Guangzhou Shoe Industry Is Facing Multiple Costs And Exports Are Shrinking.

On September 26th, in a sigh of "sad days",

The shoe industry is facing multiple costs and exports are shrinking.

From the Nansha port of Guangzhou, the car quickly turned into the Guangzhou Zhuhai east line in Panyu District's ruanzhen town. Along the way, more than 10 kilometers passed smoothly, nine ratio, Sha Jiao and Yan Sha Village. The factory's previous production scene was no longer. The factory gate on either side of the road was vacant or locked the gate.

Another more than 10 minutes' drive is the biggest shoe factory in Guangzhou - Chuangxin shoes.

"The profits of Chuangxin are constantly being squeezed, and the endurance of most shoe factories has reached a critical point."

Wu Zhenchang, a Taiwanese businessman who still has more than 16000 employees today, says frankly that the pressure is unprecedented.

Wu Zhenchang calculated a continuous profit reduction account for the author: compared with last year, the RMB appreciation increased by about 6% this year, which is a direct cost increase for businesses in US dollar pactions, electricity bills have risen by about 10%, annual wages for workers have increased by 10%, and workers' social security standards have increased by 10%.

These ratios are plated into specific figures, which are equivalent to nearly half of the profits of enterprises.

Large enterprises can absorb the pressure of rising costs because of their own funds.

Therefore, compared with most traditional shoe making and garment enterprises in Guangzhou, the situation of letter creation is relatively good.

However, in Guangzhou and the Pearl River Delta region, a large number of "three to one subsidy" and traditional small and medium-sized export enterprises, in the context of the appreciation of the renminbi and the adjustment of the export tax rebate policy, have been struggling to cope with the growing huge expenses of land, rent and labor.

Moreover, the sharp rise in the cost of enterprises will also bear the reality that costs can hardly be pferred.

As China's surrounding countries become cheaper to produce local products, once the factory increases the ex factory price, it will be reduced by other buyers' exports.

Guangzhou Shengji shoe industry is a relatively small shoe factory. Its general manager, Yang Junsheng, admitted that in order to cope with the pressure of rising prices of raw materials and various rising costs, enterprises could only cope with the way of raising prices, but faced with a shrinking market after raising prices.

Data show that in the first half of this year, Guangzhou's total import and export growth slowed down both.

Export growth rate dropped by 8.1 percentage points.

The squeeze of profit margins and export markets has brought unprecedented confidence to a large number of export oriented enterprises.

Statistics show that in the second quarter of this year, the confidence index of entrepreneurs in Guangzhou broke six consecutive quarters, the two composite index is highly prosperous.

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Expert opinion:

Foreign trade enterprises should import the top products of the industrial chain.

Chen Yanfeng, an associate professor of business management at Jinan University, believes that this unprecedented scene is mainly due to the macro policy, the rise in energy prices and the inflationary pressures brought about by them.

However, from the perspective of national macro-economic development, the environment and trend are conducive to economic development. We can adjust the state of money supply, adjust foreign exchange reserves, coordinate the relationship with trade partners, and highlight China's balance in the world economy.

According to Chen Yanfeng, inflation is expected to continue even more serious as expected.

Foreign trade enterprises should not only "export", but also learn how to "import" and import the upper end products of the industrial chain. In the adjustment process of import and export, we should strengthen the development of core technology and strive to export high value-added products in the next round of "exports", so that our country can truly move from "made in China" to "created in China".