Under Heavy Pressure, Can The Shoe Companies Of Shishi Take New Actions?

Recently, footwear enterprises widely circulated that the EU provisional anti-dumping duty rate on China is likely to be lowered in the second half of this year.

This statement opens up an imaginary space for the Shishi footwear enterprises to re-enter the EU market.

After the anti-dumping, the output of Shishi leather shoes did not decrease. In June and July 2006, the EU raised anti-dumping duties on Chinese footwear two times. In October 7th of that year, the EU imposed anti-dumping duties on 16.5%%, which was originally made in China, for a period of 2 years.

Before the anti-dumping, the 70%% shoes in the EU market were produced by China. The largest impact was the three places of Shishi and its surrounding areas, Wenzhou and Guangdong.

But Shishi and Jinjiang sports shoes are different. Shishi shoes are mainly casual leather shoes, formal leather shoes and fashionable leather shoes, while sports shoes and children's shoes are not listed in antidumping.

Shishi, a shoe business executive, said they went to Germany Dusseldorf international shoes exhibition two times a year and the Spanish shoe show.

After the anti-dumping, every exhibition has nothing to gain, no result, the EU market has lost all its strength, and this year it has no intention of exhibiting again.

The European Union levying anti-dumping duties has little direct impact on the sports shoes industry in Jinjiang. However, because of the change of the US dollar exchange rate, many shoe enterprises in Jinjiang have no profit and choose to go out of business.

From the statistical data, the output of Shishi leather shoes has not been reduced after anti dumping, and the output value and sales value have increased by 20%% or above.

Shishi shoemaking has been stepping into two domestic and foreign markets, pferring the sales volume of the EU market to the domestic market, and actively developing the market outside the EU.

A shoe company in Shishi has been very successful in market development in Russia and other CIS countries. Its R & D center has more than 60 Russian designers.

This shoe company also built export shoe production base this year, and sales of leather shoes at home and abroad are half.

To return to the EU market, it is necessary to reopen the world. The European Union will impose a provisional anti-dumping duty for 2 years. It will expire in October 7th of this year.

The EU has lifted the quota of textile quotas this year, and it is also reasonable to cancel or reduce the anti-dumping duty on footwear.

At present, a popular prediction analysis is that this tax rate may be reduced to 5%%.

If the EU anti-dumping duty is really lowered, what will Shishi shoe enterprises do?

Do a job; and some Shishi shoe enterprise boss's expression is not very optimistic, to recover the lost market is not easy, the abandoned road is full of weeds and thorns; India, Brazil and other countries, such as Japan's Dongsheng shoes, its production of shoes are also cheap and beautiful, has filled the market place of Chinese shoes being squeezed out of the EU; as China's labor and raw material costs rise rapidly, China's leather shoes prices are no longer competitive; the PU leather shoes are popular in the European market, colorful, rich in style and cheap in price, while the leather shoes of Shishi are self pruning, and the relative prices are higher. Some large scale and powerful rock shoe enterprises are ready to roll up their sleeves and prepare for them.

However, at present, the competition in the domestic market is still fierce. Many Shishi shoe enterprises that have been pferred to the domestic market have done very tired. Therefore, after the provisional anti-dumping duty was lowered, Shishi shoemaking enterprises had once again returned to the EU for more competition opportunities.