Wenzhou Shoe Enterprises: Actively Explore New Ways To Avoid Trade Barriers

The EU is an important market for Chinese footwear. However, since the 90s of last century, Chinese shoe enterprises have been subjected to the vicious pressure from the European Union. The restriction from quantity to the collection of anti-dumping duties has seriously affected the export of Chinese shoes to the European Union. While Chinese enterprises are using legal weapons to safeguard their rights, they are also actively exploring new ways to avoid the impact of trade barriers.

In response to the EU's anti-dumping duties on Chinese leather shoes, more than 90% of Wenzhou shoe enterprises have begun to adopt anti-dumping measures.

According to the boss of many shoe enterprises in Wenzhou, because the EU has imposed anti-dumping duties on genuine leather shoes from China, the use of non leather materials has avoided the risk of anti-dumping.

At present, many companies, including AOKANG, Jin Di and giant one, have already begun to use leather materials such as cloth and P U synthetic leather, so as to avoid EU's 16.5% anti-dumping duty on Chinese leather shoes.

It is understood that men's shoes made of high-grade P U synthetic leather are more popular in the European market, and P U women shoes are also widely distributed in the European market.

Wang Hailong, AOKANG shoe propaganda department, said

Opening up emerging markets in ASEAN

Since China ASEAN Free Trade Area has imposed zero tariffs, more Chinese shoe companies have begun to seek new market opportunities in Southeast Asian countries.

However, due to various factors such as the habit of wearing shoes, the current export to Southeast Asian countries is very limited.

War in Russia

The export of products to Russia is very impressive, but Russia's trade policy is quite variable.

For example, Russia has imposed a "no entry" tariff on goods such as shoes and garments for "uncompetitive commodities", which has caused some impact on Chinese shoe enterprises. Many Chinese shoe companies have withdrawn their offices.

Because of the setback in the EU market, the Chinese shoe industry, represented by Wenzhou shoe companies, is trying to establish a foothold in the Russian market by setting up a trading company in Russia.

In this regard, the industry said that in many ways of marketing, the most crucial and necessary way for Chinese shoe enterprises to go now is to set up trading companies in Russia, hire Russian marketers to open up markets, hire accountants and tax companies familiar with tax and taxation in Russia, and set up a special exhibition hall to take a formal road of operation.

In terms of sales methods, some analysts believe that conditional manufacturers should take part in exhibitions in Russia, take the initiative to acquire special counters in larger scale stores in Russia and pform sales channels to large supermarkets in Russia so as to enhance the brand influence of Chinese shoes.

Technological innovation to enhance the added value

It is a way for Chinese shoe enterprises to fundamentally solve the anti-dumping problem by improving the core competitiveness of the industry through technological innovation, promoting the cultivation and construction of domestic brands, opening up a diversified international market, optimizing the export product mix and industrial layout, and upgrading the level of industrial clusters.

At present, AOKANG is developing some functional leather shoes, such as shock absorbing shoes, golf shoes, etc., and the next step will also develop low carbon leather shoes made of environmentally-friendly materials.

It is reported that the price of functional leather shoes is higher than 40%-50% of ordinary leather shoes, and the probability of anti-dumping will be smaller after the added value of products.

At the same time, in order to adapt to the impact of anti-dumping, AOKANG will shift to the central region in the future, so as to have more room for reducing manufacturing costs.