China's footwear export three major constraints
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Despite challenges such as the rise of trade protectionism and increasing raw material costs, China’s shoe exports experienced a slight decline in 2009. Looking ahead, export restrictions are expected to remain high due to several key factors.
First, traditional export markets are shrinking. As the global financial crisis deepened, consumer spending in Europe and the United States fell sharply, directly impacting Chinese shoe exports. According to reports, over ten major international footwear retailers announced store closures during this period, including U.S.-based chains like Shoe Pavilion and FootLocker. With continued weak demand from overseas, Chinese footwear orders have significantly dropped.
Second, trade barriers are becoming more frequent. The worsening global trade environment has led to an increase in trade protectionist measures. In January 2009, Brazil introduced a licensing system for 24 types of imported goods, including shoes. In March, Peru imposed a temporary anti-dumping duty of $0.31 per pair on textile-surface shoes imported from China priced below $5.97 per pair. The EU extended its anti-dumping duties on Chinese leather shoes for another 15 months and also implemented stricter regulations. On May 1, 2009, the European Commission enforced a resolution banning products containing dimethyl fumarate, a biocide commonly used in shoes. Additionally, the EU introduced new guidelines for eco-labeling in the footwear industry, which added complexity for Chinese exporters. These measures have severely limited China’s shoe exports.
Third, the price advantage is diminishing. China's shoe exports are primarily focused on mid- to low-end products, lacking well-known global brands and innovation. The sector relies heavily on cost competitiveness. However, rising costs of raw materials, freight, and labor have pushed up production expenses, reducing profit margins and weakening the cost advantage. Meanwhile, the Chinese yuan remained stable against the U.S. dollar after mid-2008, while competitors like India, Indonesia, and Brazil saw their currencies depreciate. Countries such as Vietnam and Romania also offer lower labor costs, further eroding China’s competitive edge. Major brands like Nike and Adidas have started to reduce their procurement from China, signaling a shift in sourcing strategies.
These challenges highlight the need for China’s shoe industry to innovate, build stronger brands, and diversify its markets in order to sustain long-term growth.