Orders return to Wenzhou shoes in April to remove baggage and re-travel Europe

"Since March, our old customers have returned orders and increased orders. New customers such as Germany and the United Kingdom are also actively negotiating." Speaking of recent orders from the European Union, Zhejiang Aokang Shoes Co., Ltd. Li Haijun, head of export business, cheerfully opened his voice.

After 6 consecutive years of efforts by Chinese shoe companies such as Aokang, from April 1 this year, the EU formally suspended a high anti-dumping duty of 16.5% on Chinese leather shoes. Most of the shoe companies in Wenzhou, Zhejiang Province, share the joy of sharing orders from the European Union, as does Aokang.

However, the reporter found that Wenzhou shoes temporarily unloaded the burden of anti-dumping duties, but also put on the EU's "squeezing spell." Several shoe companies said that the days of cheap leather shoes are gone forever. Creating a brand to go high is the future direction.

European orders have returned since April

Although the EU officially abolished the high anti-dumping tariff of 16.5% on Chinese leather shoes from April 1st this year, but as early as the previous month, Aokang footwear industry felt the benefits of this policy.

"Since March, our old customers have returned orders and increased orders. The most cooperative company in Italy, GEOX, has seen a lot of growth in the first half of this year compared to the same period last year." Li Haijun, head of export business of Zhejiang Aokang Shoes Co., Ltd., told us Reporter, orders for this period in addition to the increase in old customers, there are some new customers.

"Some countries in northern Europe, Germany, the United Kingdom, and other buyers are actively negotiating." Li Haijun estimates that due to the favorable cancellation of anti-dumping duties, Aokang's orders will grow by more than 20% this year. This figure is still estimated under the control of taking orders, otherwise it is likely to grow exponentially.

Wenzhou Taima Footwear Co., Ltd. is a full-trade shoe company with the largest export volume of leather shoes in Wenzhou. The company’s deputy chief Wang Xianhao told reporters that after the European Union began to impose anti-dumping duties on Chinese leather shoes on October 7, 2006, many EU orders were lost to countries such as Vietnam, Indonesia, Malaysia, and India. At that time, it was undoubtedly a blow for Wenzhou shoe companies.

"Now that anti-dumping duties have been cancelled, orders will naturally flow back." Wang Xianhao said that the number of buyers from the EU countries has significantly increased recently.

"20 euros of shoes, save the tax of 3.3 euros, both buyers and sellers will reduce the pressure. Whether it is leather shoes or PU shoes, as long as the EU's buyers came to discuss, we will benefit more or less." Although the amount of leather shoes for export is small, Deng Yunshou, business manager of Juyi Group Co., Ltd. believes that canceling the anti-dumping duties and talking to customers about prices are not as wasteful as before.

It is understood that last year, Wenzhou exported 672 million pairs of footwear products, the export amount of 3.740 billion US dollars.

Xie Yufang, executive president and secretary-general of the Wenzhou Shoe Industry Association, predicts that the number of footwear products exported to Wenzhou from the beginning of last year has increased by more than 10% from the previous year and is expected to increase this year.

6 years later, the average price of Aokang shoes increased to 20 US dollars

Referring to the anti-dumping duties of the EU, naturally it is reminiscent of cheap leather shoes in Wenzhou.

“In the past, some small companies produced leather shoes for less than US$10 and the lowest US$5 to US$8.” Li Haijun said that six years ago, as some companies pursued short-term profits, they entered the EU at a very low price, resulting in high EU use. The amount of anti-dumping duties has created trade barriers. However, now Wenzhou shoe companies have begun to change their minds, began to use medium and high-end shoes as bait, long line fishing big fish.

The reporter learned that the average unit price of O'Connell export leather shoes is now US$20. Li Haijun said that Aokang considers two aspects. One is the positioning of the brand as mid-to-high grade shoes, and the other is based on long-term cooperation with international big names. Therefore, leather shoes have been different from those of EU anti-dumping.

“The days of making money from ultra-low-cost shoes are gone forever.” Deng Yunshou told reporters that shoe manufacturers are now under pressure and labor costs, main raw materials, fuel oil and other production costs have increased a lot. For the same shoes, this year's price is 10% to 15% higher than last year, and it is no longer possible to compete at a low price.

Shoe companies put on a "sweeping spell"

The reporter noted that while the EU eliminated the anti-dumping duties on Chinese leather shoes, it also issued five monitoring measures for Chinese footwear products, including one-week key monitoring to ensure that there was no unfair behavior; Clearly identify the country of origin; strictly monitor whether Chinese shoe companies infringe on intellectual property rights; require the Chinese government to open up the high-end shoe retail market; and pay attention to the situation in which Chinese shoe companies enjoy various government subsidies.

In addition to these "squeezing spells", several shoe companies interviewed said that they should not be too optimistic about the cancellation of anti-dumping duties.

“Big shoes are pouring into the European market, and the EU may also adopt another way to protect local companies.” Li Haijun’s concern is that some small companies only care about their immediate interests and then follow the same low-cost routines to enter the European market, and they do not rule out the possibility of repeating the same mistakes. .

A person in charge of a Wenzhou shoe company said that for some time it seems that low-cost dumping should not exist, but the policy of the importing country to protect local businesses will still exist. Therefore, he believes that domestic shoe companies still have to do a good job, improve product quality and quality, through the brand to increase the added value.