Guangzhou leather show bounces back
Despite struggling over the last couple of years because of the economic downturn, Shoes & Leather Guangzhou seems to have made a recovery this year.
According to industry experts the show, held June 1-3, continues to be one of the premier leather industry exhibitions in China after 20 years of exhibitions. Activity took place right until the trade fair closed and even bad weather on day two did not act as a deterrent.
A number of international exhibitors participated at the event; however the vast majority were domestic companies and many of the international firms were represented by local staff or agents. Nevertheless, there seemed to be more companies this year from other parts of China, especially from the centre and north. Many were large organisations involved in leather, footwear and chemical manufacture.
With Chinese companies unsure of international markets given global conditions and averse to being paid in a currency that may become worthless at any moment, it seems they are making a more determined effort to refocus on the domestic market, within which infrastructure continues to improve as a result of cash injections from the government.
However, even some of the larger leather companies are, alongside other industries, quite small organisations. They do not have easy access to advice on the global economy, trade, even access to someone who can speak and write reasonable English. According to industry experts, their lack of financial understanding could act as their best protection.
There is some evidence that many Chinese buyers do not travel great distances to visit trade events, but as infrastructure improves further this may change. For now a company in northern China, having gone about as far as is commercially possible in its own home patch, might consider entering the market in and around Guangzhou.
Guangzhou, China's number three city after government base Beijing and financial centre Shanghai, has seemed to trail behind in terms of development until recently. However, the city, which serves as the commercial hub for Guangdong Province and the booming Pearl River region, is going through a fresh redevelopment phase. Buildings are going up everywhere and the ban on motorcycles and scooters has done wonders for air quality and traffic control.
