Domestic Shoe And Leather Enterprises "Increase Revenue And Reduce Expenditure" To Cope With Rising Cost Pressure

In November 30th, there were 57.9% of the respondents in the survey.

Wu Jianguo, general manager of the Qing Mei shoe material factory, told reporters: "rising costs not only directly compress the profits of enterprises, but even have reached the point where shoe material enterprises are living.

As the cost fluctuates too much, some smaller shoe materials enterprises have reached an unsustainable situation.

When asked about the reasons for the rise in costs, "upstream"

At the same time, many enterprises in the survey also said that in addition to the price of raw materials, labor costs are also one of the reasons.

In order to solve the problem of difficulty in recruitment and hard work, enterprises have to make great efforts to improve workers' living environment and improve their treatment. This increase in expenditure has also largely led to an increase in the cost of production.

"Increase revenue and reduce expenditure" to cope with rising prices

Rising costs are constantly squeezing the profit margins of enterprises, but shrewd bosses will not sit idly by and watch their profits being eroded.

In the survey, we found that "increasing revenue and reducing expenditure" is the most common way for enterprises to cope with rising costs.

84.2% of the enterprises said they would consider "appropriately raising their own product prices". 52.6% of the enterprises thought that "improving the added value of products" is a more effective way to expand the profit space. At the same time, more than 89.4% of the enterprises clearly indicated that they would "strive to strengthen internal management and reduce internal costs".

He Bangqi, executive manager of Xingye leather Polytron Technologies Inc, also believes that strengthening internal management and reducing internal costs is one of the most direct and effective methods.

In the process of interview and investigation, many enterprises have repeatedly mentioned that we should strengthen management and reduce internal costs. We can see that the concept of "throttling" has already penetrated into the minds of many Jinjiang entrepreneurs.

It is true that improving efficiency and reducing internal friction are the enterprises' development in the process of development. But this is even more important when production costs continue to rise and profit margins continue to shrink.