Bags / Shoes & Accessories

From January to June this year, the import and export of my country's leather industry has shown a significant growth trend, showing that domestic and foreign market demand has picked up, and the international competitiveness of my country's leather products has been further enhanced.

---exit

In the first half of this year, the total export value of my country's leather industry reached US$38.63 billion, a significant increase of 38.3% over the same period last year.

Among them, the export of semi-finished leather was 8540 tons, with an export value of 37.01 million U.S. dollars, an increase of 30.9% and 58.8% respectively year-on-year. The export of finished leather was 32,360 tons, 444 million U.S. dollars, an increase of 19.8% and 249.8% year-on-year. From January to June, 4.897 billion travel goods and luggage were exported, with an export value of 11.904 billion US dollars, an increase of 15.1% and 33.0% respectively over the same period of the previous year. The export of leather garments has grown significantly. From January to June, a total of 4.191 million pieces were exported, with a value of 59.86 million US dollars, a year-on-year increase of 281.9% and 60.0% respectively.

In the first half of this year, the country exported a total of 4.098 billion pairs of footwear products, with an export value of 20.364 billion U.S. dollars, an increase of 28.2% and 39.2% year-on-year respectively, accounting for 52.7% of the total exports of the industry. Among them, the export of leather shoes was 289 million pairs, worth US$4.063 billion, an increase of 18.9% and 26.0% year-on-year respectively, and the unit price increased by 6 percentage points compared with the same period last year.

---import

In the first half of this year, the import of leather products increased significantly. The import value of the whole industry reached 9.816 billion U.S. dollars, an increase of 59.7% over the same period of the previous year, and the increase in imports was 21 percentage points higher than exports. Among them, the import of semi-finished products was 300,000 tons, and the import value was 538 million US dollars, an increase of 25.5% and 42.6% respectively over the same period of the previous year. The import of finished leather was 33,000 tons, 522 million U.S. dollars, an increase of 20.8% and 16.8% respectively year-on-year. Imports of raw hides and skins amounted to 657,000 tons, with an import value of 634 million U.S. dollars, an increase of 9.1% and 29.3% year-on-year respectively. The total import value of leather and raw leather used for tanning and manufacturing of finished leather products is 1.694 billion US dollars, accounting for 17.3% of the total import value.

Imports of finished leather products and footwear products have also increased significantly. Among them, 61.513 million travel goods and luggage were imported, with an import value of 3.259 billion U.S. dollars, an increase of 28.4% and 114.7% respectively over the same period of the previous year. From January to June, a total of 122 million pairs of footwear products were imported, with an import value of 3.320 billion US dollars, an increase of 15.9% and 41.0% respectively year-on-year. Among them, 34.681 million pairs of leather shoes were imported, with a value of US$1.351 billion, which increased by 22.1% and 52.8% respectively over the same period of the previous year.

Shoes, luggage, leather and raw leather have become the leading products that contribute the most to imports, accounting for 84.3% of total imports.

---Export enterprise profits are squeezed

Although my country’s leather industry’s exports increased significantly in the first half of this year, it should be noted that the prices of upstream products such as raw materials and leather chemical materials in the international market have continued to rise for a period of time. Transportation costs have risen sharply, and defaults have occurred from time to time. According to statistics, a container shipped to Los Angeles before the epidemic was about US$3,000-4,000, but now it costs US$1,2000-15,000. If 6,000 pairs of shoes are packed in a container, the transportation cost of each pair of shoes will rise from RMB 3 to RMB 10, an increase of three times (see "The Factory Manager in the Wind" Weibo); while the rise of upstream raw materials has not The sales prices of finished products that have not been transmitted to downstream have risen simultaneously. This shows that the profits of export companies have been severely squeezed.

---The export outlook for the whole year is cautiously optimistic

Although my country's leather industry exports are facing challenges, many positive factors should also be seen.

As the scope of vaccination in major countries around the world continues to expand, the epidemic is still expected to be alleviated before the end of the year, and international market demand will further rise. Recently, some internationally renowned shoe, leather products and apparel brands announced their second-quarter financial reports. Adidas' sales revenue in the second quarter of this year increased by 10.7% year-on-year, and profit margins have basically returned to the level before the epidemic. In the second quarter of this year, Hugo Boss’ sales in Europe doubled over the same period of the previous year, while sales in the Americas rose nearly 5 times. The company’s sales in the Asia-Pacific market also increased by 51%. American VF, which owns well-known brands such as Vans and Timberland, increased its sales revenue by 104% in the first quarter compared to the same period last year. Since entering the second quarter, it has continued to maintain a growth trend. All these conditions indicate that demand in the international market is picking up, which will have a positive impact on my country's leather product exports. In addition, due to the continuous spread of the epidemic in Vietnam and other Southeast Asian countries, some international orders have returned, which is also positive for my country's leather industry exports.

Based on the above situation, it can be predicted that although my country's leather industry exports throughout the year still face multiple challenges and uncertainties, the overall trend will show a steady growth.