A figure from the Guangdong Province Customs Department has revealed that exports by shoe manufacturers in Guangdong Province have gradually increased since the start of this year. Severely affected by the global financial crisis, the number of shoe companies in Guangdong province that exported products in February 2009 was only 1572 - the lowest number since 2007. By March, however, the figure had increased by 326 to 1898. In April, the number of shoe manufacturers exporting their products continued to increase, reaching a total of 1922.
 
Li Peng, the chairman of the Asian Shoe Industry Association, said that: "Recently, the number of shoe companies throughout Guangdong Province that are closing down has fallen significantly. The most difficult period for the majority of shoe manufacturers has already elapsed, and the Guangdong shoe industry is currently moving from a period of closure to a period of renewal. The shoe companies that continue to survive in Guangdong Province are those that possess substantial vigour. In addition to this, stock for the European and North American markets is almost completely cleared, and it is expected that in the second half of the year, shoe exports will increase."
 
According to China's General Administration of Customs, the decline in China's exports is gradually slowing, and the fall in Guangdong's exports has also narrowed far more than the national average. From January to April of this year, Guangdong's exports were worth 99 billion USD, a fall of 17.4% compared to the same period last year. Contrary to general circumstances, exports by the shoe industry increased. According to the Guangdong Administration of Customs, Guangdong Province exported 1.12 billion pairs of shoes in past four months, worth a total of 3.12 billion USD. This is significant of an increase of 61% and 0.6% respectively.
 
Some shoe companies are also enjoying an increase in orders. The Guangdong shoe industry is also performing well compared to other manufacturing industries within the province. At the 105th Guangdong Trade Fair which concluded at the start of May, the total volume of transactions fell by 16.9%, and orders for electronic appliances, clothing and most other commercial products fell significantly. Shoe transactions, however, saw a slight increase of 1.9%.
 
Li Peng said that

"Shoes are a product type which is necessary for everyday life, and when purchasers supplement product volumes due to reductions in stocks, this will trigger an increase in orders. In addition to this, the closure of a large number of factories has provided greater opportunities for those companies that have survived. The economies of the main export markets of Europe and North America have still not recovered, however, so it is not possible to be that optimistic at present."

 
Source: China News Wrap