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Dongguang footwear: more orders booked less profits earned

Dongguang footwear: more orders booked less profits earned

Write: Emmanuel [2011-05-20]

For most shoemakers in Dongguan city the impact of economic crises has been gone, rebounded footwear orders are not pleased thing for the owners of shoemakers because the shortage of labor remains for several months.

A job fair took place in Houjie plaza on October 24 that attracted few job seekers compared with more than 4000 jobs provided by enterprises. One of shoemaking owner said on the job fair we are here for employing a large numbers of worker, few of workers came to us for jobs.

The Dongguan Leather and Footwear Association said that labor shortage in Dongguan city can’t be ease in a short time, because of this reason many shoemakers have to cut the orders book and reduce production.

This is not the biggest problem for our shoemakers, fluctuation of RMB and raw material price hiking absorb our profits significantly, said Ms Zhou, in a foreign trade department of Liaoxia Footwear Sale Center, and adding that upper leather soared 30% in recent three months.

One of shoemaking owners said although we received enough orders, it seems our business quite good but our profit becomes less and less, if such situation continues going on we can’t stand such pressure.