Shoe Companies Enter The EU Market &Nbsp, And Need To Maintain "Quality And Quantity".

April 25th hearing European Union The anti-dumping duty on leather shoes in China officially terminated on March 31st this year, which means that the EU's anti-dumping on Chinese leather shoes for nearly 5 years is "dead." Affected by this good news, from the end of last year, European customers imported leather shoes gradually become active. And the upcoming thirteenth Dongguan international shoe exhibition, shoe machine exhibition and shoe material exhibition, which will be held on April 28~30, has attracted many well-known shoe manufacturers at home and abroad to actively prepare for the EU market. Experts believe that improving product R & D capability and brand value added is the key to success.

Review

European Union Anti-dumping Has hit hard on Chinese shoe companies

It is learnt that, in order to protect the interests of some southern European shoe enterprises, the EU has formally imposed anti-dumping duties on leather shoes imported from China since October 2006, with the highest tax rate of 16.5%. In October 23rd of the same year, five Chinese shoe companies such as AOKANG, Tamar, Jin Lu, new Hong Kong dollar and WAN Bang filed a lawsuit against the European Court of first instance, requesting the cancellation of the anti-dumping duty. In December 2009, the EU decided to reconsider the anti-dumping measures on Chinese leather shoes for another 15 months, which is due to expire in March 2011.

"Since the European Union formally began to impose anti-dumping duties on leather shoes imported from China, AOKANG Wang Zhentao, chairman of the AOKANG footwear industry in Zhejiang, told reporters that before the EU imposed anti-dumping duties on leather shoes imported from China, AOKANG's main export market was the European Union and increased by more than 20% per year. After implementing anti-dumping duties in the EU, AOKANG's exports to the EU fell by 10%. In addition, customs statistics show that in the first month of the formal anti-dumping duties, Zhejiang exported only 18 million pairs of shoes to the EU, an increase of 66.4% over the same period last year.

"From 2006 to the end of 2010, the sales of leather shoes exported to Europe dropped by 20%, due to the EU's anti-dumping duties, which directly led to 20 thousand unemployment." He Peiying, general manager of Hongkong Ya style Exhibition Service Co., Ltd., told reporters that the implementation of anti-dumping measures by the European Union against China not only hit China's shoe enterprises, but also made the relevant industry exhibitions bear the brunt of the impact: "Dongguan shoes exhibition sponsored by Ya style group was founded in the spring of 2003, and developed to 2005~ 2006. The scale of the exhibition has successfully broken through 30 thousand square meters, but in 2007 the EU anti-dumping effect and the 2008 global financial storm struck, under the influence of the two superposition, the scale of the exhibition was reduced by more than half when the situation was worst."

Status quo

Anti dumping duty lifted Dongguan shoe exhibition

"However, from the end of last year, European customers expected that the anti-dumping duty would be abolished and gradually become active. AOKANG's orders in the near term of GEOX, the largest EU customer, increased by 60% to 70% compared to the same period last year, and some European Union customers who barely placed their orders in the previous two years have begun to place orders recently. Wang Zhentao said so.

The European Commission issued a notice in March 16th this year, announcing that the anti-dumping duty on leather shoes produced in Vietnam and China has been officially suspended from March 31, 2011, which means that the EU's anti-dumping on Chinese leather shoes for nearly 5 years has ended. For the cancellation of anti-dumping measures, the Dongguan Leather Footwear Association official said: "at present, the specific data of the order reflux is not available for the time being, but the abolition of the 16.5% tax rate will indeed reduce the cost of EU buyers, and the return of orders is expected." Reporters also learned from the Dongguan Municipal Foreign Trade and Economic Cooperation Bureau, in 2010, Dongguan footwear exports to the EU 470 million US dollars, 1~2 months this year was $82 million 720 thousand, an increase of 13.7% over the same period last year.

"The high anti-dumping duty is abolished, and the industry is optimistic about the future prospects. With the good news of the market and the strong propaganda and invitation of Ya style, the thirteenth Dongguan international shoes exhibition, which will be held on April 28~30 at the Guangdong Modern International Exhibition Center in Houjie, Dongguan, has been actively responded by the domestic shoe enterprises, including the founding of Wenzhou, Shantou March, Chaoan Hongli, Hongkong DIO, Nakayama Mi, Guangzhou Euro bran, Dongguan Dai Xi and Chaozhou Jia Le Yue. {page_break}

At the same time, the exhibition has attracted many well-known international footwear brands, such as Germany Haflinger, Portugal Tatuaggi, and VANS, CIRCA, FALLEN and other exhibitors to participate in or participate in business matching activities. The exhibition area will return to 20 thousand square meters. He Peiying introduced so.

Suggestion

Shoe companies should not blindly optimistic and win by quality.

"The cancellation of anti-dumping duties provides conditions for Chinese export enterprises to further expand the EU market, but it should not be blindly optimistic and focus on the future development of China's footwear industry." Wang Zhentao believes that winning by quality is the key to success: "the majority of shoe companies should take this as a warning, regulate their trading activities, improve their R & D capabilities and brand value, open up a diversified market, optimize the structure of export products, focus on the construction and protection of independent intellectual property rights, and ultimately win in the international market by product quality rather than by low prices. Only in this way can China's shoes industry seize the initiative and win the right to speak on the international stage.

It is understood that in order to resist trade risks, AOKANG made a diversified adjustment to the export market during the EU's anti-dumping duties against China. Wang Zhentao introduced the experience: "in the past two years, we have transferred the export market from the former EU to North America, mainly the United States, Canada, Australia and so on. In terms of the design of shoes, the corresponding adjustment has been made, and shoes that are more suitable for local fashion taste have been newly designed, and the order has been successfully obtained, the unit price of export has been raised, the export volume and volume have been raised, the annual growth rate is more than 20%.

"The competition between China and neighboring countries is increasing. The increasing labor costs, unstable labor supply and fluctuating exchange rate have weakened the competitiveness of China's export shoes. At the same time, the main competitors of China's footwear exports, such as India, Vietnam and other neighboring countries, are gradually gaining a favorable position in the competition by virtue of their low labor cost advantages. Zhu Yulun, chairman of the Hongkong Exhibition Industry Association and chairman of Hongkong Ya style group, suggested that, in addition to product upgrading, shoe companies can also make structural transformation in response to market demand. From the past, they made OEM (OEM) /ODM (commissioned design and production) and transformed into OBM (independent brand Marketing), and opened up domestic and foreign markets with their own brands.