Shoes are the most typical labor-intensive export industry in China. After the EU officially abolished the high anti-dumping duties on Chinese leather shoes in March this year, many Chinese shoe companies once had a bad idea and dreamed that the European market would be once again prosperous. However, more than half a year has passed and the market boom that is expected does not appear to have occurred: the demand for global footwear products in China has not grown significantly, and at the same time, more and more orders are being transferred to China along with the transfer of production capacity. The neighboring countries and regions and Latin America transfer.
Huang Yiyi, deputy general manager of Zhejiang Dongyi Shoes Co., Ltd., said that when the EU began to impose anti-dumping duties on Chinese shoes a few years ago, it had a great impact on the company because the affected shoes accounted for about 60% of all export shoes. However, the ratio has now fallen below 30%. "These exports are mainly made up by other countries and regions."
Some companies believe that the reason why the EU finally gave up anti-dumping is not entirely because of the WTO ruling, but more importantly, the rising costs have greatly eliminated the competitive advantage of China's ordinary leather shoe products.
Behind the shoes is the objective reality that the increase in the overall price growth of China’s traditional labor-intensive enterprises is difficult to increase. The first three quarters of trade data released by the General Administration of Customs in mid-October showed that, after deducting price factors, the actual export volume of labor-intensive products such as textiles, clothing, shoes, and toys in China increased by only 2.8%, 3.2%, and 0.6%.
"The market has been relaxed, but the amount is difficult to rise because the international competitors are more and stronger." said Jiang Jinhua, a large textile and apparel exporter and vice president of Jiangsu Huihong International Group Co., Ltd.
In the eyes of many market participants, the footwear industry is like a signal to the dynamics of the global labor-intensive industries. The annual export volume of Chinese shoes exceeds 8 billion pairs, equivalent to producing more than one pair of shoes for the world, and a considerable part of the output. It is completed by large-scale or even ultra-large-scale foreign-funded OEM companies, and these enterprises have always been the “vanguard†of global industrial transfer.
"Before and after 2008, some foundry companies did experience a shift. Their main purpose was to avoid international trade frictions and trade barriers such as the EU's anti-dumping rulings. But now the situation is completely different. The main reason for the displacement and transfer of large-scale foundry enterprises is that The rising prices of domestic production factors have affected the global market layout and profitability of these capitals, said Guo Weiwen, secretary-general of China Anti-Dumping Federation of Leather Shoes Exported to the EU.
Luo Chunyuan, commercial director of Zhejiang Taizhou Xidebao Shoes Co., Ltd., said that unlike the rising costs in recent years, the price of the company's shoes in the European and American end markets has not changed, which means that manufacturers and traders have been In the compressed profit space, this is not a long-term solution.
“We are local companies. Relocation is not the first consideration, but those multinational companies and foreign foundries are different. They are more motivated and are more accustomed to continuously shifting the production mode of global production. Relocation will naturally become their priority. The choice." Luo Chunyuan said.
How should Chinese industries and enterprises respond to the shift of low-end and medium-end foreign capital to a trend? Some companies choose to move through the corresponding relocation. But in the eyes of more companies, the competition for low-end production capacity has no more meaning. Whether the “middle-end productivity†of labor-intensive industries can be maintained for a period of time in the future will be a true test of China’s traditional labor-intensive industries.
"We must realize that we have no advantage in terms of low-end production capacity compared with neighboring countries and regions. In the European and American markets, we could only see 'Made in China' five years ago, but now, 'Made in Egypt' "Made in Vietnam" has been seen everywhere and even come from behind. There is no way out for the labour-intensive industry, just by fighting prices, fighting for manpower," Jiang Jinhua said.
Jiang Jinhua said that in the situation where the high-end market is difficult to achieve overnight and the low-end market is weak, the key to the survival of China's labor-intensive industries lies in maintaining the "middle edge advantage" and gaining room for buffer, progress and development. "Creating a brand with a certain influence, further strengthening the integrity of the industrial chain, and improving the ability to use science and technology are the 'cances' that companies must turn over," said Jiang Jinhua.
Huang Yiyi, deputy general manager of Zhejiang Dongyi Shoes Co., Ltd., said that when the EU began to impose anti-dumping duties on Chinese shoes a few years ago, it had a great impact on the company because the affected shoes accounted for about 60% of all export shoes. However, the ratio has now fallen below 30%. "These exports are mainly made up by other countries and regions."
Some companies believe that the reason why the EU finally gave up anti-dumping is not entirely because of the WTO ruling, but more importantly, the rising costs have greatly eliminated the competitive advantage of China's ordinary leather shoe products.
Behind the shoes is the objective reality that the increase in the overall price growth of China’s traditional labor-intensive enterprises is difficult to increase. The first three quarters of trade data released by the General Administration of Customs in mid-October showed that, after deducting price factors, the actual export volume of labor-intensive products such as textiles, clothing, shoes, and toys in China increased by only 2.8%, 3.2%, and 0.6%.
"The market has been relaxed, but the amount is difficult to rise because the international competitors are more and stronger." said Jiang Jinhua, a large textile and apparel exporter and vice president of Jiangsu Huihong International Group Co., Ltd.
In the eyes of many market participants, the footwear industry is like a signal to the dynamics of the global labor-intensive industries. The annual export volume of Chinese shoes exceeds 8 billion pairs, equivalent to producing more than one pair of shoes for the world, and a considerable part of the output. It is completed by large-scale or even ultra-large-scale foreign-funded OEM companies, and these enterprises have always been the “vanguard†of global industrial transfer.
"Before and after 2008, some foundry companies did experience a shift. Their main purpose was to avoid international trade frictions and trade barriers such as the EU's anti-dumping rulings. But now the situation is completely different. The main reason for the displacement and transfer of large-scale foundry enterprises is that The rising prices of domestic production factors have affected the global market layout and profitability of these capitals, said Guo Weiwen, secretary-general of China Anti-Dumping Federation of Leather Shoes Exported to the EU.
Luo Chunyuan, commercial director of Zhejiang Taizhou Xidebao Shoes Co., Ltd., said that unlike the rising costs in recent years, the price of the company's shoes in the European and American end markets has not changed, which means that manufacturers and traders have been In the compressed profit space, this is not a long-term solution.
“We are local companies. Relocation is not the first consideration, but those multinational companies and foreign foundries are different. They are more motivated and are more accustomed to continuously shifting the production mode of global production. Relocation will naturally become their priority. The choice." Luo Chunyuan said.
How should Chinese industries and enterprises respond to the shift of low-end and medium-end foreign capital to a trend? Some companies choose to move through the corresponding relocation. But in the eyes of more companies, the competition for low-end production capacity has no more meaning. Whether the “middle-end productivity†of labor-intensive industries can be maintained for a period of time in the future will be a true test of China’s traditional labor-intensive industries.
"We must realize that we have no advantage in terms of low-end production capacity compared with neighboring countries and regions. In the European and American markets, we could only see 'Made in China' five years ago, but now, 'Made in Egypt' "Made in Vietnam" has been seen everywhere and even come from behind. There is no way out for the labour-intensive industry, just by fighting prices, fighting for manpower," Jiang Jinhua said.
Jiang Jinhua said that in the situation where the high-end market is difficult to achieve overnight and the low-end market is weak, the key to the survival of China's labor-intensive industries lies in maintaining the "middle edge advantage" and gaining room for buffer, progress and development. "Creating a brand with a certain influence, further strengthening the integrity of the industrial chain, and improving the ability to use science and technology are the 'cances' that companies must turn over," said Jiang Jinhua.
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