Taizhou Shoe Enterprises Are Forced To Pform And Upgrade Because Of The Situation.

"With the subprime crisis and the escalation of the European debt crisis, there are no international trade barriers against domestic footwear in China.

At present, the cost of raw materials and labor costs of Wenling shoe enterprises continue to operate at a high level, and the exchange rate of US dollar and euro continues to decline, and the profits of enterprises are continuously compressed.

At the same time, protectionism in the international market is on the rise again, the European and American markets are constantly improving technical barriers, and some emerging market countries also frequently trade protectionist measures, and the threshold of footwear exports is further uplifted.

Pan Kecheng, Secretary General of Wenling shoe leather association, said.

Footwear exports farewell to sustained growth

"The EU is the largest market for shoes exports in Taizhou. The sharp reduction in demand for the market will have an adverse effect on the export of Taizhou shoes.

In addition, the EU, Mexico, Egypt and other related trade protection measures have been introduced, which makes Taizhou footwear exporters feel pressure.

A person in charge of Taizhou shoe industry Co., Ltd. said.

According to the statistics of Taizhou Customs Department, Taizhou exported 82 million 790 thousand pairs of shoes in 1~4 this year, a decrease of 8.1% compared with the same period last year.

The largest is the EU market, which exported $32 million 780 thousand to the EU in the first 4 months, down 29.3%.

Domestic and foreign double extrusion, footwear exports have bid farewell to the sustained growth trend in recent years.

Increasing production costs and squeezing shoe companies profits

It is understood that Taizhou footwear exports to North America, Europe, the Middle East, Africa and other markets, and at present, Europe and the United States economic turmoil, four African countries smoke, global consumer purchasing power declined, Taizhou footwear exports directly impact.

A shoe export enterprise in Hengfeng street, Wenling, originally sold 2000 boxes of shoes (24 pairs per box) per day in the Eastern European market, and now its daily sales have dropped by 83%.

The company's stores in Ukraine also dropped from $150 thousand to $20 thousand a month, a drop of 86.7%.

A recent survey by the shoe and leather chamber of Wenling shows that this year's domestic inflation pressure has greatly increased the production cost of shoe manufacturers.

In recent years, the wages of the workers in Wenling footwear industry have increased by more than 15% per year, plus the cost of improving the labor environment, the production cost has increased by 20%.

On the other hand, it is more and more difficult for enterprises to borrow from banks, and then turn to private lending with high risk and high interest.

In addition, with the profits squeezed by the appreciation of the renminbi, corporate profits are getting thinner and thinner.

"The appreciation of RMB is faster and faster, and the price level is rising. Enterprises are experiencing unprecedented pressure.

One side is the loss of enterprise orders, the other is the rising cost, which has seriously led to a sharp decline in the profit margins of enterprises. The speed of our business has caught us by surprise.

Shi Baofu, Taizhou smart shoes Co., Ltd. said, "our company exported US $4 million in the first 4 months of this year, an increase of 35.5% over the same period last year, but the export trend in the second half of the year is still very hard to say."

According to the insiders, under the current economic situation, every shoe enterprise should tap new market from its own development status. Large brand enterprises need to know more about the market, further consolidate the brand of enterprises, set up distinct brand flags, and small brands need to continue to promote brands and achieve strategic layout with dots.

The reporter has learned that many visionary foreign trade shoe and clothing enterprises have been preparing for the rainy day in hardware and software, making use of the opportunity of RMB appreciation to carry out equipment pformation and upgrading, so as to reduce costs, improve production capacity and product quality to expand the market.