Production Cost Increases Squeezing Sales Profits Of Foreign Trade Footwear Industry

along with subprime crisis , European debt crisis Upgrading, international trade barriers against domestic footwear in China are not intermittent. At present, the cost of raw materials and labor costs continue to operate at a high level, and the exchange rate of US dollar and euro continues to decline, and the profits of enterprises are continuously compressed. At the same time, protectionism in the international market is on the rise again. The European and American markets are constantly improving their technical barriers. Some emerging market countries also frequently trade protectionist measures, and the threshold for footwear exports is further uplifted.

It is understood that the domestic footwear Mainly exported to North America, Europe, the Middle East, Africa and other markets, and at present, the European and American economies are in turmoil, four African countries are suffering from smoke, and the purchasing power of global consumers is declining, which has a direct impact on the export of footwear in Taizhou.

According to a recent survey by the shoe leather association, the domestic inflation pressure has greatly increased the production cost of shoe manufacturers this year.

In recent years, the wage of the domestic footwear industry has increased by more than 15% per year, plus the cost of improving the labor environment, the production cost has increased by 20%.

On the other hand, it is more and more difficult for enterprises to borrow from banks, and then turn to private lending with high risk and high interest. In addition, with the profits squeezed by the appreciation of the renminbi, corporate profits are getting thinner and thinner.

　　 Appreciation of RMB Enterprises are feeling the unprecedented pressure. One side is the loss of enterprise orders, while the other is the rising cost, which has seriously led to a sharp decline in the profit margins of enterprises. The speed of our business has caught us by surprise.

According to the insiders, under the current economic situation, every shoe enterprise should tap new market from its own development status. Large brand enterprises need to know more about the market, further consolidate the brand of enterprises, set up distinct brand flags, and small brands need to continue to promote brands and achieve strategic layout with dots.

Nowadays, there are many visionary. Footwear for foreign trade Enterprises have been preparing for a rainy day in hardware and software, using the opportunity of RMB appreciation to carry out equipment upgrading and upgrading, so as to reduce costs, improve production capacity and product quality to expand the market.