The Survival Dilemma of Wenzhou Shoe Factories
In October 2021, just a month or so, most Wenzhou shoe factories are difficult to survive. Factory owners are in an unusually complicated mood, facing today’s situation and wondering how long they can hold on.
At the beginning of September, most of the shoe factories in Wenzhou were doing very hot business, with waves of importers coming in every day to place orders. What made the factories more happy was that the goods sent out in July and August had a good market response. Every day there are thousands of tens of thousands of return orders back, some customers in order to receive the goods as soon as possible, the payment was remitted in advance. At the same time, recruitment problems that make factories headache before,after July and August various incentives, each workshop are basically full of employees. All kinds of good news let the bosses full of confidence, decided to do a big job in October to make more money.
However, it hasn’t reached October or the end of September, the Chinese government promulgated a policy of limiting electricity. This made the bosses motivated originally , suddenly became weak like a frosty eggplant. However, in order to fulfill the orders placed by the guests, some factories endured the pain of purchasing hundreds of thousands of generators, while others adjusted their employees’ working hours and let them start working night shifts.But after a few days, the generators were confiscated and the employees left because they were not used to night shifts.
What made the boss feel more devastated was that at this time, received price increase notices from suppliers one after another. In a pair of shoes, the essential sole directly raised the price by 0.2-0.3 USD. The most common artificial leather price increase of 0.8-1.3 U.S. dollars per meter.Other kinds of shoe materials will not be listed one by one. The upstream suppliers have increased their prices, but the downstream shoe manufacturers are unable to increase their prices so drastically. Because the importers simply do not accept, so the consumers of the market will not go to buy shoes.
So some of the strength of the shoe factory bosses, after some deliberation, had no choice but to dissolve the factory, some are simply closed down. In the past month, Wenzhou shoe factory closed down a number of shoe factories. The most serious when Wenzhou Shuangyu, many workers are now reluctant to go to work there. Because a little carelessness, hard-earned money is gone.
Large rivers have water to supply small rivers and streams and vice versa. The boss has a hard time, as a worker, the day is even harder. Recently, some people have returned home with their luggage, some sleep in the park all day, some spend a day on the job market, expecting to find a new job as soon as possible.
Hope this will end soon, the working people can earn a little more money to go home for the New Year.
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