Trade Barriers Have Become A "Stumbling Block" For Footwear Exports, &Nbsp, And Development Needs To Be Deeply Cultivated In The Domestic Market.

January 26th, according to the statistics released recently by Guangzhou customs, Guangdong and January 2010 share a total of

According to Guangzhou customs statistics, the export value of Guangdong shoes increased by 24.4% over the first 10 months of 2010, lower than the average export level of Guangdong.

From January to October, Guangdong shoes exported US $4 billion 620 million and US $1 billion 410 million respectively to the traditional markets of the United States and the European Union, which increased by 21% and 25.1% respectively. The total exports to the above two markets accounted for 59.5% of the total value of Guangdong's shoes exports in the same period, and the proportion of them decreased by 1.2% compared with the same period last year.

Although the proportion of exports to traditional European and American markets is slightly lower than that, they still dominate, accounting for nearly 60% of the total value of Guangdong's footwear exports in the same period.

With the change of foreign trade structure, the export growth rate of traditional labor intensive products has dropped.

Related people pointed out that the main reason for the decline in the export of Guangdong shoes is the recent outbreak of trade protectionism and the accelerated appreciation of the renminbi.

According to domestic media reports, the EU has continued to build barriers to footwear products from China, and set up its own favorable standards by means of technical barriers to trade such as environmental protection standards, safety and ecological certification and corporate social responsibility review, which have set up more obstacles for China's footwear exports.

Statistics show that Spain has issued a new policy recently. Imported shoes are considered to be low quotations and will be heavily fined. The price of the Spanish footwear catalog is much higher than that of China's domestic production. This policy is equivalent to a disguised increase in import tariffs on shoes.

The cost of footwear exports increased dramatically, and Chinese footwear enterprises began to lose their price advantage. At the same time, Argentina, Brazil and Turkey made the decision to impose anti-dumping duties or safeguard measures on Chinese footwear products. Canada made a final decision on anti-dumping measures against China's waterproof shoes and soles, and imposed anti-dumping duties on 49% of the export prices of the products involved in those products which did not provide questionnaires.

"Influenced by the global financial crisis, many countries have begun to introduce more stringent import and export policies, and the negative impact of the implementation of some trade protection measures on China's footwear exports has shown that the export of footwear products has been affected, which requires shoe manufacturers to pay more attention to developing new markets in the economic downturn."

Guangzhou customs officials pointed out.

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RMB appreciation to compress corporate profits

According to industry analysis, since China began its second exchange reform in June 2010, the pace of RMB appreciation has accelerated.

Because the export of footwear products is mainly settled through the US dollar, and the shoemaking industry is a low value-added industry, the gross profit margin is not high, and the appreciation of the RMB against the US dollar will increase directly, which will directly compress the export profits of the enterprises and have a greater impact on the export of footwear.

The appreciation of RMB is expected to cause great risks to foreign trade orders, and the profits of enterprises are also declining.

In order to ensure that profits are not compressed and avoid the accelerated appreciation of the renminbi, a "forced mechanism" is formed for shoe enterprises to maintain the stability of business operations. Many foreign trade shoe companies dare not take longer orders. Some enterprises are beginning to actively explore the domestic market and realize pformation.

Dongguan City Foreign Trade and Economic Cooperation Bureau official said, because the RMB exchange rate and raw material prices fluctuate, some export oriented enterprises in the future trend is uncertain, the risk of the docking risk assessment will refuse some orders.

"It is very reasonable for enterprises to take orders cautiously," he said.

The person in charge said.

"The biggest impact of the appreciation of the renminbi is shoes and hat products and other industries with large export volume and low profit margins."

Dongguan, a long-term footwear export business owner said.

RMB appreciation will directly lead to loss of corporate profits.

It is reported that the appreciation of RMB 3% will reduce the profitability of export enterprises by about 50%.

Take an order of 1 million dollars, for example, if the exchange rate is 1: 6.8 for the US dollar when the contract is signed, and the exchange rate is 1 to 6.6 after two months, the profit will be reduced by 200 thousand yuan at once.

The total profit of such an order is only about 3.4 million yuan.

Rising cost of raw materials affects footwear industry chain

Rising prices of raw materials also put pressure on shoe manufacturers.

Cotton prices have continued to record high in recent years. By mid November 2010, China's cotton price index has reached 28891 yuan per ton, while PVC and rubber prices have also reached the highest level since last July.

Every change in raw material prices affects the whole shoe industry chain.

Reporters learned in the survey, at present, the rise of raw materials to shoe enterprises to bring great pressure.

Liu Xin, a new Guangzhou footwear industry Co., Ltd., told reporters: "rubber, cloth, leather and other raw materials have been rising, and cloth has increased by nearly 30%, which makes it difficult for enterprises to bear, and profits have been compressed a lot.

We have been doing foreign markets only, and our products are mainly exported to Russia.

But from now on, we plan to open up the domestic market, one is the need to expand the scale of enterprises, the two is that the export situation is more severe, domestic sales or more profits can be obtained to support the development of enterprises.

The rise in labor costs has increased the cost of investment, and many shoe companies are facing difficulties.

Statistics from Guangdong Provincial Bureau of statistics show that with the increase of the minimum wage standards and the increase of wages by some enterprises to attract ordinary workers, the average wage of Guangdong employees has increased steadily. In the first half of 2010, the average monthly wage of the employed workers in Guangdong was 3090 yuan, up 10.1% over the same period last year.

The increase in the cost of labor, electricity and other expenses in Guangdong has made shoe enterprises in labor-intensive industries more difficult.

In contrast, the main competitors of China's footwear exports, such as India and Vietnam, have gradually gained a favorable position by virtue of their cheaper labor cost advantages.

Since last year, in order to encourage the export of footwear products, India has introduced policies such as raising the export rebate rate and providing preferential loans, so as to enhance the competitiveness of export products.

At present, India shoe production accounts for 16% of the world's total shoe production, ranking second in the world.

Vietnam's shoe exports also grew rapidly. In the first 8 months of 2010, Vietnam's footwear exports were $3 billion 200 million, up 19% over the same period last year, making it the fourth largest shoe producing and exporting country in the world.

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The domestic market has become a new favorite.

Exports were blocked, and shoe companies' eyes gradually invested in China.

The 2011 social blue book released by the Chinese Academy of Social Sciences shows that in 2010, the per capita net income growth of farmers is expected to exceed 8%, and the growth rate is expected to be faster than urban residents.

With the recovery of the economy, the income of rural residents has increased, and the domestic consumption market has changed quietly.

During the visit, the reporter learned that the suburbs or county-level market has broad prospects and consumptive power is very good. With the increase of the income of rural residents or rural residents, the demand for materials has also increased.

At present, many shoes enterprises in the domestic market positioning, will not blindly pursue a steady heel in the big cities, but began to pay attention to the county level of this undeveloped market, the county town - level emerging market began to become the new favorite of shoe enterprises.

"The county level market has not yet been developed, and it is not difficult to manage it, so long as the market positioning is accurate, it is easy to open up.

I have two stores in the suburbs now, and business is better than downtown.

Therefore, I intend to further explore the rural market in the future.

Ms. Liu, who has been running shoe factories in Guangzhou, says.

In addition to the market, the definition of consumer groups has also become a problem for shoe companies.

Reporters found in the survey, high, medium and low-grade shoes products have corresponding consumer groups, high-end footwear consumption group of about 15%, which also includes a small number of willing to consume luxury shoes group, mid-range consumer shoes accounted for about 35% of the consumer group, and half of the consumers, according to their actual consumption level can only consume low-grade shoes.

"Medium and low grade shoes are generally popular in the market. Shoes from 60 yuan to 250 yuan are the first choice for ordinary consumers. Many customers buy them when they see satisfaction.

Although the price increases have led to a decline in the profits of shoes, but in line with the principle of small profits but quick turnover, our overall sales situation is not bad.

Guangzhou, the vast majority of foreign trade footwear business city Jiahong shoe industry leader Liang told reporters.

Enterprises need to establish brand and deepen domestic market

Faced with the still severe export environment after the financial crisis, many export shoe enterprises intend to continue to plough the domestic market at this time, and intend to lay another market in the domestic market.

The head of Dana exhibition group, a well-known shoe exhibition company, said that since 2008, the positioning of China (Guangzhou) international shoes exhibition has shifted from export to domestic sales, and enterprises are ready to continue to hold the theme of domestic sales.

Miss sun, Dongguan Kay Qi Footwear Co., Ltd. also said that two years ago, the company began to export to domestic sales, and now intends to expand its share of domestic sales, thus gaining the first opportunity in the domestic market competition.

Coincidentally, at the news conference of the second China footwear industry summit and the Tenth China (Guangzhou) international shoe exhibition held in Guangzhou, Liu Suilong, executive vice president of Guangdong Footwear Manufacturers Association, pointed out that shoe companies should not pay close attention to overseas markets. The potential of China's rural market and County town market is huge. Chinese shoe enterprises should pay attention to the new business opportunities of this emerging market.

"Export risks are becoming more and more obvious. The pressure of footwear export enterprises is increasing. Enterprises should pay more attention to domestic market and expand domestic demand."

Liu Suilong said.

As for the pformation of the labor-intensive industry of shoe making industry, whether it is high-end or low-grade products, many enterprises are seeking to establish their own brands.

As a guarantee of product quality and reputation, brand is also a good channel to reasonably enhance product profit.

Dongguan Ruian shoe factory Zhao manager mentioned that when making a brand, there is a feeling: "if there is enough capital, shoes enterprises should make products into brand, so that products can be more competitive in the competition, so as to get the recognition of consumers, and successfully establish brand image and reputation.

And the real brand products should be the public.

In addition, as the division and adjustment of industrial division of labor, dealers and brands in Europe and America are more willing to hand over R & D links to domestic enterprises. They themselves focus more on making brands and channels, which is more obvious in traditional industries.

Therefore, from processing assembly to core manufacturing is also an important direction for domestic shoe enterprises.