Hundreds of millions of people wear Huidong shoes in crisis

Once upon a time, Huidong County, Huizhou City, Guangdong Province, which has the reputation of "the capital of China's women's shoes," is known for its Huidong shoes, which are known both at home and abroad. At home, more than 300 million people have worn Huidong shoes (Guangzhou Daily reported on November 19, 2002); in foreign countries, Huidong shoes are exported to more than 50 countries and regions such as Europe, Japan, the United States, and South Africa. Whether it is the Canton Fair, the Expo, or the International Leather Fair in Dusseldorf, Germany and Milan, Italy, foreigners are full of praise for Huidong shoes.

Nowadays, according to the customers of China Manufacturing Network, the entire Huidong County shoe factory surprisingly has no business, and many of them are closed and deserted. Not far from 08.

Increase in the price of leather raw materials

Relevant data show that this year's leather prices rose around 20%. According to the survey data from Haining, the “Leather Capital of China”, high-quality sheep skin has increased from 24 yuan per foot to 29-30 yuan per foot from a year ago. The price of suede per foot has soared from 28 yuan to 52 yuan per year. Doubled, the price of cowhide rose by 50%. In April 2009, the price of a cow hide imported from Argentina was 18 US dollars, and now it has risen to more than 80 US dollars. ”

Electricity shortage

The current general condition of many shoe companies is that there are three days in a week. They must stop production of electricity during the period from 9 am to 11 am, from 2 pm to 5 pm, and from 6 pm to 9 pm to protect residents' electricity use. Wait.

Many business owners admit that among the many unfavorable factors that affect business operations at the moment, electricity shortages may have the greatest impact. Without electricity, production will have to stop and will directly affect the receipt and sales of orders.

Labor shortage

Many shoe companies located in Wenzhou Lucheng’s “China Shoes Capital” still hung with recruitment information signs in front of the door, and it seems that they have not withdrawn. Of the 855 enterprises surveyed by the Wenzhou Municipal Economic and Trade Commission, 74.5% indicated that they were relatively short of employment, which was an increase of 14 percentage points over the same period of last year. More than 10% of companies with employment gaps are more than 80%.

The shortage of employment also makes the company's labor costs rise rapidly. On the whole, the labor cost of enterprises has generally risen by about 20%.

In addition, since the beginning of this year, due to the acceleration of renminbi appreciation, overcapacity, substantial increase in factor costs, and financing difficulties, the development of footwear companies has become more difficult.

We will turn our attention to 2010 and see how Huidong Shoes survived and developed after the financial crisis. At that time, in spite of the financial crisis, the anti-dumping measures of the European Union's shoes, and the "labor shortage" and other unfavorable factors, some companies suffered from production shutdowns and closures, but the vast majority of powerful companies still showed tenacious The vitality survived the predicament of the financial crisis. Some shoe-making enterprises that rely too much on OEM and processing trade are also forced to embark on the second entrepreneurial road of industrial upgrading, brand creation and transformation of trade growth patterns.

Hope that Huidong shoes can still show strong vitality. Huidong shoes, good luck.