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China Shoetec - great opportunity than a challenge!!!
Apr '09
Facing the current international economic downturn, China market is becoming a “blue ocean” for shoes companies with its high domestic demand, stable fiscal policies, high foreign exchange reserves and active stimulation measurements by Chinese government.

From December 2008, export rebate rate for 3,770 kinds of export commodities in China has been increased from 11% to 13%. In the meantime, national fiscal policies will provide more assistance to small and medium companies and the labor-intensive industry. Therefore, this is a great opportunity than a challenge for Chinese shoe companies! With the urgent needs of the industry upgrade and business transformation, the 9th Dongguan China Shoes • China Shoetec (Spring), which will be held from May 5 – 7, 2009 in Houjie, Dongguan, Guangdong Province, will reposition itself to the middle and high end shoes markets of China and emerging markets including Russia, Middle-East, SE Asia, besides the traditional markets of Europe and America.

Export Market: Opportunities from Crisis
In spite of the unprecedented challenges in the footwear industry, and the impact of economic downturn on European and American markets, it is undeniable that there is still demand on footwear for the domestic and international markets. China footwear industry still has its strong production capacity and competitiveness. 70% leather shoes produced in China are exported to major international markets including Europe and America, where average per capita consumption reached 7 – 10 pairs of shoes.

Despite the impact on European and American markets imposed by the global financial turmoil, the organizers of Dongguan China Shoes will continue to develop & explore international markets as well as introduce second & third lines of foreign brands to China market so as to assist Chinese footwear companies to capture the business opportunities. Through the extensive global promotion, the 9th Dongguan China Shoes • China Shoetec has obtained support from various associations, including European Confederation of the Shoe Retailers Associations, Federcalzature, etc. In 2008 autumn edition, overseas buyer has reached 21%, buyer groups from Russia, Netherlands, Vietnam, Brazil, Thailand, etc, were attracted to visit the show.

China Domestic Market: Potential for Development
Along with the development of foreign markets, shoes companies should explore domestic market by building up its own brand in the meanwhile. There is huge potential for China domestic demand with the help of new tax initiatives and measures launched by Chinese government, especially under the guide of the new rural reform measures, and the gradual improvement of social labor insurance and welfare, which will further enhance citizen's consuming ability.

Besides, a series of favorable policies will endow the shoes companies with a positive role in China market promotion, e.g. Special fund of RMB1 billion has been set by the Dongguan Government to assist the transformation and upgrading of processing trade companies; relaxation of policy on Hong Kong SME promotion fund, together with exhibition participation subsidy by the local governments.

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