Over two month later will be Christmas Day, American retailers and presents manufacturers can not wait to do the holiday sales advertising and hope for early purchase from consumers. As China is the largest exporter for America, can he also meet the boom season for exporting? Our journalist find from the visit that everything is not taken for granted. According to the information from insiders, shoes export has decreased to 700 million pairs from the 1100 million pairs at peak time, and profits also dropped to 5% from 20%. Compared to Wenzhou, export figures catches people’s eyes as in August this year, export value of shoes in Wenzhou reached 672 million RMB which accounts for 30% of the gross export value and become the record this year with 11.39 increased on year.
Orders for Southeast Asia are distributed
The Europe union will meet the Christmas boom season, as the highlight of Christmas articles, shoes exports is not nice as expected and shoemaking
industry also have no choice for this. For the sharp drop of Guangdong shoes exports, Chairman of general chamber of commerce Shi zhijian said, It’s RMB appreciation that weaken the competition of exports. According to journalist, during the currency depreciation in Southeast Asian area, appreciation of RMB against to USD promotes quantity of orders to Southeast Asian countries from Europe and America. Obviously, the same amount of dollars is more advantaged on purchase in Southeast Asian market than that in China.
Besides, from the overall situation, Vietnam on behalf of shoemaking enterprises in Southeast Asian countries are facing an increasing fierce competition. It’s known to that shoes export of Vietnam reached 7.25 billion USD in 2012 and increased 10.6% on year. At the same time, Vietnam also promotes the transformation and adjustment of shoemaking industry to build a steady supply chain of raw material, and then to explore the export market with export volume expected up to 8 billion USD in 2013. With the lower cost of local land, labor force, and raw material than those in domestic, it’s more competitive on price when exporting middle & low-end shoe products.
Under the increasing fierce international competition environment, insiders said shoemaking enterprises should carry out the technology transformation and creation to build their own brand and expand the research force of products then improve the additional value of brand and the market competition. At the same time, improve the explore force for the emerging market, optimize the product structure exported, and change the sales concept and method trying to expand the market portion.
Profits are being diluted
Among the national footwear industry, Guangdong accounts for much. There are more than 8000 shoe factories in Guangdong with 4.5 billion pairs production each year which accounts for 50% in the gross market portion. Ever year the exported shoes reach 3.5 billion pairs which accounts for 70% in the total national export volume.
Some experts said, developing situation in the industry can not just focus on data as only a few large enterprises are benefitted and earn money. “Producing technology, equipment, research for new products in small enterprises can not win those in large ones, it’s impossible to become strong naturally.” Linfeng said, the vise general secretary of Wenzhou Shoes & Leather association. According to information from journalist, lifetime of mini-exporter is shorter and usually only one or two years, some even make only one order and no more.
---Form Qifeng Shoes Machine.