Pearl River Delta Footwear Exports To Large Enterprises

After more than 20 years of accumulation, the footwear industry in Guangdong has made great progress. It has become a global footwear business center and shoe making material supply center. Its industry is well matched and its raw material procurement cost is low.

The footwear industry in Guangdong has a pivotal position in the industry. At present, there are more than ten thousand footwear manufacturers and more than 2 million employees.

Footwear has become one of Guangdong's most important industries and export commodities. Its export value has increased rapidly in recent years. According to Guangzhou customs statistics, in 2001, Guangdong's footwear exports amounted to 4 billion 340 million US dollars, to 9 billion 200 million US dollars in 2007, and doubled over the 6 years, with an average annual growth rate of 13.3%.

In 2008 1~5 months, Guangdong exported 1 billion 350 million pairs of shoes, 15.5% lower than the same period last year (the same below), and the export value was 3 billion 970 million US dollars, an increase of 9.4%.

Among them, as the most intensive production in Guangdong, the 940 million pairs of shoes exported to the Pearl River Delta region dropped by 25.7%, and the export value was 3 billion 460 million US dollars, an increase of 8%.

This year, the export of footwear in the Pearl River Delta has the following obvious characteristics:

First, the number of export enterprises has decreased by nearly half, but the number of large export enterprises has increased.

Since 2007, under the multiple attack of factors such as the export tax rebate reduction and processing trade policy adjustment, the continuous appreciation of RMB, the rapid rise in labor costs, and the increasingly fierce competition in the footwear industry, a number of shoe factories with insufficient internal force began to shift to areas outside the PRD or to withdraw from the shoemaking industry.

In the 1~5 months this year, there were 2428 footwear export enterprises in the Pearl River Delta region, a sharp decrease of 2331 over the same period last year. Nearly half of the PRD footwear export enterprises have no export performance this year.

Although the PRD footwear export enterprises have been cut by nearly half, the export performance has not been greatly affected. The export value of 1~5 months is 3 billion 460 million US dollars, still achieving a 8% increase.

Among them, there were 4 enterprises with export shoes exceeding 100 million US dollars, an increase of 2 over the same period last year, and 62 enterprises with export shoes exceeding US $10 million, an increase of 7 over the same period last year. These 62 enterprises exported 1~5 shoes for us $2 billion 40 million, a substantial increase of 16.5%, and exports accounted for 59% of the same period in the PRD footwear exports.

Two, the export average price has been raised, but the added value of exports still needs further improvement.

1~5 month, the Pearl River Delta export of all kinds of shoes 940 million pairs, down 25.7%, but because of the continuous appreciation of the RMB, the rapid increase in labor cost, the substantial increase of raw material prices, and other factors, the Pearl River Delta shoe enterprises have also taken positive measures to improve the quality and added value of the products, so this year, the export average of footwear in the Pearl River Delta region also showed a larger growth trend.

1~5 month PRD footwear export Fisher Price Index was 1.4501 (1 in the same period last year), that is, the price of footwear exports in the Pearl River Delta 1~5 month increased by 45% over the same period last year. The export price of leather shoes increased by 31.7%; the export price of shoes made of rubber or plastic shoes increased by 69.3%; the price of export of shoes made of rubber or plastic substrates increased by 48.6%.

As export prices rose, so although the number of exported footwear in the 1~5 Pearl River Delta fell by 25.7%, the value of exports was US $3 billion 460 million, still achieving a 8% growth.

Three is the growth of developed regions such as Europe, America and Japan, but exports to Hongkong have declined.

In the 1-5 months, the Pearl River Delta exported 1 billion 900 million, 500 million and..8 billion dollars to the US, EU and Japan respectively, which increased by 7.9%, 18% and 11.2% respectively.

Hongkong exported 310 million US dollars, down 13.8%.

With the tension in the Pearl River Delta, the appreciation of the renminbi and the impact of the subprime crisis on trade with the United States and the gradual increase in domestic inflationary pressures, the enterprises in the Pearl River Delta are facing severe challenges due to the pain caused by the changes in the internal and external environment.

In October 4, 2006, when the EU ended its 15 month anti-dumping investigation, it decided to impose a 16.5% anti-dumping duty on leather shoes from China in October 6, 2006, and the time limit for the restriction was five years from the EU anti-dumping law to two years.

Affected by this, in 2007, the Pearl River Delta enterprises exported 72 million 990 thousand pairs of leather shoes to the EU in 2007, a decrease of 9.1% compared with 2006. In 2008 1~5, 25 million 518 thousand pairs of leather shoes exported to the EU, 15.8% higher than the same period last year, and the EU's anti-dumping has had some adverse effects on the PRD footwear enterprises.

In October 2008, the EU anti-dumping measures to China are due to expire for two years.

In June 9, 2008, Vito Artioli, chairman of the Italy Footwear Association (ANCI), declared in Milan that the Federation of European footwear industries has decided to extend to the European Union the extension of anti-dumping measures on leather shoes in China and Vietnam to 5 years. Although it has not yet been decided whether or not to levy anti-dumping duties on Chinese leather shoes exported to the EU, the PRD footwear enterprises should take precautions against them and resolve them actively, so as to minimize the impact of the EU's continued anti-dumping duties and minimize losses to the minimum extent possible. VitoArtioli