PRD Shoe Enterprises To Reduce Exports By 20%

Influenced by macroeconomic regulation and control policies and various factors at home and abroad, the traditional footwear industry in the Pearl River Delta has changed significantly since the beginning of this year. Footwear manufacturers have significantly reduced their exports of footwear products by more than 20%.

Shoes are our traditional export products with advantages, and the Pearl River Delta is an important base for shoemaking.

According to the statistics of Guangzhou customs, 1-2 pairs of shoes exported from Guangdong in the past 490 million months were 27.5% lower than the same period last year, the value of which was 1 billion 590 million US dollars, down 0.6%, and the export average price was 3.2 US dollars / double, up 37%, showing a trend of price reduction.

A series of foreign trade policy adjustments last year have great impact on the footwear industry in the Pearl River Delta.

Since July 1, 2007, the state has reduced the export tax rebate rate of footwear products by 2 percentage points, because the profit margins of shoemaking enterprises themselves are relatively low, and the reduction of the export tax rebate rate has further increased the operating pressure of enterprises.

After the tax rebate rate was lowered, the export of footwear enterprises in Guangdong was obviously affected. Since September 2007, the monthly export volume of footwear products in Guangdong has been declining continuously, of which 18.5% in November alone.

This year, the monthly export volume of footwear products continued to decline in Guangdong. In January, 290 million pairs of exports decreased 20.3%, and 200 million pairs of exports decreased by 35.7% in February.

In addition, the continued appreciation of the renminbi, the impact of the US subprime crisis and the rising labor costs have also severely squeezed the profit margins of the labor-intensive shoe making enterprises in the Pearl River Delta, and many enterprises have been eliminated.

Customs statistics show that in the 1-2 month of this year, there were only 1512 enterprises in the Pearl River Delta region to participate in export shoes, 1855 less than the same period last year, and the phenomenon of shoe shuffling was obvious.