Guangdong Export Shoes Lower Gross Margins Lower Prices

It is worth noting that the above data show that Guangdong's export shoes have seen a trend of volume increase and price drop.

Customs data show that in April this year, the average export price was $2.3 per pair, down 5.5% from the same period last year, and the average export price was the lowest since 2009.

The average export price of the low-grade plastic shoes, which accounted for the largest proportion of exports, dropped to $1.7 per pair in April, less than 12 yuan.

Guangzhou customs data show that in January -4 months, Guangdong still exports mainly low-grade plastic shoes, exports 900 million pairs, accounting for 68.2% of the total exports of Guangdong shoes in the same period, but the export average price is the lowest in all kinds of shoes and a downward trend, plastic shoes for each pair of 1.7 dollars, down 5.5%.

In addition, the average export price of leather shoes and textile fabric shoes has increased, but because of the smaller proportion of export volume, it has little impact on the overall average price decline trend.

"I have just returned from several plastic shoe export enterprises in Chaozhou. These export enterprises generally reflect that export orders are very good, but gross margins are decreasing."

He Guiling, President of the footwear manufacturers association of Guangdong, said that there were many reasons for the reduction of gross margin, including the appreciation of Renminbi and the increase of labor cost of raw materials.

Therefore, gross margins will continue to decrease when prices are unchanged or slightly lower.

Analysts believe that as a labor-intensive industry, the export profits of the footwear industry have not been high, and gross profit margins continue to decline. This phenomenon should be particularly concerned.

For the reason of the reduction of export average price, He Guiling's analysis may originate from the adjustment of export structure.

"Under the influence of the financial turmoil, the volume of exports to Europe and the United States is decreasing, while the value of shoes exported to Europe and the United States is relatively high.

The growth of emerging markets such as ASEAN and the overall price of exports to Southeast Asia are low.

Therefore, the overall level of export prices has been lowered.

Customs data show that in January -4, Guangdong's total exports to the two markets of the United States and the EU accounted for 46.2% of the total exports of Guangdong footwear in the same period, down 3 percentage points from the same period last year, while the growth rate of ASEAN and Latin America in the emerging markets exceeded 50%, 270 million and 140 million respectively, respectively, increasing 83.9% and 57.7% respectively.

In addition, He Guiling also believes that the export business to domestic sales, but the domestic market has not yet fully opened, at this point, the export order as long as there is a profit will be connected.

The future export price may be improved after the domestic sales channel is paved.

"Increasing exports and falling prices for long periods of time is not a way. It is always led by others.

This export situation forces us to innovate.

He Guiling also told reporters that the association is trying to advocate various ways to establish brand awareness.

Therefore, in June 1st, the association will set up a technical innovation Committee for this purpose, and actively advocate shoemaking enterprises to establish brands and enhance the added value of shoes.

The customs expects that the export of shoes will continue to recover in the future, but in the future, Guangdong shoe exports will still be under pressure from the outbreak of trade measures and product quality requirements.