Export Bottlenecks In Guangdong Shoe Leather Market Development

The construction of visible and virtual markets in Guangdong.

How can we build more professional markets for the Pan Pearl River and Mainland China?

And promote the development of manufacturing and logistics industry with these professional markets?

How to encourage companies based on the Internet to develop faster and better in Guangdong?

The balanced development of Guangdong's industry and service industry's domestic market and overseas market.

When the domestic market becomes an important reliance on Guangdong's economy, what links should Guangdong improve to make domestic market development more efficient?

Enterprises now achieve high popularity through huge advertising, and then get funds through listing. However, an enterprise should pay more attention to stable and stable business. Otherwise, many stores can not maintain the network, there are sales difficulties, and stores in all parts of the country are all losing money, and enterprises will eventually be unable to bear.

Zhang Guoreng, engineer and association consultant of Guangdong Household Textile Industry Association

Guangdong enterprises can not compete with their rivals in terms of product prices, costs and production scale, but should achieve dislocation competition.

Using the best production links of Jiangsu and Zhejiang to serve the Guangdong enterprises, the core R & D, design, manufacturing and so on remain in Guangdong, and bring higher added value to products through the design innovation and service marketing of high-end brands.

Huang Jinquan, President of Guangdong Household Textile Industry Association

Backed by the vast mainland, facing the vast international market, unique geographical and commercial advantages, Guangdong's foreign trade industry has always been in the forefront of the country for many years. Especially since the reform and opening up, Guangdong has always firmly occupied the first place in foreign trade export.

But in recent years, the most important export development in Guangdong has encountered a "bottleneck". Many overseas markets of industrial products have already touched the ceiling.

As an export processing and manufacturing enterprise with traditional advantages over the years in Guangdong, the weakening of market dominance is more obvious.

From a large international environment, in recent years, the exchange rate of RMB against the US dollar has been rising, making the price advantage of export products no longer; and the adjustment of national industrial policies such as export rebates and so on, has made the operation of Guangdong enterprises worse.

From the operation of enterprises, the shortage of land, the rise of labor prices and the drive of raw material costs, "forcing" enterprises to find new outlets.

In the overseas market, especially the European and American markets began to shrink, the international market "ceiling" appeared, the potential is getting smaller and smaller, Guangdong enterprises began a difficult pformation, the focus shifted to the domestic market appropriately.

Once upon a time, the professional market in Guangdong became famous in China and even internationally.

But on the other hand, the dispersion and independence of many markets also make the impact of single market limited.

In the new economic era, the virtual market is a bigger and broader market. Guangdong has not won the first prize, but professional online business, including Alibaba, has been in full swing in Jiangsu and Zhejiang.

How to find new potential markets, how to integrate visible and virtual markets, build huge networks and achieve more coverage is another major problem to be solved urgently in market breakthroughs.

20 years ago, when Ms. Li came to Guangdong, almost all the factories were processing export products.

When she returned to her hometown wearing an export garment, she attracted many envious eyes - this is Guangdong's clothes.

20 years later, Ms. Li has owned a clothing company, and her products are sold to China, and she has no aura of "Guangdong goods". Ms. Li will face strong competition from Jiangsu and Zhejiang clothing.

In order to develop the source of goods, Miss Li, who does not know the Internet, has set up e-commerce for the company, and arranges specially for people to take charge of online trade.

Ms. Lee's situation is also a microcosm of a large number of enterprises in Guangdong.

With the change of market situation, the direction of enterprise market expansion has been gradually adjusted.

With the development potential of the international market getting smaller and smaller, more enterprises begin to shift their focus to the domestic market.

On the other hand, new technologies including the Internet have also become a new weapon for enterprises to open up the market.

However, specific to every industry, enterprise, and every specific territory to the provinces, and then to the now another popular invisible market, e-commerce, the pformation and redevelopment of Guangdong enterprises is also faced with the question of how to go and how far to go.

The "ceiling" in the international market

In March 19, 2008, the twenty-second Shenzhen International Furniture Fair, one of the three furniture exhibitions in Guangdong, was opened.

In the exhibition, apart from the international buyers who have come all the way over the years, the number of domestic businesses has increased significantly this year.

Guangdong Furniture Industry Association official told reporters that with the development of China's furniture manufacturing industry, the export volume of Chinese furniture has increased rapidly year by year, and the center of the world furniture industry has accelerated to China.

In 2002, the total output value of China's furniture industry reached 20 billion US dollars, accounting for 10% of the world's total furniture output. In 2005, only the United States imported 2 billion 890 million dollars of household wooden furniture from China, accounting for 1/3. of the same products imported from the United States in the year, and the Guangdong area with the leading furniture manufacturing level, accounting for 1/3 of the national furniture output, and the emergence of "world furniture capital" and Shunde Lecong furniture market.

But in recent years, with the rise of raw materials, the rise of labor costs, especially the appreciation of RMB, the furniture industry is facing pains, and many export furniture enterprises feel unprecedented pressure.

Shenzhen Shengshi Tianjiao Furniture Co., Ltd., the person in charge told reporters that as the exchange rate of RMB against the US went all the way, overseas orders such as the US and Europe have shrunk dramatically, especially this year.

According to the furniture industry association's investigation, it is a question that many furniture enterprises must solve in 2008 to continue to insist on exporting or adapt to the national development strategy and policy adjustment and actively pform the main domestic market.

In addition to market factors, the more severe processing trade policy of Guangdong is the more severe processing trade enterprises in the country. This has prompted Guangdong to speed up the upgrading of processing trade.

In the middle of last year, the Ministry of Commerce and the General Administration of Customs jointly announced a number of new processing trade restriction catalogues. 1853 categories of commodities were included in the restricted category.

Coupled with the sharp reduction in the export tax rebate rate, the national macro policy has made Guangdong's export processing trade enterprises choose the way out again.

As for the whole economy of Guangdong, it is the export processing trade that started, and the scale and proportion of enterprises specializing in the production of export products all over the Pearl River Delta are among the best in the country.

Guangdong is also ranked first in the world in terms of export volume, and Shenzhen has been ranked first in the country for 14 consecutive years since 1983.

But the export oriented "exogenous economy", with the increase of trade surplus, the tightening of national macro policies and the weakening of the cost advantages of the whole Pearl River Delta, the potential of the international market has been getting smaller and smaller. Some industries and enterprises have even touched the "smallpox board".

Textile industry overseas market atrophy seriously

The unprecedented shrinking of overseas markets has also made Guangdong's export oriented industries face severe challenges.

Recently, the latest customs data show that in the first two months of this year, textile and clothing exports in Guangdong province decreased by 11.3% compared with the same period last year. This is also the first time that Guangdong, a textile Province, has seen negative export growth.

According to the latest data of Guangzhou customs, from February to February, China's textile and clothing exports increased by 5.7%., but increased by only US $16 billion 440 million. As the largest province of textile and clothing exports in China, Guangdong textile and apparel exports were 3 billion 520 million US dollars, down by 11.3%. compared with the same period last year. In 2007, the growth rate of textile and clothing exports in the whole country and the textile industry was 18.9% and 18.7%. respectively. The analysis of the industry insiders indicated that RMB appreciation, rising oil and raw material prices, and the continued weakening of the international market, especially the European and American markets, caused the important cause of the plight of Guangdong and even the whole Chinese textile industry.

Compared with previous years, orders for overseas markets have shrunk considerably.

At present, the shortage of orders has become a common problem faced by the textile and garment enterprises in the Pearl River Delta.

Chen Shubin, general manager of Foshan textile and garment industry association and general manager of Foshan Chiao Li Chemical Fiber Weaving Co., Ltd., said that the export market of Guangdong textile and clothing was mainly European and American, the prices of European and American markets were relatively high, and the order volume was relatively large, while the Latin American and Southeast Asian countries had small orders and low unit prices.

The weakening of the US economy since last year has led to a decline in orders from Europe and the United States, which has caused great pressure on the export of enterprises.

In terms of US exports, according to customs statistics, Guangdong garments exported to US $4 billion 440 million in 2007, a slight increase of 2.5% over the previous year, and from 2007 to February this year, the export volume of clothing to the US was 280 million US dollars and 160 million US dollars respectively, a significant decrease of 27.9% and 41.9%. compared to the same period last year.

Faced with this market situation, many textile enterprises have adopted many ways to pass the "cold winter".

Reporters learned that many enterprises have begun to compress output, and reduce costs by way of "throttling", while actively developing markets such as Africa and Eastern Europe to "open source".

In addition, textile enterprises have accelerated the pace of "going out". Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, said that because of the changes in the international trade environment and the gradual loss of domestic manufacturing comparative advantages, Chinese textile enterprises have accelerated the pace of overseas construction. At present, there are more than 400 Chinese textile enterprises invested in Kampuchea, and nearly 100 in Bangladesh.

The potential of the relocation of the mainland market to the enterprises of Guangdong and Guangdong

Last May 18th, the provincial government held a forum on promoting pformation and upgrading of Guangdong's processing trade in Dongguan, studying and deploying Guangdong's domestic processing trade and promoting the pformation and upgrading of processing trade.

Reporters learned that the pformation and upgrading of processing trade has become the consensus of all government departments and enterprises in Guangdong, and the promotion of processing trade enterprises to domestic sales is regarded as the key point.

In the export processing and trade intensive Dongguan area, as early as 2002, we began to vigorously promote the pformation of processing trade enterprises to domestic sales. In the two towns of Shijie and Qingxi, 3 enterprises were selected to carry out domestic sales pilot projects.

In recent years, Dongguan has continuously encouraged the pformation and upgrading of processing trade enterprises, pforming from OEM to brand competition, developing their own products and developing the domestic market.

Of the 15000 processing trade enterprises in Dongguan, 5000 have been involved in the domestic market.

In Baoan, Shenzhen, where the "three to one" enterprises are most concentrated, there are only a few 3307 "three to one" enterprises, which are constantly seeking upgrading and pformation. So far, nearly 1/3 has completed the industrial pformation.

Tang Bingquan, executive vice governor of Guangdong Province, said that processing trade to domestic sales is conducive to enterprises to expand their development space, enhance their competitiveness, benefit national and local tax increases, benefit the Central Committee's policy of "reducing foreign trade surplus", and improve the variety and quality of consumer goods.

Apart from industrial upgrading, the more spectacular phenomenon is the relocation of enterprises.

In 2007, the topic of "relocation of deep enterprises" triggered a nationwide debate.

For the 11 consecutive year, China's famous brand underwear enterprise, Shenzhen Fang Li Fang, has won the first place in the domestic market share. The company has moved its production base and main business to Ji'nan, Shandong. BYD set up a mobile phone and auto parts production base in Huizhou, with a project investment of 6 billion yuan. HUAWEI will also set up a new production line in Dongguan Songshan Lake Science and Technology Industrial Park.

For some enterprises, they are reluctant to do business costs, but there are also a large number of enterprises that are expanding outward. After leaving their headquarters and R & D centers in Shenzhen, they move their production lines to other provinces, and further develop the provincial market space to a certain extent.

And this relocation has also evolved into the spontaneous conscious behavior of enterprises, industries and even government departments.

Reporters learned that many industry associations in Shenzhen have been inspecting in cities such as Jiangxi and Guangxi, and have organized enterprises to set up industrial parks.

The Shenzhen Shenzhen Industrial Park, Hunan Hengyang Shenzhen Industrial Park and Chongqing Shenzhen Industrial Park, which were founded by the Kunming municipal government, are also closely related.