China's Shoes Will Rise 16% In Europe, But The Dilemma Will Remain Unchanged.

Although China has been on the fast track of the export prices of European leather shoes, it is difficult for China's shoemaking enterprises to share this profit.

According to statistics released recently by the China Light Industry Import and Export Association, the average price of leather shoes exported to Europe was 1 US dollars in August this year, which is 7.31 US dollars / double, an increase of 16% over the same period last year.

But compared with the cost pressures faced by Chinese shoe manufacturers, the increase of less than US $1 obviously can not improve the predicament of enterprises.

China's shoemaking enterprises are facing three challenges.

First, the appreciation of the renminbi, the reduction of the export tax rebate rate, the import of raw leather into the banned catalogue and other policies led to the increase in costs. Secondly, the increase in raw material prices and freight rates, and the shortage of labour supply also caused the increase in costs; third, the EU imposed anti-dumping duties on leather shoes imported from China.

However, because of fierce competition, it is difficult for Chinese enterprises to solve the pressure brought by cost increase by raising prices.

In an interview with reporters, the Chinese Leather Association said that enterprises with strong brands and independent brands should adjust the structure of export products, improve product grades, and achieve a shift from low to medium to high grade, which has become an important reason for the rise in export prices.

For example, the average export unit price in Sichuan from January to August increased by 30% over the same period.

The export price of some men's shoes in Wenzhou Kangnai group has reached 45 US dollars / double this year.

However, for the majority of Chinese shoe enterprises, in order not to lose their old customers, efforts to maintain a lower price will still be the way for these export enterprises to survive.