Xinjiang Shoe Factory Prices Rise, Resulting In Continuous Decline In Exports.

In December, it was "golden rule" for merchants, but Li Yu, the dealer of elite shoe city in Xinjiang Border Hotel, was at leisure.

"The number of orders that I can count over the store is much less, and I know clearly."

In December 21st, Li Yu came to the lobby of the guest house of the Frontier Hotel on the edge of shoe city again. He paid close attention to the number of foreign businessmen in the hall.

He said that most foreign businessmen would live here, so it can reflect some of the current foreign trade market activity.

When asked about the results of his final research, Li Yuyao said with his head that the foreign businessmen in several hotels were all familiar faces, and there were few foreign businessmen coming.

The Urumqi customs statistics on footwear exports from 1 to November in Xinjiang showed that

Price scare away foreign businessmen

"A new market opened across the shoe city."

Anna, who is doing footwear business with elite shoe city, said that the number of footwear exports and the number of operators had reached the state of oversupply. In the light of the current export situation, there will soon be a shop that can't afford to be "closed" under competition.

According to incomplete statistics of the relevant footwear market, the supply scale of footwear exports in Xinjiang has nearly doubled since 2010.

Anna, who has been selling leather shoes for more than 4 years, even feels that he can not escape the result of being forced to close.

She said that many of the old customers this year, the volume of purchases fell sharply, and after the first purchase in each season, more than 90% did not return (repeat purchase).

Another reason for the closure is unbearable cost pressures.

According to Anna, the average factory price of winter shoes this year increased by nearly 50% compared with the same period. Although the store used some of the profits to win customers, it still failed to recover the decline in the sales of leather shoes market.

"After the increase in the cost of goods purchase, we have to retain customers and sales volume to make profits, which makes it more difficult for us to get caught in the middle."

Zhang Yong, the leather shoe operator of the West floor shoe city, said that because of the rising cost, many foreign businessmen directly went to the mainland to buy goods, which aggravated the bad situation of the current export market of leather shoes in Xinjiang. However, there was no more than 200 pairs of orders in his shop this year.

So he is ready to change his career.

Export prospects are worrying, business direction

"The main reason for the decrease in imports is the sharp decline in sales in the terminal market."

Kazakhstan footwear importer Ivan said this result is undoubtedly related to the substantial increase in import costs and the increase in import threshold.

According to Ivan, before July this year, the cost of importing a pair of shoes from Urumqi was about $3.5, and now it should be at least $7 or more. Besides, the increase in other costs such as procurement is particularly evident this year.

According to incomplete statistics, after the cost decomposition to the terminal market, the sales price of each pair of shoes in the terminal market has increased by nearly 2 times compared with the previous years.

Therefore, Ivan said that in order to cope with pressure from cost and price, enterprises began to search for footwear manufacturers in the alliance to better integrate into the terminal consumer market.

As a Chinese supplier of Ivan, Chen Bing, the 1 term merchant of Frontier hotels, acknowledged the reality of various cost increases.

At the same time, Chen Bing said that the increase in costs affects all aspects of the footwear market, and this grim situation is further aggravating in the export to Kazakhstan.

Chen Bing said that in the face of severe situation, the store had to turn its business to other markets.

It is understood that Kyrgyzstan, Tajikistan and other countries have become the direction for many footwear operators to adjust their business.