In The Era Of Post Anti-Dumping &Nbsp, Shoe Enterprises Will Usher In A New Round Of Low Price Competition.

On April 18th, some shoe companies began to worry about a new round of vicious competition:

In April 1st, the EU temporarily cancelled the import of leather shoes in China.

Some shoe companies believe that the cancellation of anti-dumping duties is temporary and the blockade is long term.

If the anti-dumping duty is abolished, our leather shoes will not win the battle and the price war will be held.

In May 2006, the EU imposed a 16.5% anti-dumping duty on leather shoes originating in China, with a period of two years.

After the end of 2008, it entered the sunset review (that is, not to change the measure, only to decide whether to "maintain" or "Cancel"). The 7 shoe enterprises of Huajian shoes and Zhejiang AOKANG in Dongguan were excluded and entered the written defense procedure.

In December 2009, the European Commission again ruled that the anti-dumping duty would be extended for 15 months until March 2011.

Hi: cost reduction, orders recovery

Miss Chang, director of the long day trading company in Changan, said that the increasing number of orders began to appear. Since April, she has contacted more than 20 customers, which is rare in the past few years.

"The anti-dumping duty is abolished. First, the cost of domestic enterprises has been reduced by nearly 20%. This largely reduces the price pressure of buyers and sellers, and it is much easier to operate."

Miss Zhang said that because of the higher cost of shoe-making in China than in Southeast Asia and the 16.5% anti-dumping duty, domestic enterprises have been in a low ebb for several years in the export of leather shoes to EU countries.

According to a data provided by the staff of the Houjie Shoe Association, from 2006 to the end of 2010, the sales of leather shoes in China exported to Europe dropped by 20% because of the anti-dumping duties imposed by the European Union, which directly led to 20000 people losing their jobs. Moreover, Chinese shoe companies also lost a lot of European market share, and some of the orders had been pferred to Southeast Asia.

"The lifting of anti-dumping duties means a drop in the cost of leather shoes manufacturing in China, coupled with China's manufacturing capabilities and original channels, and EU buyers are likely to come back again."

Many people believe that the abolition of anti-dumping duties, reducing the cost pressures of EU buyers, will enhance the competitiveness of Chinese shoes in the EU market.

Worry: bringing a new round of vicious competition

"There has been little growth in orders, but from February to now, the unit price of export shoes has dropped by about 15%~17%."

The manager of shoe industry research and development center of rich bird group said.

He said that rich birds always have European shoes, but the cancellation of anti-dumping duties has not played a substantial role in order growth so far.

"The market situation is not yet clear, but because of inflation, the purchasing power of consumers has declined, and the unit price of export shoes has dropped a lot, which is a pressure for shoe manufacturers."

Manager Wang believes that the situation of exporting to the EU will not be clear until the second half of the year.

So what does the cancellation of anti-dumping duties mean for export shoe enterprises? Wang believes that, according to normal circumstances, the cancellation of anti-dumping duties should be a good thing for export shoe enterprises, and the tax will be reduced and competitiveness will increase correspondingly. However, the increase of employee costs after the increase of orders is also a problem they have to consider.

He was rather concerned about the vicious competition between shoe companies that might be caused by the abolition of anti-dumping duties.

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Footwear industry needs to be relocated

"Green light is a good thing for the vast majority of shoe companies. However, if you still follow the old road, do not pay attention to quality, blindly compete for the market price war, do not pay attention to quality, do not pay attention to the construction of corporate culture, still export sweatshops to the European Union. I am afraid that it will still get the consequences of severe market punishment."

Li Mingbo, general manager of Dongguan sunrise leather shoes, told reporters that the majority of shoe companies need to reposition themselves and avoid the opportunity to take the old road.

The relevant person in charge of Dongguan Jinli footwear company said that the cancellation of the anti-dumping duty is temporary, and the blockade is long term. Don't be too optimistic. As long as the shoe enterprises are facing low price competition or the political problems within the EU, it is possible to set up high tariffs.

"If our enterprises are in disorder, low price and quality problems in competition, it is very likely that this is a short sweet period."

A shoe business owner said so.

Foreign trade and Economic Cooperation Bureau: cancel anti-dumping duty, good export shoes enterprises

Reporters learned from the Municipal Foreign Trade and Economic Cooperation Bureau, as of the end of last year, there were 172 shoe-making foreign-funded enterprises in Dongguan (excluding processing enterprises).

In 2010, footwear exports to the European Union amounted to US $470 million, 1~2 US $82 million 720 thousand this year, an increase of 13.7% over the same period last year.

Responsible for the policies and regulations of the foreign trade and Economic Cooperation Bureau said that the cancellation of anti-dumping is beneficial to Dongguan's export shoe enterprises.

In the past 5 years of levying anti-dumping duties, they will not only help Dongguan export shoe enterprises actively respond to suit, but also Dongguan shoe enterprises will circumvent anti-dumping duties by pferring other Southeast Asian countries' exports.

For the cancellation of anti-dumping measures, the Dongguan leather footwear association officials believe that there is no specific data for the current order return, but the abolition of the 16.5% tax rate will indeed reduce the cost of EU buyers, and the return of orders is expected.