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    Does Dongguan'S Shoe Business Keep Abate?

    2008/4/17 0:00:00 10345

    Dongguan Shoe Enterprises

    Affected by the adjustment of exchange rate and the rising price of raw materials, a few hundred shoe factories in Dongguan went bankrupt some time ago. There were four rumors: Dongguan footwear industry encountered a cold winter market.

    However, at the press conference of the seventh China Dongguan international shoe show shoe machine exhibition held yesterday, the Dongguan Leather Footwear Association announced that the latest statistics from the Statistics Bureau showed that since, the number of shoe-making related enterprises in the Dongguan has increased every year, increasing by more than 16.8%.

    The latest statistics of the commerce and Industry Bureau of Houjie Town show that in the first 3 months of this year, Houjie Town has cancelled 17 shoemaking enterprises and 26 new certificates. At present, there are 1151 shoemaking enterprises in Houjie town.

    Footwear industry practitioners nearly 2 million of Dongguan Leather Footwear Association released a survey report, Dongguan's shoe making enterprises now have about 1500, other shoe machine supporting enterprises 2000, shoe materials, leather, hardware, chemical and other related supporting shops 3500, nearly 2 million employees, annual production of about 1 billion 500 million pairs of shoes.

    A group of latest statistics from the Dongguan Bureau of statistics show that the number of shoe factories, leather factories and shoe factories in Dongguan has increased every year since 2006.

    Some insiders believe that the actual number of shoe enterprises in Dongguan has definitely decreased, but many closed shoe companies have not registered business registration or failed to do business registration procedures.

    Regarding this, Qi Yaochang, vice president of Dongguan Leather Footwear Association, believes that although Dongguan has closed down some small shoe enterprises with low added value and insufficient funds, the overall number is still on the rise.

    "At present, the more than 170 shoe companies that join the leather footwear association have not yet failed."

    Qi Yaochang believes that in the shoe market of Dongguan, a shoe factory will not quit the market if it fails, and other investors will take over the business. This is why the number of shoe factories in Dongguan will not decrease.

    He also said that the biggest problem facing the shoe industry in Dongguan is the problem of rising costs. The cost of shoe industry has risen by about 30%. "Some shoe factories are mainly affected by cost problems," he said.

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