Lack Of External Demand Threatens Shoe Companies To Survive

The 112nd Canton Fair entered in October 31st.

The third phase of labor intensive enterprises such as clothes, bags and so on, the reporter visited the exhibition hall to understand that under the background of high production costs, the export situation is extremely grim and the RMB exchange rate has been strong again recently, which is making these enterprises face "severe" survival test.

Liu Wei, a Hebei exhibitor who has been doing business for many years, sat in front of his own booth in the morning.

"This year, external demand has been sluggish and orders have shrunk by almost half."

Liu Wei bluntly said that the export of bags produced by his company is "winter" this year.

"In the past few years, exports have been steady, but now there are more competitors. Labor costs have been rising, but companies are afraid to raise prices."

Liu Wei sighed that now, in order to maintain the normal operation of orders, capital preservation or even loss making business enterprises also do.

For Chinese labor-intensive enterprises such as shoes, clothing, bags and so on, the rising cost of production has become a norm. What is more worrying for enterprises today is more difficult to control variable factors such as sluggish external demand and strong RMB exchange rate.

Many exhibitors complained to reporters that the RMB exchange rate against the US dollar has reached a new high in recent years, and the competitiveness of Chinese exports is weakening.

Luan Tianxiang, a salesperson of Guangzhou Ju Sheng Shoes Co., Ltd., told reporters that most of the company's products were settled in US dollars. "Although we also take measures such as lock exchange to control exchange rate risks, the continued appreciation of the RMB still makes the already small profits continue to shrink."

As one of the highlights of the three phase of the Canton Fair.

In the exhibition area, because the purchasers were not optimistic about the meeting, some enterprises were rather cool. In order to attract customers, some booths were specially invited to show models.

"The clothing business has become more and more difficult in the past two years."

Zhuang Wei, a exhibitor of Jiangsu SOHO International Group, said that the survival of enterprises is either cling to their teeth or be eliminated.

Reporters learned that, due to shrinking external demand, China's textile and garment exports have declined continuously since the beginning of this year.

In order to help enterprises cope with the "cold winter" in the market, the Shaoxing municipal government has carried out a unified exhibition of enterprises and "warm up together".

Zhang Guanghua, director of the Commerce Bureau of the city, interviewed by China News Agency, said that textile and clothing occupy

A considerable share of exports, in the face of this year's exceptionally severe export situation, the local government has introduced a number of supporting policies, hoping to help enterprises tide over difficulties.

China's State Council recently issued the "eight national" measures to stabilize exports, which helped foreign trade enterprises to shake up.

"Policy is good, but it should be depressed, and more importantly, enterprises can respond positively."

Liu Wei said that at this fair, the company launched a variety of new products with great concentration, hoping to get more customers' attention. "After all, getting the order successfully is the most important thing for an enterprise."