Overseas Orders For Shoe Enterprises Have Dropped Steeply, And Exporters Have Turned Their Attention To The Domestic Market.

With the steep decline in overseas orders and rising costs, many in Southern China

We are turning our attention to the domestic market, hoping to compensate for the decline in sales.

In April, China's exports grew by 4.9% over the same period last year, far below the expected figures, raising concerns about Southern China's export driven economy.

Dongguan's GDP growth rate was only 1.3% in the first quarter.

Although it is also lower than expected, the growth rate of 10.5% retail sales is even more significant.

Tao Dong, a Hongkong economist at UBS, believes that "consumption in China is more flexible than investment."

He said that the two digit wage increase over the past few years has helped to sustain demand growth.

In the factory of Dongguan Lok Ji Cheng leather goods company, a truck full of parcels sent to all parts of the country has witnessed the vicissitude of the times.

Until last year, when the target customers were domestic consumers, the company relied almost entirely on the European market.

But the online promotion in April made it sell 20 thousand handbags priced at 40 yuan a day.

In addition to selling cheaper products online, the company also plans to set up 30 stores in the country for luxury buyers this year.

But for many enterprises, the domestic consumption growth engine is not only strong enough to replace the export market, but also shows some signs of staggering.

In April, China's retail chain rose by only 1.19%.

Only 10%-20% residents in the mainland can afford high-end goods.

A toy dealer in Dongguan describes the difference between the domestic and foreign markets. "In the Chinese market, it is sold in cartons and cartons, and sold in containers and containers in foreign markets."

The growth of China's retail market is still unable to compensate for the loss of exports.

The reduction of export orders has begun to erode the pricing advantage of Chinese enterprises.

China released on Tuesday

The survey of handbag exporters found that the size of orders has dropped from more than 10 thousand pieces to a few thousand pieces.

Chinese manufacturers, who are losing their economies of scale, are being forced to raise their prices by two digits, as Western orders continue to decrease.