China'S Footwear Industry Changing Strategy To Enter The EU High-End Market

August 5th auto EU exemption from China

The latest statistics from Wenzhou Customs show that from April to June, the city went to the European Union.

16.5% of the anti-dumping duties imposed on footwear exported from Wenzhou were implemented by the European Union in October 2006 and have been abolished in April this year.

Jiang Xinghua, director of international business of AOKANG footwear, told reporters: "the continuous decline in exports in the second quarter of this year shows that the domestic shoemaking firms have the right to" self restrain ". They are unwilling to rely on low price strategy, which has led to export restrictions for nearly five years.

Jiang Xinghua said, "after we lift the punitive tariffs, if we do not refuse those low orders, our export growth in 2011 will probably double that of last year."

Caution prevails.

Shortly after the lifting of punitive tariffs, the China Leather Industry Association warned domestic shoemaker to learn from history and familiarity with the EU's laws on footwear exports and standardize operations so as to lay a good foundation for China's shoe exports.

According to statistics from the Ministry of Commerce, the EU's penal measures resulted in 20000 unemployed and reduced Chinese footwear exports, down 20% from 2006 to 2010.

Wenzhou, located in the eastern part of Zhejiang Province, is known as the "shoes capital of China". Locally produced shoes used to be exported to the European Union, the United States, Australia, Malaysia and central and East Asian countries, but the European Union is its largest market.

Wang Zhentao, chairman of AOKANG and vice chairman of China Leather Industry Association, said that the elimination of punitive tariffs is a "relief" for domestic footwear exporters.

He said: "we can not be led by news, but blindly adjust."

Wang Zhentao's caution has been widely considered necessary.

For example, Kangnai group, another leading shoe maker in China, has begun to upgrade its production line in order to focus on the production of high-end products.

As a result, shoes made from the new production line are more comfortable and durable, priced at more than 2000 yuan per yuan (about 309 dollars), about six to seven times the average price.

Zhou Jinmiao, general manager of Kangnai group, said that relatively cheap products are usually considered "equal to poor quality".

Zhou Jinmiao said: "this is why Chinese shoe makers have begun to spare no effort to improve the quality of their products."

"Optimism is premature," he added. "Because of higher quality standards or strict environmental standards, new obstacles may be applied."

Carp

The local shoemaker, after being stimulated by punitive tariffs, received a succession of orders from European consumers, many of whom chose to make prudent decisions.

For example, Kangnai group politely rejected a Spanish customer who ordered 300000 pairs of genuine leather shoes, but the price was only $10 per pair.

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Miu Renzan, general manager of the International Trade Department of Kangnai group, said that accepting such an order to dump might put Kangnai group in danger.

At present.

Kangnai group's orders come mainly from the top European brands, such as HugoBoss.

Miu Renzan said: "through cooperation with big brands, we can not only improve our production technology, but also avoid the" dumping "accusation.

Looking forward to the future, Zhou Jinmiao said, "enterprises should be familiar with the rules of international trade and lead the development trend of the same industry in the world."

Zhou Jinmiao added: "the Chinese government should be more active in seeking to understand the market situation. Otherwise, the EU can make use of the production cost of the same industry in Brazil or India to calculate our production costs, so we are at a disadvantage."