The luggage and bags making industry in China is facing a series of adverse factor, such as revaluation of RMB, raw materials and labor costs hiking, restrictions on environmental protection and land resources, fabric materials used in the industry are mainly sourced from petroleum that has been surged dramatically in price for recent years.
The industry belongs to labor intensive and quantity-oriented sectors, the enterprises in the industry remains weakness in brand creation and marketing and provides products of low-end. Although the products made in China rank the first in the world that account for 40% of the world total exports, the exports with brands only take a small proportion in total exports.
The increasing of technical and trade barriers, anti-dumping imposition also leads the production costs growing and low competitiveness on overseas market.
In terms of internal market it has been dominated by foreign brand products as LV, Gucci, Fendiand and left a little room for domestic products. The foreign brands put production in China for lowing production costs and sold these products in China at high price to earning high profit. Domestic brands are incompetent on domestic market to compete with foreign brands. CITATION http://www.chinaleather.org/eng/show.php?itemid=5580
The industry belongs to labor intensive and quantity-oriented sectors, the enterprises in the industry remains weakness in brand creation and marketing and provides products of low-end. Although the products made in China rank the first in the world that account for 40% of the world total exports, the exports with brands only take a small proportion in total exports.
The increasing of technical and trade barriers, anti-dumping imposition also leads the production costs growing and low competitiveness on overseas market.
In terms of internal market it has been dominated by foreign brand products as LV, Gucci, Fendiand and left a little room for domestic products. The foreign brands put production in China for lowing production costs and sold these products in China at high price to earning high profit. Domestic brands are incompetent on domestic market to compete with foreign brands. CITATION http://www.chinaleather.org/eng/show.php?itemid=5580
