Pearl River Delta Shoe Enterprises "Big Earthquake" Affect Upstream Raw Materials

The industrial shock in the Pearl River Delta is affecting the entire industrial chain.

With regard to the large-scale pfer or bankruptcy of shoe enterprises, it is also a great loss for traders of upstream raw materials.

According to relevant MDI traders, since the end of last year, the impact of the shoe enterprises in the Pearl River Delta has been evident in this season.

The peak season of 3 and April was just the opposite this year. The poor demand in the lower reaches led to a drop in prices and a serious impact on trade in Guangzhou.

According to market participants, most of the shoe companies that have been pferred to large scale are small and medium-sized enterprises. In the past, these enterprises often occupied the market share with the advantage of low labor cost. However, after the implementation of the new labor law, these cost advantages were gone. For the relatively small profit margins of footwear, such small and medium-sized enterprises had to choose to pfer or declare bankruptcy under the pressure of rising costs.

In fact, in the Pearl River Delta shoe enterprises encountered "great earthquake" at the same time, Fujian, Jinjiang and other shoe manufacturing developed areas, also encountered the shoe enterprises closed down and "cold wave".