Profits Fell To 7%&Nbsp; Many Shoe Companies Said The Order Was "Not Enough."

Reporter understands, at present Dongguan

In the near future, the Internet has passed the list of bankrupt enterprises in Dongguan. 12 of the 45 bankrupt enterprises listed in Dongguan are shoe factories.

Insiders revealed that the number of shoe companies that went bankrupt last year is far more than that.

Insiders predict that the footwear industry in June may face a new round of reshuffle due to factors such as rising labor costs, rising raw materials and rising RMB exchange rate.

Shoe business profits fell to 7%

"Footwear enterprises are very difficult."

Next, a shoe company in Dongguan, has been working in the shoe industry for more than 10 years, pointing out the current situation of shoe companies.

He told reporters that footwear enterprises do not do well, in the final analysis is the cost problem.

Take export shoes for example, a pair of PU

Dongguan City IDA shoe material is a small and micro enterprise, the company general manager Xu Xunhai told reporters, affected by the European debt crisis, many shoe factories are not comfortable, before the shoes exported to foreign countries, foreign enterprises will first go to the bank loan payment, now it can not borrow money, can only sell part of the shoes to a part of shoes money, come and go back and forth, as a processing party, Dongguan's shoe business capital chain has been tested.

Can continue to support, can not support directly bankrupt.

Now, the profit of shoes is 7%, which is 60% lower than that of 20% a few years ago.

Xu Xunhai sighed, "foreigners are very smart now. They can clearly calculate the cost and get a lot of money for you before they come to you to do business. You don't do it. There are others to do it."

Ming Hong shoe factory has been making shoes for foreign trade for ten years. Chen Haiping, the boss of the factory, told reporters that since 2008, he has basically not made any money and lost about 1000000 yuan last year.

Optimism is expected to be better this year, "because orders are larger than the same period last year.

However, some colleagues are rather sad, such as a shoe factory in Houjie, which was pferred to two times in 2 months at a price of about 1000000 yuan.

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We can only fight for blood now.

Credit, cost,

The reporter learned from the Dongguan Bureau of industry and commerce that there are 2854 shoe manufacturing enterprises in Dongguan (one domestic product, 317 manufacturing and 2536 individual).

As for the number of failures last year, the business sector did not.

However, reporters in Dongguan Sunshine Network Sunshine Community to see a "Dongguan business failure list 2011", which listed 45 bankrupt enterprises in Dongguan, of which 12 are shoe factories.

However, insiders revealed that the number of shoe companies that went bankrupt last year is far more than that. Many shoe companies are closing down after they have finished their wages.

The shoe companies listed on the list are relatively large, and the owners are more concerned about the relatively bad effects, such as the more popular shoe factories and new shoe factories.

Reporters saw that after the list was posted, the number of clicks reached 9857 people. Many people were still following the post, continuing to paste out the closed shoe factory.

The industry insiders said that many of the shoe factories that survived now continue to smash money by "getting through this year's perhaps better mentality".

Mr. Xiang said that in recent years, labor-intensive enterprises are facing considerable pressure, and the biggest pressure comes from rising costs.

The cost of raw materials, labor and other costs has risen rapidly, and the cost has gone up. The price of products has not been greatly increased because of fierce competition.

The order is small, "not enough."

Order problem is a headache for more enterprises.

"There are very few orders now, and they are not enough."

Mr. Zhang, the boss of shoe enterprises, said that his factory basically received no orders this year, and the orders after June were basically not.

Similarly, Shenzhen raised the workers' base salary and hit the nerve of Dongguan's business owners. In February, at the foreign tea conference in Dongguan, many business representatives put forward the hope that the Dongguan municipal government would introduce measures to stabilize the labor market as soon as possible.

A shoe factory owner, who declined to be named, said the difficulty had actually existed in recent years.

Under the current special circumstances, the problem is particularly prominent.

Before that, he began to slow down the production of thin profit orders, so as to ensure the continuation of the gold chain.

Suppliers are also implicated.

Shoes factory is not good, as a supplier is also very uncomfortable.

He Wei (a pseudonym), originally a shareholder of a leather company in Dongguan Houjie, has just invested in a new green paint this year and asked why it has been pformed. He said that he and his friends have been trading companies since 2008, earning 500 thousand yuan a year as a shareholder. He can be divided into 100 thousand yuan or so. But the year before last, a customer (a shoe factory in Dao Jiao) suddenly went bankrupt, and the owner owed 80 thousand of his money to run away, so he had to lament the disadvantage of running away.

I thought that last year there would be improvement. I didn't expect the owner of another shoe factory in Houjie street to be in debt.

At the same time he did not receive the 60 thousand payment, he sold his shares to others at the price of 6000 yuan.

Expert: June or next round of reshuffle

Professor Moanda, an economics professor at Dongguan University of Technology, has conducted investigations on shoe enterprises. He said that footwear companies are afraid to take long orders, because the market is unstable, and enterprises are most afraid of having no money for the other party, or they are not ready for each other.

Most shoe companies are self insured.

Jiang Lin, director of the Department of Finance and taxation of the south of the Five Ridges College of Zhongshan University and the deputy director of the research center of Hong Kong, Macao and Pearl River Delta, has been very concerned about the enterprises in the Pearl River Delta. During this period, he is also studying the shoe enterprises in Dongguan. He said that according to the current situation, the shoe enterprises in Dongguan are indeed likely to face a new round of reshuffle in 6 months.

Jiang Lin said that the current situation of shoe enterprises is very delicate. The reason is subtle because shoes can be processed to Chinese enterprises, or can be processed by Vietnamese enterprises or enterprises in India. The order is uncertain.

But on the other hand, as long as demand is still there, shoes enterprises will have orders.

Although Dongguan has closed down many shoe factories these years, "when we go to Europe and America, we find that many shoes with lower price are made in China."

Some shoe factories did not go bankrupt but were in a semi closed state. Some big factories were in a state of contraction.

Jiang Lin said, at present, the orders of shoe enterprises are generally not high. There are some orders that people can calculate how much they can earn and then do business to enterprises, and enterprises have no bargaining power.

If the order is not received, the enterprise will go bankrupt immediately. Then, it will not earn money, and if the order is not enough, it will be plunged into death.

Some shoe factories do not dare to take orders, do not know what to do next -- increase their manpower. If orders are not sustainable, there is no way to maintain them, but if they are cut down again, they may have more money to compensate workers.

Therefore, some enterprises do not have no orders, but rather afraid of orders.

Rising labor costs, rising raw materials and rising RMB exchange rate, these factors superimposed, Dongguan shoe enterprises in June or face a new round of shuffling.