December 2012
  News & Facts
 
China: Employment in leather sector begins to decline

2012-11-16

The employment in leading leather and shoemaking companies recorded a 5.49% decline in the first nine months, citing a report of China National Council for Light Industry, in view of areas Sichuan and Guangdong are the two places seeing declines of 17.22% and 12.83% in employment.

The report said the drop also seen in the areas of Zhejiang, Jiangsu and Shandong, where produce most of leather and footwear, as weak demand in overseas market. Further more parts of Chinese and foreign companies moving out of China leave many unemployment in the industry.

The leather industry in China is composed of small and medium enterprises that make great contribution to employment, and measures are called to solve its current difficulties, first is to low the tariff on raw hides import for enhance the industry competitive edge in international market, second is to solve the monopolizing to internal market, only to do so the leather industry could restore its energetic growth and play more role on taking up employment, the report said.

 
 
BASF unveils innovation campus in Shanghai

2012-11-19

BASF SE, the world's biggest chemical maker, has inaugurated its new innovation campus for the Asia-Pacific region, in Shanghai's Pudong.

The campus, its first in the region, is part of the German company's 55 million euro ($70 million) expansion project in Pudong, which also includes a new China headquarters building.

"This is a milestone in BASF's history, to set up such an innovation campus in China with the aim of strengthening R&D activities within Asia-Pacific," said Vice Chairman Martin Brudermueller on Tuesday.

He said researchers at the campus will focus on advanced material and sustainable solutions, with applications including sustainable construction, energy efficient lighting, footwear, and biobased personal care.

Around 450 researchers and developers in technical teams from 17 regional business units will come together during the first phase of the campus' development, added Andreas Kreimeyer, its research executive director.

"By 2020, we expect to have about 25 percent of our global R&D headcount in this region."

He said BASF had injected 1.7 billion euros into R&D this year, exceeding last year's 1.6 billion euros.

BASF expects to create annual sales of 30 billion euros from innovation products by 2020, based on its investment in R&D, with 10 percent of that coming from China, said Brudermueller.

 
 
China leather sector generates 863.554 billion yuan in the first ten months

2012-11-19

The total value of leather industry, calculation based on production of Chinese leading leather companies, reached 863.554 billion yuan in the first ten months, seeing a growth of 13.3% than in the corresponding period of the previous year.

The industry also saw a growth of 8.67% in profit earnings to 44.163 billion yuan in the first nine months.

 
 
One more tannery puts into production in Fuxin leather base

2012-11-19

With one more year efforts on preparation and construction, the Fuxin based Aodeli Tannery launched a grand opening ceremony of business on November 15, 2012, which drew an attention in the industry and attended by senior leaders of local government.

The tannery is projected to make 600,000 pieces of sheep leather and 630 million sets of auto seat, the sale income could be reached to 150 million yuan annually, the tannery could also contribute over one thousand jobs for local employment.

So far there are 63 tanneries had signed the agreement on moving production into Fuxin Leather Base, amounting of investment is 6.7 billion yuan, and aiming at producing 15.07 billion yuan of output value annually. 20 of them started production now on, while the another 23 will soon open their business next year.

 
 
Geox ends distribution deal with China’s Belle

2012-11-20

Breathable shoe manufacturer Geox has announced it is to end its ties with Chinese footwear retailer Belle International from the end of this year.

The Italian company is planning to sell its products through standalone stores in Shanghai, Beijing and Tianjin, and through a high-end retailer in second and third-tier cities, according to reports.

Belle – which signed the distribution deal with Geox in September 2008 – takes around 57% of its revenues from self-branded products and about 5% from distributing international brands such as Nike and adidas.

 
 
China leather making sees 16.24% increase in first ten months production

2012-11-21

The total production of leather making expanded by 16.24% in the first ten months to the value of 142.02 billion yuan, in terms of profit it saw a growth of 19.4% to 6.99 billion yuan. CLIA reports.

 
 
FDRA hosts forum in Dongguan

2012-11-22

The Footwear Distributors and Retailers of America (FDRA) held its twelfth annual Responsible Footwear Forum in Dongguan, China, in mid-November.

More than 100 factory managers, social compliance officers, human resource professionals, and operations and brand managers attended the training forum to hear from industry leaders on social compliance improvement programmes, brand expectations, and updates on China’s labour laws.

“This was one of the most successful training forums we have ever held in China,” said FDRA president, Matt Priest, at the end of the event. “The training today provided attendees with insights into how they can improve worker retention, increase productivity, and better plan for inflation increasingly facing Chinese footwear factories.”

Other speakers included Donna Jelenovic of Wolverine Worldwide, Sioban Liang of Nike, Raymond Huang of Level Works and FDRA’s Chinese labour law advisor, Fan Zhan Jiang.

 
 
China reports production increase in leather garment in the first ten months

2012-11-23

The production of leather garment based on caculation of 330 leading companies reached 53.98 billion yuan in the first ten months, up 20.18% year on year. In the volume terms it grew 3.99% to 48.89 million pieses.

 
 
Heilongjiang sees 5.3% growth in footwear exports to Russia

2012-11-26

The border trade between Heilongjiang and Russia was surged by 29.2% in the first ten months to US$6.22 billion, the previous year was US$4.74 billion for the same period.

The products of mechanical and electronic, footwear, and apparel and textile account for 81.7% of total provincial border export value, the export value for footwear reached to US$680 million, up 5.3% year on year. The trade complementarity between two countries and stable growth in both economies will continue to support the bilateral trade strong growth.

 
 
Shiling successes making its national first in leather goods making

2012-11-26

Quoting an official in Shiling town as saying, the leather goods making in Shiling can produce 20 billion yuan of production value annually, so far the industry in town has over 80,000 factories and 180,000 traders, with employing 300,000 workers. The leather products made in Shiling town have been accounted for 55% of national market share, 70% of low-end price market in EU and America.

Shiling leather goods sector has established a completed industrial chain with years’ development, which include leather goods design, production, marketing, transportation and information services and so on, eight materials and accessories professional markets and five finished products markets and trade centers had opened in the town. A new leather complex is expected to open in the town that is built by Shengdi Group.

A grand leather goods fashion event is expected to take place at the end of this month; the world well known media will come all the way to make the special report to the event.

 
 
Leather goods come to the single digital growth in export

2012-11-27

The export in leather goods industry came to era with the single digital growth fell from over 20% growth in previous year, the data released by CLIA shows the whole industry saw the growth rate dropped to less 10% in the first half year’s export. The foreign trade in leather industry says goodbye to the era with double digital growth in export.

The leather goods industry is not the only labor intensive sector suffered from the decline due to impacted by economic recession in EU and America, production cost hiking and reducing of foreign buyers order.

The industry in China is foreign oriented sector heavily relying on the export and international market, the weak demand and less brand influence leave them less growth space, weakening their competitive in international market. It will take a long time to sell these products in internal market, Chinese consumers tend to buy foreign brands of leather goods. This is because Chinese leather goods always are weak in design and brand. But in recent years the national brands have gained more shares of market in lower tier cities in China.

 
 
Wenling sees double digital growth in shoes export to Africa

2012-11-27

According to local official statistics Wenling in Zhejiang province maintains a double digital growth in shoes export to Africa. The export to Africa in 2011 was US$380 million, up 63.4%.

Taizhou Sitemei Shoemaker is a successful company on marketing expansion to Africa countries; they turn out to be the first on Wenling shoes export as sharp increasing export to Africa countries.

Wenling is a city with 200 million pairs of shoe export to 150 countries and regions, nowadays they start to put their eyes on Africa, where they believed it could be a huge market. Shoe made in Wenling city are sold in Africa at 5% to 10% price lower compared with other similarity products, further more they sell shoes with their own established outlets for cutting the operation costs.

The increase of emerging market has offset the decline orders from traditional markets for the city’s footwear. Shoes made in Wenling starts to gain dominated position in Africa countries.

 
 
Leather shoes production up 9.56% in the first ten months

2012-11-28

The production value of leather shoes made by 2356 large scaled companies posted a growth of 9.56% in the first ten months, with 13.79 percentage points less than previous year in growth speed.

The production in volume only saw a rising of 3.96% to 3.675 billion pairs for the period of first ten months.

 
 
Expansion of Haining Leather Market

2012-12-03

The Haining Leather Market in Chengdu city of Sichuan province soon to open will makes its leather market number to 5, the leather market in Chengdu city will be second largest market next to that in the city of Haining with total investment of 1.363 billion yuan. The leather markets in Beijing and Haerbin are expected to be launched soon.

A senior office in Haining Leather Market told the reporters nowadays, they are planing further expansion in northwest cities such as Xi’an, Hohhot, Urumqi and so on. Opening a leather market in Russia will be their next target, but the office didn’t release the details of their overseas expansion plan.

 
 
The first Chinese Leather Goods Muzeum opens in Huadu city

2012-12-04

With the conclusion of the twelveth Leather and Leather Goods Festival in Shiling yesterday, but there were two events in the trade fairs worth to mention here, the first one is opening of Leather Goods Muzeum, the second is the launching of leather goods e-commerce.

The opening of Leather Goods Muzeum seated in Xinhua town of Huadu city with four displaying halls aims to show the history of leather goods making and over one hundred collections of varieties of ancient products. The muzeum can bring you to the history dating back to ancient time and evolution of leather goods, as well as knowing the role of leather bags played in ancient people’s life.

Further more a professional training center was announced to etablish on the fair, 300 workers will be trained for leather goods making and related skills for its first year.

 
 
China leather sector makes the trade surplus of $55.2 billion

2012-12-05

The trade surplus in leather sector expanded 8.2% in the first ten months to $55.2 billion, taking up 30.61% of total value of national trade surplus. The leather industry reported an 8.1% of growth in the first ten months export, the value stood at $67.38 billion, while import saw a growth of 7.2% with value of $6.5 billion.

The footwear, luggage and bags are the products that played a key role to boost the export growth.

 
 
Huadu sees 30% surging in luggage and bag export

2012-12-05

The products of luggage and bags rank the first in Guangzhou commodities export with the 30% of surging in the first three quarters, said the vice director Chen Huiqing in foreign trade department of Ministry of Commerce on the event to promote brand products held in the city of Huadu.

The growth of total national luggage and bags dropped to 4.93% in the first three quarters export as severe challengs in international market, China leather goods industry came to a critical point to upgrade technologies and create brand, said the ministrial official and urged the industry in Huadu city to take the way of creation of brand with innovation and high technology and to maintain the growth for the future development.

 
 
EU renew tariff on chamois leather from China

2012-12-06

The European union has renewed a tariff on chamois leather from China for another five years to curb import competition for British and Italian producers.

The EU reimposed the 58.9% duty on the soft leather, which is used to dry cars and windows, in a bid to aid Cambridge, UK-based Hutchings & Harding and Turin-based Marocchinerie e Scamoscerie Italiane. Their situation is “very fragile and vulnerable” and China has “significant” spare production capacity, according to the bloc.

The EU introduced the levy in 2006 to punish Chinese exporters of chamois leather for selling it in Europe below cost, a practice known as dumping. Last year, when the anti-dumping duty was due to lapse, the bloc opened a probe into whether to renew the import tax, which automatically stayed in place during the inquiry.

Should measures be repealed, the Chinese exporting producers would in all likelihood strive to regain any lost market share in the union,” the 27-nation EU said in a decision on December 3 in Brussels that is the outcome of the investigation. The five-year renewal will take effect after being published in the European Official Journal by December 13.

China’s share of the EU market for chamois leather ranged from 3 – 5% between 2008 and the 12 months through June 2011, the bloc said. That’s down from as much as 30% before the duty was introduced six years ago.

Other countries that export chamois leather to the EU include India, Turkey and New Zealand, according to the bloc. In the 12 months through June 2011, their shares of the European market were 16% for India, 10% for Turkey and 7% for New Zealand, the EU said.

The renewal of the duty against China marks a victory for the UK Leather Federation, which sought the longer trade protection in a June 2011 request that led to the EU expiry investigation. The federation represents more than half of EU production of chamois leather, according to the bloc.

 
 
Italy closes 14 overseas Chinese shoe plants

2012-12-06

On the recent joint inspection action launched by polices in Chioggia station and Mirano led 14 overseas Chinese shoemaking and leather goods making plants closed in Italy. The inspection aims at Chinese factories in areas of Cavarzere and Brenta.

Further more these 14 factories were fined Euro 112,000 as default of workers social insurance payment, but these factories may allow to reopen production as soon as they complete the further inspection.

 
 
Wenling gives priority to children’s shoes making

2012-12-06

Chengbei area is an originated place for Wenling shoemaking, with over 1000 shoemakers concerntrated here, and 618 of them are making children’s shoes and have production capacity of 150 million pairs. The area sets a target to become national children’s shoes production base, and creates one or two national brands of children’s shoes.

To coordinate the target Wenling set up a shoemaking service center in Chengbei area to give support to the development of children’s shoemaking.

More investment were put on children’s shoes design and development, more measures were taken by local government on creating of brand and technical innovation.

 
 
China sees a big drop in the first ten months leather trade

2012-12-06

Data released from CLIA website today shows the import of semi-finished leather declined 5.1% to 590,000 tons in the first ten months, the import of finished leather were 153,000 tons, seeing a decline of 7.2% in weight compared with year earlier.

The data also shows the export of semi-finished leather dropped 19.2% on the same period to 6764 tons, the export for finished leather declined by 8.2% to 25,000 tons.

 
 
Baigou takes various measures to boost bags export

2012-12-12

Boosting foreign trade is an envitable choice for Baigou Town in Hebei province to meet the needs of fast growth in the town, it is also a their strategy to be involved into the world. Baigou town is a most early established leather goods production base in China, the sale income in the leather goods sector reached 820 million yuan in 2011, maintaining a growth of 17.2% for three consecutive years.

More efforts were taken to expand the sales on overseas market, such as establishing stores in boarder areas and foreign countries, or launching tourism to attract foreign buyers, other measures to boost export are taking part in the trade fairs held world wide, inviting foreign buyers take part in the trade activities held in local area. Sales through internet also play more and more role on the industry. With these efforts the luggage and bags made in Baigou town have been sold to over 130 countries and regions.

 
 
China sees leather shoes drop in the first ten months export

2012-12-12

Leather shoes saw a decline of 9.8% in the first ten months export to 700 million pair, counting by value it dropped 1.4% to $9.1 billion. Meanwhile the import of leather shoes increased 14.4% to 18.78 million pairs, the total value for import were $890 million, up 21.2%.

 
 
Leather shoes made in Fuxin leather base start to export to Japan

2012-12-12

300 pairs of leather shoes for men that are processed in Fuxin Leather Base were approved to export to Japan nowadays by Fuxin Inspection and Quarantine Department, this is to say fuxin leather base firstly export leather products since its established.

Fuxin leather processing base is newly established leather making area, and has become an well known area for making leather and leather goods.

According to shoes exporter more leather shoes will be shipped to Japan and EU after the first exporting. Fuxin Inspection and Quarantine Department gave the priority to the first shipment and help them improve products’ quality and supervision.

 
 
Chinese make 25% of world's luxury buys

2012-12-13

In Hong Kong, the sight of Chinese tourists lining up outside luxury brands like Hermès and Louis Vuitton is no longer something to marvel at. According to a new report compiled by HSBC, about a quarter of the world’s luxury purchases are now made by Chinese citizens.

The trend is a result of China’s burgeoning middle- and upper-classes following the country’s relatively recent economic maturation within the past two decades. Though there have been signs that China’s recent slowdown may be inspiring more value-conscious spending in Chinese consumers, this figure indicates that the retail market is still growing rapidly. In 2007, HSBC found that Chinese purchased just 5% of the world’s luxury goods. That’s a five-fold increase in as many years. And the bank’s analysts think there’s more to come.

“We do not think China’s luxury sector is even close to being mature,” the recently released report states. “China remains above all a market where brands are recruiting customers rather than serving repeat ones.”

One of the factors cited for driving the growth is that luxury houses are now expanding and opening retail stores beyond just big cities like Beijing and Shanghai, and into smaller regional areas across the country. Many worldwide fashion brands are storming the market, too, increasingly their operational focus on Hong Kong, which often serves as a base for their Chinese operations.

Though Chinese nationals continue to account for a large proportion of luxury purchases, only about 10% of those sales are actually transacted in mainland China. The rest of the purchases are frequently made overseas in territories like Hong Kong and countries like Australia, where a booming influx of Chinese visitors routinely spend triple the amount compared to the average American tourist.

Thanks to greater purchasing power abroad – due to usually lower import taxes and an appreciating yuan relative to other major currencies – Chinese citizens are frequently opting to buy goods from overseas rather than buying luxuries at home. Counterfeit goods are also a common concern within the country, driving Chinese consumers across foreign shores to ensure product quality and service.

 
 
Shoes export in Henan province breaks $200 million this year

2012-12-14

Following the breaking of $100 million on previous year, this year the shoe export hits record high to $209 million in Henan province, citing the report released by Henan Bureau of Inspection and Quarantine.

Eleven countries are added to Henan shoes export destinations this year, making the number of exported countries to over 80. The bureau official said Taiwanese shoemakers made a huge contribution to the growth of provincial shoe export. The production of shoes is expected to further surging in next year in Henan province in the wake of more coming ofTaiwanese shoemakers.

 
 
 
  Data & Statistics
 

 I/E Report and Analysis of China's Main Leather Product


Export of main commodities in leather industry (1-10, 2012)  Unit:US$ 1,000
Item
Unit
1-10,2011
Diff. (%)
Qty.
Value
Qty.
Value
Leather Shoes 10,000 Pairs 69,926 9,099,383 -9.8 -1.4
Traveling Goods & Cases      0 20,296,960   5.0
Leather Garments 10,000 Pieces 970 504,910 -18.3 -13.2
Fur Garments 10,000 Ton 206 1,194,509 -9.0 14.3
Leather Gloves 10,000 Pairs 46,318 834,522 -10.3 -10.0
Leather Balls 10,000 17,845 404,226 9.9 13.3
Raw Hides & Skins 1000 Ton 6 7,375 20.2 23.4
Finished & Semi-Fnishied Leather 1000 Ton 32 360,992 -10.8 -1.5
Footwear Components 1000 Ton 245 2,024,401 -24.0 5.5
Machinery 1000 Sets 48 125,757 -12.6 -4.8
Total        34,853,035   2.8

Import of main commodities in leather industry (1-10. 2012)  Unit:US$ 1,000
Item
Unit
1-10,2012
Diff. (%)
Qty.
Value
Qty.
Value
Raw Hides & skins 1,000 Tons 1,878 887,865 14.4 21.2
Finished & Semi-Fnishied Leather 1,000 Tons 0 1,247,642   15.3
Footwear Components 1,000 Tons 363 114,495 4.1 20.5
Machinery Sets 23 29,024 -26.4 6.0
Machine Parts Tons 3,528 13,005 50.0 27.0
Traveling Goods & Cases      1,019 5,132 16.9 38.7
Leather Garments 1,000 Pieces 1,051 2,487,120 5.0 11.3
Leather Shoes 10,000 Pairs 748 3,427,107 -5.6 1.7
Leather Gloves 1,000 Pairs 13 213,786 -9.7 -2.3
Fur Garments 1,000 Pieces 1,109 32,768 -43.9 -29.7
Leather Balls 1,000 150 5,184 -13.6 -7.5
Total        8,463,128   8.1