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Overall Profit Of Dongguan Footwear Industry

2010/10/30 10:48:00 47

Dongguan International Shoe Exhibition Shoe Machine Exhibition

  

RMB appreciation, rising raw material prices and increasing labor costs are eating away.

Dongguan shoe enterprises

The profit is a headache for many small and medium-sized enterprises.

On the 28 day of the twelfth Dongguan international shoe exhibition shoe machine exhibition, many shoe companies reflected that the pressure of increasing production costs was increasing. The overall price of the shoes products orders must be improved.


In fact, for most export processing enterprises that have just come out of the economic crisis, they are facing the pressure of increasing multiple costs.

Since the beginning of this year, rubber materials used for shoes have been the first to raise prices. After that, prices of leather, cloth and other shoe materials have also risen to varying degrees.

In order to solve the problem of recruitment difficulties, enterprises have greatly increased the wages of workers, and the risk of rising costs brought by the appreciation of the renminbi is also increasing.


For a rising production cost, one family does

Export of foreign trade shoes

The manager of the processing enterprise complained to reporters: "because of the increase in raw material prices, the cost of our export products is also increasing, while foreign purchasing quotas have not changed much.

Export products

The profit is getting lower and lower. "


Press survey also found that the overall profit of Dongguan footwear industry has become the biggest feeling for many shoe companies this year.


How can enterprises cope with the increase in costs? The salesperson of Taiwan Zhou Meng Enterprise Limited told reporters: "if the cost continues to rise, we will have to increase the price of the product orders, and the order price of our products will be higher than before this exhibition."

He also said that because of the lower profits of export products, the company has pferred to the domestic market from this year.


As for raising prices to respond to rising costs, the reporter then interviewed several exhibitors and shoe materials enterprises from Dongguan, Jinjiang and Hongkong, and said that the order price of the participating products will be improved.

It is said that the price increase will range from 5% to 10%.


In this regard, as one of the organizers of the exhibition, Zhu Yulun, chairman of the elegant fashion exhibition company, thinks that the price increase can not keep up with the pressure of rising costs. Therefore, the traditional industry operation mode of small profits but quick turnover has gone through the road. Only when enterprises take the road of independent brand can pformation and upgrading be realized.


But for raising prices, many enterprises are also in a dilemma.

"The price of the product is not going up. If we raise the price, we may lose our customers.

Without raising prices, production costs are rising, making money less and less. "

A shoe sales manager in Dongguan said.


Previous analysts also believe that raising prices is not easy, because there is no pricing power in export orders, and there is little room for negotiation.

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