Some Russian light industry producers return home

The production costs of light industry in Russia have become equal to those in China, so many Russian light industry producers have begun to move their production lines back to Russia.

Yevtukhov, Deputy Minister of Industry and Trade of Russia, said in an interview that Russia’s production costs are generally on par with China’s, and in some cases, even 10-15% cheaper. The newspaper quoted Yevtukhov as saying: “The main factor is the decrease in the cost of production in Russia due to the depreciation of the ruble. Labor and indirect expenses have become much cheaper than the cost of production in our neighboring countries.” According to him, over the past ten years, The wages of Chinese textile factory workers have tripled and have reached the level of Russian workers in this field.

Yevtukhov believes that there is another factor. Countries with low manufacturing costs in the past have begun to move away from cheap technologies, and the price of productivity has increased, so the price of products has also increased.

Russian lingerie retailer Rozteh Vice President Pieterskaya said the company is preparing to double its production in Russia to 8 million items per year. Previously the company mainly ordered products from China and the Baltic countries.

Agibalov, a representative of Sportmaster, told the newspaper: “Local production has become more interesting, and the prices are competitive.” The company now produces 15% of its clothes and shoes in Russia.

But some representatives of the Russian textile industry have no plans to completely move production lines back to the country. Retailers pointed out that risks of local production include a lack of raw materials in Russia.

Ilidarov, chairman of the Russian Textile Industry Association, told the newspaper: “Russia’s production costs are already the same as China’s.” He also said that in some cases it may be 10% cheaper. Therefore, foreign and Russian retailers began to transfer production lines from China to Russia.

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In the past year of 2015, the global economic situation has lacked growth momentum, and regional conflicts and conflicts have intensified; China’s economic development has entered a period of transformation from old to new driving forces, and economic growth has shifted from high speed to medium to high speed. Recently, reporters learned from the “2015 China Leather Industry Economic Operation Press Conference” that my country’s leather, fur and products and shoemaking industries will not be able to survive alone in 2015. Sales revenue, profits and imports maintained steady growth, but the growth rate continued. fall back. Specifically, the development of my country’s leather industry in 2015 showed two major characteristics: first, increasing downward pressure; second, obvious industry differentiation.

According to Ye Xiangju, deputy secretary-general of the China Leather Association, the development of my country’s leather industry has slowed down and downward pressure has increased. This feature is clearly reflected in a series of indicators such as the prosperity index, sales revenue, total profit, import and export, and market sales. .

Throughout 2011 to 2015, the annual curve of the medium and light leather prosperity index has moved downward year by year in the past five years. In 2015, it entered the gradually cooling range for the first time, with a monthly average of 89.36. In the 2015 medium and light leather subdivision index, only the export index It is in a stable range, with a monthly average of 98.23; sales revenue and total profit fluctuate in a gradually cooling range, with monthly averages of 89.54 and 82.31 respectively.

The overall growth of sales revenue and profit was stable, but the growth rate dropped. In 2015, the sales revenue of my country’s regulated leather, fur and products and shoemaking industry was 1.4 trillion yuan, a year-on-year increase of 6.1%, and the growth rate dropped by 3 percentage points; the total profit was 88.73 billion yuan, a year-on-year increase of 5.4%, and the growth rate dropped by 3.1 percentage points. .

Sales in the domestic market are sluggish, online and offline volume growth has declined, and the low-price model has become popular. From an offline perspective, in 2015, the country’s major large-scale retail enterprises sold 110 million pairs of shoes, a year-on-year increase of 1.3%; retail sales were 45 billion yuan, a year-on-year decrease of 5%. From an online perspective, the sales volume of 15 e-commerce websites was 550 million pairs, a year-on-year increase of 7.3%; sales were 69.3 billion yuan, a year-on-year decrease of 3.2%. The package sales volume was 130 million units, a year-on-year increase of 0.9%; the sales volume was 14.94 billion yuan, a year-on-year decrease of 19.1%.

Industry differentiation is not only reflected in the macro aspects of production, import and export, but also in the micro level of differences between enterprises. Judging from the output of the industry’s main products, light leather and leather shoes maintained growth, while leather clothing and fur clothing declined. In 2015, the national regulated light leather output was 600 million square meters, a year-on-year increase of 2.2%, an acceleration of 1.6 percentage points, mainly driven by the growth of automobiles and leather furniture. The downstream products industry has experienced varying degrees of growth slowdown. The growth rate of leather shoe output has dropped by 1.9 percentage points, the growth rate of leather clothing output has dropped by 23.4 percentage points, and the growth rate of fur clothing output has slowed down by 91.5 percentage points.

The China Leather Association conducted a survey on the production and operation of leather companies in 2015 at the beginning of this year and found that the differentiation between companies was obvious. Some companies with weak design capabilities, poor market control, non-standard management, and insufficient innovation were struggling to survive. The situation is precarious, but some companies that focus on management, channels, technology, and product innovation have still maintained a rapid growth momentum. There are traditional brands such as Aokang, Kangnai, Juyi and Jinhou that have achieved varying degrees of growth, while there are also rising stars such as Luo Chi who have achieved a super-high growth of 33% in sales revenue in the outdoor wave and “Internet +”.

However, the fundamentals of steady growth of my country’s economy have not changed. Our country has a huge domestic consumption market with great potential and a completeIndustrial chains, efficient industrial clusters, high-quality industrial teams, and the world’s largest production capacity advantage. No country or region can undertake such huge production capacity in the short term. These are all effective basic supports for the development of China’s leather industry. With the advancement of intelligent manufacturing, the deepening of supply-side structural reform, the gradual optimization of industrial structure, and the cultivation of innovative talents, it will provide a new source of power for the development of China’s leather industry.

AAA

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