Thailand Shoe Makers Face Challenges, Falling Demand And Rising Costs

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< p > from Thailand, a local male leather "a href=" //www.sjfzxm.com/ "target=" _blank "shoes < /a > manufacturer FREEWOOD international company news, Thailand leather shoes manufacturer is facing pressure on price rise due to the shortage of raw material skin and the pressure on consumers to buy fatigue.

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Surachai Alongkornchotikul, managing director of the local company, said that in order to achieve sustainable development, small and medium-sized enterprises like them need to adjust to higher costs, improve quality and establish a href= "//www.sjfzxm.com/" > brand awareness < /a > P.

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< p > leather shoes are not a high growth industry. He said that FREEWOOD has been in the shoe industry for 26 years, with an annual sales revenue of 80 million baht to 90 million baht.

However, Maori has been declining due to the high cost of raw materials, especially the cost of raw materials.

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< p > he said that the shortage of "a href=" //www.sjfzxm.com/news/index_x.asp "raw material skin < /a" resulted in the closure of some tanneries, while other tanneries had to import from abroad.

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In the operation cost of < p > FREEWOOD, the cost of raw material skin accounts for 40%, followed by wages.

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Leather shoes manufacturers, including P, including FREEWOOD, have to raise prices to share costs while increasing distribution channels.

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< p > Surachai believes that the model of leather shoes industry is similar to that of automobile industry. Every time the price is raised, consumers can accept and afford the new price.

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< p > he said that even if the company's sales have maintained steady growth over the years, the reduction in purchasing power this year will be a great challenge for the company to get 20% sales growth.

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< p > in fact, sales in the third quarter fell by more than 20% over the previous quarter, and sales are expected to be better than last year.

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< p > although the local shoe industry has only four or five brands, the competition is fierce, and the price war has been greatly reduced, and the gross profit margin has been reduced.

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< p > FREEWOOD does not think that wage cost is a big problem. The company pays the skilled workers about 700 baht to 800 baht daily.

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< p > the company realizes that it has a large number of < a href= "//www.sjfzxm.com/news/index_c.asp" > skilled technology < /a > workers can ensure the quality of products. Besides subcontracting products, they are stepping up training for their employees.

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