The Output Of Leather Industry In Guangdong Has Decreased 80% Year By Year.

The leather industry in Guangdong depends on its leather products industry.

In 2009, the output of leather products in the whole province decreased, and the tanning industry with a fixed production rate also reduced production capacity correspondingly.

The tannery industry is still facing the situation of rising labor costs and raw materials, especially raw materials.

Because more than 70% of raw materials depend on imports, prices fluctuate greatly, so it is difficult for enterprises to grasp.

The export of finished leather has shrunk and competition in the domestic market has intensified.

In terms of product market, the supply and demand of upper leather and bag leather are relatively stable, and the market of garment leather is low.

The market demand of upholstery leather and upholstery leather is still increasing.

The annual output of footwear remains stable, but the output and export volume of leather shoes are decreasing year by year.

Footwear exports account for about 65% of the total. In 2009, Guangdong exported 3 billion 490 million pairs of shoes, an increase of 4.7% over the same period, including 460 million pairs of leather shoes, a 25.1% decrease compared with the same period last year.

Exports amounted to US $4 billion 320 million, a decrease of 16.2% over the same period last year.

Footwear exports were dominated by general trade, while processing trade exports decreased significantly, and exports to the US, EU and Japan decreased significantly.

Since the end of 2008, the state has increased the export tax rebate rate of footwear products 2 times, alleviated the pressure of shoemaking enterprises and increased the profit rate of enterprises. However, due to the deepening international financial crisis, the shrinking demand in Europe and the United States, frequent international trade barriers, and rising domestic labor costs and cost advantages, international multinationals of famous brands such as Nike and Adidas have reduced orders made in Guangdong and pferred them to countries and regions with lower labor cost advantages.

Export orders have been greatly reduced to export oriented Guangdong.

Bag production fell for the first time in ten years.

In 2009, the output and export value of leather goods and bags in Guangdong declined for the first time in ten years.

The export amount of US $5 billion 30 million decreased by 11.3% compared with the same period last year, which has dropped to more than 5% in the three largest export markets, the US, the European Union and Hongkong, China.

The total volume of exports to the three markets accounted for 65.5% of the export of leather goods and bags in Guangdong.

Leather luggage is the second largest industry in Guangdong leather industry after relay shoe making. More than 60% of its products are exported to foreign countries.

The international financial crisis has led to the reduction of international demand and the reduction of orders. It is more difficult for small and medium-sized enterprises to export and sell products.

The main reason is that the first thing is that the brand of leather goods and bags is few, and the investment in design innovation, marketing, personnel training is less, and the ability to resist market risks is poor. In addition, the financial crisis has increased the risk of foreign trade, the operation of foreign importers has deteriorated, and the risk of enterprises has increased.

80% leather industry in Guangdong depends on processing.

Guangdong leather clothing production remained depressed in 2008, and 80% of the enterprises relied on processing to survive.

The changes in the international economic environment and national policies have greatly affected the enterprises which rely mainly on processing. Some enterprises have been pferred to the more relaxed environment in the mainland to survive.

At present, the leather industry in Guangdong is in a severe test period.

He Xiaocha believes that most enterprises can recognize the situation at present and adopt various methods to raise brand awareness step by step, strengthen the construction of their own sales network, and produce products that are suitable for the market.

At the same time, we should seek policy support from the local government and strive for a better trend in the whole industry.