The Prospects For Leather Exports Are Dim. Overseas Businessmen Are Optimistic About The Chinese Market.

Before September,

The outlook for export enterprises is bleak.

Enterprises have sought to change through expanding domestic sales, but this pformation is slow and arduous.

In addition, the development potential of the Chinese market has attracted the attention of overseas businessmen.

The economic crisis in 2008 has washed the market in the low-end market of leather industry. The small and medium-sized enterprises, which are extensive in operation, low in product quality and weak in market responsiveness, have been eliminated.

Now, the situation seems to be more and more serious.

In the month of 2012 1~9, the gross domestic product value of leather, fur and finished products reached 617 billion 600 million yuan, with an increase of 25.73% over the same period last year, and the growth rate dropped by 0.5 percentage points over the same period of last year. The total sales income of the country was more than 20 million yuan.

This year, 1~8 months, China's leather, fur and products and footwear industry's output value and profit growth rate has been less than 15%, only 13.66% and 13.13%, down 12.22% and 20.61% over the previous year, and the export growth rate is only 7.26%, down 19.3 percentage points. In August, the export value of leather shoes in China decreased by 11.6% and 2.3% compared with the same period last year, and the growth rate dropped by 5.7 and 11 percentage points respectively.

In the interview, reporters found that some brand enterprises in leather industry also felt the chill, but these enterprises sought to change through expanding domestic sales and breaking through management.

At the same time, the potential development of the Chinese market has attracted the attention of overseas businessmen.

Domestic enterprises seek pformation

The reporter understands that the impact of China's leather export enterprises is mainly reflected in the reduction of market orders, the pressure of international buyers, and the dilution of suppliers' profits. This has also prompted some foreign trade enterprises to turn their attention to the domestic market, but this pformation is slow and arduous.

Jiangsu Shun Feng Footwear Co., Ltd. was originally a company specializing in foreign trade, and now the domestic sales business has accounted for 20% of the company's business.

Zhang Feng, business director of Shun Feng footwear industry, said that foreign trade and domestic sales are very different. Domestic investment is large and risky, but profits are not as big as expected.

"And there are no successful cases to learn from, so we can only explore them step by step."

Zhang said that for the current downturn, Shun Feng.

We can only adopt defensive strategy and observe it, so we can not rush to scale expansion.

No one knows when the "winter" will come to an end and when the spring will come. Many enterprises will choose to operate conservatively when the prospect is at a loss.

Hu Zeyan, executive vice president of the company, confidently said: "what we choose is to go against the trend instead of blindly expanding. The industrial layout must be realistic and forward-looking. It must be sustainable. Now the expansion is preparing for the future. We must seize the market when the industry is in a downturn. If we can survive this difficult period, the future market will belong to us."

For the future market layout, Hu Zeyan said: "at present, we have great advantages in the two or three tier market, the next step is to carry out a tough battle for the first tier cities, and enter the high-end shopping malls in big cities such as Beijing and Shanghai."

Overseas businessmen are optimistic about Chinese market

Although the industry is in the doldrums, overseas businessmen still have confidence in the Chinese market.

Reporters learned in the interview that the leather industry in Turkey is looking to expand the share of high quality products sold to China to meet the needs of high-end consumers in China.

The chairman of the leather Committee of Turkey said that it is very important to establish good cooperative relations with China. This year, Turkey hopes to break through the $100 million mark for China's export goal. "In recent years, China has a high level of luxury consumption, and despite the high threshold of access to the market, Turkey leather and leather products industry will strive to tap its market potential".

The German leather chemicals division of the special chemicals group is part of the Lansheng high performance chemicals board, which has a sales volume of 2 billion 130 million euro in fiscal year 2011.

"We have the responsibility to provide innovative products for tanneries so that we can produce high quality leather to meet future profitability and environmental needs," said head of the Asia Pacific regional market.