Industry News

Effected by American Subprime Lending crisis, China's foreign trade growth slowed down significantly, while Wenzhou shoe exports to the United States experienced a rapid growth. The first quarter of this year, Wenzhou footwear exports to the U.S. counts for 1,654 sets, 8,913,700 pairs, 40.8739 million U.S. dollars. It enjoys an increase of 63.6%, 31.25% and 31.95% in sets, amount and volume. The main reason: First, because of the Subprime Lending crisis and the impact of the appreciation of RMB, the U.S. consumer's purchasing power decreased significantly, the demands for high-grade footwear shrinked(which is an important reason for one of the high-grade shoes manufacturers in Dongguan regards U.S. as the main export market enterprises go bankrupted), but shoes as a greater demand for daily consumer goods, which makes the Wenzhou shoe (mainly produce middle-low-grade shoes) exports to the United States increased by chance. According to statistics, the is an increase in non-leather-shoes export to the United States in the first-quarter, growth by 83.46 percent, 40.31 percent and 39.84 percent in sets, amount, and volume respectively. The second is: After the implementation of "Labor Contract Law", thousands of Dongguan shoe enterprises closed down, thus customer orders turned to Wenzhou shoe enterprises. The third is due to the overall economic environment, some enterprises in Wenzhou footwear begin to accept some lower price, the profit margins of the few U.S. customer orders. The last reason is out of concern for the appreciation of the RMB, part of enterprises delivered the goods in advance.