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Guangdong Port Export Shoes Show Rise In Volume, Price Drop Trend

2010/9/10 14:07:00 48

Statistics from the Guangdong branch of the General Administration of Customs show that from 1 to July this year, the scale of Guangdong's foreign trade continued to recover, and the total value of import and export trade in the province was $413 billion 930 million, an increase of 32.3% over the same period last year, of which 236 billion 50 million US $236 billion 50 million, an increase of 27.6%.

In July, Guangdong's exports exceeded the US $40 billion for the first time, an increase of 28.3% over the same period last year, creating a record value of Guangdong's monthly export value.

However, with the main

export market

The inventory is saturated and the enterprises are short and single in succession at the beginning of the year. In the second half of this year, the challenges faced by Guangdong's export enterprises are just beginning.

As early as the beginning of the year, the Guangdong provincial foreign trade and Economic Cooperation Department predicted that external factors such as the long-term shrinkage of foreign demand and the increase of trade barriers after the financial crisis, together with the internal causes such as the appreciation of the renminbi, the rapid increase of labor costs and the adjustment of export policies, will make Guangdong's export this year before the trend of high and low. In the second half of this year, many Pearl River Delta enterprises will gradually fall into the dilemma of "half a year's death and the second half of the year".

Huang Rirong, chairman of the main export to Europe and the United States (Hongkong) metal products factory limited, said that the export volume of the factory increased by 20% in the first half of this year, but as the inventory in the European and American markets gradually became saturated, exports began to decline in August, and the fall was 30%.

Huang Rirong said that the order period of metal products is usually 1 to 2 months. His current orders can only be achieved in October. He is not at all sure about the orders at the end of the year.

Volume rise or fall to accelerate inventory saturation

Former president of Hongkong Footwear Association, Jin Yuan, Hongkong

Footwear manufacturing

Gao Zhu, chairman of the limited company, told our reporter that the profit of shoemaking industry has been relatively low and competition is fierce. At present, the main markets such as Europe and the United States have not yet been restored, and many enterprises have adopted small profits but quick turnover strategies in order to fight for orders, which has also led to the premature saturation of export market stocks and the reduction of orders.

Customs figures show that between 1 and May this year, 1 billion 690 million pairs of shoes exported from Guangdong port were 33.8% higher than the same period in 09 years (the same below); the value was 4 billion 690 million US dollars, an increase of 16.3%; the average export price was reduced by 13% per US $2.8.

"In order to survive, enterprises have to fight for orders through low volume and large quantities. Orders are greatly reduced in order to reduce the risk of backlog of inventory. The two reasons have brought the volume of footwear exports up and down in the first half of the year."

Gao Zhu said he was worried that such shoemaking enterprises would hardly receive orders in the second half of the year.

False prosperity

International market demand

Not yet restored

In addition, Gao also told reporters that this year, with the rapid economic recovery of the mainland, the phenomenon of lack of work is happening again.

In order to recruit workers, shoe companies have to raise their wages, with an average increase of about 10%, thus making production costs rise.

Because of the long-term expectation of RMB appreciation, the profit margins of export enterprises are being further compressed.

In fact, as early as this spring, the Guangdong Provincial Department of foreign trade and economic cooperation pointed out that the export orders rebounded in the first quarter, largely due to the need for European and American dealers to replenish inventory, which is not the same as the export situation before the outbreak of the financial crisis.

Facts show that after the financial crisis, the main market demand in Europe and the United States has not fundamentally recovered, and the lack of rigid market demand has not really reversed. Exports in the first 7 months of Guangdong are still below the national average.

Moreover, according to a survey at the beginning of the year, short-term orders, loose orders and small bills in export enterprises still account for a large proportion.

60.3% of the enterprises indicated that the delivery date was within 3 months. 18.8% of the enterprises indicated that the delivery date was within 1 months. 14.8% of the enterprises indicated that the delivery date was within six months, and only 5.3% enterprises had received the export orders for 2010.

The Guangdong foreign trade and Economic Cooperation Department said, "the shrinkage of external demand will be medium and long term. At the same time, trade protectionism is intensifying, international trade frictions are increasing significantly, and RMB appreciation pressure is increasing. A series of trade wars and exchange rate wars are quietly starting."

A number of factors will make Guangdong's exports this year show a trend of "before the high and then low, down month by month".