Overall Situation Of Leather Industry'S Economic Operation: Entering The Depth Adjustment Period

The China Leather Association and the China finance and trade light textile trade union held a press conference on the 2016 economic operation of China Leather Industry and the guiding standard for labor quota in the footwear industry. The conference analyzed the overall situation and characteristics of China's leather industry's economic operation last year, and forecasted the trend of leather industry this year.

Zhang Xiaodong, deputy inspector of China finance, trade, light textile and tobacco trade union, Yan Hong, Minister of light industry tobacco working department, Li Yuzhong, Secretary General Chen Zhanguang, deputy secretary general Ye Xiangju, general manager Wang Dingxiang, general manager of Beijing Bijie labor quota Technology Research Institute, and nearly 40 representatives of Xinhua news agency, China News Agency, China International Radio and other media representatives attended the press conference.

Yan Ping, vice chairman of China Leather Association, presided over the press conference.

Li Yuzhong, chairman of the China Leather Association, delivered a speech at the conference. He said that the leather industry basically achieved stable operation in 2016, but the overall operation of the economy showed significant characteristics such as fluctuations in output indicators, slowing sales growth, declining profits and increased export declines. The potential risks of future development should be vigilant.

He stressed that at present, the global leather market demand is recovering moderately, though the operation is still more difficult, but the overall situation is stable and good.

Although China's macro-economy is facing some difficulties, the opportunities in the market are also worth the attention and assurance of the leather industry. The expansion of domestic demand and upgrading of consumption will become the internal driving force for the development of China's leather industry, a new situation in the formation of regional industrial restructuring, and the wide integration of information technology, the Internet and manufacturing industry to the development and innovation of industry.

Zhang Xiaodong, deputy inspector of China finance, trade, light textile and tobacco trade union, introduced the background of the compilation, and expounded the importance of the guiding standard for labor quota in the footwear industry, and the role of trade unions in participating in the work of labor quota management.

He pointed out that formulating labor quota guidance standards in leather industry is conducive to strengthening enterprise management, adapting to the needs of labor, salary and personnel system reform under the new situation, and promoting enterprises to improve labor production efficiency and economic efficiency, and to safeguard the legitimate rights and interests of workers and staff members.

The establishment and improvement of the standard of labor quota also has great significance for promoting the development of the industry, improving the management level and market competitiveness, and ensuring the harmonious and stable labor relations.

At the same time, the standardization of labor quota is an important part of the national standardization system. Formulating guidelines for the labor quota of leather industry will help to improve the international competitiveness of China's shoemaking industry.

Chen Zhanguang, Secretary General of the China Leather Association, has officially promulgated the "guiding standard for labor quota in the footwear industry". The compilation principles, compilation process and specific contents of the standard, as well as the promotion of the industry have been introduced in detail. Ye Xiangju, Deputy Secretary General of the China Leather Association, has released the 2016 economic performance of the leather industry in China.

The overall situation and characteristics of the economic operation, and forecast the trend of leather industry this year.

In 2016, the global economic downturn, market demand and export weakness weakened. Facing the intricate market situation and internal and external competition, China's leather industry further promoted pformation and upgrading and pressed ahead.

In 2016, the industry showed a marked decline in the business climate index, a slowdown in sales growth, a year-on-year decline in profits and a sharp decline in exports.

In view of the first decline in industrial profits in 18 years, the simultaneous decline in import and export, and the first two consecutive decline in the export industry in twenty years, imports declined for the first time in 2009. Therefore, the major economic indicators system of the industry has changed considerably, and the industry has entered a period of deep adjustment.

Throughout the past 2011-2016 years, the annual light curve of the leather industry index has shifted down year by year. The monthly average in 2016 is 86.9, a decrease of 2.5 points compared with the previous year, and the annual average level is in the gradual cooling zone. The three main indexes of sales revenue, total profit and export boom have declined compared with the previous year, and they are in the cold, cold and stable range respectively.

In 2016, China's main leather industry (leather, fur and footwear and footwear) enterprises completed sales revenue of 1 trillion and 400 billion yuan, an increase of 3.2% over the same period, and the growth rate dropped 2.9 percentage points.

Taking June as a watershed, the growth trend of industry sales revenue growth is becoming more and more obvious.

The main industries such as shoemaking, bags and so on grew steadily, while leather making went down year after year.

The biggest decline was 7.1%.

The total profit of the industry was 86 billion 240 million yuan, down 3% from the same period last year, and the growth rate dropped by 8.5 percentage points. The cumulative profit of the industry has declined for the first time since 1998, and has continued to decline since the second half of this year. There is no sign of obvious improvement, and the quality and efficiency of the operation are improved.

Among them, the footwear industry occupying half of the total profits of the industry fell 0.4% year-on-year, and fur clothing was the largest segment of sales and profits, with a profit drop of 43.1%.

In 2016, the sales of key footwear products of the 15 e-commerce websites increased by 92 billion 230 million, up 9.8% from the same period last year. Sports related categories were growing at a high speed, and bags for men and women dropped sharply.

Data show that the sales growth of online shoe bag products is higher than that of sales. The low price mode is still the main feature of net sales products. In the long run, the declining prices are not conducive to the healthy development of the industry.

In 2016, China's leather industry exported 76 billion 400 million US dollars, down 11.3% compared with the same period last year, or 8.2 percentage points.

The decline of industry exports is the result of the superposition of series of unfavorable factors. On the one hand, the slow recovery of the main export market economy and the weakening of external demand have a major impact on the export oriented leather industry. On the other hand, the production cost of enterprises is rising continuously, and the international comparative advantage is weakening. The pfer of industry and order leads to the gradual reduction of the market share of China's leather industry in Europe and the United States. When the cost is rising, the export price of the industry has dropped sharply, making the industry export facing a more difficult situation.

According to the industry, the total export of shoes and bags accounted for 91.6%, with an average decrease of 11.8%, which decided the trend of export in the whole industry.

The recession of industry exports has a direct impact on the decline of unit price of export products. In 2016, the unit price of footwear exports was 4.8 US dollars, down 6.8% from the same period last year, while the increase in the previous year was 3.4%, and the increase in 2014 was 10.1%.

As the first target market of industry export, the United States has long been the weathervane of industry export.

In 2016, China's leather industry's exports to the US dropped by 15%, up from 5.6% last year, which is another decline in exports to the US after the financial crisis in 2008.

Correspondingly, exports to ASEAN China since 2010 -

Since its formal establishment, it has dropped for the first time, reaching a drop of 19.1%.

Considering the recent rapid development of ASEAN leather industry and our country's classification of its export products, it is hard to see the future growth of the industry's export to ASEAN.

The EU is the second largest target market for the export of leather industry in China. Its exports in 2016 dropped 7.2% compared with the same period last year, declining for two consecutive years, and the decline has increased by 3.12 percentage points.

Overall, the main export industry of China's leather industry is basically in a downward trend.

In 2016, China's leather industry imported 8 billion 900 million US dollars, down 7% compared to the same period last year.

The contribution of products to import growth has been higher than that of raw materials in recent years, and the total import volume of products has exceeded the import of raw materials for the first time, indicating that the consumption structure of our country has changed.

On the other hand, the import value of finished leather and semifinished leather, which occupy the major share of raw materials, decreased.

Shanghai has surpassed Guangdong for the three consecutive year to become the first largest province in the whole industry. The two accounted for 61.5% of the total imports of leather industry in China, but the structure of imported products was significantly different.

Consumption oriented Shanghai accounts for 47.7% of China's total footwear imports, accounting for 69.6% of the total imports of luggage and bags.

The import of processing trade type Guangdong is mainly raw materials, accounting for 53.8% of China's finished leather imports, 40.5% of the total imports of semi-finished leather, and 25.1% of the total imports of tanned fur.

The EU and ASEAN are the two major sources of leather industry in China, accounting for 30% and 29.8% respectively, down 8.1% and 14.5% respectively over the same period last year.

It is worth noting that Vietnam's main leather industry has been growing continuously in China in recent years. In recent years, Italy has become the largest importer of footwear in China and its unit price has increased by 1.8%.

In addition, the amount of tanned fur imported from ASEAN has increased by 62% and 38.6% respectively over the same period last year.

When the export growth rate of ASEAN industry has dropped sharply, the value of imports from ASEAN has increased rapidly in recent years.

In 2017 1-2, sales revenue was 192 billion 580 million yuan, an increase of 5.6% over the same period last year. The total profit was 12 billion 70 million yuan, up 2.8% over the same period last year. The export volume was 11 billion 290 million US dollars, a decrease of 1.1% over the same period last year, and the total import value was 1 billion 330 million US dollars, up 10% over the same period.

Among them, the import of finished leather, semi finished leather, raw hide and tanned fur increased year by year, indicating that the demand for raw materials has increased in the industry, which is good news for the development of the industry.

In 2017, the global leather market demand is experiencing a mild recovery. Although the operation is still relatively difficult, the overall situation is stable and good. As the leather industry continues to implement the strategy of "three products" and grasp the opportunity to upgrade consumption and improve the quality and efficiency of supply, China's leather industry is expected to achieve steady, stable and quality upgrading this year.

It is expected that the annual sales revenue of the industry will continue to maintain a low digit growth rate. The profit growth situation is still grim, but the export decline will be narrowed.

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