China leather sector manages to reduce heavy dependence of exports

As early as 2005 some experts pointed out that degree of dependence upon foreign trade reached 80%, the highest in the world. It is no exception for China leather industry, as products in leather industry are exported at low price that has led more and more trade disputes and trade barriers in recent years.

Now we take the leather industry in Guangdong for example, leather production depends on processing trade, 70% of hides and skins are imported, drastic price fluctuations in 2009 forced the manufacturing declined. On the other hand demands and orders for leather goods in EU market were shrank impacted by weakness of economy. The exports for leather goods saw a first drop in a decade in 2009. Many companies dependence on processing trade have transferred the marketing to internal or reduced production. Foreign-oriented companies met a great challenge during the financial crises, and have to face many risks of overseas market changes.

To change current passive position on the one hand China leather industry should spend more efforts on technical innovation and brand creation, and on the other hand they should take the opportunity of increasing growth in domestic market to gain more market shares.