Putian Footwear Exports Still Face Four Pressures

According to statistics from Fujian Putian inspection and Quarantine Bureau, in 2011, the export footwear of Putian reached 2 billion 266 million US dollars, an increase of 15.73% compared with the previous year, a record high. In recent years, the construction of the footwear export quality and safety demonstration zone in Putian has been effective and has effectively promoted. Footwear industry in Putian "Quality improvement" continues to develop in depth, promoting enterprises to continuously improve the quality system and improve the added value of products.

Known as " China shoe city In Putian, Fujian, footwear exports continued to advance steadily under the slow recovery of the world economy, rising domestic raw materials, rising wages, rising rent, declining orders and weak domestic consumption. Although footwear exports in Putian have maintained steady growth, they still face four pressures:

　　 Comprehensive cost rise leads to order transfer

Since 2011, on the one hand, prices of raw materials such as leather, rubber, plastics, chemical fibre and other raw materials have continued to rise, and the labor cost of 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 transfer to Southeast Asian countries such as Vietnam and Indonesia. For example, Putian Xianyou Tai Li Shoes Co., Ltd. Taiwan headquarters transferred the 50% order from China to Vietnam.

　 The high unemployment rate in Europe and America caused consumption growth to be weak.

Since the outbreak of the international financial crisis, the high unemployment rate in Europe and America has led to insufficient consumer confidence. In September, the EU consumer confidence index dropped from -16.8 to -19.0. In October, the US consumer confidence index dropped to 39.8 from 46.4 last month, the lowest level since March 2009. Europe and the United States consumer confidence index is low, directly affecting Putian footwear exports to Europe and the United States. For example, since 2011, some export shoe enterprises have been embarrassed by the lack of consumer confidence after the delivery of their shoes, and even the business loans have been defaulted for a long time by some customers, which affects the normal operation of the 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. Since 2010, a series of measures of the central bank have made the credit limit of banks full and tight. Shoe enterprises Generally faced with the pressure of increasing operating costs, increasing interest and other financial expenses, and compressing profit space, the financing difficulties of small and medium-sized shoe enterprises are more prominent. 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 formic acid, REACH highly concerned substances, heavy metal lead content, and methyl esters of fumaric acid and other chemicals have become a powerful weapon in the EU's boycott of China's footwear products. Latin American countries also upgraded the restrictions on the export of Chinese footwear products. In January 2011, Mexico Guanajuato shoemaking industry association put forward the investigation of the lead content of Chinese footwear. In September 2011, Mexico convened the international footwear conference, calling for a boycott of the import of Chinese footwear products; The Brazil government announced that from October 4, 2011, China's leather shoes must be subject to prior examination and approval before entering the Brazil market. The examination and approval process may take up to 60 days. The government of Ecuador has decided to impose a tariff of 6 dollars on each pair of semi-finished shoes, while the import of 90% half of them is China.

Faced with many difficulties, experts say that the Putian shoe industry must get out of the predicament, and the government, enterprises and relevant departments must take action from the four sides.

First, we should further support the upgrading and upgrading of industries, guide enterprises to cultivate their own well-known brands, increase investment in research and development, increase the added value of export products, and adhere to the road of internationalization, branding and specialization.

Second, we should steadily push forward the reform of the RMB exchange rate regime, maintain the basic stability of the RMB exchange rate and reduce the impact of exchange rate fluctuations on enterprises.

Third, continue to increase policy support to small and medium-sized enterprises such as financing convenience, speed up financial innovation, and further smooth the financing channels for enterprises.

Fourth, we should give full play to the role of footwear industry associations and chambers of Commerce, and timely collect and publish the latest technical regulations and anti-dumping measures and other trade protection measures of foreign countries on China's export footwear products, and guide enterprises to strengthen self inspection and self-control capability, timely and effectively respond to various trade protection measures, and help enterprises avoid export risks.