Over The Past Year, More Than 1000 Pearl River Delta Shoe Enterprises Have Undergone Pformation Pains.

The processing trade of Pearl River Delta is undergoing pformation pains, and thousands of shoe enterprises have closed down recently.

The closure of shoe enterprises is a crisis or a turning point for the processing trade, causing widespread concern inside and outside the industry.

Asia Footwear Association is an influential industry organization in the Pearl River Delta region. Li Peng, Secretary General of the association, said there were five thousand or six thousand shoe factories in Guangdong, and more than 1000 were closed in the past year.

The shoe industry that closed, including shoe factories, supporting materials factories, shoe machine factories and footwear traders, is mainly small and medium-sized, and there are more than a dozen Taiwanese shoe factories with thousands of people.

These closing businesses account for 10% to 15% of the footwear industry in Guangdong Province, involving 150 thousand to 200 thousand employees.

"Although the closure of thousands of enterprises, but its capacity is not as good as a leading enterprise."

Li Peng, for example, said, "Baocheng group is the largest shoemaking enterprise in the world, and there are more than ten million employees in Dongguan. Over 25% of the world's high-end sports shoes come from this group."

The industry believes that the production capacity of Guangdong shoe factory has already been surplus, and the closure of small and medium-sized enterprises is the result of the survival of the fittest in the market, which has not much negative impact on the industry.

"The Chinese footwear industry, especially the footwear industry in Guangdong, is a real crisis if it does not achieve industrial upgrading without changing the backward competitive way of price war.

Now the so-called crisis facing the footwear industry is a turning point.

Wang Ying, Secretary General of the footwear branch of China Light Industry Crafts Import and Export Association, said in an interview.