Shoes Enterprises Wear "Magic Spell" To Fight Internal Strength

"Since March, our old customers are returning orders and increasing orders, and new customers in Germany, Britain and other countries are also actively discussing." Speaking of recent orders from the European Union, Zhejiang AOKANG footwear Limited by Share Ltd export business leader Li Haijun happily opened the box.

After 6 consecutive years of efforts made by AOKANG and other Chinese shoe companies, the EU has formally stopped levying a 16.5% anti-dumping duty on Chinese leather shoes since April 1st this year. Most shoe manufacturers in Wenzhou, Zhejiang, share the joy of EU orders, like AOKANG.

However, reporters found that Wenzhou leather shoes temporarily unloaded the burden of anti-dumping duties, but also wore the EU's "magic spell". Several big shoe companies say that the days of cheap leather shoes are gone forever, and the high-end direction of brand building is the future direction.

Europe Order Back in April

Although the European Union formally abolished 16.5% of the high anti-dumping duty on leather shoes in China began in April 1st this year, AOKANG shoes felt the good result of this policy as early as last month.

"Since March, our regular customers have returned orders and increased orders. The GEOX company which has the largest cooperation in Italy has increased a lot in the first half of this year compared with the same period last year." Zhejiang AOKANG footwear Limited by Share Ltd export business person in charge Li Hai Jun Told reporters that orders for this period of time, in addition to the increase in the number of old customers, and some from new customers.

"Some countries in northern Europe, Germany, Britain and so on have purchasers in active negotiations." Li Haijun estimated that AOKANG's orders would increase by more than 20% this year due to the cancellation of the anti-dumping duty. This figure is still estimated under the control of orders, otherwise it is likely to increase exponentially.

Wenzhou Tamar Shoes Co., Ltd. is a foreign trade shoe manufacturer. Leather shoes export The volume is among the best in Wenzhou. The vice president of the company, Wang Xian Hao, told reporters that since the EU imposed anti-dumping duties on Chinese leather shoes in October 7, 2006, many EU orders have been lost to Vietnam, Indonesia, Malaysia, India and other countries, which is undoubtedly a blow for Wenzhou shoe companies.

"Now that anti-dumping duties have been cancelled, orders will naturally return." Wang Xianhao said that the buyers from European Union countries have obviously increased recently.

"20 euros of shoes, save 3.3 euros tax, buyers and sellers will reduce pressure. Whether it is genuine leather shoes, or PU shoes, as long as the European Union buyers come to negotiate, everyone will benefit more or less. Although the amount of leather shoes exported is not large, Deng Yunshou, manager of the business department of giant one group Co., believes that the anti-dumping duty has been abolished, and the price negotiation with the customers will not be as expensive as before.

It is understood that last year, Wenzhou exported 672 million pairs of footwear products, with an export value of US $3 billion 740 million.

Xie Rongfang, executive director and Secretary General of Wenzhou shoe leather industry association, predicted that from last year, the number of Wenzhou footwear exports to the European Union increased by more than 10% over the previous year, and is expected to increase this year.

6 years later, the average price of AOKANG shoes increased to $20.

Mention the EU's anti-dumping duty, which naturally reminds people of cheap leather shoes in Wenzhou.

"Before, the price of leather shoes produced by some small businesses is less than 10 dollars, and the lowest ones are only 5 to 8 dollars." Li Haijun said that 6 years ago, because some enterprises pursued short-term profits and entered the European Union at an ultra-low price, the EU had built up trade barriers with high anti-dumping duties.

However, the shoe companies in Wenzhou have begun to change their minds and start using medium and high class shoes as bait and long lines to catch big fish.

Reporters learned that the average price of AOKANG exported leather shoes is now $20. Li Haijun said that AOKANG considered two aspects: one is brand positioning for high-end shoes, the other is long-term cooperation with international brands, so leather shoes are different from the object of EU anti-dumping.

"The days of making money with super cheap shoes are gone forever." Deng Yunshou told reporters that shoe manufacturers are under great pressure, and the production cost of labor, main raw materials and fuel oil has increased a lot. The price of the same shoes is 10% to 15% higher than that of last year, and it is impossible to compete at low prices.

Shoes enterprises wear "magic spell" to fight internal strength {page_break}

Reporters noted that while canceling anti-dumping duties on Chinese leather shoes, the European Union also introduced 5 monitoring measures for Chinese footwear products, including weekly weekly monitoring to ensure that there is no unfair behavior. The use of compulsory labels to import shoes products to identify origin labels is strictly monitored, and whether Chinese footwear companies have infringed on intellectual property rights.

In addition to these "hoops", several shoe companies interviewed said they should not be too optimistic about the cancellation of anti-dumping duties.

"A large number of shoes are coming into the European market, and the EU may also try to protect local businesses in another way." Li Haijun is worried that some small businesses only care about the immediate interests, and then enter the European market according to the low price routine, and do not rule out the possibility of repeating the same mistakes.

A Wenzhou shoe company official said that for some time, dumping at low prices should not exist, but the policy of importing countries to protect local enterprises would still exist. Therefore, he believes that domestic shoe enterprises still have to do internal work, improve product quality and quality, and add additional value through brand names.