Footwear industry in Chongqing benefits from drop in the price of raw leather
According to the China Leather Industry Information Centre, the leather footwear industry in Chongqing City, the centre of such production in western China, is developing fast partly thanks to a drop in the price of raw materials due to a fall in exports.
Since 2001 many large multinational companies such as Gucci and Reebok have stopped importing hides and skins from India and China because of concerns about standards of animal husbandry. In February of this year adidas, the world’s second largest sports brand, also decided to stop using leather sourced from China.
The China Leather Industry Association confirms that leather producers are suffering from this slump in exports, but the lack of demand has forced prices down, prompting a boost in leather footwear production, especially in centres such as Chongqing city.
Chongqing is located in western China, where little leather is produced. Most of the raw materials used in Chongqing City are from Guangdong, Hebei, other provinces or abroad. The steady drop in the price of leather means that many enterprises are enlarging their production and purchasing more leather for stock.
The Chongqing Leather Shoe Association said that raw material savings are being passed on to consumers with lower priced leather shoes, and that this is simultaneously boosting exports of shoes to Southeast Asia, Africa, Russia and other countries.
