Foreign Trade Shoe Enterprises Turn To Domestic Sales, Domestic Competition Intensifies

This year, due to rising raw materials and rising labor costs, the shoe industry has entered a cold winter. Guangdong, known as the "world factory", has staged a serious "closed door", and reports on the failure of Guangdong shoe enterprises are also heard. Since the end of March this year, the RMB has soared and the export tax rebate has been adjusted. The footwear industry is a typical labor-intensive industry. The biggest advantage of Chinese enterprises is the low labor cost. But with the gradual increase of production and processing capacity in other third world countries and the emergence of more and more processing plants in China, export profits have become thinner in competition. With the increase in labor costs, appreciation of the renminbi and the adjustment of export tax rebates this year, the profits of foreign trade shoe enterprises are even less. Many people in the industry have expressed their opinions on how to survive in the cracks. Many brands such as transformation, brand creation, industrial upgrading and so on have pointed out a broad road to foreign trade shoe enterprises. However, starting from the enterprise itself and the whole environment, how to really get out of the predicament is a real concern for foreign shoe enterprises. Indeed, improving the technological content of products, increasing the added value and creating brand are the necessary brushes for the long-term development of enterprises. However, abundant capital is a necessary condition for enterprises to upgrade their industries. But with the depreciation of the US dollar and the weakness of the international market, coupled with tight domestic credit and tight credit, the problem of capital often becomes a key factor hindering the development of enterprises. Many foreign shoe enterprises choose to sell domestically or expand domestic sales. "Our foreign market is dominated by Holland, so the depreciation of the US dollar has not had a big impact on us. Nevertheless, this year, while exporting, we also began to expand the domestic market. So far, the domestic market is not bad. Zhongshan City Jufu Shoes Co., Ltd. Miss Li said. With more and more foreign shoe enterprises turning to domestic sales, the competition in the domestic market is becoming more and more intense. Zhongshan Dongyi shoes industry obviously feel the pressure of the domestic market this year. "Because of the grim foreign trade situation this year, many foreign shoe enterprises are turning to domestic sales. In addition to the rising labor costs, rising raw materials and relatively large price fluctuations, this year's domestic market is obviously not as smooth as it used to be. Mr. Chen, sales manager of Dongyi, said. Competition exists in every industry development stage, but how to occupy a place in the highly competitive domestic market is a matter of great importance to enterprises. Although this year's domestic market is not very ideal. But enterprises should realize that the environment of shoe industry is already like this. What we have to do is to face positively, enhance the competitiveness of enterprises themselves, and enable enterprises to have the initiative in the market. Mr. Chen said.