Downward Pressure Is Relatively Low, Running Into The New Normal Of Leather Industry.

First half of 2016 Leatherwear The industry continues to operate at a low level and the overall development is stable. Leather and Shoemaking In terms of the whole industry chain, profit and export growth in the first half of 2016 decreased by 17.82% and 12.78% respectively, indicating that the downward pressure on the leather industry is still relatively large, and the profitability of enterprises needs to be further improved.

Low operation becomes normal.

In the past 5 years, the light and leather index has been decreasing year by year. In June 2016, the leather profit and prosperity index was 78.03. According to the statistics of the National Bureau of statistics, the leather industry completed 653 billion 422 million yuan in the first half of 2016, an increase of 4.57% over the same period last year, and realized a total profit of 38 billion 385 million yuan, down 0.46% from the same period last year.

Leather industry as a traditional labor-intensive industry, after 30 years of development, China has become the world's real leather production power. In the past 30 years, the leather industry has accelerated the rapid development of the industry with the low cost and the increase in export volume. brand There is still lack of competitiveness in product innovation and marketing. With the development of economy, this low level competitive advantage will also be gradually lost. It is impossible to maintain double-digit growth in the future. Low level operation will become a new normal for leather industry.

In the first half of the year, the economic performance of the industry was characterized by slow, stable, professional differentiation and structural optimization. Statistics from the National Bureau of statistics showed that the output of light leather in the first half of 2016 was 320 million square meters, up 0.88% over the same period last year. Mainly due to the excellent performance of automotive leather and upholstery leather, which has stimulated the growth of the industry, but in general, the demand for raw materials has been reduced, and the import value of finished leather and semi finished leather has been reduced. The downstream footwear industry achieved a total profit of 20 billion 180 million yuan, an increase of 2.76% over the same period last year, and the growth rate dropped 4.43 percentage points over 1~5 months. The characteristics of the slowdown in the industry are also evident in the profitability of enterprises.

In the first half of 2016, the profitability of enterprises weakened and the operation became difficult. According to the statistics of the National Bureau of statistics, the number of enterprises in the leather industry in the first half of the year was 1033, an increase of 9.43% over the previous year, and the deficit was 1 billion 930 million 942 thousand yuan, an increase of 21.66% over the same period last year.

Export decline is larger.

Exports fell sharply in the first half. According to customs statistics, the leather industry in the first half of this year achieved a total export volume of US $37 billion 869 million, down 10.45% from the same period last year. From the perspective of export target market, the traditional export market has dropped completely. The top five export markets of the industry, the United States, Japan, the United Kingdom, Hongkong and Russia, account for 43.44%. Among them, exports to Russia increased by 13.2% over the same period last year, while exports to the United States, Hongkong and Japan fell by 16.46%, 4.66% and 1.12% respectively.

In the first half of the year, the leather and its products industry achieved a total export volume of US $13 billion 828 million, down 9.89% from the same period last year. The gross export volume of fur and its products industry was 1 billion 111 million US dollars, an increase of 0.81% compared with the same period last year. The export performance of footwear industry was lower than expected. In the first half of this year, the footwear industry exported 22 billion 929 million US dollars, down 11.26% compared with the same period last year.

It is noteworthy that China's footwear exports have maintained rapid growth for more than 20 years. From the annual growth rate, the year of export decline is only in 1998 and 2009. However, in the first two decline cycles, the export growth rate of footwear products in Vietnam, Indonesia and other major competitive countries also dropped to a negative value. While China's exports declined, Vietnam, Indonesia and other countries still maintained about 10% growth. According to Vietnam's Ministry of industry and trade, Vietnam's footwear exports reached 6 billion 300 million US dollars in the first half of 2016, an increase of 8.8% over the same period last year, indicating that China's footwear export pressure is unprecedented.

A major factor affecting the export of footwear is the loss of orders from China to Southeast Asia. As the world's largest sports shoe factory, Baocheng has reached 400 thousand employees in China at its peak. Now less than 200 thousand people, the company's production focus has shifted to Southeast Asia, with 7 and 4 factories in Vietnam and Indonesia respectively.

In addition, the growth of footwear exports in Southeast Asia is mainly due to preferential tariffs and low labor costs enjoyed by the region. Taking Vietnam as an example, Vietnam exported EU products for 2014~2016 years to enjoy preferential tariff preferences of GSP, and the export tariff of footwear dropped from 8% to 17% to 4.5%. China was abolished the preferential treatment. Vietnam has become the third largest export market for footwear in the EU, behind China and Italy. At the same time, Vietnam and the European Union have completed the FTA negotiations on free trade agreements. The two sides will eliminate more than 99% of the tax items. The remaining part of the tax revenue will be used as mutual tariff quotas or partial tariff reductions. Compared with Chinese products, Vietnam has a strong competitiveness in the price of its products, which has a great impact on China's leather exports.

Transformation to technological innovation

At present, China's economy has entered a period of spanformation, and the mode of economic development has shifted from export and investment driven to the direction of innovation and consumption driven. This brings new challenges and opportunities to China's leather industry. In the process of changing from quantitative growth to technological innovation, enterprises need a lot of new investments. With the rapid development of China's economy and the expansion of total volume, labor, resources and environment have entered the era of high cost and shortage. Therefore, the leather industry should realize the benign interaction between economic development and energy utilization and environmental protection. The future production enterprises will face more stringent environmental protection requirements. According to the State Council's water pollution prevention action plan, by the end of 2016, all the small leather enterprises that are not up to the standard will be ordered to close. As one of the 10 major polluting industries, the leather industry must adopt new measures to prevent and control water pollution. Tanning enterprises will be subject to public supervision. In order to meet the new emission standards, clean production and energy saving and emission reduction technologies will be widely used, and the technology and technology of high energy consumption and high pollution can be phased out. Building a low carbon leather economy has become the trend of the times.