China'S Shoe Export Situation Is Grim &Nbsp; Shoe Enterprises Profit Margins Are Squeezed.

RMB appreciation, export shoe companies are hurt

According to Guangzhou customs statistics, from 1 to October this year, Guangdong shoes exported 3 billion 440 million pairs, worth 10 billion 150 million US dollars, respectively, representing an increase of 20.5% and 24.4% over the same period last year.

In the past 3 months, the size of the export of Guangdong's shoes has narrowed down, and the export volume has decreased continuously. In October, 290 million pairs of exports were increased, 1.8% increased, the ratio decreased by 3.1%, the value was 960 million dollars, the growth rate was 30%, and the annulus ratio decreased by 11.3%.

As the export of footwear products is mainly settled through the US dollar, the appreciation of the RMB against the US dollar will increase, which will directly compress export profits and will have a greater impact on the export of footwear.

At the same time, footwear production costs have increased significantly.

First, the prices of raw materials used for shoemaking continued to rise, and cotton (25225, -1225.00, -4.63%) prices continued to hit a new high.

Two, the cost of employment is also increasing.

In the first half of this year, the average monthly wage of Guangdong employees was 3090 yuan, an increase of 10.1%.

If the US dollar continues to decline, the yuan will go further.

Xu Xiaojie, vice president of Zhejiang AOKANG group, said that from 2006 to 2008, raw material prices rose from $10.05 to $10.85, labor costs rose from $2.23 to $3.3, and the cost of hydropower and logistics rose from 0.18 US dollars to $0.23.

Excluding other comprehensive expenses, there is only a profit of 0.32 dollars.

Even if the export price rose to $16.2, the gross profit of these shoes dropped from $1.1 to $0.7.

In addition, the RMB appreciation continued to decrease by 0.29 US dollars, the export tax rebate reduced by 0.3 US dollars, and the pre tax profit of a pair of shoes dropped from 1.2 US dollars in 2006 to 0.21 US dollars in 2008.

In order to avoid risks, many shoe enterprises in Wenzhou avoid large orders with large delivery time and large quantities. On the one hand, they develop new products to achieve higher prices.

But what is worth noting is that if the RMB continues to appreciate, even if the company settled on the settlement rate of 60% orders, the remaining 40% orders, corresponding to the exchange rate losses, plus labor costs and raw material prices, could still "eat" most of the profits.

Fierce competition and serious trade barriers

For footwear products, the products exporting countries are mainly concentrated in Asia, Europe and South America. The main countries are China, Italy, Vietnam, Spain, Brazil, Portugal, Romania, Indonesia, India, Thailand and so on. Among them, export growth is relatively fast, and the countries are China, Vietnam, India and Romania.

In recent years, with the further pfer of industry and the adjustment of industrial structure, the focus of global footwear output has further concentrated on Asia.

At present, China's footwear exports are still dominated by medium and low-grade products, and lack of products with internationally renowned brands and independent innovation capability. During the same period, the main competitors of China's footwear exports, such as Indonesia, Vietnam and India, have been in a favorable position in the competition with China's footwear products exports, because of their cheaper labor cost advantages.

In addition, for a long time, the export growth of China's footwear industry has been achieved through the expansion of export volume.

Especially in the current environment of trade protectionism, the technical barriers to product quality control are increasing.

Experts pointed out that at present, China's shoe export situation is still not optimistic, and the increasingly serious trade barrier problem is also one of the reasons.

Recall of products without regulations

In recent years, with the implementation and updating of the EU REACH regulations, the footwear industry in China is a labor-intensive industry. The chemicals involved in the products involve a large amount of risk chemicals, a wide variety of products. In addition, the export enterprises of the European Union do not attach enough importance to foreign standards and regulations, so that the export enterprises are more passive in the face of technical measures. Many enterprises still have some mistaken ideas about the REACH regulations.

According to official statistics from the United States and the European Union, the first quarter of this year, China's export footwear products were recalled by the United States and Europe in 31 batches, representing a sharp increase of 40% compared with the same period last year. Chemical hazards were the main reason for the recall of footwear products, accounting for 82.48% of the total recall.

Most of the two methyl fumarate (DMFu) exceeded the standard, accounting for a higher proportion of chemical recalls due to chemical hazards.

The acceleration of RMB appreciation, the rising cost of raw materials, and the introduction of support measures by competitors have brought instability to the footwear export market. At present, the main competitors of China's footwear exports, such as India, Vietnam and other neighboring countries, are gradually gaining a favorable position in the competition by virtue of their cheaper labor force. At present, India shoe production accounts for 16% of the total global shoe production, ranking second in the world. Vietnam's shoe exports are growing rapidly, and this year it has become the fourth largest shoe producing and exporting country in the world.