Wenzhou shoe firm to return cautiously seeking transformation and upgrading

The 45-year-old Lao Luo has opened a snack bar for several years on the shoe road in Shuangyu Town, Wenzhou. Shoes are on both sides of the shoe factory, the store is doing the business of the shoe factory employees. Over the past few years, Lao Luo’s snack bar and shoe factory have experienced the ups and downs of the global economic environment.

In 2006, the European Union imposed anti-dumping duties on Chinese leather shoes. “Several factories on the edge are basically shutting down.” Lao Luo said that his snack bar business is also getting lighter. Subsequently, the financial crisis and the European debt crisis...

At the end of 2010, when Lao Luo planned to close the store, he heard a message: "The EU anti-dumping tax will soon be suspended."

April 1st this year was the first anniversary of the European Union’s cessation of anti-dumping duties on Chinese leather shoes. Wenzhou shoe companies have not experienced a strong rebound in the EU market. No matter the order quantity or the export amount, it still maintains a relatively stable situation in the past. When the EU’s huge market reopened to Wenzhou people, they chose calm and restraint. On the one hand, although the EU stopped its anti-dumping duties, it constantly monitored Chinese shoe companies. On the other hand, Wenzhou shoe companies also realized that the era of seizing the market by low prices was over.

The Wenzhou shoes under the anti-dumping tax of up to five years were all in the town of Shuangyu. Along the south side of the 104 National Road, everyone passing by could smell the smell of leather. Here, it is the center of Wenzhou shoes leather Wenzhou shoes.

The most common scene on the shoe road in the town of Shuangyu is workers wearing uniforms of different colors in twos and threes. At the gate of almost every company, there will be a job posting. Shoes are being used in such a way that they show their own productivity and order.

Until today, footwear exports still occupy the top spot in Wenzhou's foreign trade. The EU's five-year anti-dumping tax does not seem to be as serious as the imagination of the outside world.

According to the data provided to reporters by the Wenzhou City Bureau of Commerce, after one year of EU anti-dumping duties on Chinese leather shoes in 2007, the total export of Wenzhou footwear was US$2.4 billion, an increase of 20.08%. This increase was only 6 percentage points lower than the previous year.

Since then, due to the dual pressures of the financial crisis and the EU trade barriers, the growth rate of footwear exports in Wenzhou once reached the lowest point in 2009, and the export value only increased by 0.06% over the previous year. In 2010, the annual growth rate of Wenzhou footwear enterprises even reached 35.79%. In 2011, after the cancellation of anti-dumping duties, the increase in total exports fell back to about 26%, which was US$4.72 billion.

From these data alone, the EU taxation does not seem to have an excessive impact on Wenzhou shoe companies.

Twenty thousand unemployed small enterprises in the country are the most affected. “The smaller the scale of the company, the lower the grade of the product, the greater the impact.” Lu Huamao, director of the Foreign Trade Department of the Wenzhou Commerce Bureau, said when talking about the EU’s anti-dumping duties.

On October 7, 2006, in order to protect the interests of EU member states, the European Commission decided to impose anti-dumping duties of up to 16.5% on leather shoes imported from China and Vietnam.

Lu Huamao said that small and medium-sized shoe-making enterprises with low product levels and relatively scattered orders are the biggest victims of anti-dumping duties. “Customers of these companies must choose low-cost sources themselves, and they should turn to taxation immediately. India and other countries with similar costs are not high."

As the EU's anti-dumping tax is only for leather shoes, to avoid high tax rates, many companies in Wenzhou have adopted countermeasures, such as the shift from leather-based to cloth-based, leather shoes. However, such measures did not alleviate the pressure brought by the financial crisis and trade barriers to Wenzhou shoe companies.

According to statistics of the Wenzhou City Leather Industry Association, in 2003, there were about 5,000 shoe companies of a certain size in Wenzhou, and by the first quarter of 2008, this figure had been reduced to 2,600. According to statistics from the China Leather Industry Association, anti-dumping duties have led to a 20% reduction in China's output of European shoes and a decrease in exports of about 40 million pairs of shoes, causing about 20,000 workers in China to lose their jobs.

Reopening of the door to the shoe industry in EU cautiously back in October 2006, when Li Haijun, head of the Aokang Group’s Foreign Trade Department, learned that the EU would levy anti-dumping duties on leather shoes imported from China, it was almost the chairman Wang Zhenluo who was dragged out of the venue and informed him. One message.

The anti-dumping duty of 16.5% means that the selling price of each pair of "lost Europe" shoes will increase by 200 yuan***. At that time, 60% to 70% of Aokang's footwear products were sold to the EU market. This news is undoubtedly a big blow to Aokang's development in the foreign trade market. In March 2011, after the EU stopped taxation, O'Connell was extremely excited. But in the following year, Aokang's development of the EU market was much more cautious than before 2006.

It should be noted that while the anti-dumping tariffs on Chinese leather shoes have been lifted, the EU has introduced five monitoring policies for Chinese footwear, including weekly key monitoring to ensure that there is no unfair behavior; To clarify the origin of the logo; strictly monitor the Chinese shoe companies have infringed intellectual property rights; require the Chinese government to open up the high-end shoe retail market; pay attention to the Chinese shoe companies to enjoy various government subsidies.

“The industry association has reminded shoe companies in Wenzhou that after stopping the anti-dumping duties, do not blindly order EU orders, so as to avoid the EU adopting other methods to set new trade barriers,” said Wang Hailong, manager of Aokang Group's planning department. This is one of the reasons why many shoe companies are still relatively restrained.

As the first exporter of Zhejiang shoe industry, Juyi Group is also a leading company in exporting to the European Union. Pan Jianzhong, chairman of the group, said that although orders for this year have increased significantly compared to the past, Juyi adopted the principle of “be careful and not stimulating results,” and will control the annual increase in exports to the European Union at 10%. Between 20%.

The days of low-cost market share have passed. At the same time, the EU has imposed a five-year anti-dumping tax on a continuous basis. This has also led Wenzhou shoe companies to reflect on the fact that even if the EU no longer imposes anti-dumping duties, the days when ultra-low-cost leather shoes dominate the market are also It has passed. Strong shoe companies have chosen to improve the quality, rather than blindly guarantee the number of exports.

"In the past, we also exported leather shoes with a unit price of $10, but now we basically do not accept these orders." Wang Hailong said that the current unit price of leather shoes exported to the European Union by O'Connell is more than US$20. The unit price of leather shoes exported to Germany is even higher. Reach $50.

"Only by seizing the cooperation of big customers and improving their own quality can we survive when trade barriers appear." Wang Hailong said that if it is always lingering on the low-end production line, once new barriers arise, customers can easily place orders. Transfer to cheaper suppliers.

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