Chongqing Shoe Companies Survive Under Cost Pressures

In recent years, the upgrading of shoemaking costs has had a certain impact on the development of footwear industry, of course, the western footwear industry is no exception.

The rising price of raw materials and the rising cost of labor are also a great blow to western shoe companies.

The cost increase directly led to the reduction of the profits of the western shoe enterprises, and the small and medium-sized enterprises with poor competitiveness fell down in the cost revolution.

In view of this, Zeng manager of Chongqing silver fox leather shoes factory interviewed the world shoe net phone, said: "in recent years, the footwear industry is not doing well in business, the cost is rising, and the pressure on enterprises is getting bigger and bigger."

In recent years, the cost of raw materials has increased by more than 15%, she said.

In addition, many of the raw materials for shoemaking come from the southeast coast, and the sharp rise in oil prices has increased the freight rate, which undoubtedly increases the cost of the enterprises.

In addition to the rising cost of raw materials, the rise in manual wages has also had a considerable impact on western shoe companies.

"The shoe factories in Chongqing are small in scale, and the degree of mechanization in shoe enterprises is not high. Most enterprises operate manually and require more labor force.

Therefore, the rise of artificial wages has a great impact on us.

Zeng manager said helplessly.

Besides, some export oriented enterprises on the coast have been converted from domestic exports to domestic ones under the pressure of rising costs, the appreciation of the US dollar and the reduction of export tax rebates.

This is like the shoe manufacturers of Chongqing silver fox, which only make the domestic market, and the increase of competitors will undoubtedly make the competition in the domestic market more intense.

In response, Zeng manager said: "the export oriented enterprises turn to the domestic market will not only cause us sales impact, but also have a great impact on the price of the products."

For Chongqing shoe enterprises, the rise of costs has led directly to the reduction of corporate profits, coupled with the serious "triangle debt" relationship between enterprises. It is difficult to recover debts temporarily, resulting in the shortage of funds for many enterprises.

Once said, "in the face of these difficulties, we are trying every means to break through.

But this kind of environment can not be changed at any moment. We can only rely on ourselves and try to make the enterprise and products more refined.

Besides, for the phenomenon of "East shoe moving westward", which has attracted much attention from the industry, Mr Zeng said, "some coastal shoe companies have moved here now, but the scale is not very large.

Because the quality of workers in the west is generally not high and the management is not standardized, the shoe companies that migrate will need some time to adapt themselves to the western environment.

Although migration is a trend, it can not be accomplished overnight, which requires a process.