Cattle Enter The Country And Inventory China's Leather Economy

         Cattle enter the country and inventory China's leather economy

In the past year of cattle, it is the most difficult year for the world economy. When cattle enter the tiger, we need to reexamine the development of leather industry in China to see if it can be a real bull in the year of the tiger.

At the end of the year, I visited some leather production bases in Guangdong again, and the manufacturers expressed satisfaction with the current situation of leather industry. For the upcoming tiger year, there are still quite a lot of entrepreneurs. Indeed, during the financial crisis, many factories were faced with the situation of bankruptcy and bankruptcy. Later, as time went on, the international market gradually digested its inventory, and the export market orders returned again and gradually increased. Since the second half of last year, the international economic environment has generally seen a trend of warmer growth, such as the exhibition known as the vane of China's export market. Similarly, with the Pearl River Delta as an example, since the second half of last year, orders for various leather goods enterprises have picked up to varying degrees.

The author recently visited a leather chemical enterprise. The head of the company said: as an upstream supplier of leather, the financial crisis has caused the enterprise to suffer from it. Now, with the gradual recovery of the market, we will strive hard to open up new markets.

The action of leather producers also excited me. In the market downturn, leather enterprises focus more on how to survive, and few enterprises dare to go on the Ma Xin project. In the traditional leather processing city, Guangdong, at the beginning of the end of the year, there were still companies recruiting, increasing plant and equipment, expanding the scale of leather making, and reaching 700 employees. This undoubtedly adds a touch of anger to the stagnant leather market. At the same time, in view of the optimistic market prospects, there are still a lot of people who have previously left the raw material trade to go back to their old businesses again.

In the leather trade market, in the past few years, you can have a stall in Guangzhou, Dongguan or Shenzhen, indicating that you have considerable strength. With the advent of the financial crisis, the situation is turning rapidly. Not only is the shortage of demand stalls unnoticed, it is the sharp decline in rents and the inability to attract merchants to enter. Many of the leather specialized markets are deserted, and the traffic situation is no longer there. Based on this, at present, leather trading operators have become scarce resources. Today, as the price of raw materials market is rising again, the leather traders who are still insisting are alive again. Many traders are trying to hide their skin and want to take the lead in the future market competition.

　 Bull market is risky. Leather manufacturers need to be cautious.

Although the economy is recovering, will the tiger leather industry really be bullish? Maybe things are not so simple. In the interview, some people in the industry said in a relatively low profile: Although the leather industry has been out of the cold winter since 2008, the manufacturing industry in 2010, including leather industry, is still far away from the warm spring.

At present, with regard to the industry situation, overseas orders are being restored and export prices have also picked up, although the margin is relatively limited, but this is the common feeling of many domestic export manufacturing enterprises in 2009. Specifically, without accident, the price of raw materials will continue to rise this year, and the market price of raw materials has already started. And international oil prices will also rise as the economy recovers. As a developing country, China has already taken the lead in raising the price of refined oil, which will increase the cost of China's leather industry.

According to statistics, China's manufacturing industry has more than 40% dependence on foreign technology, while the United States and Japan rely on foreign technology only 5%. At the same time, China's export enterprises have less than 20% of their own brands. Because the added value of Chinese products is low,

Usually, low price competition and imitation of foreign new products are used to win orders, and trade friction is frequently encountered in the international market. According to WTO data, China has been the largest member of the anti subsidy investigation for 15 consecutive years. Last year, 35% of the world's anti-dumping and 71% of countervailing duties were related to China. Therefore, as one of the most difficult problems in China's manufacturing industry, there is no core technology, low product grades and low added value, low price and limited profit margins. In the international market, Chinese enterprises are still subject to price pressures from buyers, while upstream is under the pressure of rising prices of raw material suppliers. In between, how to develop the market is to continue to use price war or other methods, will still be the heart of the enterprise.

In addition, the cost of employment is lingering. In the first half of 2008, as domestic inflation intensified and the new labor law was implemented, the labor cost of manufacturing industry increased significantly. After going out of the trough in 2009, the cost of human resources in China is likely to regain growth in 2010. The current employment population is mainly born in the 80s and 90s of the last century. Their living environment is relatively good, and the demand for work treatment is higher than that of the previous generation. This is one of the reasons leading to the rising cost of human resources.

Finally, the issue of RMB exchange rate. Especially for foreign trade enterprises, the RMB exchange rate is a key factor affecting their export competitiveness and economic efficiency. Although the appreciation of RMB has been expected at home and abroad, the appreciation rate in 2010 is still very uncertain.

Here, we can see that the economic recovery has brought great benefits to the leather industry at the present stage of economic recovery. However, we also see that there are still many problems in the future market. There are long-standing problems. There are still many problems that we still do not consider waiting for us. We need to prepare for the rainy season at the beginning of the new year. If the enterprise can make preparations in all aspects, it is believed that bull market is possible.