Double digital growth era ends in China leather sector export
The exports in leather sector fell to less 10% in growth rate in 2012, ending the double digistal growth era. Before 2012 the leather goods export increased with 20% CAGR. Under the pressures of slow economy, production costs hiking, reduction of overseas order as well as trade barries the industry should gain the shares of international market by transforming from made in China to created in China, and overcome the current weak market. Some branding experts warned that only creation of brand can keep the production survive within 3-5 years.
Citing CLIA president Su Chaoying as saying that in the first half of this year the industry (except fabri shoes) will maintain the growth at 10% more or less, but profit earning will see continuing decline for foreign export enterprises as production costs hiking and overseas order shrinking.
The situation for the enterprises aimed at internal market are much better than those target at overseas market, 80% of leather goods made in China rely on foreign market, processing trade still dominates 70% of these leather goods export.
The toatal sales value for national sports brands has exceeded that of foreign brands, but foreign brands take majority of the market in the first and second-tier cities, while those national brands share the markets in second and third-tier cities, they needs more efforts to improve their brand image and products designs to earn chinese consumers.CITATION：http://old.chinaleather.org:82/eng/show.php?itemid=8710