Wenzhou Shoe Industry Winter Five Years More Than 2000 Shoe Enterprises Disappear

An analysis report on the economic operation of shoe leather industry in the first quarter of 2008 in Wenzhou footwear industry association of Zhejiang province shows that more than 70 enterprises have failed to switch production in recent months in Wenzhou shoe making enterprises.

According to the association insiders, Wenzhou shoe enterprises have dropped from 5000 in 2003 to 2600 this year.

The first financial daily quoted the insiders of the association as saying that the reasons for the disappearance of shoe enterprises in Wenzhou include: the cost of local land and labor has continued to rise, some enterprises have pferred to Sichuan, Fujian and even Southeast Asia and Russia; some of Wenzhou's shoe enterprises have pferred capital to real estate, mines or stock markets, and quit the footwear industry; some SMEs have resisted weak risks and simply stopped working.

Wenzhou is known as the Chinese shoe capital. Wenzhou shoes 60% are used for export, and are also sensitive to anti-dumping, export tax rebate reduction, depreciation of the US dollar, labor costs and raw material prices.

Most of the trade partners of Wenzhou shoe enterprises come from the European Union, and most of the orders from Guangdong are different from the United States. Since the beginning of this year, labor costs have suddenly increased due to the implementation of relevant regulations. Meanwhile, many domestic shoe export enterprises in China are turning their eyes from the United States to the EU countries, and the industry competition has intensified. The Wenzhou shoe enterprises with slightly profit margins are facing a grim price war, leading to the withdrawal of some small and medium-sized enterprises.

Wenzhou shoe industry has already formed a complete industrial cluster. A shoe enterprise is responsible for assembly. The shoe heels, shoes, shoes, leather shoes, shoes and accessories are all matched by dozens of enterprises, and the more than 70 shoe enterprises that stop working and pforming will produce magnification effect in the whole industrial chain.

Lin Jinyou, Deputy Secretary General of the association, said that this year's loss of footwear industry, which is the main export industry, will not be an individual phenomenon. In recent years, the footwear industry base of Sichuan and Taizhou provinces has risen, and the price of Taizhou shoes is lower than that of Wenzhou shoes. The phenomenon of domestic overcapacity is obvious. Even without the impact of international trade, shuffling is inevitable.

The report shows that since the beginning of this year, the cost of labor in Wenzhou's shoe and leather industry has risen by about 20% to 30%.

On the other hand, the workers are "unstable in their minds". On the other hand, the owners complain that the workers are hard to recruit and the talent is hard to stay.