Rising Cost Of Footwear Exports In Dongguan

Affected by rising costs and other factors, the export of shoes in Dongguan has declined.

According to the statistics of Whampoa customs Changan office, 1-5 pairs of shoes exported from Dongguan in the year of 250 million this year decreased by 8.5% compared with the same period last year. The value was 1 billion 20 million dollars, an increase of 16.4%; the average export price was 4.1 US dollars / double, up 27.3%.

Exports to the US dropped by 12.7%

The United States has always been a major market for shoes exports in Dongguan, but with the weakening of the US economy, the outbreak of the subprime mortgage crisis has led to a decline in domestic demand and Dongguan footwear exports to the US have declined.

In 1-5 months, Dongguan exported 170 million pairs of shoes to the United States, down 12.7%, but still accounted for 69.1% of total exports.

In the same period, 18 million 650 thousand pairs of exports to Japan fell by 8.7%, and 12 million 960 thousand pairs of exports to Hongkong increased by 56%.

Exports to the EU increased by 24 million 820 thousand pairs, a slight increase of 2.6%, but only 5 million 988 thousand pairs of leather shoes exported to the EU dropped by 2.8%.

From the perspective of export varieties, the main varieties have been reduced in price.

In 1-5, 98 million 350 thousand pairs of shoes and boots made of rubber or plastic outsole and upper shoe were exported by Dongguan, which dropped 14.3%. The average price was $2 / double, rising by 29.9%. The export of other rubber, plastic or recycled leather outsole, leather shoes upper 60 million 580 thousand pairs of shoes, 10.1%, the average price was 5.8 dollars / double, 36.9%.

Cost increase and profit decline as the main cause

"Rising costs, declining profits and anti-dumping are the main reasons for the reduction in the export volume of Dongguan's shoes."

Customs analyst said.

It is understood that as the international oil prices continue to rise, driven by plastics and other raw materials and footwear prices continue to rise, the cost of footwear industry continued to rise last year.

According to relevant sources of Dongguan oasis shoe factory, the rise in international oil prices has led to soaring prices of raw and auxiliary materials for shoes making, and the price of raw materials and accessories for export footwear has increased notably. The cost of a pair of craft shoes has increased by more than 15%.

In addition, the continued appreciation of the renminbi and the implementation of the new labor contract law also promote the high operating costs of enterprises.

The export tax rebate rate cut further reduced the profit margins of shoe companies.

Customs said that in July 1, 2007, the state reduced the export tax rebate rate of footwear products by 2 percentage points, further compressing the profits of shoe-making enterprises, and significantly reduced the willingness of enterprises to export.

In addition, Dongguan's restricted export of leather shoes continued to decline due to anti-dumping.

In response, customs analysts suggested that the government should encourage enterprises to adjust the structure of export products, increase investment in research, increase the export volume of high value-added shoes, and implement the strategy of quality win and brand internationalization strategy.

At the same time, we should actively guide enterprises to implement the "going out" development strategy, set up factories overseas, and sell them on OEM.