Profits Are Squeezed By &Nbsp; Professional Shoe Cities In The Pearl River Delta Are Facing A Survival Crisis.

The February 14th hearing began in 2005, and the Pearl River Delta region, especially Guangzhou and Dongguan, represented a new round.

In 2008, when the unprecedented global financial crisis hit China, the market expansion of the footwear industry in the Pearl River Delta region was once heated, and many new projects under construction and construction were aborted and some aborted.

The frying wind is gone overnight, and the high rent has dropped sharply.

At the end of 2009, despite the news of the economic collapse and collapse of individual European countries, the fact that the global economy stabilized and resumed the fact that the economic downturn had been concealed, and the resumption of growth in the footwear industry in Europe and the United States began to recover, and the market prospects seemed clear again. Therefore, the market operators had lost no time to increase their rents, and the rental market was beginning to recover, but this did not make us happy.

At the beginning of 2010, the US dollar entered the devaluation channel, and the international bulk raw materials prices rose sharply, and soon spread to the domestic market. The prices of all kinds of daily goods rose steadily. From one product to another, the price rising wind was like infectious disease, which quickly spread to all kinds of necessities of daily life.

The rising cost of labor, resources and energy leads to the superposition of various costs of production and operation, which makes the cost of production enterprises and operating households skyrocketing.

However, the price of the terminal market is affected by the foregoing factors, not only to suppress people's consumption demand, but also to mention a certain level of price.

The increased costs are stacked between manufacturers and market traders, making them unbearable.

The appreciation of the renminbi and the depreciation of the domestic sector have squeezed commercial trade in two aspects, namely, export and domestic sales.

Labor costs increase while labor difficulties also perplex enterprises.

Under the background of deteriorating business environment, huge market scale and business operators, and the sharp reduction of market pactions, have made many operators unsustainable.

As early as a few years ago, the author summarized the leather business format in the Pearl River Delta region. No matter in the shoe and leather market, many large businesses that have made great achievements and small businesses or even new businesses have been kidnapped by market developers.

Large merchants buy office buildings, buy stalls, fry files, and small businesses enter the market at a high price. All the hard-earned money is sent to the purse that developers will never fill.

Later, the market declined, the fry people were quilt, but no matter whether you have business or not, the management fee is high. Developers can always earn money.

In the fourth quarter of 2010, for the shoe industry, whether it was foreign trade or domestic sales, it was hard to make money.

All kinds of costs are still rising, and the order and the unit price are the opposite.

Many operating households will not continue, which will directly threaten the continuous operation of various professional markets.

As we all know, the professional market does not dare to be neutral. If a market can't open 1/3 of its stalls, then the market will be finished.

So, near the end of the year, we see that the rent reduction of the professional market has once again blown up, and this time is more violent than the last financial crisis.

I saw in a high-grade leather professional market in Guangzhou, stall rents fell to 70 yuan per square meter per month, office rents and even reduced to 30 yuan / square meter, returned to the level of 10 years ago.

At the peak, the price was 998 yuan and 200 yuan respectively.

Because of the high cost of channels and channels and the small profit margins of production enterprises, in order to survive and enhance competitiveness, dredging channels, shortening access, minimizing intermediate links and realizing direct docking between manufacturers and manufacturers will be the general trend of the future industry, so the volume of pactions on the market will be less and less.

Although the rent of the professional market has dropped a lot, the management fee of 20 yuan to 30 yuan per square meter per month is still a burden for operators.

For market developers and speculators, a bigger crisis may have just begun.