An Overview Of The Footwear Industry In Four Asian Countries

Content: fast developing Asia is increasing investment in leather industry. They know that to have a place in the global leather market, we must improve technology and improve the industrial structure instead of relying solely on the advantages of intensive labor resources, even though local labor costs will remain low.

Another positive factor is that some local enterprises have realized the importance of product design and development and the improvement of product quality.

(1) India leather industry 1, the role of India leather industry in the world stage is becoming more and more important. India leather industry plays a very important role in the whole country's economic life.

India produces 194 million yellow cattle, 70 million buffalo and 9500 goats per year.

According to the latest statistics, livestock raising in India (cattle, buffalo and goats) ranks first among the major countries in the world.

The sheep raising rate is 48 million in the year, ranking the sixth in the world.

The government of India has formulated a modernization plan for tannery industry, which aims to assist small and medium-sized leather enterprises to apply advanced technology and enhance their competitiveness.

In addition, the government of India will further intensify its environmental protection in leather making.

2. The development potential of India's leather industry is huge. India's leather industry is the eighth largest industry of its export earnings. In the past fifty years, the export of leather and leather goods in India has increased from 280 million rupees in 1956-1957 years to 106 billion 900 million rupees in 2004-2005 years.

The export of leather and leather products in India has also undergone a structural pformation period, from the export of raw materials in 1960s to the current export oriented products with high added value.

At present, India leather industry exports high value-added leather and products, accounting for 80% of its total export value.

India leather processing industry has announced that in the next five years, the export of leather industry will reach the export target of three times the current level.

In the recent fourteenth India Delhi international leather exhibition, the leather industry in India showed great potential for development, and the industry was very optimistic about it.

At present, India's leather exports account for 3% of the world's total leather exports, of which 63% are sold to the European market and 12% are exported to the US market.

Two, Pakistan leather industry 1, Pakistan leather products reputation, international {nextpage} leather industry is Pakistan's second largest export earning industry.

Over the past 50 years, the leather industry in Pakistan has developed rapidly, with an annual export growth rate of 11%. At present, the leather industry accounts for 5% of the gross national product, and exports account for 7% of the total exports of the country, and the number of employees exceeds 200 thousand.

At present, there are about more than 2500 tanning and shoemaking enterprises in China.

Pakistan enjoys a high reputation in the international market due to its superior quality leather.

Pakistan's animal husbandry is very developed, which provides abundant raw materials for the development of leather industry.

There are more than 720 leather making enterprises in Pakistan, of which 30~50 are larger, 150~200 are medium-sized, the other is small businesses, and the leather industry employs about 200 thousand people.

The output value of Pakistan leather industry accounts for about 1% of its national economy, and nearly 90% of the leather industry is exported in the form of finished products. The specific situation is: leather industry exports account for 7% of the total national exports; leather industry accounts for 5% of the total processing industry output value.

Tanning enterprises are mainly distributed in Kasur (more than 180), Karachi (more than 170) and Sialkot (more than 130), of which Karachi tanning enterprises are mainly concentrated in the Korangi industrial area, and there is also a leather research institute and a tannery sewage centralized treatment plant (CETP) in the industrial area.

The main products of leather industry are garments, leather shoes, etc. the chemical materials needed for leather making are mainly imported from Germany, Italy, Holland and other countries. Tannery equipment is mainly imported from Italy, France and Germany, and has a certain scale tannery.

2. The international trade of leather industry is short of development power. In the past long time, the export of finished leather in Pakistan has been going downhill. Tanning enterprises urgently hope that the Pakistan government can increase the preferential policies for leather industry in the budget of the 2006-2007 fiscal year and take effective measures to promote the development of leather industry. However, the Pakistan government ignored this point when formulating the budget.

Although leather making enterprises and exporters in recent years have tried every means to enhance their export of leather industry, leather export is inevitably showing a downward trend as the cost of leather manufacturing increases year by year.

The 3 price increases of the chrome tanning agents, the unprecedented rise in crude oil prices, the rise in wages and the increase in equipment costs all contributed to the gradual loss of competitiveness of the leather industry in Pakistan in the international market.

At the same time, the Pakistan government will formulate new export policies every year, which is not conducive to the overall development of enterprises' production and industry. The parties concerned are also calling on the government to formulate an export policy valid for at least 3 years, so that investors and producers can set up a long-term production plan.

In August 17, 2006, the Pakistan customs import and export coefficient Agency (IOCO) adopted the resolution SRO-838 (1/2006), announced that the export tax rebate of goat leather and sheepskin had been reduced from 1.56% to 1.24%, the export tax rebates of cowhide and buffalo leather decreased from 2.5% to 1.64%, the export rebates for furniture leather decreased from 4.13% to 2.9%, the export rebates for leather garments were reduced from 5.17% to 3.22%, and the export rebates of other leather products were also reduced to varying degrees, which is undoubtedly adding to the burden of Pakistan leather industry.

Three, Vietnam leather industry 1, Vietnam's leather production has increased rapidly, but the domestic demand gap is still large. Vietnam's leather industry is developing rapidly as its own economy, and its position and role in Southeast Asia is also gradually improving. It has become one of the important tanning countries in Southeast Asia.

At present, there are about 50~60 large scale leather making enterprises in Vietnam, and most of them are sole proprietorships and joint ventures.

Because of the attraction and demand of the domestic footwear industry, new tannery enterprises are constantly increasing, and Vietnam's tannery output has increased rapidly in recent years, with an annual growth rate of over 10%.

At present, Vietnam's total leather output and tannery enterprises' growth can not meet the demand of leather industry in leather industry.

As early as 2002, Vietnam imported leather products to US $360 million. At present, the domestic footwear industry is developing faster and the leather gap is even bigger.

It is learnt that although Vietnam leather and shoemaking industry is currently facing the shortage of finished leather.

In the past few years, the demand for finished leather for shoemaking enterprises has almost doubled, from 14 million 800 thousand square meters in 1998 to 27 million 800 thousand square meters in 2005.

It is estimated that the demand for finished leather will reach 46 million 400 thousand square meters by 2010.

Not only the finished leather needs to be imported, but also the raw materials of Vietnam are very scarce.

Tanning gap is large, raw material is also mainly dependent on imports, leather tanning investment also has great business opportunities, according to information from Vietnam leather and Footwear Association, European famous leather enterprise ZAORusskayaKozha announced plans to build a large tannery in Vietnam. At present, the company has established a series of agencies in Russia, China, Hongkong, Vietnam and Poland.

In view of the development of the industry, Vietnam has made a plan to invest 60 million US dollars in 5 years to introduce leather processing equipment and technology, improve leather production and quality, and gradually meet the needs of the domestic market.

To reduce costs, Vietnam tends to import equipment and raw materials from China.

2, Vietnam's shoe leather industry has great potential for development. {nextpage} not only has great potential for development of Vietnam's footwear industry, but also has many business opportunities in Vietnam's leather processing market.

Last year, Vietnam has made relevant economic policies for leather import to promote the development of related industries in China.

Because the shoe making industry is the traditional industry of Vietnam, with the development of industry and the growth of economy, the raw material for making shoes in Vietnam is short of leather, so the potential of the leather market is great.

In view of the development of the industry, Vietnam has made a plan to invest 60 million US dollars in 5 years to introduce leather processing equipment and technology, improve leather production and quality, and gradually meet the needs of the domestic market.

To reduce costs, Vietnam tends to import equipment and raw materials from China.

Four, Korea leather industry 1, South Korea leather enterprise's living space is continuously compressed. In leather manufacturing, Korea is familiar with the world's industry with its advanced technology and excellent product quality.

The leather industry in Korea is suffering from a series of reasons, but its position in the leather industry can not be ignored.

In addition to the increased production costs brought by imported raw materials, the labor cost of Korean leather enterprises is also very high due to the high cost of workers. Therefore, enterprises advocate streamlining personnel, increasing mechanized operation, advanced machinery and equipment, and mechanization reaching more than 60%.

At present, the South Korean government attaches great importance to environmental protection. The tannery wastewater treatment is very strict. All kinds of industrial waste water will be dealt with in different categories. The cost of sewage treatment is borne by the enterprises themselves.

If the standards stipulated by the state can not meet the requirements of the state, the relevant departments will investigate the legal liability of the enterprises. If the situation is serious, the enterprise legal person should bear criminal responsibility.

Now the government is also planning to set up a leather production base for enterprises. When sewage is treated, the first treatment is carried out inside the leather factory. The two treatment is concentrated in the industrial area before dealing with it. The cost of sewage treatment in leather enterprises is very high.

The high production cost has great impact on the leather industry which belongs to the labor-intensive industry and has relatively low profit. The survival space of Korean leather enterprises is constantly being compressed, whether from raw materials, labor force or sewage treatment cost.

2. The international status of leather industry in Korea can not be ignored. Although the impact of a series of reasons is shrinking from the current situation of leather industry in Korea, its position in the leather industry of the world can not be ignored.

The development of leather industry is going up and down: when the world leather industry was pferred from Europe to Asia, Korea took the lead in Asia's four small dragons, and its export volume reached the peak of 5 billion 100 million US dollars. However, since 1990s, due to the high cost of domestic cost and fierce competition from developing countries, and the over reliance on OEM production and export, Korean leather industry has failed to seize the opportunity and create its own national brand and occupy the international market. The development rate of leather industry has dropped sharply, and the economic crisis in Asia, which occurred in the late twentieth Century and early twenty-first Century, has made a greater impact on the leather industry in Korea, and the export has dropped by 49%, which is only 3 billion 164 million dollars.

It is difficult to survive at high cost. Although the technology used by Korean leather enterprises is very advanced, the quality and grade of finished leather are relatively high, but the local supporting industry chain is not developed. Most of the raw materials, raw materials and machinery needed for production are imported from other countries. This also makes the production cost of enterprises increase a lot.

From the present situation, 50% of the chemical materials used in leather industry in Korea are produced in China, and 50% depend on imports from Europe (Germany, Italy) and the United States.

Most of the equipment needed for leather making is also dependent on imports. According to the heads of some Korean enterprises, they used more leather machinery in Italy than before. Now, because of the rising production costs, they have begun to choose inexpensive and cheap Chinese machinery.

In terms of raw materials, the raw materials used by Korean leather enterprises are mostly imported from the United States, while the sheepskin is mostly imported from New Zealand.

South Korea's leather enterprises are not usually equipped with specialized masters to select raw leather, so most Korean enterprises are willing to import raw materials from the United States and New Zealand in a more orderly, quality grade easily distinguishable and leather clean.