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    Wenzhou Shoes: Volume Increase, Price Low, Embarrassment.

    2010/7/1 10:07:00 35

    Wenzhou Barrier Export

    The international consumer market began to recover, making Wenzhou shoes more competitive. Reporters learned from Wenzhou customs that in May of this year, Wenzhou shoes exported 1 billion 180 million US dollars, up 26.25% from the same period last year, 23.22% higher than that before the financial crisis in 2008.


    The growth of export volume is a pleasant surprise. However, another group of data can not be ignored. Before May, the average export price of Wenzhou shoes was 4.7029 US dollars per pair, down 4.27% compared with the same period last year, and the export structure showed a trend of low end.


    In recent years, Wenzhou shoes have gradually established the image of "high quality and high price" in the export market, but what hinders this?

    image

    Uplink?


    Faced with this year's embarrassing "quantity increase price reduction" phenomenon, how to adjust the export path of Wenzhou shoes?


    Joy


    Shoe exports continue to grow


    "How did it come out in Europe yesterday? I saw it in Wenzhou today!" now, the shoe design ability of gigantic group often surprises the international purchasing giants such as America, Poland, CCC and Spain ZARA.

    Pan Jianzhong, general manager of giant one group Co., Ltd. said that the export value of enterprises in May was close to US $10 million in a single month.


    Nearly six of the shoe export market in Wenzhou has become Europe and America. Compared with the panic "de Stocking" at the beginning of last year, the European and American enterprises in the first half of the year were in intensive "replenishment", which made the comparison of the data in the same period very bright.


    According to statistics, before May, Wenzhou shoes exports showed "V" shape fluctuations, the highest in January, after a month's export volume of 305 million U.S. dollars, all the way down, the monthly export volume in March was only 135 million dollars, followed by April and May continuous growth, May month exports Wenzhou shoes 254 million dollars, an increase of 43.75%.

    The relatively low export volume in 232 months is mainly affected by the Spring Festival.


    The industry reflected that since the beginning of spring, the export of shoes enterprises in Wenzhou has become more busier. They have "recruits" to expand their production capacity to meet customers' needs. The phenomenon of "skilled worker shortage" has reappeared. Many enterprises have reflected that the order is too much, and some orders have to be abandoned, which reflects the increasingly obvious trend of global recovery.


    Jin Jianfeng, deputy director of the textile and Export Department of Wenzhou entry exit inspection and Quarantine Bureau, believes that the competitiveness of Wenzhou's leading shoe enterprises is mainly reflected in the direct access to the consumer terminals to accurately and timely access to consumer market information, complete industrial chain and product structure of regional advantages.


    Worry


    Volume increase price low embarrassment


    In the case of limited external demand recovery, a relatively high price of real leather products has been deterred by some purchasers.

    Not only is the average price declining, but the proportion of leather shoes representing high-end products in Wenzhou shoes exports has been gradually reduced.

    Before May, the export of leather shoes accounted for 17.07% of the total value of Wenzhou's footwear exports, down 1.71 percentage points from the same period last year, down 7.35 percentage points from the same period in 2008.


    "Since the second half of last year, we have been feeling this pressure."

    Li Haijun, manager of storage and Transportation Department of AOKANG import and Export Co., told reporters that AOKANG's development of the European market has always been targeted at high-end shoes. However, in recent months, the amount of GEOX that has been keeping up with AOKANG for a long time is decreasing. The fluctuation of GEOX orders has caused AOKANG to shrink between 10% and 20% in the European market.


    Wenzhou customs believes that at present, the developed countries have not yet fully recovered from the financial crisis, and the recovery of external demand is not yet stable. At the same time, the outbreak of the Greek debt crisis has triggered a series of economic problems, which will greatly reduce the pace of economic recovery in the euro area.

    As expectations for the future are not clear, and the appreciation of the renminbi is expected, the buyer's wait-and-see mentality is obvious. Foreign buyers have adopted the order splitting method, which has led to an increase in short-term orders this year.

    Because of the spin off of orders, foreign buyers have more convenience and opportunity to replace suppliers.


    Beset


    back

    dumping

    Barriers are still in place.


    Wenzhou shoe enterprises have been committed to the elimination of low-end manufacturing criticism. In recent years, they have shown a good momentum of "high quality and high price". However, fluctuations in the international market often make shoe companies unable to compete.


    Among them, another obstacle to Wenzhou leather shoes is the EU's "anti-dumping duty" which has never been around.

    In January this year, the EU decided to impose anti-dumping duties on imports of leather shoes from Vietnam and China for a period of 15 months.

    {page_break}


    "Before, customers bought 80% genuine leather shoes and 20%PU (leather) shoes, but now, under the pressure of local consumption level, the purchase proportion of leather and PU shoes has just collapsed."

    Xu Xiaodong, director of the foreign trade department of Zhejiang shemet Shoes Co., Ltd., told reporters that he had taken part in the latest issue of the Canton Fair. He was very helpless for the shrinking of the European market. "At present, we can only try to maintain the market and retain some old customers.

    In fact, European guests also want to cancel the anti-dumping duty as soon as possible.


    Deng Yunshou, manager of giant shoe industry Co., Ltd., told reporters that the giant leather shoes exported to the EU have dropped from 15% of the total share to below 10%.

    Because the EU's anti-dumping duties are mainly targeted at China and Vietnam, some international purchasing giants are pferring the purchase of genuine leather shoes to Malaysia and India.


    Way out


    Looking for high quality new products

    market


    The EU's high barriers are forcing Wenzhou shoe companies to firmly grasp the major markets such as the United States.

    Huang Wanyi, deputy general manager of Dongyi shoes industry Co., Ltd., told reporters that Dongyi gradually increased its opening up to the US market and achieved results.


    On the other hand, the resumption of exports of Wenzhou shoes to Russia and Ukraine is also beginning to see the dawn.

    It is reported that after the closure of the Cheel Guizo J market, many shoe traders in Wenzhou have moved to Russia to stay in such a large market. According to past experience, the peak season for delivery will be welcomed in the second half of the year.


    For the ASEAN emerging markets with high hopes, leather products are relatively high-end, while the consumption capacity of ASEAN market needs to be cultivated.

    However, Kangnai and other Wenzhou shoe enterprises have begun to "test the water" in ASEAN, opened a store in Vietnam. Yesterday, the opening of the Malaysia Wenzhou China famous products fair, more than 160 enterprises in Malaysia joined ASEAN, and I believe there will be a new improvement.


    No matter how the road of export goes, the quality of the product itself is still the right way.


    Wenzhou customs also suggests exporting shoe enterprises. First, encourage and guide enterprises to enhance the quality and grade of export products, strengthen the cultivation of large shoe enterprises with independent brands and independent innovation capability, enhance their international competitiveness; two, increase the development of emerging markets, guide enterprises to disperse exports, and avoid excessive concentration of the market to trigger trade frictions.

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