On the 24th, the Customs Tariff Commission of the State Council announced that it will reduce the import duties on some consumer products by a provisional tax rate from December 1, 2018, with the average tax rate reduced from 17.3% to 7.7% and the shoes and apparel products also been included. The company is located in:
China's import of shoes and apparel products continue to change the consumer
According to the data released by the Leather Association, in the first half of 2017, the import of leather main sectors in China hit 4.71 billion U.S. dollars, up 10.7% over the same period of last year and the growth rate picked up by 20.3 percentage points. China's main imports of leather industry to trade-based, accounting for 64.1%, an increase of 19.1%; processing trade accounted for 27.3%, down 3.5%.

The import structure of China's leather industry has gradually become more and more obvious from the transition from production to consumption. Since 2016, the proportion of imports of raw materials for the main leather industry in China has been declining continuously, and the proportion of imported products has gradually increased. In the first half of this year, this trend continued. The raw materials Import accounted for 42.4%, down 3.5 percentage points over the same period, the proportion of imported products increased to 57.6%. Among the contribution to the growth rate of imports, the finished product is 9.7%, of which the contribution of footwear to import growth is 5.3% and that of travel goods and luggage is 4.4%; while the raw materials of semi-finished leather, finished leather and tanned fur are 1% . Semi-finished leather, tanned fur and other raw materials imports increased by 11.2% and 16.5% respectively over the same period last year, indicating signs of a recovery in production.

Shanghai accounted for 35.7% of the total imports, up 0.4%. Shoes and bags accounted for 85.7% of the total imports of the leather industry in Shanghai, of which Shanghai accounted for 44.7% of China's total footwear imports, 72.4% of total imports Processing and trade in Guangdong ranked second place, accounting for 23.7%, down 2.7 percentage points. The main imports of leather industry in Guangdong mainly raw materials, finished leather, semi-finished leather, tanned fur accounted for the local leather industry accounted for 79.5% of the total imports.

The decline in tariffs on the domestic shoe industry has a limited impact
The tariff adjustment is expected to be mainly positive for the cross-border e-commerce industry, with limited impact on the overall retail sales of footwear and apparel. According to the Ministry of Finance's sample survey data, tariffs actually represent only 0.5% to 7% of the retail price of goods. Considering that China's import of footwear and apparel products tends to be concentrated in the high-end and luxury categories, the reduction of import tariffs has the effect of changing the spread between domestic and foreign products Limited, it is estimated that the tariff reduction mainly stimulates the enthusiasm of cross-border e-commerce consumers and has a limited impact on physical retail. The competition in the domestic apparel industry mainly focuses on overall cost performance improvement by enhancing retail efficiency and supply chain efficiency.

Specifically, the great changes in the brand, both high-end or mass brands have been out of the extensive stage of development, began to shape their core competencies. With the rise of China's economy and the market, a large number of excellent brands with Chinese cultural gene are emerging; in terms of mass brand, brand marketing + efficient product development + terminal retail control + supply chain system construction , The traditional mass brand leaders are reshaping their own competitive barriers around the above aspects.

Manufacturing side, China's textile manufacturing leader is gradually establishing an increasingly strong global industry distribution discourse, while the scarcity of high-quality manufacturers become more prominent, in addition to continue with the highest quality brand / terminal to establish mutually reinforcing cooperation in depth In addition to relationships, premium-quality manufacturers are also gaining opportunities directly with consumers through new marketing models and channels, driven by the Internet, resulting in better returns on the value of quality manufacturing.

Overall, although the tariff cut has little effect on the overall retail sales of domestic shoes and apparel, there is no doubt that the share of China's footwear imports will increase in the next few years. It is not only the need to promote the upgrading of domestic consumption but also the proposition of China's practice of trade liberalization, which is conducive to further opening wider to the outside world.