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    Three Major Hidden Troubles That Plagued The Footwear Industry

    2008/7/21 0:00:00 10337

    Shoemaking Industry

    Guangdong is the largest province of footwear exports in China.

    In the first half of this year, the number of export footwear products in Guangdong decreased significantly, but the export value still increased, and the number of export enterprises decreased by nearly half. However, the average export price of each pair of shoes increased by nearly 30%.

    Experts believe that the first half of this year's footwear exports "one liter and one drop" indicates that the adjustment of industrial structure is accelerating.

    Footwear exporters reduce nearly half of China's largest footwear production area in the world, while Guangdong occupies an important position close to half the country's output.

    In 2007, Guangdong's footwear exports amounted to 3 billion 470 million pairs, valued at 9 billion 200 million US dollars, accounting for 42.5% of the total export volume of footwear products in China.

    However, this year, due to the continued appreciation of the renminbi and the sharp rise in raw materials and other unfavorable factors, Guangdong footwear exports have seen a sharp decline after years of continuous growth.

    According to the latest statistics of Guangzhou customs, Guangdong exported 1 billion 630 million pairs of footwear products in the first half of this year, down 15.8% from the same period last year, worth 4 billion 960 million US dollars, an increase of 9.2%, and the export average price was 3 US dollars, an increase of 29.6%.

    Affected by many factors, Guangdong footwear export enterprises have significantly reduced this year. Enterprises with export performance dropped from 5811 in the same period last year to 3924 in the first half of this year. Among them, the decline of footwear export enterprises in the Pearl River Delta was even more obvious, from 5043 in the same period last year to 2617 in the first half of this year, with a drop of 48.1%.

    For this data, Qiu Xiaoguang, President of Guangdong Footwear Manufacturers Association, believes that this reflects a good sign of the structural adjustment of the footwear industry. It shows that small businesses are being accelerated by large enterprises, some enterprises are pferring to Guangdong's northern Guangdong mountains and East and West wings, and some small businesses that have made shoes for export have been pformed into big factories, and the industrial division of labor is more detailed.

    The stronger the stronger, the weaker the weaker. Wu Hang, Secretary General of Guangdong footwear industry association, said that this year will be the key year for the adjustment of the footwear industry. It is difficult to judge the result of the adjustment at least.

    But the footwear industry has entered the competitive era of survival of the fittest: small and scattered workshop enterprises have been eliminated, and high quality enterprises that are good at allocating resources, focusing on innovation and management norms are becoming stronger and stronger, showing the situation that the strong Yu Qiang and the weaker are weaker.

    Foshan Nanhai the Great Wall shoe industry Co., Ltd. has more than 1000 people and 3 production lines, and its products are mainly exported to Europe and the United States.

    Boss Ling Sheng Miao said that this year as a whole, enterprises feel very stressed. The key is to adjust themselves and actively guard against all kinds of unfavorable factors, such as expanding the market, customers and increasing agency brand.

    This year, the company set up a development department to build its own brand to develop domestic products, and its products will be listed in September.

    In addition, it also wants to pform executives, directors and other executives into shareholders and decentralization of risks.

    Ling Sheng Miao said that in the past, the business mode of the enterprise was single handed and single handed production, but there were few considerations on R & D and marketing. But now the business environment has changed, forcing enterprises to speed up strategic adjustment, focusing on developing their own brands and their own intellectual property rights, so as to enhance the added value of products and make long-term development plans, and strengthen the marketing work. Now many footwear enterprises choose to set up marketing headquarters or marketing centers in Guangzhou.

    According to the analysis of the footwear manufacturers' Association of Guangdong, there are some new trends in the development of the footwear industry in Guangdong: first, more and more enterprises begin to attach importance to enhancing the ability of scientific and technological innovation, and some enterprises have established the R & D center of shoe-making engineering, and various technological alliances among enterprises have also begun to develop.

    In addition, the footwear industry in Guangdong has started technology standardization in the fields of finished shoes, materials and parts, shoe making equipment and so on.

    Two, the industrial clusters characterized by specialized production have unique advantages in the market. At present, the main production areas in Guangdong are vigorously promoting the development of characteristic industrial clusters, while strengthening the construction of trade associations and public service systems, and guiding local enterprises to jointly expand the market.

    Three, we should vigorously expand the domestic market.

    At present, those who focus on domestic sales and "two legged" walking enterprises develop faster and have a better life.

    The three "hidden worries" haunt the footwear industry. At present, the industrial structure adjustment of Guangdong footwear industry is accelerating, and some "hidden worries" that still beset industrial development still exist.

    In October 2006, the EU imposed a 16.5% anti-dumping duty on leather shoes originating in China for a period of 2 years.

    According to customs statistics, in the first half of this year, Guangdong exported 26 million 360 thousand pairs of shoes to the EU, with a decrease of 19.7%. However, the export of shoes that did not suffer anti-dumping duties reached 190 million pairs, an increase of 21.7%, and the price was 2.9 US dollars per pair, with a slight increase of 6.1%.

    With the time limit for EU anti-dumping, the growth of exports to Europe is likely to be the trigger for the EU to initiate anti-dumping proceedings against my export.

    Two, the independent innovation capability of enterprises needs to be strengthened.

    In the footwear industry of Guangdong, the export trade and the "OEM" production occupy a large share, lack of well-known brands, the added value of products is not high, and there is still a certain gap in terms of materials, technology and technology compared with the international advanced level.

    In the first half of this year, Guangdong private enterprises exported 740 million pairs of footwear products, accounting for 45.7% of the total export volume of footwear products in Guangdong in the same period, but the value only accounted for 19.7% of the total export value, while the export average price was only 1.3 US dollars per pair, and still belonged to low-grade products.

    Three, many enterprises have just begun to develop the domestic market, slow development in modern logistics and electronic pactions, and lack of professional marketing personnel who create brands and expand the market.

    Qiu Xiaoguang, President of Guangdong Footwear Manufacturers Association, said that this year is still a year of pressure for shoemaking enterprises. The future development of enterprises depends on whether the industry can withstand pressure and break new plans.

    There are more than 6000 shoemaking enterprises in Guangdong, all kinds of products are complete, and the upstream and downstream industries are well matched. This adjustment is both a challenge and an opportunity. After being trained, the Chinese footwear industry will be more stable in the global footwear industry.

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