Around 30% of Hong Kong footwear manufacturers are concentrating their sales efforts in mainland China as a result of the continuing strength of the Yuan. The volume of trade in the luggage and travelware sector with China increased also. Exports reached US$8.938 billion in 2006, a figure which shows a 19.58% growth compared to 2005.
The announcement concerning the sales of Hong Kong manufactured footwear to mainland China was made by Zhao Bo Guang, Vice President of the Hong Kong Industrial Footwear Chamber. Although he emphasised that raw material and labour costs are increasing on the mainland, the regional market is still showing a great deal of potential.
Many companies producing footwear in Hong Kong are planning to relocate to provinces in the Chinese interior. The Yuyuan company has taken the decision to open one thousand retail outlets in the next three years.
More encouraging news suggests that footwear exports from the main port of Zhejiang province, Ningbo, have started to pick up after the initial decline caused by the antidumping duties imposed by the European Union (EU) on Chinese footwear. It was observed that in January 2007 a total of 3.55 million pairs were
exported with a value of US$21.8 million. These figures show a 4.5% improvement in volume terms and 4.6% in terms of value when compared to December 2006.
Between October and December 2006 shoe exports through Ningbo fell by 21.2% compared to the same period in 2005 due to the punitive duties imposed by the EU. Nevertheless, local manufacturers have managed to improve the situation thanks to measures such as moving production to other countries in the region, the restructuring of their product lines, and seeking new export markets.
Regarding the improvement in the amount billed for luggage and travelware from China, these good results can be attributed to a rise of 27.7% to US$1.339 billion – of products manufactured in leather.
Source: www.cueroamerica.com
