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    Dongguan Shoe Industry Export Expansion Needs To Step Up Industrial Upgrading

    2008/12/22 0:00:00 10252

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    Yesterday, we learned from the Whampoa customs Dongguan Changan office that in the 1~11 months of this year, 480 million pairs of shoes exported from Dongguan were 9.5% lower than that of the same period last year. However, the average price of exports was 4.8 US dollars / double, rising 28.6%, so the total value was 2 billion 360 million US dollars, an increase of 17.3%.

    The same as footwear industry, Dongguan toy export decline is also expanding.

    In the 1~11 months of this year, Dongguan exported toys 1 billion 380 million US dollars, down 3.3% from the same period last year. In the month of November, exports of US $110 million decreased by 12.4%, or 7 percentage points from the previous month.

    The most obvious decline in exports is state-owned enterprises and private enterprises.

    Experts suggest that under the current export difficulties and the worsening economic crisis, the footwear industry and the toy industry should not only increase their technological input in product quality and design, adjust their product structure and grade, but also actively implement the "brand internationalization strategy", and increase their own risk tolerance ability through "going out" to set up factories outside China.

    The export data of footwear industry: the export shoes in the first 11 months were 480 million pairs. "Except for a small increase of 2.3% in July, the other months all showed a decline. In October, 37 million 360 thousand pairs were exported, the largest decline in 18% years, and 3.8% more than last month."

    According to Whampoa customs statistics, in the 1~11 months of this year, 480 million pairs of shoes exported by processing trade in Dongguan decreased by 9.5%, accounting for 97.6% of the total export volume of shoes in Dongguan in the same period, and 11 million 850 thousand pairs in general trade mode, an increase of 31.5%.

    In terms of export composition, foreign investment enterprises accounted for more than 6 of the total exports, and private enterprises fell the top.

    In the month of 1~11 this year, 310 million pairs of shoes exported by foreign invested enterprises in Dongguan decreased by 4.8%, accounting for 62.2%. During the same period, the number of state-owned enterprises exported 120 million pairs, down 10.3%, and private enterprises exported 63 million 910 thousand pairs, down 24.8%.

    The biggest impact on exports is the United States, Japan and the European Union market.

    According to statistics, in the 1~11 months of this year, Dongguan exported 330 million pairs of shoes to the United States, a decrease of 12.1%, 54 million 30 thousand pairs of exports to the EU, 2.8%, 35 million 740 thousand pairs of Japanese exports, a decrease of 11%.

    The total of the three mentioned above accounted for 84.3%.

    Due to the decline in export volume, exports of major varieties also showed a general decline.

    Data show that this year, 1~11 months, Dongguan exports not rubber (10070120, 1.21%, bar) or plastic (7655140, 1.86%, bar) sole and shoe upper shoes 160 million pairs, down 15.1%; exports of other rubber, plastic or recycled leather outsole, leather upper shoe 130 million pairs, 8.3%, exports of other rubber or plastic outsole, textile material upper shoes 61 million 30 thousand 61 million 30 thousand, dropped 2.4%; the above three total accounted for three.

    Measures should be taken: shoe companies should create brands and adjust product mix. How can shoe exporters survive the crisis?

    It is reported that since July 1, 2007, the state has reduced the export tax rebate rate of footwear products by 2 percentage points, while the export rebate commodities that were raised in November 2008 did not include shoes. For the shoe-making enterprises with a low profit margin, the adjustment of the export tax rebate rate further compacted the profits of enterprises, and increased the pressure of the operation of enterprises, resulting in a decline in the export willingness.

    Besides, with the continuous appreciation of RMB and many other factors, the cost of Dongguan footwear industry continues to rise, and a large number of shoe manufacturers and related supporting enterprises, or actively go out of business or close down, or move to other provinces and even Southeast Asian regions, the development of the industry is facing bottlenecks, which needs urgent pformation and upgrading.

    It is noteworthy that the extension of EU anti-dumping measures will affect future exports.

    The EU has imposed anti-dumping measures on leather shoes in China for two years since October 2006. The measure should have expired in October this year, but the European Commission recently announced that the European Union will investigate the export of leather shoes from China and Vietnam to Europe.

    The anti-dumping duty will be temporarily maintained until the investigation is completed.

    The European Union's investigation usually takes about 12 to 15 months, which makes anti-dumping measures extended in disguised form, and continues to adversely affect the export enterprises of leather shoes in Dongguan. In the 1~11 months this year, 15 million 60 thousand pairs of leather shoes exported to the EU dropped by 2.8%.

    Experts suggest that one is to guide enterprises to implement "brand internationalization strategy", create local brands with international influence, and enhance the added value of products; two, encourage enterprises to increase scientific research investment in quality and design, implement the strategy of winning by quality, adjust the structure of export products, increase the number of high-grade and high added value shoes exports; three, actively guide enterprises to implement the "going out" development strategy, set up factories overseas and sell them on OEM.

    Four, we should strengthen the role of trade associations, urge enterprises to self-discipline, and standardize the export market order.

    Export data of toy industry: export $1 billion 380 million in the first November, "toy business export has declined for several months this year, and now it is on Christmas day, but sales in November are worse than in October."

    According to Whampoa customs, Dongguan exported toys 1 billion 380 million dollars in 1~11 months this year, down 3.3% from the same period last year. From the month's situation, exports in November were 110 million US dollars, down 12.4%, or 7 percentage points from the previous month.

    Export reduction is the biggest impact on export enterprises.

    According to the size of the shipper unit, there are 544 enterprises with toy export performance in Dongguan this year, 1~11, which is 98 less than the same period last year. The total number of the top 10 enterprises in the export industry is 360 million dollars, accounting for 26% of the total toy export volume in Dongguan during the same period, which is 4.6% lower than that of the same period last year.

    In terms of trade mode, Dongguan exported $1 billion 360 million US dollars in processing trade for 1~11 months this year, down 3.9%, accounting for 98.4%. During the same period, we exported 21 million 140 thousand dollars in general trade mode, an increase of 52%.

    Data also show that the biggest impact on toy industry this year is state-owned enterprises.

    In the month of 1~11 this year, Dongguan's foreign invested enterprises exported toys 720 million US dollars, an increase of 3.1%, accounting for 52.1%. During the same period, state-owned enterprises exported 340 million US dollars, down 20.3%; private enterprises exported 270 million US dollars, down 1%.

    Basically the same as footwear industry, the toy industry's exports to Europe and the United States have declined significantly, while exports to Hongkong have increased rapidly.

    In the month of 1~11 this year, Dongguan exported $560 million to US $12.7%, exports to US $420 million, decreased by 1%, and the total two accounted for 70.7%. In the same period, exports to Hongkong were US $110 million, an increase of 34.6%.

    We should encourage enterprises to pform and upgrade. Dongguan is one of the most concentrated cities in the global toy industry. Now that many toy exports are facing difficulties, how can we survive in the cracks?

    Experts said that in recent years, with the domestic land, labor, energy prices and other significant increases, low-cost competitive advantage gradually lost, and in the international market, the appreciation of the renminbi and the implementation of trade protection in some countries, Dongguan toy industry has been a tough battle.

    It is noteworthy that since November 1st, with the approval of the State Council, the export tax rebate rate of some toys has increased to 14%, which is expected to alleviate the difficulties faced by the toy industry to a certain extent.

    To this end, experts suggest that toy enterprises should pay close attention to the dynamics of foreign technical regulations and standards, collect and study foreign laws and regulations in a timely manner, and enhance the initiative coping ability of domestic toy enterprises. Secondly, enterprises should be guided to keep pace with the international mainstream consumer market, optimize the toy export structure, and develop innovative toys, magic props, adult toys, pet toys, etc. with innovative varieties and movies, animation and other derivatives as the starting point.

    "Encourage enterprises to pform and upgrade, establish their own brands, and encourage enterprises to pform from OEM to ODM."

    Experts say this is the key to the development and foothold of toy enterprises.

    In addition, as the government and industry departments, we should increase support for toy enterprises.

    We should make a thorough investigation of toy enterprises, understand the difficulties of small and medium-sized toy enterprises, improve their financing support, control the relevant personnel and assets in close proximity to failing enterprises, prevent the emergence of second handsome salaries. Meanwhile, toy companies should also actively explore new markets and reduce their dependence on traditional markets such as Europe and the United States. They can expand their export priorities from Europe and America to other trade and technology barriers with relatively less security.

    Yang Jing: editor in charge

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