Due to the unexpected factors such as international geopolitical conflicts and the repeated epidemics that increased the challenge to China leather industry, the development of the industry has become more pressure and severe, and the adverse impact has increased significantly, the growth of revenue and profit was getting slow down, according to the latest report released by CLIA.
In the first half of 2022, the sales revenue of enterprises above designated size in leather industry reached the total of 522.13 billion yuan, up 6.9% year on year, which was 4.1 percentage points lower than the same period last year on growth rate. The sales for footwear, luggage and bags, finished leather, and leather garment saw a respectively increase of 8.9%, 3.4%, 3.9% and 8.7%.
In term of designed size enterprises, the industry achieved the total profit of 23.84 billion yuan, down 1.0 percent year on year, and the profit margin of sales revenue was 4.57 percent, down 0.36 percentage points from the same period last year. Profits of footwear increased by 14.2%, but the tanning sector saw a decline of 27.7%, luggage and bags sector dropped 12.5%, leather garment and fur products witnessed a huge decline in profits.
In the first half of this year, due to the steady recovery of international market and China's stabilizing foreign trade policy, China's leather industry export continued to maintain steady growth on the basis of a high base in 2021 and reached 49.87 billion U.S. dollars, up 29.0% year-on-year, which accounted for 2.9% of the country's total exports.
The reason for high growth of the export value in the first half of this year was that the rising of average price of shoes and bags, which accounted for most part of the industry export, although the volume increased in export but not as higher as their value. The total value of footwear and bags exports reached US $43.18 billion, accounting for 86.6% of the industry export value.
According to report statistics, the average per pairs of footwear price was $4.9 in the first half 2021, and it rose to $5.86/pair for the first half of 2022, the average price of bags increased 17.91% to $2.66 from $2.43.
At the same time, the imports of China's leather industry totaled $8.81 billion, down 10.2 percent year on year, accounting for 0.7 percent of the country's total imports, said the report.
The COVID-19 has reduced the residents' consumption power and many stores closed, meanwhile native brand products have gained more recognition from domestic consumers, which reduced the demand of international brands in Chinese market.
For the rest of this year, the enterprises in the industry still face pressure anduncertaintybut they have shown strong confident to realize steady growth.
