The economic downturn has had a serious impact on shoemakers in Wenzhou, China. However, it seems there may be light at the end of the tunnel for some.

According to the Lucheng Footwear Association, based in the shoemaking hub, claims that, of its 402 members, 254 companies are producing as normal, while 112 members have been forced to close and 36 have temperately suspended operations. The main reasons for this are general economic conditions and the closure of an important footwear market in Moscow, Russia. Other problems such as difficulty in obtaining credit and general pessimism among retailers and consumers have also taken their toll.

Sales fell 10% during the first six months of 2009, while profits fell 13%, export value fell 11% and industrial output value fell 10% compared with the first six months of 2008. However, prospects seemed a little brighter in June with sales rising 13%, profits up 14%, export value up 32% and industrial output up 16%.

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