Putian Footwear Exports Continue To Show Signs Of Good

Putian is known as the "shoe city of China" and is one of the three largest shoemaking bases in Fujian province. The annual export footwear accounts for about 30% of the total export footwear of Fujian.

This year, Putian footwear exports to the good signs continue to show, the first five months of export 27026 batches, 160 million pairs, the value of $690 million 709 thousand, an increase of 22.8%, 22.4% and 21.8%, respectively.

However, it is worth noting that behind the rebound of footwear exports in Putian, there are multiple constraints, and the export situation is not optimistic.

The positive changes in footwear exports are mainly due to the following reasons:

By introducing advanced equipment, adopting new technologies, new processes and new materials, the capability of independent research and development of enterprises has been greatly improved, and the technological content and added value of products have been greatly improved. Through the cooperation with famous brands at home and abroad, enterprises have rapidly absorbed their first-class shoemaking technology and research and development ideas, and enhanced their own absorption, pformation and re creation ability, and built up a new round of competitive advantages. In addition, they have benefited from the pulling force of the combination of domestic and export brands, and the order of enterprises has been rising. The inspection and quarantine departments have provided preferential policies for more enterprises to enjoy preferential policies, such as widening the implementation of green channels, direct release, electronic supervision and certification of origin, and so on. Private enterprises are constantly developing and growing, changing from "home to order" to "door-to-door order". They have introduced quality shoes products to exhibitions at home and abroad, reducing intermediate links and increasing sales profits.

At the same time, the four important factors restricting the development of footwear industry are: the slow recovery of demand in the international market.

The unemployment rate of the United States and the European Union continued to remain at around 10%, especially the European debt crisis triggered by the Greek debt crisis, and to a certain extent, it became the euro crisis. The depreciation of the euro increased the procurement cost of European customers, so the customers became very cautious when ordering, thus directly affecting the number of orders.

Trade protectionism is on the rise.

Following the European Union, Canada, Brazil and Argentina have implemented anti-dumping duties on Chinese footwear. The technical trade measures of azobenzene, phthalic acid two formic acid and REACH high attention substances in shoemaking fabrics have become the main obstacles for footwear exports to Europe and the United States.

Production costs increase, squeezing profit margins, resulting in order pfer.

Due to the combined effects of rising labor costs, rising raw material prices and RMB appreciation, the cost of shoe enterprises has risen sharply. It is understood that the average cost of labor costs, raw material procurement costs and the appreciation of the euro in Putian this year led to an average cost increase of around 30%, and corporate profits have shrunk dramatically.

In order to reduce procurement costs, some European customers pfer some orders to countries with lower manufacturing costs, such as India and Vietnam.

Labor shortage and appreciation of RMB have brought great pressure to enterprises.

At present, shoe companies are more or less short of jobs. Some enterprises are forced to stop part of the assembly line so that production can not be carried out at full capacity. Some export enterprises have delayed delivery of orders, and new orders are afraid to take over.

In addition, the appreciation of the Renminbi for the traditional export shoes with lower added value is like a burden which is increasingly heavier. The meager profits of the enterprises are gradually being devoured, which makes the enterprises dare not receive long-term orders and long-term orders, thus affecting the enthusiasm of enterprises to undertake orders.

To this end, the industry has asked for five countermeasures: actively strive to settle in Renminbi, or diversify the risk through multiple currencies. For those companies that choose to make foreign exchange, they can find a high point in the euro "price reduction" trend to lock forward exchange rate and lower exchange rate risk as far as possible.

Enterprises should strengthen the collection of all kinds of technical trade measures information, strengthen the quality and safety control system, strengthen scientific research and development and collaboration, seek safety substitutes for prohibited substances, and improve the technological level and environmental quality of products.

We should speed up product upgrading, continuously increase the added value of products, create independent brand, change the development mode of inadequate innovation and low price bidding, and fundamentally lift the anti-dumping crisis.

Stick to the European and American markets.

Although the exchange rate risk caused by the depreciation of the US dollar and the euro and the appreciation of the renminbi is large, we must not give up exports to the European and American markets. We should take more short orders to avoid the loss of customers.

By introducing professional talents and advanced production equipment, we can improve production and management efficiency, reduce manpower and material costs, reduce production costs, and strive to create a good employment environment, improve labor skills, and ensure product quality stability.