Subprime Mortgage Crisis Brings Opportunities For Wenzhou Synthetic Leather Enterprises

Under the influence of the US subprime mortgage crisis, China's foreign trade growth has slowed down obviously, but Wenzhou's shoes have gone against the market and the export to the US has increased rapidly.

In the 1-3 month of this year, 1654 pairs, 8 million 913 thousand and 700 pairs and 40 million 873 thousand and 900 dollars of footwear exported to the United States were increased by 63.6%, 31.25% and 31.95% respectively.

The main reasons are: first, due to the impact of the subprime mortgage crisis and RMB appreciation, the purchasing power of American consumers has obviously declined, and the demand for footwear products with higher grades has dropped markedly. This is an important reason for the failure of enterprises producing high grade shoes and the main export market in the United States this year. But shoes are a large demand for daily consumer goods. This makes the Wenzhou shoes, which are mainly made of low-grade synthetic leather shoes, increase the export opportunities for Dongguan.

According to statistics, in the first quarter, the number, quantity and amount of non leather shoes exported to the United States increased by 83.46%, 40.31% and 39.84%, respectively, compared with the same period last year. However, the number of leather shoes did not increase over the same period last year, and the number, amount and amount of non leather shoes exported to the United States accounted for 71.77%, 84.99% and 63.19% of the exported footwear products to the United States respectively.

Two, after the implementation of the labor contract law, the footwear enterprises in the Pearl River Delta region, which are mainly in Dongguan, have nearly collapsed, and the customers of the bankrupt enterprises began to pfer their orders to Wenzhou shoe enterprises.

Three, due to the impact of the overall economic environment, some Wenzhou footwear enterprises began to accept orders from us customers who were reluctant to accept some low price and low profit margins because of the needs of enterprises.

The four reason is the worry about the appreciation of RMB. Some enterprises will deliver the order ahead of time.