ADVERTISEMENT

Shoemakers flee China, export value rises

Food

Although almost half of the shoemakers in southern China's Pearl River Delta closed in the first five months of 2008 and the number of pairs exported fell, but the value of exports jumped.

Additionally, industry officials said that big producers were getting bigger and small ones were seeking out niche markets, while those in the middle ranks were largely being driven out.

The world's largest footwear production region, located in Guangdong Province, lost 2,331 shoe firms between January and May, but exports rose 9.4% to $3.97 billion, the customs office in Guangzhou, the provincial capital said.

The closures left 2,428 shoe producers, who shipped 1.35 billion pairs of shoes overseas in the first five months, down 15.5% year-on-year.

China Customs attributed the exporters' exodus to pressure from the appreciation of the yuan, the Chinese currency, and soaring wages and labor costs, which crimped profits.

Asian Footware Association secretary general Li Peng said that 62 shoemakers now account for half of the export orders placed in the Pearl River Delta region. They saw a combined increase of 16.5% in export value in the first five months.

Meanwhile, he said, “small and nimble producers are rapidly adjusting their production to explore new export markets, grabbing small orders from Russia, the Middle East and African countries.”

He said that mid-sized plants employing 800 to 3,000 workers were being battered worst in this round of market adjustment.

Many shoe makers have been adjusting their sales strategy by shifting their focus from exports to domestic sales, said Wu Zhenchang, a shoe businessman in Guangdong.

He said he believed that this round of industry restructuring will help eliminate weak companies and drive up the unit price of China-made shoes.

The shoe industry in Guangdong experienced a golden era from 2001 to 2007, when the value of shoe exports more than doubled from $4.3 billion to $9.2 billion. (Xinhua)

ADVERTISEMENT

OECD projects Hungary GDP growth will slow to 5% in 2022 Analysis

OECD projects Hungary GDP growth will slow to 5% in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.