-- Three Unfavorable Factors in the Export Bags Industry of China

AUTHOR : Himfr Tian Date : 12/16/2011 8:36:28 AM
As people living and rising consumption level, a wide range of bags have become indispensable accessories around. It demands not only in practical on luggage be strengthened, decorative, it must be expanded. According to changes in consumer tastes, more diverse material bags, leather, PU, polyester, canvas, cotton and other material bags fashionable.

Meanwhile, in a growing era of personalized advertised, simple, retro, cartoon and other kinds of fashion styles to meet people from different sides publicity personality needs. Bags of style from that business package, bag, bag the pencil case, purse, small mirrors and other development. The international market is huge luggage space, directly contributed to our luggage products of export growth.

At present, Europe and the United States and other developed countries and regions, bags and leather imports from China account for its total imports of such products for more than 70%.

Despite steady growth in export bags a good trend in favor of, the influence of adverse factors luggage industry concern:

First, raw material prices, production costs of enterprises exert tremendous pressure. By the impact of rising oil prices, the main raw material bags, such as polyester fabric and PVC, PU film and raw materials prices rose sharply. If PU rate of increase in prices in 2002 reached 50%; PVC, polyester cloth and bags of products and auxiliary materials, zipper, buckle and so prices rose in 2005 about 5% -10%; prices for various raw materials makes raise business costs on average about 20% lower profit margins for businesses constitute a large bag cost pressure.

Second, luggage products, safety hazards and low prices, trade barriers encountered worries there. As people of environmental protection, safety awareness, enhanced product quality and content of the bags required qualitative change taking place more emphasis on environmental protection, safety, light and so on. European Union and other regions of the bags continuously improve product safety standards, this year is called the new REACH chemical registration, authorization and evaluation system, the system strengthened within the Union market chemicals and chemical products containing controlled required to enter the EU must provide a bag product of determination than the current more stringent chemical testing to prove.

EU safety standards to improve not only for exports bring bags hidden trade barriers, also increased the company's test cost. On the other hand, China's exports still rely on bags at low prices squeeze the European Union, the United States and other international market share, the price is too low can easily lead to anti-dumping investigations in foreign countries.

Third, the lack of independent brands and systematic mode of production is luggage industry, "inherent." Currently most of our bags are medium and low production, high value-added and less high-tech products export import luggage bag is priced at only a fraction of even a few one-tenth; Enterprises weak awareness of IPR protection, multi-copy, less innovation, more popular and dependable, less own brand.

In the international market, China's own brand of luggage is almost empty, the lack of individuality and development prospects and strong brand. While domestic production has been a great bag size, but the overall lack of systematic mode of production, co-produced the self-employed also account for a large proportion of which is the world's bag production base in China's position inconsistent, will restricting luggage industry, long-term development.

Recommended luggage industry should continuously improve the company's R & D bags export capacity and technical equipment, through the integration of domestic resources, to establish close collaboration chain, and the establishment of a systematic mode of production, improve profitability, enhance the international competitiveness of products. Paying close attention to international security, technical testing standards, to avoid the occurrence of trade barriers.