Canton Fair Has Sounded The Alarm Direction For Shoe Companies.

November 11th 108th session

Several outstanding features of this Canton Fair

(1) the paction price is "rising" and the profit space is compressed.

Most of the export prices of footwear and other export products have risen since the beginning of this year. Raw material prices and exchange rates have become the main factors that drive up product prices.

Footwear companies and other exhibitors have increased the pressure of bargaining. They are faced with a dilemma in raising prices or on policy. The price increase has the risk of losing orders, and the policy means loss of profits.

In bargaining with merchants, the profit margins of export enterprises are further compressed.

(two) RMB appreciation.

(three) the price advantage is basically lost, and the pressure of product pformation and upgrading is increasing.

Compared with the spring fair this year, the prices of exhibitors in the Guangzhou Fair have generally increased by about 15%, of which the price of raw materials has increased, labor costs have risen, and the appreciation of the renminbi has contributed about 5% of the increase.

From the perspective of market reaction, it is difficult for merchants to accept export enterprises' raise price. Some merchants turn to purchase from China's peripheral market, and footwear enterprises and other export enterprises accelerate the pformation and upgrading of products.

(1) the foundation for world economic recovery is still unstable and the demand for the international market is insufficient.

At present, the world economy has not yet completely escaped the impact of the financial crisis, and the European sovereign debt crisis has shifted from short-term risk to medium and long term. The United States is facing the risk of "de Stocking". The effective demand of the international market is insufficient.

According to the survey, only 1/3 of enterprises believe that the external demand of the industry will maintain growth in the next three years. 1/3 of the enterprises do not think that the industry will grow or even shrink, and 1/3 of the enterprises think it is uncertain.

The reduction in the number of visitors to the Canton Fair shows that the recovery process of the world economy is tortuous and the recovery of footwear and other foreign trade will take some time.

(two) the prices of raw materials and labor are rising, and the pressure on production and employment costs has intensified.

Enterprises generally reflect that the main factor affecting the survival of enterprises such as footwear is the rising cost of domestic elements.

With the acceleration and deepening of the implementation of macro-control policies and measures such as the reform of resources and energy prices and quickening the adjustment of the economic structure, as well as the continuous increase of the prices of primary products such as crude oil, non-ferrous metals and agricultural and sideline products in the international market, the prices of raw materials and labor in China will continue to rise.

The continued active international hot money in recent years will also contribute to the price of primary products in the international market, coupled with rising inflation expectations. In the coming period, the pressure on the cost of production and labor costs of footwear and other enterprises will further intensify.

(three) the pressure of RMB appreciation continues to exist, and the profits of enterprises such as footwear will be further compressed.

The global economy is still growing at a low speed, and the unemployment rate in Europe and the United States remains as high as 10%. In the context of the further improvement of China's export status in the world, the pressure of protectionism on China's commodities will follow, and trade frictions will intensify.

The US's expansionary monetary policy, such as zero interest rate and massive increase in money supply, has caused the US dollar to face enormous devaluation pressure. The devaluation of domestic monetary policy is bound to result in the depreciation of foreign currency, which makes RMB face considerable pressure of appreciation in the future.