Marco SRS Air Bag Suspension

Tan Oem

Guangdong Bags Dependence On Foreign High Yield Years, The First Drop

Leather tanning industry in Guangdong to import raw materials Eighty per cent of businesses survive by processing. Experts suggested that businesses should enhance brand awareness, and actively seek policy support.

    Leather Association of Guangdong Province, according to Xiao-Cha introduced the Secretary-General, in 2009, Guangdong Province, leather, fur and products scale enterprises 1842. Industrial output value was 123.064 billion yuan, with an increase of 5.64% in 2008, export delivery value of 60.944 billion yuan, down 1.30%.

    Public information display, light leather 96.251 million square meters, down 4.57%, 1.133 billion pairs of shoes, down 6.0%; purses bags 374 million, down 18.27%; leather apparel 2,171,200, an increase of 1.85%, and leather apparel industry production output remained stable.

    Finished leather exports shrinking domestic competition

    Guangdong Tannery industry, with its leather products. Production of leather products in 2009 to reduce the province, to market ability of the tanning industry is a corresponding reduction in production capacity. Year leather industry still faces the rising labor costs and rising raw material situation, especially raw skin areas. Since more than 70% dependent on imported raw materials leather, fairly priced, business is difficult to grasp. Finished leather exports shrinking domestic market competition. Product market, demand and supply of shoe upper leather and leather bag is relatively stable, garment leather market downturn. Leather sofa leather and car cushion the market demand is still increasing.

    Shoe production and exports declining

    The annual production of footwear remained stable, but the leather production and declining exports. Province's total footwear exports account for 65%, in 2009 in Guangdong Province exported 3.49 billion pairs of shoes, up 4.7%, of which export 460 million pairs of shoes, down 25.1%. Exports of 4.32 billion U.S. dollars, down 16.2%. Footwear exports in general trade-based processing trade exports decreased significantly, the United States, European Union, Japan exports decreased. The end of 2008, the state 2 increase footwear products have export tax rebate rate, reduce the pressure shoe business, and improving profitability, but the international financial crisis deepening, shrinking market demand in Europe and America, frequent international trade barriers, as well as domestic labor costs, reduced cost advantages, Nike, Adidas waiting for name brand, multinational giants have cut production in Guangdong orders, transferring it to more advantage of low labor cost countries and regions.

    Significant reduction in export orders, and export-oriented shoe industry in Guangdong cause greater negative impact on export dependence on OEM business, or fought in the domestic market, or cut or even stop production. Although the fourth quarter of 2009, orders increased rapidly in some enterprises, but enterprises recruitment difficulties, had to give up part of the order. In the overall production decline in the industry, with independent brand and independent innovation capability of backbone enterprises of footwear remained stable development trend, fully rely on self-distribution network, the formation of core competitive advantages, the output rise, not fall, leading key enterprises significant scale production more concentrated.

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