%.

On the other hand, at present, the trade barriers between Europe and the United States on the export of footwear products in China are not decreasing, so the footwear industry in Guangdong is facing the pressure of pformation.

In the process of enterprise pformation and upgrading, we should practice hard.

Reporter's notes:

Guangdong shoe company costs rise

Industrial pfer or inevitability

Xicheng shoe industry base can be seen as a side of the shoe industry in China. There are numerous styles and quantities of shoes, but most of them are low-end products, processing, imitation or acting products. They have few independent intellectual property rights or independent brands. Small workshops, low prices compete with the market, and large enterprises with large scale and high technology content.

According to the statistics of the Ministry of Commerce, as of October 2011, China's footwear exports declined for three consecutive months.

From January 2011 to October, China exported footwear products to US $34 billion 600 million, an increase of 18.3% over the same period last year.

Among them, in October 2011, China exported footwear products to US $2 billion 979 million, an increase of 6.1% over the same period last year, a decrease of 19.6% over the same period.

Before the coldest winter, Guangdong shoe enterprises are also faced with many pressures, such as labor costs, raw materials and so on. Industrial pfer will become inevitable, so the fate of Guangdong footwear manufacturers may have come to an age of "no alternative."

One of Lin Jianzhong's foundry enterprises was a Taiwanese capital enterprise in Dongguan. The workers had 1000~2000 people and 6 production lines, but when the cost of labor increased, the company moved to Vietnam.

Inland provinces, such as Hunan and Jiangxi, also want to be their foundry enterprises. However, a survey in Hunan revealed that only 5 factories in a city, and the industrial chain is imperfect, which has affected the enthusiasm of industrial pfer.

Lin Jianzhong frankly said that in the next 5 years, if inland provinces can not fully accept the shoemaking industry pferred from coastal areas, these industries will be pferred to Southeast Asia or India. ~10