Guangdong Leather Industry Has Become The Post Factory Of European Top Leather Traders.

The fifth Guangzhou leather exhibition was launched last week at Pazhou International Convention Center.

Reporters learned from the exhibition that in the continuous appreciation of the renminbi, the domestic leather fur industry export growth is slowing down.

It is understood that the opening of the Italy leather exhibition is the largest, the highest and the most authoritative in the world.

At this year's exhibition, more than 170 exhibitors from around the world appeared in Guangzhou, of which 65% came from Europe.

According to the organizers, these exhibitors represent the highest level of leather and accessories and accessories in Europe.

Their sales account for 30% of the total leather industry in Europe.

Figures from the Italy Federation of tanneries show that China has become the second largest exporter of leather in Italy.

Wu Ke, chief representative of the Chinese Representative Office of the Italy Lin Liang Pei Li leather exhibition, pointed out that in recent years, the leather industry in Guangdong has shown the trend of industrial upgrading.

The OEM production of foreign leather products began to shift from low-end products to European brands.

Under this trend, the gross value of cattle leather and horse leather imported from Guangdong in the past two years has maintained 20-30% growth every year.

In the continuing downturn in the European market, Guangdong leather industry is becoming an important "post factory" for European top leather traders.

Reporters learned from the exhibition that China's leather industry continued to maintain its development momentum in the first half of this year, but the export growth dropped significantly.

According to customs statistics, the export value of the main commodities in leather industry was 11 billion 480 million US dollars, an increase of 9.1% over the same period last year.

The reason for the decline of export growth is analyzed. The person in charge thinks that the export tax rebate policy, the state adjusted processing trade policy, the appreciation of RMB, the rise of labor costs, and the anti-dumping and technical standards of foreign countries all have an impact.

In the long run, China's leather industry may reduce its export volume through product adjustment, but its overall competitiveness will be enhanced.

With the appreciation of the renminbi, some participating companies indicated that profits were further diluted.

Some participants said that since the reform in July 21, 2005, the exchange rate has risen by nearly 7 percentage points, which has reduced the profits of some enterprises.

For example, according to the past 8.26 exchange rate, 15 dollars and a pair of shoes are converted into RMB nearly 130 yuan, and now only 110 yuan, the difference in the middle is at least 15 yuan.

If a company calculates a shipment of less than twenty container shoes to Russia every year (a container has at least ten thousand pairs of shoes), the loss this year will be at least 3 million yuan.