China's Small And Medium Leather Enterprises Leave EU Market Temporarily

Here world clothing shoes The little weave of the hat net is introduced to China. Leatherwear Enterprises should avoid EU markets for avoiding risks.

"A single 100 thousand yuan business can be faced with losses of up to tens of thousands of dollars after being announced." This is not a sensational rumor. Once the product is notified by the European Commission, the enterprise will not only suffer from the cost of production and transportation costs of the export products, but also has some risk assessment fees and the cost of local destruction of the sales place, and even a huge amount of compensation accompanied by consumer complaints.

The threshold for export of manufactured goods such as toys and leather products has been improving continuously. The small and medium-sized export enterprises are trapped in the pressure of technology and cost. They will leave the EU market in the short term.

One indicator is about 333 times different.

Recently, the European Commission again issued a consumer warning to toys made in China. "Because the EU has put forward new requirements for quality safety projects such as toy voice, metal content and labels in recent years, the export of toys has been warned by design flaws." Xu Changsheng, general manager of Quanzhou Jinxin Toys Co., Ltd. The main export market of Xu Changsheng's Jinxin toy company is the European Union. Our annual exports of toys amount to around us $100 million, of which about 1/5 exports to the European Union.

The high threshold of "entering Europe" is not only the toy industry, but also the leather industry. In March 26th this year, the European Commission amended the REACH regulations to limit the six valent chromium (VI) content of imported leather products to 3ppm, that is, three parts per million, and the new regulation will take effect in May 1, 2015. Prior to this, only Germany in the European Union had banned the six valence chromium content of clothing, watch bands, bags, chairs, sofa, neck bags and leather toys, which were not more than 3ppm, while the other EU Member States currently control the demand of six valent chromium at 1000ppm, and the difference between the two was more than 333 times.

As one of the main export bases of the downstream leather industry, Quanzhou exported more than 1 billion yuan leather products to the EU last year. The EU's revision of the limit of six valent chromium contained in leather products will involve hundreds of leather exporting enterprises in our city.

　 Raw material procurement is over 15%.

"3ppm limit value for large leather products export enterprises, should have been achieved or can be achieved. Some EU countries may implement some standards in advance, and some major market export enterprises in the European Union will adjust their enterprise standards ahead of schedule. Dai Jianhui, deputy general manager of PEAK (PEAK store) group quality management center, said that the company's export products kept pace with the developed countries in Europe and the United States, and the adjustment of this standard had little effect on the company.

However, according to the staff of the Quanzhou inspection and Quarantine Bureau, there are only some of the leading companies nationwide. Leatherwear The use of imported chromium preparations with good quality and stable quality can be controlled by the six price chromium in the standard of the draft. Most small and medium enterprises need to adjust.

How much pressure does the new regulation bring to the cost of production adjustment? Xu Changsheng admitted that only about 15% of the cost of raw material procurement needs to be increased. "The price of export terminal products is about 8%, not more than 10%." It is worth noting that this is a quality guarantee for large enterprises, and even under the premise of the export of independent brands. For more small and medium-sized related export enterprises, the bargaining power of terminal products is not high.

In addition, exporters will also invest more in testing costs. Dai Jianhui disclosed that the cost of the third party inspection of a single product is as high as several thousand yuan to 10000 yuan, and large enterprises purchase large quantities of raw materials, so they can sign the annual and semi annual agreements with the third party testing institutions. Small and medium-sized enterprises need to detect a batch of fees, and the cost is greatly increased.

Up to now, Quanzhou has 1 batches of children's shoes exported to Germany because of six price chromium exceeded the standard, in 2013 (2013 stores) in December, was informed. Market participants admit that although the EU market is attractive in price, Exclusive shop However, the high cost and high threshold brought by the new regulations will still squeeze out many small and medium-sized enterprises.