Shoe Industry Export Orders Diverted From Southeast Asian Enterprises

P, more than two months away from Christmas, retailers and gift makers in the United States have been unable to keep up with their holiday promotions, hoping that consumers will start buying early.

China is the largest exporter of footwear to the United States, will it also usher in the peak season for export?

According to industry sources, the annual export volume of leather shoes in Guangdong has dropped from 1 billion 100 million pairs to 700 million at present, and export margins have dropped from 20% to 5%.

In contrast, the export figures of < a href= "http://www.91se91.com/news/index_c.asp > > Wenzhou shoes < /a > are much brightest. According to customs data, in August this year, Wenzhou footwear export value was 672 million US dollars, accounting for more than 30% of the total export value in August, which reached a new high this year, an increase of 11.39% over the same period last year.

It is understood that the main profit is large shoe enterprises, the elimination rate of small and micro shoe enterprises up to 52%, the survival period is only one or two years.

< /p >

< p > < strong > Southeast Asia shunting order < /strong > /p >

< p > EU is about to usher in the Christmas sales season. The export of footwear as the highlight of Christmas products is not as optimistic as expected.

For the steep decline of the export volume of Guangdong footwear industry and the sharp decline in profits, a href= "http://www.91se91.com/news/index_c.asp" > Heshan footwear industry < /a > president of the General Chamber of Commerce and Shi Zhijian, chairman of Hua Lida Shoes Co., Ltd., said that the appreciation of RMB weakened the competitiveness of Guangdong shoe industry in the export field.

According to the reporter's understanding, in the general devaluation of currencies in Southeast Asia, the appreciation of the RMB relative to the US dollar has prompted a considerable number of orders from Europe and America to flow to Southeast Asian countries.

It is obvious that the same amount of US dollar will have more purchasing advantages in Southeast Asian market than in China.

< /p >

< p > in addition, from the overall situation, the < a href= "http://www.91se91.com/news/index_c.asp" > shoe making enterprise < /a >, represented by Vietnam, has gradually formed its scale and its competitiveness has been increasing.

It is understood that Vietnam's footwear exports totaled 7 billion 250 million US dollars in 2012, an increase of 10.6% over the same period last year.

At the same time, Vietnam is also actively promoting the pformation and adjustment of footwear production, establishing a stable supply chain for raw materials, expanding export markets and raising the target of export volume to US $8 billion in 2013.

Plus the cost of local land, labor, raw materials and other advantages compared to the domestic advantage, in the export of low-grade footwear products, the price is more competitive.

< /p >

In the increasingly severe international competition environment, insiders say that shoemaking enterprises must implement technological pformation and technological innovation, cultivate their own brands, increase product research and development, enhance brand value added, and enhance market competitiveness. P

At the same time, we should intensify our efforts in developing new markets, optimize the structure of export products, pform marketing concepts and marketing methods, and strive to expand market share.

< /p >

The profit of < p > < strong > was diluted /strong > /p >

In the footwear industry of the whole country, the status of Guangdong is very important. < p >

Wang Jianxin, director of Guangdong Leather Association, has publicly introduced that there are more than 8000 shoe factories in Guangdong, producing 4 billion 500 million pairs each year, accounting for nearly 50% of the total market share.

Every year, there are 3 billion 500 million pairs of shoes exported, accounting for 70% of the total export volume of the country.

< /p >

< p > but from the export situation this year, the shoe industry in Guangdong is not ideal.

According to Wang Jianxin, because of the international consumer market downturn, orders fell by 20%~30% this year, and the profit margin in 2013 fell by 60%.

"When the export situation is the best, Guangdong's annual export of leather shoes has reached 1 billion 100 million pairs, and now there are only 700 million pairs," Wang Jianxin said. "Export enterprises are facing a serious problem of profit being diluted. After the promulgation of the new labor law, the labor cost is rising, and the profit of former enterprises may be 20%. Now the average industry profit is only about 5%."

< /p >

Compared with Guangdong, the footwear exporters in Wenzhou look much better than P.

Customs data show that in August this year, Wenzhou's footwear exports amounted to US $672 million, accounting for more than 30% of the total value of exports in August, a record high this year, an increase of 11.39% over the same period last year.

Throughout the whole year, the overall footwear export situation has declined, except for 3 and April, and has increased to varying degrees in other months.

In addition, footwear increased by 50% in June compared with 35.1% in July.

In this regard, Xie Rongfang, executive chairman of Wenzhou shoe leather industry association, said that the growth of footwear exports in 6 and July this year has been significantly increased, mainly due to the Christmas orders in the European and American markets, together with the concentration of some orders next year.

According to Xie Rongfang, the export price of Wenzhou shoes has increased significantly, reaching an average of 6.33 US dollars, but enterprises are also facing the problem of increasing raw material and labor costs, and profits have been diluted.

< /p >

< p > some experts remind that the development of the industry can not just look at export data, because all the money making enterprises are large enterprises.

"Small export enterprises are not big companies in terms of production technology, technology and equipment, and R & D of new products. It is impossible to grow naturally."

Wenzhou shoe leather industry association deputy secretary general Lin Fengru said.

According to the reporter, the survival time of small and micro export enterprises is relatively short, often only one or two years, and some even do this alone.

< /p >