Exports Fell By Nearly 10% Multiple Factors Forced Sichuan Shoe Enterprises Pformation

"At present, our enterprises are struggling, if we do not pform and wait for us to die, but capital is the biggest bottleneck in the pformation process."

In the shoe industry has been struggling for more than ten years of Xia Weiqiang (pseudonym) yesterday in an interview with reporters reluctantly.

Faced with the rising cost of manpower and materials, Xia Weiqiang is facing a lot of problems.

The epitome of difficult pformation.

"At present,

It is in the critical stage of pformation.

Peng Jun, chairman of Sichuan West shoe industry operation Co., Ltd., told reporters yesterday that Sichuan shoe enterprises must work hard in pition if they want to gain an advantage in the increasingly fierce market competition.

Multiple costs rise

According to the statistics released recently by Chengdu customs, the export volume of Sichuan's clothing and shoes and boots had a negative growth in 1~5 months this year.

250 million US dollars, down 9.7%; export garments and accessories 380 million US dollars, a sharp decrease of 58.6%.

Jinhua Town, Wuhou District, Chengdu, the location of Xia Weiqiang's shoe factory.

His shoe factory is a company specializing in the production of women's shoes. All products are exported to Asia, Europe and the Americas.

The number of employees in the shoe factory is over 500.

"Labor costs, management costs, raw material costs are rising, coupled with the appreciation of the renminbi.

Many enterprises are having a hard time nowadays.

Xia Weiqiang said, "as the cost continues to rise, we have to increase the price of the product. However, the increase in product prices leads to a reduction in orders, but if we do not raise the price of products, we will lose money."

He admitted that the export volume of the first five months of this year dropped by 20% compared to the same period last year. "Our current situation is struggling, and we don't know how long it will last."

"If we lower the price, we will only accelerate the death of the enterprise."

Xia Weiqiang said that their advantage is to do foreign trade, and domestic sales do not dominate.

And domestic sales are even more competitive.

Transformation is difficult in lack of funds

"At present,

"In the critical period of pformation," Peng Jun, chairman of Sichuan shoe industry operation Co., Ltd., said in an interview yesterday that the curtain of pformation of Sichuan shoe enterprises has just begun.

The inevitable choice.

"We are seeking pformation, developing new products with higher added value on the original basis, striving to occupy a base in the high-end market, rather than just compete in the low-end market."

Xia Weiqiang said.

Xia Weiqiang believes that the current channel decides everything. If there is sufficient capital, they will open up sales channels, and go beyond the middlemen to establish their sales terminals directly abroad, so that their company can gain greater benefits.

Over the long term, excessive reliance on the traditional middleman outlets for border trade ports has led to a lack of firm customer resources and a hidden danger for the development of the footwear industry in Sichuan.

Peng Jun said that in the market positioning, we must rely on the Russian market to pform to the global market, and we must pform from semi pipelining to full pipeline in terms of production capacity.

But Xia Weiqiang said: "we are in urgent need of funds to tide over the difficulties.

If we do not have enough funds, we can only imagine empty talk.