The Cost Advantage Is Sharply Reduced By &Nbsp; Footwear Export Of Sichuan Fist Products Is Facing Challenges.

December 23rd, rising labor costs, rising raw material prices,

Export volume fell 30% in November

Export volume rose sharply in the same period last year, but exports showed a significant downward trend in the second half of this year. This is a major feature of Sichuan shoe exports this year.

According to the latest statistics released by Chengdu customs, from 1 to November, Sichuan exported 120 million pairs of shoes with a value of 660 million US dollars, up 77.9% and 24.2% respectively, and the average value of exports rose significantly. The average export price was 5.4 US dollars per pair, down 30.2% from the same period last year.

Although the total growth is obvious, the export volume of Sichuan shoes has declined sharply for 4 consecutive months. In November, it exported only 8 million 40 thousand pairs, down 30.9% compared with the same period last year. The export scale of the first month showed a negative year-on-year growth, and the decline was 23.5% compared with the same month. The export average price showed a sharp downward trend since August, and there was a marked rebound in November. The average export price in November was 5.1 US dollars per pair, and the growth rate was 36.7%.

In the various export markets, the United States, the European Union and Algeria rank the top three.

From 1 to November, Sichuan exported 16 million 190 thousand pairs of shoes to the United States, an increase of 19.7% over the same period last year, accounting for 13.3% of the total export volume, 14 million 250 thousand pairs of exports to the EU, a significant increase of 85.2% over the same period last year, accounting for 11.7% of the total volume, and 12 million 560 thousand pairs of exports to Algeria, 80.9 times larger than the same period last year, accounting for 10.3% of the total.

The more we produce, the more we lose.

In the second half of the year, Sichuan shoe exports have declined sharply. Insiders say that the huge cost advantage of Sichuan shoes has been weakened, which is the main reason for the impact of exports.

"This year, the price of leather and other shoe fabrics has increased by more than 30%. Rubber used for making soles has gone up more fiercely, and accessories such as rivets, heels and fringes are also rising.

In addition to rising raw materials, labor costs are also rising, and enterprises have to raise their prices. The price advantage of Sichuan shoes has been greatly weakened.

An unnamed shoemaking company official said that the factory has been in a semi shutdown state under the influence of rising production costs.

"The more we produce, the more we lose. Now we have stopped about 30% of our capacity."

Apart from domestic raw materials and labor costs continue to rise, the rapid development of footwear industry in India and other countries has also had a certain impact on China's footwear exports.

With cheaper labor cost advantages, Vietnam, India and other countries have gradually been in a favorable position in competition. At present, India shoes account for 16% of the world's total footwear production, ranking second in the world, and Vietnam's shoe exports are growing rapidly. This year, it has become the fourth largest producer and exporter of shoes in the world.

In addition, trade protection measures of major importers against Chinese shoes are continuing.

EU, Argentina, Canada and other countries all carried out anti-dumping measures on China's footwear products, and the frequent introduction of trade protection measures had a serious impact on the purchasing confidence of the importers.

Data clicking

1 - November

Sichuan exported 120 million pairs of shoes, worth 660 million US dollars, up 77.9% and 24.2% respectively over the same period last year.

The average export price was $5.4 per pair, down 30.2% from the same period last year.

November

Sichuan exported only 8 million 40 thousand pairs of shoes, down 30.9% compared with the same period last year. The export scale for the first time appeared negative year-on-year growth in the same month, and the decline was 23.5%.

The average export price is 5.1 US dollars per pair, a 36.7% increase over the same period.