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China's export of leather and leather products companies increase the price of a foregone conclusio by e55he swrzsnb

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China's export of leather and leather products companies increase the price of a foregone conclusio by
Article Posted: 07/30/2011
Article Views: 83
Articles Written: 2033
Word Count: 617
Article Votes: 0
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China's export of leather and leather products companies increase the price of a foregone conclusio

Business,Business News,Business Opportunities
In recent years, the rapid development of China's leather industry is the world's major leather production and processing bases. Guangdong Province is China's largest leather handbags bags producing provinces, accounting for about 60% of output, Guangdong leather industries to some extent affected our entire leather industry.

From the professional research firm - Global Resources has released the latest of a "China Sourcing Report Leather Clothing", it was projected in 2007, China 87% of leather clothing manufacturers to increase their export prices across the board. It is reported that the survey involved 77 major domestic manufacturer of leather goods.

Global Resources, said Kleist, general manager of content development, subject to import tax rate increase, labor costs, RMB appreciation and the impact of factors such as rising exports to China leather raw material prices are expected to rise across the board. Leather China Leather Association, the relevant branch head that in recent years, Chinese imports of leather has been rising raw material costs, coupled with the RMB appreciation, rising transportation costs and other factors, the export prices of exporters rise leather completely predictable. However, the specific rate of increase in price is rising and it is the individual behavior of enterprises, enterprises of cost control is different. Overall, leather export price increase is a foregone conclusion.

Guangzhou Rui Cippi a company, one official said, because the Pearl River Delta region in 2007 migrant workers lack of resources, flood of migrant workers attracted by the Yangtze River Delta area, therefore, a corresponding increase in labor costs of enterprises, coupled with raw hides and related products import prices, so that the female produced an average package price up about 30%. It is understood that sharp Cippi with major export markets in Europe, Malaysia, Japan and other countries (regions).

The person in charge that, at present, the development of China's leather industry, there are still many problems. The first is a low grade of products, a small proportion of high value-added products, brand effectiveness is not obvious. At present, both in the international market or domestic markets have formed a group-known brand, not necessarily innovative style and brand appeal; followed by lower prices due to competing enterprises, disorderly competition further intensified. There are safety issues and prevention of occupational diseases should also pay close attention.

As China's export of leather products increased number of international trade protectionism, importing countries have set up barriers for me and some domestic enterprises to increase their exports and compete to keep the prices down and so upset the Chinese leather industry's export order.

Price adjustment ever-warming voice, Global Sources said in order to maintain and expand the competitiveness of overseas orders, most of the leather manufacturers remain cautious on the price rises, only 6% of the leather goods manufacturer said it will raise 10% 15%; 52% of firms expect prices will rise 5% to 10%; the remaining 42% of the enterprises plan to increase the prices of their products will not exceed 5%.

For the transfer of RMB appreciation and the pressure of rising costs, most of China's leather garment manufacturers to the market shift that will target sales to the EU and the U.S. market high-price strategy.

However, the high price means high quality, innovative design and well-known brands. China's leather manufacturing enterprises without these three aspects, to spend more thought in terms of quality, style and brand building, only unilaterally transfer market, and even the leather industry will make their own predicament.

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