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    Russian Light Industrial Producers Have Begun To Withdraw.

    2016/4/20 21:42:00 30

    RussiaProduction CostChina

    Russia's light industrial production costs have been equal to the cost in China, so many Russian light industrial producers have begun to move their production lines back to Russia.

    Ye J Tu Hoff, Vice Minister of Russian Ministry of industry and trade, said in an interview that

    Russia

    Overall, production costs have been flat with China, and in some cases even cheaper 10-15%.

    The newspaper quoted Ye J Tu Hoff as saying: "the main factor is the decline in Russian production costs due to the ruble depreciation.

    Labor and indirect spending have become much cheaper than the cost of production in our neighbours. "

    According to him, the wages of Chinese textile mill workers have increased two times over the past ten years, and have reached the income of workers in Russia.

    Another factor, Ye J Tu Hoff argues, is that countries with low manufacturing costs have begun to break away from cheap technology, and the price of productive forces has risen, so the prices of products are also rising.

    Russian women

    Underwear

    Pite Mars Kaya, vice president of retailer Rozteh, said the company is preparing to double production in Russia to 8 million pieces a year.

    Previously, the company mainly ordered products from China and the Baltic States.

    Akiba Love, the representative of Sportmaster, told the press: "local

    production

    It's more interesting, and the price is competitive.

    The company now produces 15% of its clothing and shoes in Russia.

    But some Russian textile representatives did not plan to move the production line back to China.

    Retailers pointed out that local production risks include Russia's lack of raw materials.

    Ely Daroff, chairman of the Russian textile association, told the press: "Russia's production costs have been flat with China."

    He also said that in some cases it might be 10% cheaper.

    So foreign and Russian retailers began to shift their production lines from China to Russia.

    Related links:

    In the past 2015, the growth momentum of the global economic situation was insufficient, and the conflict situation in the regional situation intensified. China's economic development entered the throes of the pformation of new and old energy, and the economic growth shifted from high speed to high speed.

    Recently, reporters learned from the "China leather industry economic operation news conference" in 2015, China's leather, fur and products and footwear industry in 2015 were also hard to get alone. Sales revenue, profits and imports kept steady growth, but the growth rate continued to fall.

    Specifically, in 2015, the development of leather industry in China showed two characteristics: first, the downward pressure increased; two, the industry differentiation was obvious.

    According to Ye Xiangju, Deputy Secretary General of China Leather Association, the development of China's leather industry has slowed down and the downward pressure has increased. This feature has obvious indications in the series of indicators such as prosperity index, sales revenue, total profit, import and export, and market sales.

    From 2011 to 2015, the annual curve of mid light leather prosperity index moved down year by year in 5 years, and for 2015 for the first time, it entered the gradually cooled area, with a monthly average of 89.36.

    In 2015, only the export index was in the stable range, and the monthly mean value was 98.23. The total sales revenue and total profit were fluctuating in the gradual cooling area, with a monthly average of 89.54 and 82.31 respectively.

    Sales revenue and earnings grew steadily and the growth rate dropped.

    In 2015, the sales revenue of leather, fur and products and footwear industry in China was 1 trillion and 400 billion yuan, an increase of 6.1% over the same period last year, and the growth rate dropped by 3 percentage points. The total profit was 88 billion 730 million yuan, an increase of 5.4% over the same period last year, and the growth rate dropped 3.1 percentage points.

    Sales in the domestic market are sluggish, and online and offline growth is decreasing.

    From the line down, in 2015, the national key retail enterprises sold 110 million pairs of shoes throughout the year, an increase of 1.3% over the same period, and retail sales of 45 billion yuan, down 5% from the same period last year.

    From the online perspective, the sales volume of shoes on 15 e-commerce sites was 550 million pairs, an increase of 7.3% over the same period, and sales of 69 billion 300 million yuan, down 3.2% from the same period last year.

    Underwriting sales volume of 130 million, an increase of 0.9% over the same period, sales of 14 billion 940 million yuan, down 19.1% over the same period last year.

    Industry differentiation is not only reflected in the macro aspects of production, import and export, but also at the micro level of differences between enterprises.

    Judging from the output of main products in the industry, light leather and leather shoes keep growing, leather clothing and fur clothing are decreasing.

    In 2015, the national regulation of light leather production 600 million square meters, an increase of 2.2% over the same period, accelerating 1.6 percentage points, mainly driven by the growth of automobile and leather furniture.

    And downstream products industry has varying degrees of growth decline, leather shoes production growth fell 1.9 percentage points, leather clothing production growth rate dropped 23.4 percentage points, fur clothing production slowdown slowed 91.5 percentage points.

    At the beginning of this year, the Leather Association of China conducted a survey on the production and operation of leather enterprises in 2015, and found that the differentiation among enterprises was obvious. Some enterprises with weak design ability, poor market control, and irregular management, and those with insufficient innovation, had been struggling to make ends meet, and some enterprises that focused on management, channels, technology and product innovation still maintained a relatively fast growth momentum.

    The traditional brands such as AOKANG, Kangnai, giant one, golden monkey and so on have achieved varying degrees of growth. There are also rising stars such as Luochi and so on, who have achieved super high speed growth in sales revenue of 33% in outdoor draught and "Internet +" draught.

    But the fundamentals of China's steady economic growth have not changed.

    China has a huge potential market, a complete industrial chain, an efficient industrial cluster, a high-quality industrial team, and a huge capacity advantage of the world's largest. In the short term, no country or region can undertake such a huge capacity. These are the effective basic support for the development of China's leather industry.

    With the development of intelligent manufacturing, the structural reform of supply side, the gradual optimization of industrial structure and the cultivation of innovative talents will provide a new source of power for the development of China's leather industry.


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