Broaden The Market Direction Of Dongguan Shoes Reburning Hope

"Increasing the development of the city's high consumption market, the rural market and the export oriented new market will bring great opportunities for Dongguan shoe making enterprises this year."

Whampoa customs officials yesterday said in an interview.

According to Customs Statistics last month, Dongguan exported a total of $250 million of footwear products in January, up 0.6% from the same period last year, down 6.4% from the same month.

Customs analysis pointed out that export data in the economic downturn period increased year by year there are two reasons: first, in the case of 37 million 620 thousand pairs of finished shoes exports, down 40.8% compared with the same period last year, exports of shoes and parts increased 11.6%, resulting in a rebound in overall data; in addition, customs duties were adjusted at the beginning of the year, which also affected the rise and fall of the year-on-year data.

However, the customs did not make an analysis of the decline in the ring data.

There are only 361 enterprises in Dongguan, which have export shoes. Last month, there were 4.7% enterprises with export shoes.

Among them, there are only 2 enterprises that export more than ten million US dollars, a total of 55 million 510 thousand US dollars.

The United States, the European Union and Hongkong are the main export markets for footwear in Dongguan.

In January, Dongguan exported footwear to the United States $140 million, an increase of 1.1% compared to the same period last year, exports to the EU 37 million 770 thousand US dollars, down 2.4% from the same period last year, exports to Hongkong 20 million 50 thousand US dollars, an increase of 22.4% over the previous year, and the total exports of the 3 markets accounted for 79.5% of the total value of Dongguan's exports in the same period.

It is particularly worth mentioning that in January this year, Dongguan exported $26 thousand of goods in and out of bonded warehouses, and there was no export record in the same period last year.

The owner of a shoe factory in Dongguan told the author that although the data in January this year showed an increase compared with the same period last year, it is too early to judge the signs of a rebound in the footwear industry. "Some enterprises will drag out the bill and export more in January, usually in the next year March."

"Environmental barrier" still bothers footwear exports. Although the export tax rebate rate raised last year has eased some shoe companies' urgent needs, but the international economic situation is uncertain. This year, Dongguan shoe industry will face the two export barriers of trade protectionism and "environmental barriers" in addition to coping with the adverse effects of financial crisis on slowing down external demand.

"Brazil is a new export market. In January this year, Dongguan exported to Brazil $994 thousand footwear, an increase of 1.8 times compared to the same period last year. If exports to Brazil, this emerging market is impacted, the export situation in the second half of this year is bound to be affected."

Customs officers, for example, said that in December 31, 2008, Brazil filed anti-dumping investigations on footwear products originating in China and Vietnam, whose customs codes were 6402 and 6405. The anti-dumping duty on products involved was 435.7%.

Some experts are also concerned about this. They believe that Brazil is the largest market in Latin America, and other Latin American countries are likely to follow suit once they mention anti-dumping investigations.

All of these may continue to adversely affect the export of footwear in Dongguan.

At the same time, "environmental barriers" will also bother Dongguan shoe exports.

The customs explained that at present, the European Union and the United States rely on their own technical and economic advantages to formulate stringent technical standards and environmental standards related to safety, environmental protection and hygiene, and restrict the export of footwear products.

For example, the European Union's CE safety certification mark should be obtained for the footwear exported to Europe, and the PCP residue of the shoe making leather should be strictly measured.

Three major markets rekindle exports and hope to face the complex situation. Customs analysts believe that Dongguan shoe enterprises are not without opportunities for development. They should pay attention to the development of "three markets", that is, to increase the development of the city's high consumption market, the rural market and the export oriented new market.

This person further analyzed that Singapore has abolished all tariffs on imports from China since January 1, 2009, that is, the zero tariff of footwear exports to Singapore. Dongguan shoe enterprises can make full use of preferential policies to expand the Singapore market.

Customs also suggested that with the implementation of a series of policy measures to expand domestic demand, domestic investment will further intensify and consumer demand will be further activated.

"We must make full efforts to open up domestic commercial large cities, large economic provinces, high-income areas and high consumption level markets. At the same time, we should guide enterprises to produce all kinds of commodities that are suitable for the needs of the rural market, and to have a market for vast rural areas."

Wang Xiaonan