Termination Of Anti-Dumping Duty: How Should Domestic Shoe Enterprises Go?

Guest of honor

Guangdong Leather Association fur and fur Specialized Committee Secretary General Liu Weidong

Jin Jin of Dongguan

Zhou Jinmiao (left 1): EU

Liu Weidong (left two): the anti-dumping duty is unfair. After cancellation, it may bring billions of euros to China.

Wang Jinyang (right one): now, the bargaining power of the processing plant is improving, and the company will further expand its production capacity.

The EU's anti-dumping measures against leather shoes for 5 years ended.

However, the good news has not caused widespread cheers in the industry. The decline in the proportion of products exported to the EU has made most of the domestic small and medium shoe enterprises insipid, and they can not immediately respond to this.

However, some people in the industry have been thinking about the next step of the industry, or have already turned their sights on the long term, looking for the direction of China's leather shoes industry, and partly started the shoe business of the expansion plan ahead of schedule.

Billions of Euro markets will open.

This reporter: 5 years of EU anti-dumping measures against Chinese leather shoes, the end of the day, how do you view this latest trend?

Zhou Jinmiao: to cancel anti-dumping duties on leather shoes is a wise choice for the European Union.

The shoe leather industry in Wenzhou has shifted to the central and western regions, and the high labor costs in EU countries such as Italy and Spain seem to be fading in front of China's products of high quality and low price.

Moreover, levying this tax also aggravates the burden of European consumers.

Wang Jinyang: our company's main export market is the European Union. For Jin Jin, the EU's cancellation of anti-dumping duties on Chinese leather shoes is indeed good news.

At present, British and German purchasers have actively approached us.

However, in the short term, the EU's leather shoes orders will not jump.

Most of us and brands are long-term cooperation in 5 years or so.

Before deciding the cooperation agreement, there will be a long process between the brand and the agent, such as negotiation, negotiation, proofing, small orders, etc., so the order pfer may take six months to a year.

Liu Weidong: I have visited some enterprises. Before the EU market accounted for 20%-30% of their total market, the anti-dumping duty only accounted for 5% of the total. Therefore, the EU's cancellation of anti-dumping duty is certainly beneficial to China's footwear industry.

Over the past 5 years, the EU anti-dumping measures against Chinese leather shoes have been targeted at genuine leather shoes and artificial materials. There is no anti-dumping duty on shoes made of artificial materials. Therefore, the EU market is aimed at importing high-grade footwear in China, which is different from the United States, and the requirements for exporting to the United States are relatively low. Most of the products are relatively low-grade products.

Now, the abolition of EU anti-dumping duties will help improve the entry of China's high-end products into the EU, which will help improve the industrial structure of domestic footwear industry and promote industrial upgrading.

On the other hand, it is conducive to easing factory pressure and helping enterprises to develop international market.

The EU market now has 5 pairs of shoes per person per year, and the total population in the EU is over 100 million.

Therefore, after our general calculations, the EU's anti-dumping duties will end up bringing 100 million pairs of capacity to China. At the moment, the EU's retail price of more than ten euros per pair of high-end shoes will probably bring China a market of billions of euros.

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Newspaper reporter: does this mean that the EU market completely liberalized China?

Liu Weidong: the EU's anti-dumping duties on Chinese leather shoes were unfair and unfair. They are discrimination against Chinese leather shoes. Now the anti-dumping duty is abolished. I think the EU will have other measures and trade barriers. There will be some other technical barriers. For example, the EU may further improve its technical standards and thresholds in the future.

However, this is not necessarily a bad thing. They can not get into the opening up of the high-end footwear market for the EU with high strength and low qualification.

But for the large and powerful enterprises with high management level, the liberalization of the market brings plenty of opportunities.

Especially for the mainland enterprises, it is a great advantage. Before, the European Union's orders were concentrated in the hands of Taiwan funded enterprises. Now the mainland enterprises are developing rapidly and have the ability to produce high-grade shoes.

After the EU's high-end shoe market is liberalized, these enterprises will be able to participate fully in competition.

Zhou Jinmiao: of course, domestic enterprises need not be too excited. How to improve the quality of shoe products in line with the EU's stringent technical standards and how to strengthen brand building so that European consumers can recognize our brands should be the key to the next step of thinking.

First of all, we must produce products according to international standards and ensure quality management.

Because of the high shoemaking level in the EU, they have detailed standards for the chemical content of raw materials and excipients of shoes, and have strict restrictions on toxic and harmful substances.

These restrictions relate to the environment, human health, animal welfare and sustainable development.

Tanning and electroplating, for example, all contain certain chemical content, but our standards are not as stringent as the European Union.

Now the EU's technical standards are getting higher and higher. There will be some problems in the export inspection of products, so it is necessary to speed up the reparation.

Secondly, in order to improve the quality of products, enterprises need to focus on technology research and development.

The demand of consumers at home and abroad is changing. R & D can not be aimless and targeted at demand.

Kangnai has been strengthening the construction of R & D centers and making the enterprises into high-tech enterprises. It is necessary to know that Italy relies on R & D to maintain high-end manufacturing.

Finally, it is to enhance brand influence.

This is very important for the competition of Chinese products in the international market.

Whether it can eventually become an international or world-class brand is a key challenge for Chinese enterprises.

Kangnai launched a high-end brand Kangnai family last year, and recently joined the Bermingham shoe exhibition in Britain.

Therefore, brand building is an important means for the future development of enterprises.

Forecast production increased by 50%

Newspaper reporter: in your opinion, what will the EU anti-dumping duty end bring about direct changes in the operation of domestic enterprises?

Wang Jinyang: as far as we are concerned, the biggest benefit of enterprises is to enhance bargaining power with foreign brands.

Knowing that the anti-dumping duty would be abolished, we finally raised the price by 15% in the negotiations with the brand.

Of course, such a substantial increase in prices is also a combination of the current raw material prices, labor costs rise, the appreciation of the renminbi and other factors, so most foreign brands can accept.

As a matter of fact, the status of the processing plant has greatly improved, and the brand is no longer as strong as before. Especially after March this year, this trend is becoming more and more obvious.

Why do I say this? After the shuffle of the international financial crisis, some small and medium-sized foreign trade processing enterprises have been phased out.

This year's labor shortage and raw material price increase aggravate the elimination, so that foreign brands find more suitable foundries than our factories find new customers.

I think the cancellation of EU anti-dumping duties will also intensify the development of this trend.

Newspaper reporter: under favorable circumstances, have you formulated an investment plan for the EU market?

Zhou Jinmiao: we are planning a plan for the EU market. Of course, it is not easy to enter the European Union.

Wang Jinyang: for the EU market, low-end products are almost unprofitable. In the past, we also produced ordinary PU products. Now the high value-added products are the main direction of the company.

In addition to processing the European high-end brands such as Louis Weedon and Armani, we are also implementing our own brand export plan.

At the end of last year, enterprises had expanded their production capacity and predicted that this year's output could be increased by 50%.