The Unfavorable Factors Now Facing Shoe Industry in China

More Cost for Labors

The Uprising in RMB

Raw Material Price Keeping Rising

Foreign Anti-dumping Charges

America Sub-prime Mortgage

The “Red Sea” Competition Within Shoe Manufacturers Themselves

Shoe Export Slows Down

Guangdong, a province in south China, exported 490 million pairs of shoes in January and February 2008, valued at USD 1.59 billion, decreasing 27.5% and 0.6% from one year before, citing customs statistics.

From September 2007, Guangdong’s export of shoes began to fall, 18.5% year on year in November of the year and 20.3% and 35.7% in January and February 2008. Besides, in the first two months, the number of shoes exporters in the delta decreased 1,855 year on year to 1,512, due to a rising renminbi, the US’ subprime mortgage crisis and a rise in China’s labor cost.

China has 40,000 shoe manufacturing plants with annual output of 6.5 billion pairs, accounting for 20 percent of the world’s total. However, 85 percent of them are middle and low-end products. Experts suggest that China’s shoe industry development should base itself on fashion culture and advanced management concepts, transforming the industrial strategy from simple manufacturing to brand promotion.Half of the country’s shoe output originates in south China’s Guangdong province, but most shoe factories there are small in scale and use simple manufacturing processes without much added value.

Four Manufacturer Bases of Footwear Industry in China

Guangdong Province

Many factories Close-downs is the must paid price for the industry transformation

Jingjiang City in Fujian Provice

Who will laugh at last? The “red sea” competition condition for the sports shoe in Olympic 2008 is getting more and more fierce.

Jiangsu Province

Brand cultivating and promotion is the core

Making technological innovations and taking the lead with technologies

In recent years, the footwear industry in Jinjiang has been paying attention to making more investment in technology improvement and encouraging innovations in terms of new technologies, new materials and new craftworks. Nevertheless, the footwear industry in Jinjiang just takes the lead in terms of manufacturing equipments but the level of technological innovation remains low, the research and development is still rather weak, there still lack high-end talents and relevant software and hardware, there is no sufficient production capacity of top-grade products, and it still lags far behind the international advanced level as far as studies on new products in terms of comforts and functions are concerned.

2008 Dongguan China Shoes – China Shoetec

This UFI approved event is widely supported by footwear industry. China Chamber of Commerce for I/E of Light Industrial Products and Art-Crafts(CCCLA), Hong Kong Footwear Association, Taiwan Footwear Manufacturers Association, Dongguan Leather & Footwear Association have confirmed to organize exhibiting pavilions in Spring 2008, and will bring in brand new exhibitors, allowing footwear manufacturers and traders enjoy the rewards that China Shoes âEUR¢ China Shoetec will bring. At the same time, overseas buyers express great interests to visit the exhibition and show gratitude to the organizers for providing suppliers with good quality sources. It is expected that the show will attract around 25,000 domestic and overseas buyers.

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The influence of Beijing 2008 Olympic Games to science and technology content of sports shoes product. Nowadays the current of product with the same quality is more and more serious, who can keep ahead of technology and make out larruping and suitable product for customers, who will be favorite. Besides, sport shoes manufactures need improve professional capability, at the same time enclose with athletic sports requirement, via reduce cost to supply bargain gym shoes product for person.

Compared with burgeoning markets such as Vietnam and India, experts said China still has advantages in terms of cheap power and water supply, excellent infrastructure and an integrated industry.