Shoe Enterprises Borrow "Zero Tariff" Dongfeng &Nbsp, Push Into ASEAN Market.

September 19th, 2010 1~2, China

The completion of the China ASEAN Free Trade Area in January 1, 2010 has facilitated cooperation between China and ASEAN businesses. Since then, tariffs on 90% of the products, including footwear products, have been zero. This will help the two sides to open up the domestic market, reduce the dependence of our footwear enterprises on the main export markets such as Europe and the United States, and avoid the continuous occurrence of trade frictions with the European and American countries.

It is beneficial for the export of domestic enterprises' products to the other side, expanding the turnover and increasing the profits of the enterprises.

Shoe companies enter ASEAN

At present, China Shoes Capital

There are complementary and differences between Fujian and ASEAN in the field of service trade, which determines the cooperation between the two sides to enhance their space.

ASEAN's more developed countries have become the main source of foreign investment in Fujian. With the increasing strength of Fujian's enterprises, the development level of Fujian is lower than that of other ASEAN countries with rich natural resources. Fujian has opened up a new market for Fujian to implement the strategy of going out, pferring surplus capacity, reducing production costs, reducing trade frictions and developing resources jointly.

The differences between ASEAN countries and Fujian's economic development level and stage create broad space for developing two-way investment.

Among the 10 ASEAN member countries, Thailand, Philippines and Indonesia, which are close to Fujian's development, have GDP1000 per capita of US $3000, and have the advantages of natural resources and labor-intensive industries. This provides good resources for Wenzhou shoe enterprises.

Chongqing leather shoemaking enterprises swarm into ASEAN

"The export area of leather shoes in Chongqing is relatively simple. It has always been exported to Russia."

Hou Yundong, Secretary General of Chongqing Leather Association, said that because Russia had cracked down on gray customs clearance, it had shut down several large wholesale markets in a series of ways, so that Chongqing leather shoes merchants gave up the market and turned to 5 Central Asian countries, India and Southeast Asian markets, mainly Kazakhstan and Kyrgyzstan.

In addition, after the financial crisis in the ASEAN region, the consumption level of local residents has declined overall. The leather shoes made in Chongqing are cheap and fine, but they are more easily favored by the market.

It is reported that at present, the leather shoes enterprises in Chongqing are mainly concentrated in the marble area of Tongliang, Bishan and the south bank.

Take Chongqing's leather shoes export base Bishan alone, nearly 100 of the more than 1300 shoe enterprises and business households are seeking to export to ASEAN.

Some have begun exporting to ASEAN in October this year, such as "love dragon", and some are preparing such as "dream Kodak" and "Yao style".

If we get through the ASEAN market, the sales of leather shoes in Chongqing will be greatly improved.

"80% of our products are sold abroad, and Philippines is our big market.

Now I have to make about 200000 pairs of shoes in one month, and millions of pairs when I have more. "

Yiwu International Trade City four district Rui shoes industry staff introduction, the company and Philippines and other countries have many years of business dealings, and this year, the establishment of the China ASEAN Free Trade Area, has brought new opportunities for Southeast Asian market sales.

"Taxation has many advantages, reducing the pressure of enterprises and broadening the development space.

The new and old customers come together, and the order volume is relatively large, at least tens of thousands of pairs, business is much better than last year.

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The export of footwear products in China is mainly concentrated in the traditional markets such as the United States, the European Union, Japan and Hongkong. In these traditional markets, trade protectionism often takes action to restrict the import of China's footwear products.

According to China network, since January 2010, EU member countries extended the anti-dumping measures of leather shoes for China and Vietnam for 15 months, and continued to levy 16.5% anti-dumping duties.

To a certain extent, these trade barriers have restricted the growth of the export of footwear products in China, making our footwear enterprises have to seek new export markets.

But shoe companies also have to face some difficulties in attacking ASEAN market.

According to customs data, in January 2010, the average export price of shoes exported to ASEAN by Shenzhen port was 1.1 US dollars per pair, while the average export price to us was 4 US dollars for the same period, and the average export price was 2.1 US dollars per pair.

China's footwear market in ASEAN relies on low price products to stimulate market purchases, rather than guiding market demand to boost product sales.

The export of ASEAN footwear products to China belongs to the lower price varieties, and the competition among enterprises is largely through low price bidding.

Therefore, shoe enterprises should be careful to prevent vicious competition in the industry.

The increasing demand of emerging markets such as ASEAN has a positive impact on Guangdong's shoe exports, but it will still be negatively affected by three factors in the future.

First, the rise of protectionism in the international trade leaves great uncertainty in the recovery of exports.

The two is the rising price of upstream materials of footwear products, increasing the production cost of export enterprises.

Three, a new round of appreciation of RMB will further increase export pressure.

Under the circumstances of the rising labor cost and insufficient supply in China, shoe manufacturers should make full use of the large number of labor force, abundant land resources and existing footwear capacity of ASEAN to invest directly in the world and set up factories locally.

The cost is relatively high, and cooperation with ASEAN local enterprises.

The economic development level of some ASEAN countries is not high, and all countries lack large enterprises that can monopolize the market.

If Chinese enterprises can pfer production to countries rich in natural resources and labor resources, such as Vietnam, Kampuchea and Indonesia, they can reduce production and pportation costs, thereby enhancing the competitiveness of China's footwear products.