The Profit Margins Of Raw Materials Increased By &Nbsp, And The Shoe Companies Frequently Took Action To Ease The Pressure.

On December 2nd, Mr. Chen from Huangyan has a shoe factory under the Hengfeng street, which has an annual output value of more than 5 million yuan.

Once worried about not receiving orders, but now that the reputation of local and low-grade shoes is growing in the country, merchants everywhere are coming.

Mr. Chen still frowned on his orders.

Mr. Chen said that the rising price of raw materials is the biggest pressure on enterprises at present. For example, a small piece of plush with high shoe edges has been maintained at 16 yuan per meter for the first two months, but it has skyrocketed to 62 yuan per meter, and the price has doubled several times.

Not only is the price of wool rising, but the price of crude oil and natural rubber have increased, and the cost of a pair of shoes has increased.

Faced with the gradual increase of raw material prices, the pressure on footwear industry is also increasing, making shoe making business feel pressure.

Mr. Chen told me that there are several specifications of shoes because the cost price exceeds the order price, in order to maintain customers, it is entirely at a loss to do.

If this continues, enterprises will have to choose to close down and shut down so as to reduce economic losses.

Taizhou Tianyi Qi shoe industry Co., Ltd. is a shoe manufacturing enterprise in Hengfeng street with its own export right and annual output value of over 100 billion yuan.

After decades of development, the company continues to grow, and its personality tends to be stable. For every order signed by the company, the cost must be carefully calculated after market analysis.

"We lock the net profit of each pair of shoes to around 20%."

Company chairman Cai Yiqin said.

According to him, there are two factories in his enterprise, and the old factory area is on the side of the shoe leather market. Although it is still in operation, the quality of the staff and the overall image of the enterprise are not as good as the new factory area of Hsin Chuan Wang.

Some time ago, the new factory passed the "foreigner" acceptance, and signed a number of production agreements, it can be said that orders were in hand at the beginning of the year.

For the current rise in raw materials, Cai Yiqin analysis said that nearly 2/3 of Hengfeng's scale enterprises will encounter "cold winter" in this raw material price rising trend.

If the enterprise's economic strength is good and the materials are well prepared, the impact will be less; if it is regular purchase, the impact will be greater with the rapid increase of raw material prices.

He said that they lock the profit target of each pair of shoes to around 20%, earn less money, and prefer to take fewer orders. Nowadays, companies are afraid to take large bills and long bills. Most of them are how many jobs they have to do.

Enterprises evade risks, frequent practical measures to alleviate pressure

In the context of rising prices of raw materials, it seems a little difficult to raise sales.

"Introducing fine management can save nearly 10% of profits for enterprises."

Taizhou Qijiang shoe industry Co., Ltd. chairman Wang Xiazeng said.

At present, shoemaking enterprises in the "meager profit" state can only try to "profit from management", introduce fine management mode, and meticulous decompose each process on the production line. By calculating the working time and rationally arranging the ratio of personnel, the wastage of raw materials will be reduced due to poor flow.

Taizhou Tianyi Qi Shoes Co., Ltd. also has a way to avoid risks.

"The order signed by our enterprises is relatively early. Although the raw materials have risen and the profit margins are almost zero, we have aimed at thousands of small businesses around Hengfeng, Mu Yu and Chengbei, because their management costs are low, and we can make these orders through the contract to them, and we can also recover the profit margins of nearly 2 yuan for each pair of shoes, and the enterprises are only responsible for sending technical backbone to small business supervision."

Cai Yiqin said.

In addition, the company will try to persuade customers to strive to float prices outside orders, so as to reduce the impact of current raw materials, appreciation of the RMB exchange rate and labor cost.