Home >

Zhejiang Shoe Leather Industry: Raw Material Price Increases Cause Enterprise Profit Less Than 3%

2011/1/11 9:57:00 79

January 11th Zhejiang shoe leather industry

profit

The rate is rather low.

Among the most pessimistic estimates, the profit of Wenzhou shoe leather enterprises has dropped from the original 8% to less than 3% due to the increase of raw materials by about 20%.

2009 Review

EU Member States finally decided to continue to levy leather shoes from China and Vietnam for 15 months.

Anti-dumping

Although the move was opposed by the European Union industry.

Yao Jian, a spokesman for China's Ministry of Commerce, expressed strong dissatisfaction with the European Commission's proposal to extend anti-dumping measures against some of China's leather shoes, saying the Commission had many practices inconsistent with WTO rules, saying that China reserves the right to take the next step.

To protect the interests of some southern European shoe enterprises, the EU has formally imposed anti-dumping duties on leather shoes from China since October 7, 2006, with a tax rate of 16.5%.

Because the case has caused great divergence within the EU, the EU Member States will eventually reduce their anti-dumping duty to 2 years from the usual 5 years.

The European footwear alliance, which represents the interests of the more than 2000 European footwear companies, has even made an account: if the European Union extends anti-dumping measures to Chinese and Vietnamese leather shoes to 2011, European consumers and enterprises will lose hundreds of millions of euros.

2010 industry events

In 2010, sales of shoes and leather enterprises increased quite a lot, but profits dropped sharply, and some even lower than the financial crisis.

Especially after September, with the rise of the RMB exchange rate, the export profit of leather shoes is only 1-2 percentage points.

If the production cost of RMB appreciation is deducted, net profit is negative.

From 1 to November, the output value of more than 300 enterprises above Designated Size in Wenzhou reached 26 billion 400 million yuan, an increase of 30% points over the same period, and the export volume increased by more than 20%. However, enterprises generally reflected small profits.

Zhejiang businessmen's prediction

AOKANG

Group Chairman Wang Zhentao: with low carbon thinking and technology strength, we will promote the sustainable development of leather industry.

This is the demand of the world economic development and the direction of our future development.

Only by realizing the importance of developing low carbon economy can enterprises coordinate the three relations of leather industry, resources and environment fundamentally, so that the three party can achieve circular development.