Rising Prices Of Raw Materials Have Made It Difficult For Shoes And Clothing Enterprises To Open Up International Markets.

Nowadays, shoes and clothing enterprises generally say that "last year was a good economic figure and a bad sense of income. This year it is a bad income and bad economic figures". At present, the difficult situation of the shoe and clothing market is even more serious than that of the financial crisis in 2008.

The reason for this is that in the financial crisis, countries have been fighting against the "desperate drugs" to save their economies in their respective circumstances. After 4 years, the medicine has gradually subsided, and the subsequent adjustment methods can not immediately effect, resulting in the weak demand in the global market.

In contrast, the domestic market, such as tight fiscal contraction, high market inflation, rising labor costs, low consumption of shoes and clothing products and high RMB exchange rate, have led to a reduction in orders and a sharp reduction in profits.

When these situations are not effectively alleviated, new uncertainties continue to emerge, which further aggravates the difficulties of the footwear industry.

From the international market, the United States signed a free trade agreement with Korea, Mexico and other countries.

The export of shoes and apparel products in these countries has gained huge market opportunities under the advantages of a substantial reduction in tariffs.

Originally, domestic shoes and clothing products are famous for their high quality and low price in the international market.

This is one of them.

Second, countries that have signed free trade agreements can get cheaper raw materials.

It is reported that the price of cotton imported from the United States is about 2000 yuan lower than that of cotton imported from China.

Thirdly, in the world's four largest importers of machinery, Bangladesh's equipment is no less advanced than ours, and the price of cotton yarn is far lower than that of our country.

To make up for the shortage of domestic market, our country imports large quantities of cotton yarn from Pakistan and India every year.

China has implemented decades of cotton slip tax, which has increased the cost of raw materials and greatly reduced the competitive advantage of the industry.

From the domestic market, after the Spring Festival of 2011, China implemented a fiscal tightening policy to curb inflation, and its role was fully reflected in the second half of last year.

For a time, the liquidity and order of shoes and clothing enterprises decreased significantly.

Some shoes and clothing enterprises reflect that enterprises can get a certain amount of cash payment in the first half of the year, and only a small number of acceptance bills are available in the second half of the year.

Although there are time and operational problems in the process of cash acceptance, it is not easy for some shoes and clothing enterprises to get the acceptance bill this year. As for cash demand, they dare not expect it.

Although various factors at home and abroad affect the footwear industry in China, it is an indisputable fact that the capacity growth of footwear industry in China continues to grow.

The capacity of coastal areas has been shifting to the central and western regions. The expansion of the Midwest production capacity has also increased the potential crisis of China's footwear industry.

From the demand side, the world economic recovery slowed down, resulting in the reduction of orders in the international market.

From the supply side, in order to cope with the international financial crisis, countries generally adopted a loose monetary policy, making 2011 the most serious raw material crisis in the footwear industry.

It is precisely because of the first and last attack of the industrial chain that many enterprises admit that "the difficulties ahead of 2012 should exceed that of the 2008 financial crisis."