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All China Leather Exhibition (ACLE), China International Footwear Leather Fair (CIFF) and Moda Shanghai are to be held as scheduled
July 8, 2003

by Jess Lam, Asia Pacific Leather Fair Limited

The All China Leather Exhibition (ACLE), scheduled for 3 - 5 September 2003, will also take place as planned at the Shanghai New International Expo Centre (SNIEC), Pudong Shanghai, at a time of very high demand for overseas supplies from the local industry.

During the press conference on 8th July 2003, Madam Zhang Shuhua, Vice President, China Leather Industry Association at All China Leather Exhibition, China International Footwear Fair and Moda Shanghai said:

"It is my great pleasure to meet you all here today, after experiencing the extraordinary period of SARS. I now formally declare that the All China Leather Exhibition (ACLE), China International Footwear Leather Fair (CIFF) and Moda Shanghai are to be held as scheduled this September in Shanghai. Taking advantage of this gathering, I would also like to brief you on several related aspects: (1) recent developments in the leather and shoemaking industry in China; (2) the impact of SARS on China's leather industry; (3) preparations for ACLE, CIFF and Moda Shanghai. 

I. Recent Developments in the Leather and Shoemaking Industry in China
China is a global leader in leather raw materials, and in the volume of output as well as import and export of leather products. China leads the world by producing over 500 million square meters of tanned leather, around 6 billion pairs of footwear and 70 million pieces of leather garments each year. In footwear, China produces around 2.4 billion pairs of leather shoes, 1.6 billion pairs of textile shoes and over 1.2 billion pairs of rubber shoes, accounting for 53% of the world's total footwear output. It is expected that this will reach 55% by 2006. Clearly, China is already recognised as the largest leather production center in the world.

Presently the main footwear production areas include: Guangdong (leather shoes, sport shoes), Zhejiang (dominated by leather shoes), Fujian (dominated by sport shoes), Jiangsu (dominated by leather shoes), Shandong (dominated by leather shoes), Shanghai (leather shoes), Liaoning (leather shoes), Tianjin (leather shoes), Henan (leather shoes) and Hubei (leather shoes). Of these, Guangdong is the most highly developed, accounting for over 30% of the total national output.

China's leather industry is an export-oriented industry generating over US$15 billion in foreign exchange annually. From January to April this year, exports reached US$4.56 billion, up 25.2% over the same period in 2002, while imports reached US$1.29 billion, up 24.1%. Growth in China's footwear market was significantly higher compared with the previous year. The growth rate for imports was higher than that of exports, with about 70% of leather shoes and 40% of leather garments manufactured in China each year sold in the domestic market. Currently, the average number of leather shoes purchased annually by urban dwellers approaches 0.8 pairs per capita, against 0.6 pairs in the 1990s.

II. Impacts of SARS on China's Leather Industry
From March to May, many areas in China were affected by the SARS epidemic, which has had a severe impact on the leather industry, especially the production and trade of shoe-making. A survey of some enterprises made by the China Leather Industry Association, revealed that, since April, both the domestic and overseas markets of the leather industry have shrunk to a certain degree compared with the same period last year, due to the spread of SARS. Total domestic trade volume decreased by 50% and total foreign trade export value also decreased by 40% . The logistic system between raw material production areas and manufacturers, as well as between manufacturers and points of sale, has been blocked or interrupted. This was especially true in the severely SARS-hit provinces and cities such as Guangdong, Beijing, Shanxi, Inner Mongolia and Hebei. With the added factor of the conflict in Iraq, the price of some raw materials rose between 10% and 30%, which increased production cost.

In the face of these difficulties, the vast leather industry adopted decisive measures. As well as paying attention to SARS prevention and cure, the industry focused on enterprise development, strengthened enterprise internal management, and aimed at long-term development in order to be better prepared for the emerging business opportunities of the post-SARS period. The majority of enterprises have resumed normal production and trade. The domestic market is experiencing a resurgence with sales volume of shoes and other leather products bouncing back so the prospect for the next half year is good.

As the national coordinating and managing organisation of the China leather industry, China Leather Industry Association has been reporting on difficulties encountered by enterprises to gain support from the relevant national department. CLIA has also actively assisted enterprises to look for new business opportunities.

III. Three Great Events for the China Leather Industry - ACLE, CIFF and Moda Shanghai
All China Leather Exhibition, recognised as one of the world's international exhibitions for the leather industry, will be held from 3-5 September in Shanghai New International Expo Center. This will be the first large-scale international event in China's leather industry after the SARS epidemic, which is very significant, and has aroused a great deal of interest in both domestic and foreign circles. Another international exhibition focusing on shoe products and accessories will be held simultaneously with ACLE. While ACLE will focus on leather raw materials, chemical materials and mechanical equipment, China International Footwear Fair and Moda Shanghai will focus on finished products. These exhibitions will supplement and add lustre to each other, becoming the most important international exhibitions of the leather industry held in China. Through these exhibitions, the leather industry both at home and abroad will see more clearly the future development of China's leather industry.

Since June, the number of enterprises applying to participate in the exhibition has displayed strong growth. As of early June, 90% of the booths in the domestic exhibition hall have been sold. The following famous leather making and leather chemical production enterprises are among those who have confirmed their participation: Henan Fangyuan Leather Co., Ltd., Zhejiang Jinxin Leather Co.,Ltd. , Xinji Dongming Leather Making Plant, Yuanhengli Leather Co.,Ltd., Bolite Leather Co.,Ltd., Shandong Maode Leather Group, Henan Shoe City, etc. Many famous domestic shoe manufacturers such as Senda Group, Kangnai Group Co.,Ltd., Fapai Shoes Co.,Ltd. will also participate. Some important leather and leather processing bases, such as Guangdong Huadu district and Shanghai Hongkou district, will create pavilions to strengthen their district brands and win more business opportunities.

China Leather Industry Association has extended invitations to thousands of Chinese and foreign professionals, wholesalers and retailers, trading companies and product manufacturers by means of letters, telephone interviews, direct visits, promotional meetings and so on, and will organise buying groups from the important cities and commodity distribution centers to visit the exhibitions.

Activities to be held during the exhibition period will be rich and colourful. They include the meeting of the national council of China Leather Industry Association, seminars on Leather Making Technologies, Prevailing Trends in shoe products and Technical Economy, new product introductions and recommendations, match making meetings as well as international conferences. Such annual activities as the genuine leather mark cup, the national leather shoe and sneaker design contest, award product display and fashion shows will bring the latest domestic and international fashion information to participants. This is the only authoritative professional competition event in the whole country, creating a stage for the country's designers to give full play of their talent. In addition, the exhibition site will feature corridors of shoe products to display the latest trends of shoe design in our country.

The enormous market and development potential of China's leather industry, the favourable domestic and international market environment brought about by entry into WTO, as well as the efforts made by the organisers, will surely make ACLE one of the world's leading professional leather exhibitions in the years to come. All friends are welcome to participate in this exhibition in Shanghai from 3 - 5 September to engage in business and trade negotiations."

 


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