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    "China Shoe City" Footwear Exports Steadily Increased By &Nbsp; However, Faced With Multiple Pressures.

    2011/12/15 23:40:00 31

    Shoe City Export Steady Growth Pressure

    Known as the "shoe city of China".

    Putian, Fujian

    In the slow recovery of the world economy, domestic raw materials, wages and rents rose.

    Order

    With the reduction of domestic consumption and the weakening of domestic consumption, footwear exports this year are still steadily advancing.


    According to the Putian entry exit inspection and Quarantine Bureau, in the first 11 months of this year, the board examined footwear exports of $1 billion 981 million, an increase of 14.4% over the previous year, a record high, exceeding the total value of $1 billion 958 million in 2010.


    This year, although the export of China's shoe city has maintained steady growth, it still faces rising costs and markets like Europe and the United States.

    consumption

    Weak pressure of growth, crisis of gold chain of small and medium-sized shoe enterprises and increasing international trade protection.


    Putian entry-exit inspection and Quarantine Bureau light textile section chief Li Jianfeng introduced: "this year, Putian footwear value continues to grow mainly in three aspects.

    First, quality improvement promotes export competitiveness.

    Enterprises continuously improve the quality system and improve the added value of products. This year, the average export price of footwear exports is 6.02 US dollars, up 18.5% compared with the same period last year.

    Second, the footwear industry in Putian has intensified its R & D efforts, occupied the high-end industry chain and occupied a place in the high-end market.

    In the first 11 months of this year, footwear exports to Europe and the United States amounted to US $1 billion 574 million, accounting for 79.49% of the total value of footwear exports in Putian.

    Third, prices of raw and auxiliary materials, labor costs and RMB appreciation have led to an increase in export unit price.


    Reporters learned in the interview that although footwear exports in Putian have maintained steady growth this year, they still face four pressures:


    Comprehensive cost rise

    Order

    Transfer.

    Since the beginning of this year, prices of raw materials such as leather, rubber, plastics, chemical fibre and other raw materials have continued to rise, and the cost of labor in shoemaking industry has increased by 20% to 30% on the other hand, such as recruitment difficulties and state adjustment of minimum wage standards.

    On the other hand, the rising exchange rate of RMB has further increased the exchange loss of enterprises, and the cost of exports has increased significantly. Some orders have begun to pfer to Southeast Asian countries such as Vietnam and Indonesia.

    For example, Taiwanese Investment Limited Putian Xianyou Tai Li Shoes Co., Ltd., whose headquarters in Taiwan pferred 50% orders from mainland China to Vietnam this year.


    The high unemployment rate in Europe and America caused consumption growth to be weak, which directly impacted the export of Putian footwear to Europe and the United States.

    For example, this year there has been a situation that some export shoe enterprises refuse to accept customers due to the lack of consumer confidence after delivery, and even enterprises.

    Payment for goods

    Some customers have also been in arrears for a long time, which affects the normal operation of export enterprises.


    Small and medium-sized shoe enterprises are facing a crisis of gold chain breakage.

    Many industry insiders have revealed that the difficulties faced by footwear enterprises this year are much higher than that of 2008. Now, small and medium-sized enterprises may lead to greater losses or shutting down because of capital chain breaking.

    Many small and medium-sized shoe enterprises have been closed down under the "shortage of money" crisis, and the operating environment of small and medium-sized shoe enterprises is worrying.


    Foreign trade protectionism is pouring in.

    In recent years, news of China's footwear exports has been on the rise, such as azo, o-phthalic acid two esters, REACH highly concerned substances, heavy metal lead content, and methyl esters of fumaric acid, etc., which have become a powerful weapon in the EU's boycott of China's footwear products.

    Latin American countries also upgraded restrictions on the export of Chinese footwear products. In January, the Guanajuato footwear industry association of Mexico put forward the investigation of the lead content of Chinese footwear. In September, Mexico convened the international footwear conference, calling for a boycott of imports of Chinese footwear products; the Brazil government announced that from October 4th onwards, China's leather shoes had to be pre approved in order to enter the Brazil market. The examination and approval process could be as long as 60 days. The Ecuador government decided to impose a tariff of 6 dollars on each pair of semi-finished shoes, while the import of 90% half of them was China.


    In the face of international and domestic pressure, the Chinese footwear industry should accelerate technological upgrading and upgrading, cultivate its own well-known brands, steadily push forward the reform of the RMB exchange rate mechanism, maintain the basic stability of the RMB exchange rate, mitigate the impact of exchange rate fluctuations on enterprises, increase the financing support for small and medium-sized enterprises, further enhance the financing channels for enterprises, strengthen self inspection and self-control capacity building, effectively respond to various trade protection measures and technical barriers, and avoid export risks, so as to get out of the predicament.


     
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