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Chinese Shoe Makers Have Never Felt So Hard.

2015/3/29 17:27:00 36

ChinaShoe EnterprisesMarket Quotation

Russia is one of the main export markets of Chinese shoe products. Therefore, the impact of the ruble depreciation on the footwear industry is extensive and deep. In 2014 1~12, the total volume of China's shoes exported to Russia amounted to about 2 billion 660 million US dollars, accounting for 4.9% of the total export volume. In 2014 1~9 months, the total export of Chinese shoes to Russia was 2 billion 110 million US dollars, an increase of 11.7% over the same period last year. However, with the continuous decline of the rouble in the second half of the year, the impact of the fourth quarter of 2014 on the export of footwear industry has gradually intensified. In October 2014 ~12, the total volume of China's shoe products exported to Russia was about 560 million US dollars, down 12.3% from the same period last year.

The enterprises are affected by several situations: first, the customer has paid the deposit, and the product is on the production line, but the customer suddenly cancels the order, and the enterprise can not only recover the goods, but also cause the backlog of goods and increase the inventory. Two, in the process of communication, the Russian customer cancels the order or asks for the price reduction. In the end, we can not reach an agreement, the customer terminates the contract, causes the enterprise loss; three is under the influence of Russia's control of the foreign exchange outflow policy, the customer asks for the delayed payment; four, the size of the order is severely shrunk, the small size and the loose bulk, and the enterprise receives the profit from the profit. Large number of single, small single more, order fragmentation is becoming a new format, long single reduction into short list, big single split into small bills is also a habit of making long single, large single business test.

Lu Hua, director of the China Leather Association shoemaking Committee, said that the overall situation of the export of shoes was not optimistic: "the 2014 shoe industry's worsening trade with Russia was concentrated at the end of the year, lowering the annual export growth to Russia, but the more important impact would be reflected in 2015." Because the main impact of 2014 was the order for delivery at the end of the year before and after September, but with the rapid fermentation of the ruble crisis in a short time, the enterprises were very cautious about the 2015 orders. Some enterprises even dare not take the orders. It is expected that the footwear industry in 2015 will have a larger decline in exports to Russia. "

The main export areas of Chinese shoe products to Russia are Sichuan. Zhejiang Wenzhou and Fujian, Guangdong Huidong. Russia is one of the main export markets of the footwear industry in Sichuan. Therefore, Sichuan shoe enterprises are more aware of the arrival of the cold winter. "It has never been so difficult. Even when the financial crisis broke out in 2008, it was not so serious. In 2013, our exports to Russia fell by 15%, and in 2015 it would probably decline by 50%~60%. Our customers are all very powerful traders in Russia, but in 2015 they also reduced orders and even lowered prices. In order to maintain orders, we can only cooperate with the price reduction. Now the enterprise is operating in a state of zero profit or even loss, hoping to survive this most difficult period. A well-known shoe manufacturer in Sichuan, which is mainly trade with Russia, told reporters.

In mid January 2015, many shoe manufacturers in Sichuan attacking the Russian market had already stopped work or reduced production. A senior fellow in the footwear industry in Sichuan sighed, "before the situation was bad, we all riveted our efforts in R & D, so the R & D and administrative departments would not have a holiday, but now it is completely different. Even the R & D and administrative departments are on vacation, and the boss has put the wages of the workers together, and I don't know when to return to work."

Worry Sichuan A prominent contradiction in the development of footwear industry is the problem of "triangle debts". As part of the shoe companies can not recover the loan, resulting in the capital chain rupture and lead the boss to run, or involve fraud and fraud, individual shoe enterprises boss in the deterioration of the external situation in desperation, resulting in social impact and chain reaction to the industry worried. At present, Sichuan Province Leather Industry Association They are also actively investigating and collecting information, reflecting the situation to the relevant government departments, and guiding industry and enterprises to recognize the situation and enhance confidence. In the new normal economic situation, we should adjust the structure and open up new markets so that they can tide over difficulties.

Liu Qiongying, chairman of Sichuan footwear import and Export Chamber of Commerce and chairman of AI min leather products Co., Ltd., said that the crisis will also form a forced mechanism to allow enterprises to transform into new markets, new channels and new products. Whoever takes a quick step will get the chance.

Wenzhou, an important feature area of China's footwear industry, has also been unable to escape. Russia is the third largest traditional export market after Wenzhou's footwear exports are second only to the European Union and the United States. In 2013, the value of footwear exports exceeded US $800 million. According to the data of Wenzhou shoe leather industry association, the export volume of Wenzhou shoes to Russia in 2014 1~11 was 570 million US dollars, down 20.34% from the same period last year. Xie Rongfang, executive chairman of Wenzhou shoe leather industry association, said: "because of the losses caused by the sharp depreciation of the ruble and the problems on the guarantee chain, some small and medium-sized shoe enterprises in Wenzhou are in a difficult position. But a large number of large enterprises like Ai Mei are still relatively stable in their exports to Russia. Now most of the enterprise orders have reduced by about 20%, and some enterprises have even reduced by 50%, and the funds are under great pressure. "Fortunately, most of Wenzhou's enterprises are not hanging on the big tree of the Russian market, but also the target customers of many markets such as the European Union and the United States. Over the past two years, we have also organized enterprises to visit the market or participate in exhibitions in Turkey, South Africa, India and Nigeria. We hope to help enterprises expand diversified markets and diversify risks. The Southeast Asian market is also one of the key points of enterprise inspection. Xie Rongfang said.


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