The increasing cost of materials hurts the development of manufacturing. Of course, shoes industry cannot avoid it, either. However, a large number of shoes enterprises in Wenzhou alleviate the pressure from increasing cost by purchasing materials all over the world.
At present, Wenzhou Jierda Shoes Co., Ltd bought some oxhide from abroad. According to its manager of foreign trade department, Mr. Mao Jiancheng, the raw materials for shoes surged last year. Take cow leather for example, its price increased 20%. This incredible growth of cost lays a heavy burden on enterprises. Fortunately, Jierda Shoes Co., Ltd got in touch with foreign suppliers early in 2008 and is approved to do processing trade. Now, 90% materials of Jierda are imported. India, Pakistan and South America are all its import bases.
According to officials of Wenzhou Customs, the way Jierda employed is called processing with imported materials, which is a way of processing trade. What's more, there are 306 companies employing processing trade this year. Over 30 are shoes companies. It becomes very popular among Wenzhou shoes enterprises to purchase oxhide all over the world.
