Leather Clothing Enterprises Initiative To Cut Production Or Stop Production

"Because the import and export volume and the amount of raw leather and finished leather in Sino Russian trade are very small," Chen Zhanguang, Deputy Secretary General of the China Leather Association and director of the leather leather special committee, said: "leather enterprises in the top of the leather industry chain are basically unaffected, and the downstream enterprises may be the most influential ones."

In 2014 1-12, leather garments exported to Russia about US $150 million, accounting for 27.2% of the total exports of leather garments; in 2014 1-9, leather garments exported to Russia about US $110 million, an increase of 8.4% over the same period last year, which was affected by the depreciation of the rouble. In 10-12 months, the export of leather garments to Russia was about 45 million 610 thousand dollars, down by 37.3% over the same period last year.

The impact of leather clothing enterprises is mainly reflected in the reduction of orders or the lack of orders.

In China

In the layout, the leather clothing enterprises in Haining and Tong Er Bao mainly focus on domestic sales. As the "leather fur capital of China", Xinji's leather clothing exports to Russia are relatively large. From the middle of last year, it was affected by the depreciation of rouble. In order to avoid risks and reduce losses, Xinji fur enterprises began to reduce or suspend their orders.

"Because of the impact of the ruble depreciation, it is difficult to control and resolve. Since mid last year, enterprises have found that the situation is getting worse and worse, most of them are actively reducing production or shutting down production, and in the wake of China's Spring Festival, most enterprises are also having early holidays."

Xu Min, Deputy Secretary General of the Leather Association of Xinji, Hebei, said: "there are basically losses and losses for enterprises doing trade with Russia. However, many enterprises exporting to Russia have had ten or 20 years of experience in the field of foreign trade, and have not yet hurt their muscles and bones. Everyone is watching the situation and intends to wait until after the Spring Festival to see the situation start again."

Zhou Fuchun, deputy director of the brand department, also said that leather fur

The impact of enterprises is not only reflected in capital, high inventory, product backlog is also more serious.

In the course of their investigation, they learned that there are several large fur and fur manufacturing enterprises in China, whose inventory backlog has reached thousands of items, especially the products in 2013. This not only creates potential risks to the enterprise capital chain, but also takes a negative impact on the development, market and even the whole industry of enterprises in the process of trying to digest the inventory.

Fortunately, in the survey, we also learned that in the second half of 2014, domestic leather fur clothing enterprises basically controlled production according to actual orders and sales volume, and adopted the way of shrinking production scale to "winter". The industry showed a situation of changing from quantity to quality.

It is one of the common coping strategies of enterprises at present not to be big and to be precise.

Benefiting from the strategic adjustment to the domestic market pformation in recent years, Haining, China's leather capital, was almost unaffected in the crisis. Gong Huihong, Executive Deputy Secretary General of the Haining Leather Industry Association, said: "in 1998, the incident of Russian expulsion made Haining fur enterprises lose a lot. Since then, the leather clothing enterprises in Haining have gradually faded out of the Russian market, so the ruble's depreciation has little impact on the leather garment enterprises in Haining.

Now a lot of trade enterprises in Russia are also running their own brands, doing more re export trade, and moving from Poland to Russia. Because last year's ruble depreciated too much and the risk was too high, they basically stopped trading with Russia, and could only continue to do business with Russia when the situation was good.