The Financial Crisis Hit Chengdu Shoe Enterprises And Small Shoe Factories Collapsed Nearly 100

The third international purchasing festival of 2008 Women's shoes capital of China closed yesterday. The impact of the financial crisis on Chengdu's shoe industry is still apparent: there is no single to take, and hundreds of small handicraft factories in Chengdu have closed down. Chengdu Yibai Shoes Co., Ltd., established in 1997, is a large-scale shoe enterprise, its main export market is Europe and America. Affected by the financial crisis, "the local orders of my partners in the United States have decreased by 10% - 20%. Fortunately, the quality of our products is excellent, and the partners promise to reduce the coastal orders to ensure our business in Chengdu.". Wu Deqing said. but small handicraft factories are not so lucky. These enterprises can only accept the redundant orders of large enterprises. Now big enterprises are afraid that they can't eat enough. How can we give them orders? Many small handicraft factories have to choose "holiday" or even close down. A data shows that about 10% of the thousands of shoe enterprises in Chengdu have closed down. there are also export-oriented clothing, toys and other enterprises. Chengdu Hemei garment is a company based in Europe and America, engaged in leather garment production and development. It exports more than 500000 sets of pigskin, sheepskin and cowhide garments annually. Last year's rise in raw material prices and the recent financial crisis have reduced the company's overseas orders by 50% year on year. "East shoes move to the west" large factory orders do not drop but increase there are opportunities under the crisis. According to the data provided by the industrial operation center of China's women's shoes capital, the number of orders in Chengdu's shoe industry is expected to increase by 30% this year, almost all due to the closure of coastal shoe enterprises. But these are mostly assembly line orders, manual enterprises simply can't digest, only those powerful enterprises can receive orders. "If you switch to assembly line manufacturing, handicraft enterprises may have a turning point." Wu Deqing said. compared with coastal enterprises, the biggest advantage of Chengdu shoe enterprises lies in sufficient labor force. Wu Deqing believes that labor shortage is an important factor in the collapse of coastal shoe enterprises.