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Plastic Shoes Low Margin Exports By Lanbo Jiang

  in Business | Published 2011-08-23 11:54:09 | 132 Reads | Unrated

Summary

Guangzhou Customs statistics released yesterday, the former in April this year, Guangdong exported 132 billion pairs of shoes, worth 3

Full Content

Guangzhou Customs statistics released yesterday, the former in April this year, Guangdong exported 1.32 billion pairs of shoes, worth 3.43 billion U.S. dollars, up respectively 18.5% and 9.9% growth. Notably, the data show that Guangdong exported shoes drop in price trend of increase in volume occurred.

Customs data showed exports in April this year, the average price of 2.3 U.S. dollars per pair, down 5.5%, the average price of exports since 2009, the minimum value. Of which exports accounted for more than biggest low-grade plastic shoes even before the April average export pri
ce dropped to 1.7 U.S. dollars per pair, combined less than RMB 12 yuan.

Lower gross margin business of plastic shoes. This trend began in the second half of 2009, and especially this year. Guangzhou Customs statistics, in January -4 months, exports of medium and low plastic shoes in Guangdong is still the main export 900,000,000 pairs, accounting for the same period in Guangdong, 68.2% of total shoe exports, but exports of all kinds of shoes in the average price is the minimum and downward trend, plastic shoes for every pair of 1.7 U.S. dollars, down 5.5%.

In addition, shoes and leather shoe exports of textile fabrics although the average price increase, but exports account for more than small, the downward trend on the overall average price has little effect.

"I have just a few plastic shoes Chaozhou research back export enterprises, which generally reflects the export enterprises, export orders is very good, but at lower gross margins." He Guiling Guangdong Footwear Manufacturers Association, told reporters yesterday, so that she analysis, gross margin decrease for many reasons, including widespread appreciation of the RMB export enterprises, raw materials, labor costs. Therefore, in the price of the same or slightly lower gross margins continue to lower case.

Analysts believe that as a labor-intensive industry, the footwear export profits has never been high, and now it is constantly lower gross margins, this phenomenon should be of particular concern.

Shoes price increase in volume in emerging markets down.

Lower average price for export reasons, He Guiling analysis, may be due to the adjustment of export structure. "Under the influence of the financial crisis, reducing the amount exported to Europe, while the value of the original shoes exported to Europe is relatively high. Association of Southeast Asian Nations and other emerging markets growth, while exports lower overall prices in Southeast Asia. So pull down the overall price level of exports."

Customs data show that in January -4 months, Guangdong's total U.S. and EU markets account for the same period exports of Guangdong's total footwear exports 46.2%, down 3 percentage points; while the emerging markets of ASEAN and Latin America all surpassed 5 percent increase were exported 270 million pairs and 140 million pairs, up by 83.9% and 57.7%.

In addition, He Guiling also believe that the domestic export companies to switch, but the domestic market has not fully opened, this time of export orders received just enough to make a will. Laid out the future of the domestic channels, the average export price may be improved.

"Export Growth in long-term continue to drop in price is not the answer, always led by the nose by others.

That the export situation forced us down innovation." He Guiling also told reporters that the association is to establish ways to promote corporate brand awareness. So on June 1, the association will set up a technological innovation for this special committee, to actively promote corporate brand footwear, shoes increase the added value.

Customs expects exports will continue to be the next shoe to resume, but still the future of Guangdong shoe export trade measures focus on the outbreak, the product quality requirements such as pressure increased.

21pbn

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