Sunday, 16 September 2012

Chinese leather industry growth slowing


In the first half of 2012, the Chinese leather industry, a traditional export trade industry is showing signs of slowing as it enters into a critical period aimed at upgrading their leather and leather products to produce more medium and high value added products.
Data from China Leather Industry Association (CLIA) shows that the export of leather and products such as leather shoes and clothes in the first half of 2012 reached $33.461 billion with a year-on-year growth of 9.1%, the growth rate declined by 27.84% compared with 2011; while imports reached $3.76 billion yuan with a year-on-year growth of 9.3%, the growth rate declined by 20.24% compared with 2011. A trade surplus in the leather industry is valued at $29.702 billion, increasing by 9.05%. However, it seems that the leather industry in China has to say goodbye to an era of double digit growth in import and export. The CLIA say that 5 million people are employed in the leather and leather products industry in the country.

According to the CLIA, in 2012, export-oriented enterprises face more difficult problems than domestic focused companies as sales of export-oriented enterprises drops significantly together with export net profit. Besides, companies processing leather for international brands have suffered a decline in orders, which as a result, largely weakens their price negotiation ability.

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