Russian expert: The Russian footwear industry is on the verge of extinction!
Because it is easier to import from China.
On June 20, Russian media published an article by an expert.
The current state of Russia's domestic footwear production is in a terrible condition.
Elena Afonina, leader of "First Russians," paid attention to the situation of the largest shoe manufacturer in Chelyabinsk.
This factory, which produces 3 million pairs of shoes annually, is on the brink of closure.
In the past six months, this situation has only worsened, as confirmed by lawyer Alexei Petropolsky, head of the Federal Bureau for the Protection of Entrepreneurs' Rights in Russia.
He explained that producing one's own products in Russia is very expensive. Not only does one need to rent space, but also hire staff.
The problem also lies in the fact that although Russian entrepreneurs mainly operate through loans, even access to credit is now restricted.
"An annual interest rate of 28% has become the norm. Finding cheaper money is almost impossible; banks require bonds and guarantors. All these make starting or expanding production almost unrealistic."
Point-to-point measures have not fundamentally changed the development of this business sector. In fact, the cost of its products is two to three times that of Chinese products. And the quality may not always reach the correct consumer level.
If the current situation continues, domestic goods may disappear from counters.
Without structural reforms, incentives, and protection for businesses, the market will surely be dominated by Chinese products.
A netizen named "Valley Silver Lily" sighed:
We can only trade with oil. No shoes, no TV, no phone, and no refrigerator---
Source: https://www.toutiao.com/article/1835400798340119/
Disclaimer: This article represents the views of the author alone.