Sichuan footwear export prices show a downward trend

On February 21, the latest data from Chengdu Customs showed the crisis of the export prices of the Sichuan footwear industry. In January this year, Sichuan exported a total of 14.27 million pairs of shoes, an increase of 15.1% over the same period. However, the average export price was $5 per pair, down 14.6%.

According to the introduction of Chengdu Customs, since November last year, the scale of Sichuan shoe exports has steadily risen month by month. In January this year, it exported 14.27 million pairs, an increase of 22.5%. The average export price of Sichuan shoes fluctuates greatly. Since August 2011, it reached a new high since November 2009, which has dropped sharply and recovered at the end of the year. However, the average export price in January this year once again dropped to US$5 per pair. The chain fell 31.6%.

“The increase in labor costs has driven the transfer of orders to neighboring countries.” According to customs analysis, as domestic labor costs continue to rise, the price advantage of footwear manufacturing in traditional labor-intensive industries is gradually disappearing. China's annual output of 13 billion pairs of shoes, labor costs is 1.3-1.5 US dollars per hour; India annual output of 2 billion pairs of shoes, labor costs is 0.65 US dollars per hour; Vietnam annual production of nearly 800 million pairs of shoes, labor costs is 0.48 US dollars per hour . The increase in operating costs has led companies, especially multinationals, to transfer orders to lower-cost Southeast Asian countries such as Vietnam.

It should be pointed out that at present, most domestic shoe companies, especially small and medium-sized shoe enterprises, generally lack independent brands, and the profit of OEM is low. They are at the bottom of the industrial chain and have poor anti-risk capabilities. The appreciation of *** and raw material costs have increased. And changes in labor costs and other changes can easily lead to difficulties for companies to survive, making it more difficult to invest in technology and brand building. Chengdu Customs recommends that enterprises should increase technological innovation and upgrade, guide enterprises to cultivate their own brands, increase the added value of export products, and adhere to the road of internationalization, branding, and specialization. In addition, we explored diversified export markets and dispersed export risks.

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