Canton Fair Sichuan Shoe Enterprises Orders, Profits Double Pressure.

According to the statistics of the Provincial Department of Commerce, a total of more than 500 enterprises appeared in the spring Canton Fair in Sichuan this year. Among them, there were 81 "Chengdu legions", mainly in footwear and clothing textiles. Whether this external demand is weak will directly affect the turnover of the "Chengdu Legion"? Yesterday, our reporter contacted some of the Chengdu enterprises, and most of the enterprises in footwear and clothing said that they had encountered the lowest point of signing the Canton Fair for 3 years.

Sichuan shoe enterprises have double pressure on orders and profits.

A pair of beautifully made Chengdu women's shoes are displayed in the exhibition hall as a whole. Although there are many foreign businessmen stopping to negotiate, the signing rate is not high. This is the scene of the Canton Fair, which is described by Liu Ying, assistant chairman of the Chengdu card and Footwear Co., Ltd., to the Chengdu evening news reporter.

As the famous brand of "genuine leather shoes king of China", Chengdu has already participated in the Canton Fair for 5 years in a row. Liu Ying admitted that this year is the "most sluggish" Trade Fair for footwear after the 2008 global financial crisis. "According to our understanding, the total volume of footwear is down by 15-20% compared with last year." According to the initial statistics of the company, the turnover of the company has dropped by at least 5%.

"Orders for this year are particularly difficult to sign." Nicckleby Ann, head of the footwear industry Co., Ltd., Xie Rong, is also somewhat worried. Compared with last year's Canton Fair, the volume of transactions this year dropped by 1/3. Xie Rong said that by the rising pressure of domestic raw materials and manpower costs, the comprehensive cost of enterprises has risen by nearly 20%, leading to the rise in orders prices.

"Our products are mainly exported to the United States, Italy, Germany and other countries and regions." Liu Ying analysis, affected by the European debt crisis, the foreign trade market continued to slack, the labor cost of shoemaking is also rising, and the recent increase in exchange rate volatility means that the purchasing costs of European and American purchasers will rise further. He said, "the internal and external troubles of demand and cost directly affect the order quantity of shoe industry. Sichuan shoe enterprises also have to face the situation of double pressure on orders and profits."

Chengdu clothing enterprises explore the way of "domestic sale"

According to the 111st Canton Fair statistics: China's traditional export market, Asia and Europe, the number of purchasing merchants decreased significantly, Europe dropped to 11.15% even to 38125 people, and Greek merchants dropped by more than 40%.

Because exports are dominated by European and American markets, Chengdu style clothing has long been expected to decline in trade volume. "Last year, the Canton Fair signed an intentional order of US $500 thousand, which is only about US $400 thousand this year." Xu Jiang, manager of the company's foreign trade department, said that intentional orders do not represent actual orders, so the actual transaction volume this year is expected to drop to the lowest level in 3 years. Xu Jiang calculated an account: profits dropped by more than 15%, due to the decline in export tax rebates and factors such as raw materials and manpower costs.

"Exporting foreign trade is the backbone of the company. Now it is gradually developing its own clothing brand and exploring its domestic sales channels." Xu Jiang said that at this year's fair, the company tried to show its own brand registered in France, trying to find partners to explore the way for the domestic market.

Zhang Ping, director of foreign trade business of Chengdu red fruit Garments Co., Ltd., said that due to the lack of demand in Europe and America for a foreseeable period, the company is planning to deepen the domestic market, hedge the impact of insufficient external demand, and gradually increase the added value of products and locate the high-end market.