Spain's New Deal On Imported Shoes &Nbsp; &Nbsp; Where Should Wenzhou Shoe Enterprises Go?

　　 Chinese shoes are cheap and beautiful.

On September 1st, Elche is the "shoe center" in Spain and Europe, enjoying the reputation of "the first shoe city in Europe". It is in view of the favourable conditions of the time and place that the smart Wenzhou people came here first, or set up shoe stores, or set up factories to make shoes. With their intelligence and hard work, the Wenzhou people quickly settled on the ground and expanded their business.

Because China's labor force is cheap and production technology is also very advanced, a pair of shoes made in China, after shipping to Spain, only sell five euros, while the same quality shoes produced in Spain, the cheapest eight euros, compared with Chinese shoes have obvious advantages. The way of operation of Chinese people is also very flexible. They sell mainly in the form of wholesale warehouses, so that cheap Chinese shoes quickly win the love of local consumers. Their business is expanding rapidly and market share has also increased rapidly. At present, in Elche Sale The wholesale warehouse of Chinese shoes has developed to more than 80.

　　 Wenzhou shoes encounter "bad treatment" in Spain

In August 29th, Liu Guangzhong, President of the Spanish Chinese Footwear Association in Spain, and Lin Bin, President of Spain's Olin group, returned to Wenzhou. Imported New policy regulations for shoes have been introduced, which will be heavily fined when imports are identified as low quotations. Although this policy is not specifically targeted at Wenzhou shoes, Wenzhou shoes are actually affected by this policy in the market because of the over 60% of the market share of the Wenzhou shoes. Several well-known Wenzhou shoe companies have withdrawn from Spain last month. market 。

According to Liu Guangzhong and Lin Bin, the main content of the new policies and regulations promulgated by the Spanish government is not complicated. When the shoes are imported to Spain for customs declaration, the customs will compare them with the same or similar products in the customs catalogue according to the relevant types and materials of the shoes. If the prices of these shoes are lower than the customs catalogue, the goods will be seized and the relevant footwear dealers will pay the customs duties, VAT and the corresponding fine after the price is paid by the relevant footwear dealers before they can get the goods back.

It is this supplementary duty, value-added tax and fines that make Liu Guangzhong, Lin Bin and other Spanish Wenzhou shoe makers frightened. Spanish footwear import tariff is 17%, value-added tax is 18%, fines are determined according to the amount of tax to be paid. The price of Wenzhou shoes when declared in Spain is usually only 1 euro or even lower, while the prices in the Spanish customs catalogue often reach 4 Euro 5 euros or even higher.

Wenzhou shoe manufacturers in Spain are mainly concentrated in Elche, with a total of more than 80 companies. However, only five or six of them do Spanish orders, all of which are wholesale business, accounting for about 80% of Wenzhou shoe manufacturers. The biggest influence on this policy is the footwear dealer who reaches 80%, because the selling price of the order has been determined, and the wholesale business must be calculated on the price. Low price declaration is the most powerful means of price competition. Taking a pair of shoes worth 4 euros as an example, the quoted price is 1 euros, which can at least save 1.5 to 2 euros, and this is the great advantage of Wenzhou shoes and European shoes in terms of competitive price.

Lin Bin said that Wenzhou shoe makers have been subject to successive quotations, and a shoe dealer in Wenzhou has set a record of paying more than 30 thousand euros for taxes and fines, and 20 thousand for a container. Now that Spain has yet to get out of the financial crisis, Wenzhou shoe makers have to sell 10 containers in the first quarter. The 10 containers will have to pay at least about 200000 euros, and the better the business, the better.

The Spanish government tightened customs quotations and surprised Spanish shoe makers in Wenzhou. Liu Guangzhong said that over the past few years, the Spanish government has been very relaxed about the import quotas, and no such stringent measures have been taken. Wenzhou shoe traders in Spain speculated that the Spanish government might be a "open source" means in the financial crisis.

Lin Bin said that businessmen in Wenzhou understood the policies and regulations promulgated by the Spanish government, but they were rather dissatisfied with the customs's identification of low quotations. The price of the Spanish customs shoe catalog is the price of the products of Spain and the European Union, but the production cost of the European Union is much higher than that of Wenzhou. It is very unfair to determine whether the price of Wenzhou shoes is low based on the price of EU shoes. {page_break}

　 Where should Wenzhou shoes go?

For China or Europe, "Wenzhou" is a complex word. On the one hand, the Wenzhou people's pioneering spirit is world-famous. On the other hand, Wenzhou people have brought some subtle influence to the society with their strong economic strength. For example, the famous Wenzhou real estate group went everywhere, and the local housing prices immediately rose, such as Wenzhou shoes in Europe, and even Italy, a big shoe industry, also felt a threat.

Spain's "shoe burning incident" is not a simple case of Chinese Exclusion but a complicated economic background. From January 1, 2005, the European Union will cancel the quota of some footwear products imported from China, which means that Wenzhou shoes will gain broader market space in Europe. But at the same time, the sharp contradiction between Wenzhou shoes and European shoes will inevitably burst in the fields of trade, culture and race. Elche, Spain, is known as the "European shoes capital". However, after Wenzhou shoes entered Elche, it developed rapidly and formed an objective threat to the local shoemaking industry. The Wenzhou businessmen asserted that it would not be long before Spain and even the EU's shoe sales network could be "reshuffled". It is for this reason that Wenzhou shoes are constantly encountering unexpected events in the European Union.

The main advantage of Wenzhou shoes in European shoes is its price. According to the relevant personages, the average price of European shoes is 3 to 8 times that of Wenzhou shoes. It can be said that the great difference between prices is the unbearable pain of European shoes, and this pain point is hard to cure in a long time. It is not hard to see that trade measures are bound to take place when the market means can not compete with Wenzhou shoes. For example, the launch of the trade remedy survey will have a significant negative impact on Wenzhou shoes.

On the one hand, the Chinese government should take the necessary diplomatic means to provide assistance. On the other hand, the footwear industry in Wenzhou must see the crisis behind its prosperity and adjust its industrial direction as soon as possible. Wenzhou shoes and Chinese shoes have the advantage of price, but in the eyes of Europeans, they are still low-grade goods. Not only the added value of culture is very low, but also the brand identity is relatively poor. In the long run, the competitiveness of Wenzhou shoes is not optimistic, but the risk of anti-dumping is very high. Therefore, Wenzhou shoes should increase the intensity of brand research and development, and get rid of the vicious circle of low cost, low price and low grade.

In addition, it should be reminded that Chinese businessmen should actively integrate into local society and culture while actively developing overseas markets. They should do more good deeds and benefit one side. This initiative feedback will help to alleviate ethnic conflicts caused by economic competition.