There is a huge pressure on domestic footwear exports

This year, the domestic economy has recovered, and all walks of life have picked up. Under the circumstances, the pressure on domestic footwear exports is still not small. Let's look at the details of the footwear exports together with Xiao Bian.

In 2015, the export value of China's footwear products was US$53.610 billion, which was a decrease of 4.71% year-on-year; the number of exports was 10.151 billion pairs or kilograms, a year-on-year decrease of 7.82%; the export price was US$5.28 per pair or kilogram, which was a year-on-year increase of 3.38%. The export value of finished shoes was 51.194 billion U.S. dollars, a year-on-year decrease of 4.93%; the number of exports was 9.878 billion pairs, a year-on-year decrease of 8.03%; the export unit price was 5.18 dollars per pair, an increase of 3.39% year-on-year.

In 2015, the major export categories of footwear declined except for textile surface shoes. The export value of plastic shoes was 25.285 billion U.S. dollars, accounting for 47.16% of the total exports, down 7.25% year-on-year; the export value of leather shoes was 12.14 billion U.S. dollars, accounting for 22.64%, down 11.73% year-on-year; the export value of textile shoes was 13.495 billion U.S. dollars, accounting for 25.17%. , an increase of 7.48%.

The major export markets for footwear declined except for the United States. In 2015, footwear exports continued to be dominated by the U.S. and EU markets. The U.S. export value was US$14.094 billion, accounting for 25.05% of total exports, up 1.77% year-on-year; the U.S. export value was US$ 11.062 billion, accounting for 19.66%. The year-on-year decrease was 6.19 percent; the value of exports to Japan was 2.495 billion U.S. dollars, accounting for 4.44%, down 8.07% year-on-year; the amount of exports to Russia was 1.846 billion U.S. dollars, accounting for 3.28%, down 40.39% year-on-year; and the amount of exports to China Hong Kong was 1.587 billion U.S. dollars. The proportion was 2.82%, down 12.17% year-on-year.

In 2015, the nature of export enterprises was dominated by private companies and foreign-funded enterprises, and exports declined. Exports of private enterprises amounted to USD 35.184 billion, accounting for 65.63% of total exports, down 3.85% year-on-year; exports of foreign-funded enterprises amounted to USD 13.412 billion, accounting for 25.02%, down 6.10% year-on-year; exports of state-owned enterprises amounted to USD 3.975 billion, accounting for 7.42% , a year-on-year decrease of 5.69%.

In 2015, the export trade was dominated by general trade, and the amount declined. General trade exports amounted to 34.599 billion U.S. dollars, accounting for 64.54% of total exports, a year-on-year decrease of 4.98%; processing trade export value of 10.706 billion U.S. dollars, accounting for 19.97%, and a year-on-year decrease of 4.78%.

Foreign trade development environment for footwear industry is complex

In 2015, the foreign trade development environment of the footwear industry in China is still not optimistic. From the international point of view, the international market is in weak demand and international competition is fierce. From the domestic perspective, the profit reduction of export companies is the main factor affecting the export of footwear products in China.

The overall recovery of the global economy is weak, and the lack of demand in the international market is still the main factor affecting the export of our footwear. In 2015, the recovery of the world economy was slow and painstaking. The world economy’s overall GDP growth was about 2.4%, global trade growth rate was about 2%, and the economic operation of developed economies was more differentiated. The growth of developing economies slowed down. The world economy is still in the period of deep adjustment after the outbreak of the international financial crisis. The global total demand is weak, which directly affects the export of my footwear products.

Among major developed economies, the United States has low-growth economy, and the demand is picking up, but its stamina is not enough. The economic recovery in the euro zone has been a difficult and arduous one. The weakening of the euro has affected the growth of imports. Japan’s economic recovery has been repeated, household spending is not optimistic, and personal consumption is also lower than expected. 50% of China's footwear products are exported to the above-mentioned advanced economic markets. However, due to the economic slowdown of the above economies and the shrinking of the market, it will directly impact the export of China's footwear products.

The euro zone benefited from the loose monetary policy, the decline in the prices of primary products such as the weaker euro and crude oil, and the economic indicators generally showed a trend of improvement. Germany's GDP grew by 1.7%; the French economy continued to improve, but the unemployment rate remained high and still rising; Italy had just resumed growth, with GDP growth of 0.4%, 0.3% and 0.2% in the first three quarters, respectively. The weakening of the euro was positive for the exports of euro-zone member countries, but it had become a barrier to the import of euro-zone member countries, and the imports of finished shoes in the main import markets of the euro zone all declined.

Japan’s economic recovery has been repeated. In the first quarter, Japan’s economy grew, and it fell again in the second quarter. The negative signs in the second half of the economic data were also more prominent. The Japanese household spending situation was not optimistic, and personal consumption was also lower than expected.

In 2015, the economy of emerging economies was affected by many unfavorable factors such as the drop in commodity prices and financial market fluctuations, and the economic growth continued to slow down. First, the decline in commodity prices; the international copper market has entered a stage of relative surplus, which has caused international copper prices to fluctuate downward. In emerging market countries that rely on commodity exports and have a relatively uniform economic structure, economies such as Russia, a big oil exporter, and Brazil's major exporter of mineral resources have entered a stagflation state. Second, the currency depreciation in emerging market countries has greatly devalued, and the depreciation rates of currencies in Russia, Ghana, Colombia, Turkey, Malaysia, Algeria, and other countries are all significant. On the one hand, currency devaluation directly leads to a decline in payment capacity and willingness to pay; on the other hand, export-to-emerging markets have increased risk. China's footwear exporting companies are worried that once the relevant countries adopt trade control measures or **control measures, orders will not be implemented properly. Or because of the control, it is not possible to send out the money. Enterprises are particularly cautious when signing the order. Both factors caused the shrinking of orders for export of footwear products from China to emerging markets.

International competition has become fiercer. China’s footwear products have fallen in major market share. On the one hand, Vietnam and other Southeast Asian countries have taken advantage of labor costs and tariffs to make the footwear industry develop more rapidly. On the other hand, under the circumstances of a weak global economy, trade protectionism has risen. Double oppression will lead to huge challenges in the export of China's footwear products. The share of China's footwear products in the major markets will decline, and there will be continued downward risks. The traditional export markets for finished footwear in China are mainly the U.S., EU, and Japanese markets. The share of China’s products has declined.

The footwear industry in Southeast Asia has developed rapidly. The footwear industry is a traditional labor-intensive industry. As China's manufacturing costs continue to rise, the world footwear industry has shifted from China to Southeast Asia, especially in countries represented by Vietnam and Indonesia. The footwear industry has rapidly expanded. And further erode our country's global market share.

At present, Vietnam has become the second largest exporter of footwear products after China, and it is highly competitive in the international market thanks to its labor cost and tariff advantages. Since January 1, 2015, the EU has completely eliminated the preferential treatment of the GSP system in China, China's footwear products exports are no longer eligible for preferential treatment under the generalized system, and in recent years, my footwear products have encountered anti-dumping and trade quota restrictions in the international market. Trade barriers. In sharp contrast to China, Vietnam enjoys a number of preferential policies for exports to the United States, the European Union and ASEAN, and is also one of the countries that are currently less affected by international trade restrictions and anti-dumping. From January 1st, 2014, Vietnamese footwear exports to the EU will enjoy GSP, and tariffs will be reduced to 3.5% to 4%; Vietnam also signed a free trade agreement with the EU in early December 2015, according to the agreement. The EU will eliminate tariffs on footwear products within seven years; after the Trans-Pacific (601099) Partnership Agreement (TPP) comes into effect, footwear exported by Vietnam to the United States will enjoy zero tariff. By then, Vietnamese footwear exports to Europe and the United States will have a more competitive advantage and will grow even more rapidly. International competition has directly led to the outward shift of foreign trade orders in China's footwear industry. Some shoe-making enterprises have been relocated. International leading shoe-making enterprises such as Nike, Adidas and Hummer have begun to shift orders from China to Vietnamese companies. These multinational companies also require their cooperation factories. Gradually the industrial layout in neighboring countries such as Vietnam, India and Indonesia.

Global trade protectionism continues to heat up. With the fierce international competition and global sluggish external demand, all countries are striving to expand exports, and international trade barriers have been further expanded. Global trade protectionism has risen. Foreign trade frictions on my footwear products have increased year by year and have become a constraint. The major obstacles to the export of China's footwear industry.

Export companies' profits are squeezed, showing the trend of industrial transfer. The sluggish international market led to the fragmentation of orders. The weakening of the world economy and fierce international competition led to the lowering of product prices. The increasing domestic production costs further weakened the profits of enterprises, and the business operations were dilemma, and began to show the trend of industrial transfer.

Fragmentation of orders, export companies have a meager profit. After the outbreak of the global financial crisis, new features emerged in China's foreign trade, customers became more dispersed, and large orders, long-term orders were gradually replaced by fragmented small and medium-sized orders, and short-term orders. The fragmentation of foreign trade orders has become the new normal.

Domestic footwear companies have shown an industry shift. Footwear companies have a meagre profit, and their business operations are in a dilemma. They are beginning to show an industry shift. The direction of industrial transfer mainly includes the domestic and western regions, Southeast Asia, and Africa. If Nike has gradually moved its factory out of China, Adidas is also gradually reducing its production capacity in China and transferring its factories to Southeast Asian countries such as Vietnam, Cambodia, and Myanmar.

Overall, the international and domestic situation in 2016 remains complicated and severe. As external demand slumped, the prices of commodities and raw materials fell, and the international situation became more complicated. Demand for imports fell, factor costs continued to rise, and the transfer of industries and orders accelerated. The domestic situation was even more severe. Judging from the international and domestic conditions, the uncertainties and destabilizing factors in the development of foreign trade have increased and the downward pressure remains high.