Shishi Footwear exports high growth behind the hidden worries

While enjoying the "high scores" for export performance, it is also necessary to soberly see that there is tremendous pressure behind growth. Yesterday, the person in charge of the Shishi Office of the Fujian Inspection and Quarantine Bureau told reporters that from January to September this year, 2511 batches of shoes and footwear exported from the Shishi Port and US$125.926 million were increased by 28.6% and 42.6%, respectively, and the total value of the goods was exported. 43.9% of the companies continue to occupy the top spot. There are five main reasons for their significant growth in exports.

First, the economy of the European Union, the United States, and other countries and regions gradually recovered in 2010, and foreign purchasing power gradually recovered. Second, due to the nationwide shortage of workers this year, some orders from Guangdong flowed to Fujian and there were more corporate orders. Third, companies strengthened internal management one after another. Or the introduction of new production equipment, control of export costs, greatly improving the efficiency of enterprises, thereby increasing the market competitiveness; Fourth, the price of raw materials, rising labor costs, appreciation of the renminbi and other reasons so that the export unit price "ups and downs"; Fifth, some companies join hands with domestic and foreign brands to quickly absorb their first-rate footwear technology and research and development concepts, and enhance their own ability to absorb, transform, and reinnovate.

Faced with the results must be viewed in two. At present, the situation facing the export footwear industry in the city is mixed and there are still many difficulties in its development. Industry analysts believe that there are five major pressures behind the high growth of Shishi Footwear's exports, which has greatly constrained the development of the Shishi Footwear Industry.

First, the gradual loss of cost advantage. The vast majority of footwear enterprises in our city are labor-intensive private enterprises. The industrial structure is relatively backward, and the ability to respond to market changes is poor. Most of Fujian’s foreign trade exports are settled in U.S. dollars. According to relevant departments’ estimates, the value of RMB will increase by 1%. The sales profit rate of textile shoes and clothing will decrease by 1%-6%; the value of RMB will increase by 5%-10%, and the sales profit of textile shoes and clothing will increase. The rate will drop by 10%-60%.

Second, regional advantages have gradually weakened. The shoemaking industry is a migratory bird economy and it always shifts to countries and regions with low labor costs. Today, shoemaking bases are shifting to the middle and western parts of China. The low-cost advantage of the labor force in the central and western regions is like a huge Dianchi Lake, which attracts inflows of eastern capital.

Third, the development advantage is constrained. Judging from the characteristics of the Shishi footwear industry, footwear enterprises are mostly small and medium-sized enterprises, mainly relying on OEM production and processing, and there are few direct trade relations with foreign merchants. According to statistics, self-employed exports account for only a small share, accounting for only About one-fourth, subject to the constraints of foreign trade companies, resulting in the lack of discourse power in the settlement rate, cost and other aspects, a large number of cost increases can not be passed on.

Fourth, the brand advantage has not yet been established. The development of the manufacturing industry requires the transition from cost advantage to brand advantage and the process of upgrading, achieving a transformation from being bigger to stronger, and occupying the market through brand advantages rather than relying on “impulse” on the basis of high quality and low price. At present, although the city’s footwear industry has created a number of well-known domestic brands, and its own brand exports have also been opened up, the export share of self-owned brands is not high, and some domestic famous brand enterprises still export their products as “OEM” exports.

Fifth, the increasing pressure on environmental protection. The footwear industry is a high-consumption, high-pollution, and high-wasting industry. With the advantage of low labor costs in China for decades, it has achieved a phased development, but with the loss of the “demographic dividend” and other issues becoming increasingly severe, especially In the past two years, the popularity of the concept of “low-carbon” has raised a higher demand for shoe companies, taking a new model of energy saving, high efficiency, and environmental protection. Companies need to invest more in environmental protection, and the optimization and upgrading of the footwear industry is Imperative.