China'S Footwear Industry Exports Equal Emphasis On Internal And External Trade

Reporters interviewed learned that the "EU shoe case" has been good news, but affected by the RMB appreciation, labor and raw materials and other factors, domestic export shoe enterprises are still facing many challenges.

It is the consensus of many domestic shoe companies to increase the added value of products, reduce costs effectively and raise the difficulty of both domestic and foreign trade.

Shadows still exist

In recent years, the trade friction case "export shoe" has finally settled.

In October 28th, the World Trade Organization (WTO) expert group ruled that the EU's anti-dumping measures against Chinese leather shoes for 5 years were irregularities.

Reporters learned from many shoe exhibitors that this is a good news, but export shoe enterprises are not optimistic in a short time.

It is understood that the overall situation of shoe enterprises in Wenling is not optimistic, many small factories and so on have not been able to stop production or even go bankrupt.

Some enterprises said that the recovery of the market slowed down due to factors such as the European debt crisis.

"All of them are regular customers, and orders are not much better than last year."

"In order to deal with such trade barriers set up by the European Union, enterprises have made difficult adjustments in product mix adjustment.

Although anti-dumping duties are no longer levied, it is not so easy for companies to return to their original product mix. "

Huang Wanyi, deputy general manager of Zhejiang Dongyi shoes industry Co., Ltd. said, "the market has changed greatly over the past few years."

Earlier this year, EU anti-dumping duties on Chinese footwear products expired, but reporters learned that many companies believed that "even without anti-dumping means, other means can be adopted."

For the practical significance of the WTO ruling, most enterprises indicated that it is necessary to dialectically see that a ruling does not mean that Chinese shoe companies can avoid injuries in the future. After the ruling, the EU may take more measures to take anti-dumping measures against Chinese enterprises. But the various anti-dumping investigations with the European and American economic crisis are more likely to be passed on to the domestic economic crisis.

Chinese enterprises should deal with them cautiously.

At the same time, emerging markets are becoming less secure.

For example, the Latin American countries' restrictions on the export of Chinese footwear products will affect the Latin American market of China's footwear exports.

Many problems

Statistics show that in the first three quarters of this year, the average export price of China was higher than that of the same period last year. After deducting price factors, the actual export volume increased by 11.7%, down 20.1 percentage points from the same period last year.

Among them, the export price of footwear products increased by 15.8%, after deducting price factors, the actual export volume increased by 3.2%.

This shows that price rise has become the main reason for the rapid growth of footwear exports.

"This price increase is obviously affected by a variety of domestic cost factors."

Many interviewed owners said that profit margins did not increase.

Guo Weiwen, Secretary General of the anti dumping alliance of China's European Union of leather shoes, said that around 2008, some OEM enterprises had shifted. The main purpose was to circumvent the EU's anti-dumping rulings and other international trade frictions and trade barriers, but now the situation is different.

The relocation and pfer of large scale foundry enterprises is mainly due to the rising prices of domestic production factors, which affect the global market layout and profitability of these capitals.

The appreciation of the RMB exchange rate also squeezed the profit margins of export shoe companies.

Many interviewed owners said that the appreciation of the renminbi brought more serious damage to export oriented enterprises than the rising cost of raw materials and labor.

In addition, the European and American countries have adopted the technical barriers to trade such as environmental protection standards, safety and ecological certification, corporate social responsibility review, set up their own favorable standards, and set up many obstacles for China's footwear export.

Take a heavy burden and embark on a long road

In the case of shrinking international market demand, China's footwear exports have to bear much pressure.

Domestic shoe enterprises are facing the "bottleneck" of exports. For enterprises and products, the biggest problem is that "made in China" has entered the era of high cost. Only by changing the way of development and speeding up the adjustment of industrial structure can enterprises ease the "export difficulty".

"We must realize that in terms of low end capacity, we have no advantage over the neighboring countries and regions.

In the European and American markets, most of them were "made in China" 5 years ago, and now "made in Egypt" and "made in Vietnam" can be seen everywhere.

Only by combining prices and manpower, there is no way out for labor-intensive industries.

Jiangsu High Hope International Group Corporation Limited vice president Jiang Jinhua said.

Efforts to expand the independent brand and improve the added value of products are also the way for export shoe enterprises to survive.

Only in this way can we effectively guard against all kinds of "anti-dumping investigations" with the aim of pferring their own crises.

Luo Chunyuan, commercial director of Zhejiang Taizhou Xinbao Footwear Co., Ltd. believes that from the present point of view, it is still necessary for the emerging areas to replace China's position in the middle end industries, because they also need supporting facilities.

In addition, efforts to drive a two wheeled vehicle and take the business mode of both foreign trade and domestic sales are the directions for exporters to explore.