Nowadays Chinese shoemakers are bearing a huge pressure as the increase of raw material price, one of shoemakers in Huangyan area, Taizhou city said these shoes we are working on are completely at loss as production costs exceed the order prices, our profits margin dropped sharply.
Price hiking is a biggest issue for shoemakers because our net profit is fixed at 20%, we have less saying on raising price, what we can do is to cut our production said Taizhou Tianyiqi Footwear, one of largest shoe producers in Hengfeng street with annual output value of 100 million yuan.
Others in these areas take various measures to avoid the risks brought by material price hiking, on one hand they introduced a fine management model in production and save a lot by rationalizing of the production line and personal, on the other hand the largest shoemakers distribute their orders to small and medium sized plants on surrounding areas as they have low production costs.
In addition they increase the sale prices properly with agreement of buyers because they know market has chanced. CITATION http://www.chinaleather.org/eng/show.php?itemid=5620
Price hiking is a biggest issue for shoemakers because our net profit is fixed at 20%, we have less saying on raising price, what we can do is to cut our production said Taizhou Tianyiqi Footwear, one of largest shoe producers in Hengfeng street with annual output value of 100 million yuan.
Others in these areas take various measures to avoid the risks brought by material price hiking, on one hand they introduced a fine management model in production and save a lot by rationalizing of the production line and personal, on the other hand the largest shoemakers distribute their orders to small and medium sized plants on surrounding areas as they have low production costs.
In addition they increase the sale prices properly with agreement of buyers because they know market has chanced. CITATION http://www.chinaleather.org/eng/show.php?itemid=5620
