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Chinese Shoemakers won't Lower Prices

Chinese Shoemakers won't Lower Prices

Write: Timur [2011-05-20]

"No! A lower price is impossible!" Miao Renzan firmly told a disappointed Dutch buyer at the 99th China Export Commodities Fair, the largest of its kind in the country, which is being held in Guangzhou.

The buyer, who wanted to be mentioned as Hellen from Hellenia Shoes company in the Netherlands, asked for a discount as the European Union had announced anti-dumping duties on leather shoes from China beginning April 7.

The stance of Miao, sales manager of leading shoemaker Kangnai Group based in East China's Zhejiang Province, was backed by another major shoemaker, Aokang Group.

"We shoemakers will not lower prices to offset the impact of the EU's anti-dumping duties since our prices are reasonable," Wu Chunyue, general manager of Aokang, told reporters.

"As an honest and responsible producer, we would never lower prices at the cost of quality," Wu added.

Kangnai, Aokang and 12 other shoemakers in the province had made a joint declaration to oppose European Union sanctions on China-made footwear.

In the declaration, the businesses proposed that all Chinese shoemakers concerned should further enhance cooperation with their EU trade partners in filing objections.

They said according to the WTO's anti-dumping protocol, any anti-dumping prosecution should have 15 injury indicators. However, the EU sanctions are only based on six indicators, with insufficient evidences.

The duties on Chinese shoes started at 4.8 percent from April 7 and will rise to 19.4 percent in the next six months, according to the European Union.

Hellen, an executive of Hellenia Shoes, said consumers would soon have to pay more. This may affect the sales of her company, which has been selling Chinese shoes for 10 years.

"Prices of Chinese shoes are lower and the quality has been improving, making them popular in the Netherlands," she said.

International buyers at the fair usually place orders for about a year starting from July.

In Europe, shoe importers and retailers expressed their displeasure with the EU'S duties.

Susan Sjoekvist, media director of Wedins, one of the largest Swedish shoe retailers, said the prices of leather shoes would rise soon and consequently, customers would have to change their choice.

On the other hand, some Chinese companies have brought to the fair more shoes made from imitation leather or textiles, and products targeting the Middle East and African markets. In fact, officials from Vietnam and Indonesia have invited Chinese shoemakers to explore the ASEAN market.

Organizers of the fair said that EU anti-dumping duties were likely to affect the shoe trade.

"As the European Union has decided to impose tentative duties on Chinese leather shoes, most European buyers will be cautious about placing orders," said Xu Bing, a spokesman for the organizing committee.