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    It Is Imperative For Leather Industry To Adjust Product Structure And Pform Growth Mode.

    2007/11/22 0:00:00 10305

    Leather Industry

    In 2007, the development of China's leather industry is beset with difficulties. The leather industry is a pillar industry in China's light industry.

    In recent years, with the rapid development of leather industry, China is becoming the largest producer of leather in the world, and one of the most active and potential markets in leather trade.

    2007 was the second year of the implementation of the "11th Five-Year plan". The international market has significantly increased trade protection measures for China's leather products such as special protection and anti-dumping. Russia's embargo order, boycott China's fur products into the international market, the RMB exchange rate mechanism reform and the continuous rise of crude oil prices; the EU's REACH regulations have been formally implemented; the state has abolished the export tax rebates for leather products, restricted the processing trade, and the state's increasingly strict social responsibilities and environmental requirements have all increased the cost of leather enterprises.

    Faced with a series of international and domestic policies, China's leather industry in 2007 was beset with difficulties.

    In 2005, China's leather industry above designated size enterprises achieved industrial output value of 240 billion yuan, an increase of 25% over the same period last year, and the sales revenue reached 227 billion 300 million yuan, an increase of 25% over the same period last year.

    In terms of import and export, China's leather industry (including primary and industrial products) and footwear products exported 36 billion 420 million US dollars in 2005, an increase of 20% over the same period last year, of which exports of leather and leather products (including leather shoes) were US $32 billion 680 million, an increase of 19% over the same period last year.

    In 2006, the high growth space of leather industry and footwear export was squeezed by various restrictions such as international trade friction, domestic related policy adjustment, and the increase of enterprise cost. However, China's leather industry can still adhere to the guidance of Scientific Outlook on Development, pform resources and environmental constraints and trade frictions into the internal driving force to promote industrial upgrading, actively carry out structural adjustment, enhance the capability of independent innovation of enterprises, and accelerate the pace of "the two pioneering work" of leather industry in China.

    In 2007, China's leather industry experienced a great shock.

    The fierce competition in the international and domestic markets is more and more in front of us, affecting the survival and development of the whole industry.

    Internationally, trade frictions against China's footwear and leather products have been increasing. The EU has imposed anti-dumping duties on leather shoes exports. At the same time, the relevant ministries and commissions of the country have promulgated 7 macro-control policies on leather industry, which have a great impact on the leather industry with relatively high export dependence.

    With the development of the national economy and the change of the leather products market, the production cost of enterprises has been gradually raised, the labor force is in short supply, and the competition caused by low level expansion is becoming more and more intense. The development of the northwest part of China and the rise of leather industry in Southeast Asian countries have brought severe challenges to the leather industry.

    Against this background, leather and products industry has achieved good results through efforts, but the growth rate has slowed down.

    In the increasingly competitive market environment, it is not easy for China's leather industry to achieve such a success. It also proves the vitality and strength of China's leather industry.

    The market potential of leather and its products is very large. The global leather demand is about 100 million square meters, equivalent to 300 million cowhide (standard leather) output. China's leather output is equivalent to nearly 70 million sheets of standard leather, accounting for 23.33% of the world's leather output.

    Although China is a big leather producer in the world, it is not a strong leather country. It is still in a weak position in terms of quality and value. It needs to be honed and improved in the environment of the market. It is imperative for the leather industry to adjust its product mix and pform its economic growth mode.

    The signal is that we should change the concept of development, innovate the development mode, improve the quality of development, resolutely curb the tendency of blind expansion and low-level duplication of construction, strive to readjust the product mix, and pform economic growth, especially the mode of export growth, otherwise enterprises and industries may be punished by the market.

    Face up to the law of market development and accept the trend of leather industry pfer.

    The pattern of production and trade in labor-intensive industries has always followed the objective law of shifting from high labor costs to low areas, which is irreversible in the world and in China.

    With the increasing cost of labor, energy and resources in the developed areas of Southeast China, and the implementation of the policy of revitalizing the northeast old industrial base, the processing base of leather industry will gradually be pferred to these areas.

    Therefore, for the developed areas in Southeast China, we must be good at grasping this rule, guide local enterprises to take the initiative and smooth pition period, and strive to develop leather industry at a higher level.

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