The market is forced to face new shuffles

May 16, 2019

The shoe and clothing industry, which is dominated by small, medium and micro enterprises, will still face a lot of operational pressure this year. The tight external environment will form a market force mechanism to accelerate the new round of industry reshuffle.

It is reported that the main indicators of China's shoe and clothing industry maintained rapid growth last year, and the operating situation was basically stable. At the same time, the risks faced in the operation of the industry have also increased significantly compared with the previous year. The international market is in the doldrums, raw material prices have been ups and downs, and production costs have risen. Factors such as the tightening of the environment have increased external pressure, and the growth rate of the main economic indicators of the footwear and apparel industry has all shown signs of slowing down. The growth in the number of exports and the growth of profits in the industry has been particularly noticeable. Last year, the profits of shoe and apparel enterprises under the scale only increased by about 10% year-on-year, far lower than the growth rate of shoe and clothing enterprises above designated size. Until this year, due to the weak external market, raw materials and labor costs and other unfavorable factors, the majority of small and medium-sized enterprises in the footwear industry will still face a lot of operational pressure.

The tight external environment will form a market force mechanism, which will bring about a new round of textile industry reshuffling, and the task of speeding up the adjustment of the shoe and clothing companies is also more urgent.