Guangdong Footwear Industry Is Facing A Critical Test Period, 7-9 Months Or Watershed.

This year,

Faced with many difficulties, the sharp reduction in orders and the increase in production costs have become a headache for the shoe industry. With the coming of July, the industry is facing a critical period of trial.

"After May 1, the market suddenly felt like a cold, and the consumption was brakes. Now it is becoming more and more difficult to make shoes."

At the twenty-second Guangzhou international footwear, leather and industrial equipment exhibition, which was closed recently, Han Baosheng, chairman of Guangdong English limited company, talked about the shoe industry in Guangzhou.

Insiders pointed out that the next four months will be a critical moment for Guangdong shoe enterprises. If they can survive successfully, it means that everyone is willing to continue to stick to it, otherwise there may be a new round of "collapse tide" or "run away tide".

The pressure of climate abnormality is even more serious, and the closure of the footwear industry in Guangdong in 2007 is still fresh in many industries.

According to the reporter, in the first three quarters of 2007, there were about 1000 shoe factories and supporting enterprises in Guangdong. They were actively closed down or closed up by the courts due to rising costs, appreciation of the renminbi, policy adjustment and other factors.

Only 200 of the more than 1000 shoemaking enterprises in Dongguan went bankrupt in -300.

Although the footwear industry has been gradually recovering since 2009, Guangdong shoe enterprises have been in a difficult position since last year.

Prospective network understands that as Guangdong

Base, 1-10 months last year, Dongguan's footwear exports increased by 15.9%. In the 1-2 months of this year, Dongguan's footwear exports increased by 10.6%, ranking the first drop in exports.

"Our company is mainly export oriented, and sales have dropped by 30%-40% this year."

Li Jiankang, head of the Limited by Share Ltd, said that apart from the continued debt crisis and the appreciation of the renminbi, the global climate anomaly is also one of the reasons that impede the growth of shoe exports.

"Because the weather is abnormal, the cold weather is not cold, the season does not turn to the season, causing retailers to overstock a lot of inventory, do not dare to place orders."

In addition to the reduction of orders, the cost increase is also a problem that Guangdong shoe companies have to consider.

He Guiling, President of Guangdong Footwear Manufacturers Association, said that over 70% of Guangdong shoe enterprises were organized to produce and sell in the form of processing trade. With the increase of land resources, labor, raw materials, energy, pportation and financial costs, the profits of small and medium enterprises in the footwear industry continued to decline.

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"Rising labor costs are the biggest headache."

Han Baosheng said, on the one hand, the footwear industry as a labor-intensive industry, even if achieved a higher automation, it is also difficult to get rid of dependence on manual production; on the other hand, Guangdong shoe enterprises, like other industries, are faced with the problem of recruitment difficulties. Now, 3000 yuan or so is difficult to attract workers into the factory, but it is difficult for these enterprises to bear it.

7-9 months may be Shui Ling

There have been many "closures" before, and at the same time, the phenomenon of industrial pfer of footwear industry is becoming more and more obvious.

In order to reduce the cost pressure, some enterprises will pfer to the central and western parts of the country, such as Vietnam, India and other countries.

In addition, some of the enterprises' orders have shifted from relying on external parts to internal ones, and have been OEM for BELLE, AOKANG and other domestic shoe enterprises.

In addition, exhibitors attending the Guangzhou international shoe exhibition said that the price of raw materials in China is soaring, and the price of raw materials abroad is cheaper.

For example, the price of imported raw materials from Brazil and the United States is 40% cheaper than domestic prices, and the cost of labor in Southeast Asian countries is relatively low, thus attracting a large number of manufacturers to migrate factories.

Li Jiankang believes that the next four months will be a test of confidence in Guangdong shoe enterprises.

"Generally speaking, the order volume of shoes in the second half of the year will be greater than that of the first half, but the previous 7-9 months will be the off-season for the footwear industry.

If in the meantime, no large shoe enterprises fail or pfer, it means that the owners are still confident of the market in the coming year.

On the contrary, it means that the real collapse will follow.

However, He Guiling added that although there were some enterprises shutting down and shutting down production, the structure of China's export products had great complementarity with the mainstream industrial structure of developed countries. The key lies in the competitiveness of products, the vitality of independent innovation, and the driving force of famous brand strategy. These factors determine whether the footwear industry can overcome difficulties in the second half of the year.