How To Find A Way Out For Chinese Footwear Exporters In The Face Of Pressure?

Fujian Putian, known as "China shoe city", is still moving steadily under the situation of slow recovery of world economy, soaring domestic raw materials, rising wages, rising rent, declining orders and weak domestic consumption.

According to statistics from Fujian Putian inspection and Quarantine Bureau, in 2011, the export footwear of Putian reached 2 billion 266 million US dollars, an increase of 15.73% compared with the previous year, a record high.

In recent years, the construction of the footwear export quality and safety demonstration zone in Putian has been quite effective. It has effectively promoted the "quality improvement" of Putian footwear industry to continuously develop in depth, and promoted the continuous improvement of the quality system and the added value of products.

Although footwear exports in Putian have maintained steady growth, they still face four pressures:

Comprehensive cost rise leads to order pfer

Since 2011, on the one hand, the prices of raw materials such as leather, rubber, plastics, chemical fibre and other raw materials have continued to rise, and the labor cost of shoemaking industry has increased by 20% to 30% on the other hand, such as recruitment difficulties and state adjustment of minimum wage standards. On the other hand, the RMB exchange rate has continued to rise, which has further increased the loss of foreign exchange and significantly increased the cost of exports. Some orders have been pferred to Southeast Asian countries such as Vietnam and Indonesia.

For example, Putian Xianyou Tai Li Shoes Co., Ltd. Taiwan headquarters pferred the 50% order from China to Vietnam.

The high unemployment rate in Europe and America caused consumption growth to be weak.

Since the outbreak of the international financial crisis, the high unemployment rate in Europe and America has led to insufficient consumer confidence. In September, the EU consumer confidence index dropped from -16.8 to -19.0.10 months. The US consumer confidence index dropped to 39.8 from 46.4 last month, the lowest level since March 2009.

Europe and the United States consumer confidence index is low, directly affecting Putian footwear exports to Europe and the United States.

For example, since 2011, some export shoe enterprises have been embarrassed by the lack of consumer confidence after the delivery of their shoes, and even the business loans have been defaulted for a long time by some customers, which affects the normal operation of the export enterprises.

Small and medium sized shoe enterprises are facing a crisis of gold chain breakage

Many industry insiders have revealed that the difficulties faced by footwear enterprises this year are much higher than that of 2008. Now, small and medium-sized enterprises may lead to greater losses or shutting down because of capital chain breaking.

Since 2010, a series of measures of the central bank have made the bank credit line full of tension. Under the background of tight monetary tightening, China's shoe enterprises are generally faced with tremendous pressure such as increased operating costs, increased financial expenses and interest margins, and so on. Among them, the financing difficulties of small and medium-sized shoe enterprises are even more prominent. Many small and medium-sized shoe enterprises have been closed down under the "shortage of money" crisis, and the operating environment of small and medium-sized shoe enterprises is worrying.

Foreign trade protectionism is pouring in.

In recent years, news of China's footwear exports has been on the rise, such as azo, o-phthalic acid two formic acid, REACH highly concerned substances, heavy metal lead content, and methyl esters of fumaric acid and other chemicals have become a powerful weapon in the EU's boycott of China's footwear products.

Latin American countries also upgraded restrictions on the export of Chinese footwear products. In January 2011, the Guanajuato footwear industry association of Mexico put forward the investigation of the lead content of Chinese footwear. In September 2011, Mexico convened the international footwear conference, calling for a boycott of imports of Chinese footwear products; the Brazil government announced that from October 4, 2011 onwards, Chinese leather shoes must be pre approved in order to enter the Brazil market. The examination and approval process may take up to 60 days; the Ecuador government has decided to impose a tariff of 6 dollars on each pair of semi-finished shoes, while the import of 90% half of the finished products is from China.

Faced with many difficulties, experts say that the Putian shoe industry must get out of the predicament, and the government, enterprises and relevant departments must take action from the four sides.

First, we should further support the upgrading and upgrading of industries, guide enterprises to cultivate their own well-known brands, increase investment in research and development, increase the added value of export products, and adhere to the road of internationalization, branding and specialization.

Second, we should steadily push forward the reform of the RMB exchange rate regime, maintain the basic stability of the RMB exchange rate and reduce the impact of exchange rate fluctuations on enterprises.

Third, continue to increase policy support to small and medium-sized enterprises such as financing convenience, speed up financial innovation, and further smooth the financing channels for enterprises.

Fourth, we should give full play to the role of footwear industry associations and chambers of Commerce, and timely collect and publish the latest technical regulations and anti-dumping measures and other trade protection measures of foreign countries on China's export footwear products, and guide enterprises to strengthen self inspection and self-control capability, timely and effectively respond to various trade protection measures, and help enterprises avoid export risks.