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Footwear Exporters Are Facing A New Setback In Their Intention To Raise Prices.

2012/6/6 15:55:00 28

Footwear ExportsLeather Shoes ExportsExport Prices

In the past two months, Ms. Zhuang, who is engaged in export trade, has been very busy. When she returned from the Canton Fair in early May, she was relieved and received tens of thousands of short bills. However, happiness does not belong to every exhibitor. According to the statistics of the organizing committee, the total export volume of the 111 Canton Fair in the spring was 36 billion 30 million US dollars, down 4.8% from the previous one.


Price raising space


No cost gains


From the survey of the exhibitors in Quanzhou, the prices of export intentions of many exhibitors have increased by 5%-10%, but the price increase has declined significantly compared with last year. Due to the superposition of unfavorable factors such as rising labor costs, high price of raw materials and expansion of the floating rate of RMB exchange rate, corporate profits generally showed a downward trend.


According to the head of a Quanzhou exhibition company, the profit of children's shoes industry is expected to drop by about 15% this year. Other exhibitors reflect that domestic production cost has increased by 15%, but the external price can only be raised by 5%, and the price increase is moderate.


The idea of fighting the African market


It is gratifying to note that the number of buyers from Brazil, Russia, India, ASEAN, Africa and other regions has increased rapidly, making it a fresh force in the procurement at this Canton Fair, accounting for 40% of overseas buyers, effectively pulling the turnover and filling the gap in the market.


From the perspective of the commodity situation, the turnover of mechanical and electrical products, five minerals and chemical products and the traditional markets in Europe and the United States dropped sharply, and the transactions with emerging markets increased significantly. The traditional export commodities such as textiles, clothing, shoes, bags and so on were affected by factors such as shrinking international demand, increasing comprehensive costs and rising the international trade protectionism.


In 6 months, short accounts for 86.3%.


Affected by the repeated European debt crisis and the high unemployment rate in the US, orders in traditional markets such as Europe and the United States are gradually shrinking. Buyers look at the enquiry mentality obviously, because reluctant to squeeze inventory, the order is more prudent, more orders to split the practice, "short, small, scattered" orders increased, the relatively stable scale of the long single ratio is declining.


Buyers in the Middle East and North Africa are also more cautious when negotiating and placing orders due to factors such as turbulence in the region. At the same time, as the central bank decided that the floating rate of the RMB exchange rate against the US dollar in the foreign exchange market expanded from 0.5% to 1%, which increased the risk of short-term transactions. Quanzhou exhibitors were more cautious in negotiating with the foreign trade, and accounted for 86.3% in the 6 months. According to the exhibitors, the increase of raw materials, appreciation of RMB and increase of labor cost are the three main factors that affect export. The production of products with bargaining power has strong pricing power, so as to ultimately increase corporate profits and respond to changes in cost and exchange rate.


Spend your mind on product innovation.


At this Canton Fair, there are 1489 brand enterprises and 18.8% of the total number of brands. The brand exhibition area clinch a turnover of 13 billion 300 million US dollars, an increase of 5.6%, and the average turnover of the brand enterprise is US $8 million 933 thousand, which is 5.7 times of that of the non brand enterprise.


It is understood that some of the exhibitors in Quanzhou relying on technology, brand, quality and service advantages are better. Some products with high added value and independent intellectual property rights and highly differentiated products are better exported.


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At present, many exhibitors in Quanzhou have adopted new marketing strategies to develop new products and launch high value-added products to attract overseas buyers' eyeballs. Enterprises that did not own their own brands were also striving to get rid of the OEM products, increase the research and development of their own products, improve their product positioning, enhance their international competitiveness and strive for more customers. To enhance R & D and design capabilities, enhance product value added, launch new products and new materials, and create independent brands, not only play a key role in improving the bargaining power of enterprises, but also, through product innovation, drive technological and technological innovation, enhance value-added products, transform business models, and gradually occupy the high-end market.

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