European Orders Greatly Reduce, Taizhou Shoe Enterprises Three Ways To Stabilize The Market

Greece's general election on Sunday is affecting the global nerves. The protracted European debt crisis has not only played a whirlwind in Europe, but also affected foreign trade enterprises in Europe.

Footwear industry dominated by shoes industry

Hengfeng streets, many foreign trade enterprises have direct trade with Europe.

So, in the first five months of this year, did Hengfeng's shoe companies suffer? How did they deal with it?

Facts and statistics show that shoe companies have been greatly affected, but they are not sitting on their feet, but are taking the initiative to go out of the world.

According to the statistics released by the Wenling Municipal Bureau of Commerce in June 18th, from 1 to May this year, 20 self owned export enterprises in Hengfeng streets achieved self export volume of 36 million 310 thousand US dollars, representing an increase of 33.66% over the same period last year.

In May, self export amounted to US $10 million 470 thousand in one month, an increase of 20.20% over the same period last year.

Method 1: export to domestic sales

"Before the outbreak of the European debt crisis, one of my clients ordered 30 thousand pairs of shoes from our company last year. Only 10 thousand pairs of shoe orders have been placed this year. The economy is sluggish there, and the consumption level of the residents has dropped, and the shoes have not been sold well."

Xu Yuelin, chairman of Taizhou Yuandong Shoes Co., Ltd., told me.

Taizhou Yuandong Shoes Co., Ltd. is located in Shek Dai village, Hengfeng street. It is a self owned export enterprise. Its products are mainly exported to Europe, Spain, Portugal, Romania, Poland and other European countries.

The European debt crisis has made the euro area countries' economy decline sharply and fluctuate. Under the influence, the export volume of Far East Company has also declined sharply.

"The first 5 months

Indeed, the export volume is only about $170 thousand, which represents a negative growth of 23.19% compared to the $220 thousand export volume of last year.

Faced with such poor achievements in the first 5 months, Xu Yuelin was also helpless.

Export business is not easy to do, there are hundreds of workers in the enterprise to feed, and they all have minimum wage. It is not easy to run a company. The most important thing at present is to maintain workers and protect enterprises.

Xu Yuelin, a lively brain, saw the coming of the domestic market boom. In April, he directed the market to the mainland.

"My business is located on the Heng Shi Road. The location advantage is still good. This road has customers coming and going every day. It is not willing to sell domestic products before. Now, as long as there are customers coming to the door, the company is willing to open the model production according to the shoe samples provided by them, and the output value of the domestic business in the first 5 months has been seven yuan or eight hundred thousand yuan."

Xu Yuelin said.

Method two: abandon small customers and stabilize customers.

"As far as the current economic situation is concerned, our company will not pursue the expansion of the scale, but will be more steady in the analysis of the market and the way of the company to employ people, especially to strengthen the training and excavation of the company's management personnel."

Cai Yiqin, chairman of Zhejiang Tianyi Shoes Co., Ltd.

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Zhejiang Tianyi Qi Shoes Co., Ltd. with an annual output value of about 80 million yuan, is a Sino foreign joint venture, mainly in production.

The products are exported to Bulgaria, Romania, Argentina and other countries.

It is understood that, in the past 5 months or more, the self export volume of the company has suffered a negative growth of 45%, thanks to the impact of the European debt crisis. The self export volume in May was only 10 thousand US dollars, an increase of -98.25% compared with the same period last year, and the profits of the company declined rapidly.

In order to protect the enterprises from failing, the workers are kept away from the factory. After the reduction of a few employees, the company takes all the profits from production to protect factories and support workers.

"After the global financial crisis and the European debt crisis, enterprises have repositioned their development. Now the goal is high, and all aspects can meet the strict standards of inspection and EIA for foreigners. The quality of the products produced is good, basically reaching the quality level and price level of similar footwear enterprises in Wenzhou (except for three brand shoe companies such as AOKANG, Kangnai, Red Dragonfly).

Cai Yiqin said.

In order to develop, Tianyi shoes company has given up a lot of small customers, especially for big customers like Britain, Germany and the United States.

Method three: stable Asia, tumei Africa.

For the European debt crisis, a Wenling surnamed Shoe Co., Ltd., a manager surnamed Wang, told the author that the first 5 months of the company achieved self export volume of US $6 million 810 thousand, an increase of 84.93% over the same period last year.

At present, enterprises make up for

As a result of the loss, in continuing to maintain and further develop traditional markets in the past (Middle East UAE and Dubai, Ukraine of Europe), while striving to increase market share and market coverage, we also vigorously open up emerging markets such as Africa and Latin America, especially Sultan, Mauritania, Chad and other countries in Africa, with a view to expanding market share.

Taizhou Far East shoe industry limited pays attention to the development of Asian market.

Xu Yuelin, chairman of the board of directors, said that from June to September, the foreign trade situation of the enterprises will be improved. At present, orders have been received for six or seven months, and customers in the eight or nine month have already had the intention.

The orders for six or seven months are mainly in Philippines and Malaysia, with nearly 30 thousand pairs of orders in Philippines, which can create a self export volume of US $more than 100 thousand.

With the increasing number of enterprises fighting in emerging markets, there are also doubts about the future of emerging markets.

Cai Yiqin, chairman of Zhejiang Tianyi shoes industry Co., Ltd. believes that it is important to open up new markets, but we must recognize the purchase order again, for example, there must be a deposit or something like that.

He said: "opening up new markets is also hard to do. Customers who used to do European and American markets are now pouring into emerging markets such as Africa and Latin America, and the competition will be bigger and bigger."

To this end, he hoped that the government would regulate such practices in order to prevent further dumping in emerging market countries.