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Footwear production firms prefer a slow stride
May '08
Footwear manufacturing enterprises in China are facing a setback as a result of a slew of negative factors that have ceaselessly impacted the industry in many ways.

Not only have the packaging charges increased by 30-50 percent, the cost of raw material has also hiked considerably. For instance, prices of soles went up by 30 percent while the salary of the workers climbed 21 percent high.

Since the industry is in no state to keep up with these changing market trends, shoe manufacturing units are finding it difficult to employ and retain workers.

Jingjiang City of Fujian Province is by far, the biggest shoes production base in China, accommodating some 3000 manufacturing enterprises. Of these, nearly 80 percent are export oriented firms and therefore are the worst victims of these inflationary changes.

Local entrepreneurs are afraid of accepting any more orders because entering production at this phase would only lead to further losses. Already in 2007, about 200 local manufacturing enterprises have surrendered to the circumstances and have opted for a close down. In the days to come, experts are anticipating an increase in these numbers.

Fibre2fashion News Desk - China

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