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    The Situation Of The Footwear Industry Is Not Optimistic.

    2015/3/26 14:12:00 18

    FootwearLeatherRaw Materials

    Russia is one of the main export markets of Chinese shoe products. Therefore, the impact of the ruble depreciation on the footwear industry is extensive and deep.

    In the 1-12 month of 2014, the total number of Chinese shoes exported to Russia amounted to about 2 billion 660 million US dollars, accounting for 4.9% of the total export volume.

    In 2014 1-9, the total export volume of China's footwear products to Russia was 2 billion 110 million US dollars, up 11.7% from the same period last year. However, with the continuous decline of the rouble in the second half of the year, the fourth quarter's impact on the export of footwear industry has gradually intensified.

    In 2014, 10-12 of China's footwear products exported to Russia amounted to about 560 million US dollars, down 12.3% from the same period last year.

    "Enterprises are affected by several factors: first, customers have paid deposits, products on the production line, but customers suddenly cancel the order, enterprises can not only recover the goods, and cause the backlog of goods and increase the inventory. Two, in the process of communication, the Russian customers cancel the order or ask for price reduction. In the end, we can not reach an agreement, the customer terminates the contract, causing the loss of the enterprise. Three, it is influenced by Russia's control of the policy of foreign exchange outflow, and the customer asks for an extension of payment. Four, the size of the order is shrunk, and the size of the order is shrunk.

    Fewer orders, more orders, fragmentation of orders is becoming a new format.

    It is also a test for habit to make long lists and large single enterprises by long single shrinkage into short lists and large single bills.

    Lu Hua, director of the China Leather Association footwear industry special committee, believes that the overall situation of shoes exports to Russia is not optimistic: "in 2014, the shoe industry concentrated on the Russian trade at the end of the year, pulling down the annual export growth to Russia, but the more important influence will be reflected in 2015.

    Because the main impact of 2014 was the order for delivery at the end of the year before and after September, but with the rapid fermentation of the ruble crisis in a short time, the enterprises were very cautious about the 2015 orders. Some enterprises even dare not take the orders. It is expected that the footwear industry in 2015 will have a larger decline in exports to Russia. "

    The main export areas of Chinese shoe products to Russia are Sichuan, Zhejiang, Wenzhou, Fujian and Guangdong Huidong.

    Russia is one of the main export markets of the footwear industry in Sichuan. Therefore, Sichuan shoe enterprises are more aware of the arrival of the cold winter.

    "We never felt so difficult, even the financial crisis in 2008 was not so serious.

    In 2013, Russia's exports to Russia fell by 15%, and this year it is expected to decline by 50% to 60%.

    Our customers are all very powerful traders in Russia, but this year we also reduce orders or even raise prices. In order to maintain orders, we can only cooperate with the price reduction. Now the enterprises are operating in a state of zero profit or even loss, hoping to survive this most difficult period.

    He told reporters about a well-known shoe manufacturer in Sichuan, which is mainly trade with Russia.

    In mid January 2015, many shoe manufacturers in Sichuan attacked the Russian market and had already cut down their production or reduced production. A senior veteran from Sichuan footwear industry lamented: "before the situation was bad, we all had enough strength to do research and development, so the R & D and administrative departments would not have a holiday, but this year is completely different. Even the R & D and administrative departments have been on holiday. The boss has paid the wages of the workers, and I don't know when to return to work."

    Troubling Sichuan

    footwear industry

    A prominent contradiction in development is the problem of "triangle debts".

    As part of the shoe companies can not recover the loan, resulting in the capital chain rupture and lead the boss to run, or involve fraud and fraud, individual shoe enterprises boss in the deterioration of the external situation in desperation, resulting in social impact and chain reaction to the industry worried.

    At present, Sichuan Province

    Leather industry

    The association is also actively investigating and collecting information, reflecting the situation to the relevant government departments, and guiding industry enterprises to recognize the situation and enhance confidence. Under the new normal economic situation, we should adjust the structure and open up new markets so that they can tide over difficulties.

    President and Ai Miner of Sichuan footwear import and Export Chamber of Commerce

    Leather making

    Liu Qiongying, chairman of the Company Limited, said that the crisis will also form a forced mechanism to allow enterprises to pform into new markets, new channels and new products.

    Whoever takes a quick step will get the chance.

    Wenzhou, an important feature area of China's footwear industry, has also been unable to escape.

    Russia is the third largest traditional export market after Wenzhou's footwear exports are second only to the European Union and the United States. In 2013, the value of footwear exports exceeded US $800 million.

    According to the data of Wenzhou shoe leather industry association, in 2014 1-11, Wenzhou shoes exported to Russia amounted to US $570 million, down 20.34% from the same period last year.

    Xie Rongfang, executive chairman of Wenzhou shoe leather industry association, said: "because of the losses caused by the sharp depreciation of the ruble and the problems on the guarantee chain, some small and medium-sized shoe enterprises in Wenzhou may not be able to survive this Spring Festival. However, a large number of large enterprises such as AI Mei are still relatively stable in export to Russia.

    Now most of the enterprise orders have reduced by about 20%, and some enterprises have even reduced by 50%, and the funds are under great pressure.

    "Fortunately, most of Wenzhou's enterprises are not hanging on the big tree of the Russian market, but also the target customers of many markets such as the European Union and the United States.

    Over the past two years, we have also organized enterprises to visit the market or participate in exhibitions in Turkey, South Africa, India and Nigeria. We hope to help enterprises expand diversified markets and diversify risks.

    The Southeast Asian market is also one of the key points of enterprise inspection.

    Xie Rongfang also pointed out.


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