There is a growing sense of optimism that the popular All China Leather Exhibition will offer a boost of confidence similar to that generated by the recent APLF exhibition in Hong Kong.
There is good cause for being reasonably optimistic because the Chinese economy remains one of the very few major economies showing some growth.
It’s necessary to get some form of perspective. China’s economy was rattling away at a phenomenal 13%+ increase annually. Global problems or not it was due for a slow-down anyway if rampant inflation were to be kept at bay.
At the beginning of 2009 the International Monetary Fund (IMF) forecast annual GDP growth in China at 6.8%. In mid-March this year the IMF revised forecast predicted just 6.1%.
But by any reasonable criteria these are excellent figures. So, while it is true that doing business in China will be that bit more demanding than before, China is, even today, very much ‘open for business’.
China presently produces some 40% of the world’s leather. In 2008 China exported US$42.53 billion of leather and leather products. (See below for more detailed statistics.)
Not surprisingly, companies in the leather and footwear sectors, have always been anxious to enter the China market. This could be tracked by the way in which ACLE itself developed. The exhibition chalked up its 10th Anniversary in 2008, but in the early years especially had to keep changing location in order to meet the seemingly insatiable demand for exhibition space.
That demand remains buoyant, with the expectation that exhibitor numbers will be substantially the same as last year. The event will occupy 5 halls in the exhibition centre, again the same as last year. Bookings over the entire exhibition are running at 50% of the total available, from both domestic and international companies
In the domestic halls, where local Chinese companies are based, pavilions organised by local associations such as Baigou, Haining, Tongxiang, Huidong, and Jiaxing.
In the international halls, the following 16 pavilions have confirmed participation:
Australian Hide Skin and Leather Association
Assintecal – Brazilian Association of Companies of Components for Leather Footwear and Manufactured Goods
CICB – Centre for the Brazilian Tanning Industry
Ethiopia Leather Industry Association
FFTM – French Tanners Federation
German Leather Federation
Indian Trade Promotion Organisation
Assomac – Italian Footwear and Tanning Machinery Association
Korean Tanners Association
ANPIC
Pakistan Tanners Association
Acexpiel – Leather Industry Association of Spain
Taiwan Footwear Manufacturers Association
Thai Tanners Association
US Hide Skin Leather Association
Aegean Leather and Leather Products Exporters Association
Aegean Leather and Leather Products Exporters Association will expand the size of the Turkish pavilion this year. Because of the economic downturn in Europe and Russia, more small and medium Turkish leather suppliers are changing their focus to China.
ACLE is well supported by organisers APLF Ltd and the China Leather Industry Association (CLIA). Speaking recently, Michael Duck, director of APLF, explained that, “As organisers our spend on buyer promotion, on advertising, on direct telephone contact, on improving databases, has been increased enormously”. He went on to add, “I want to stress that we in the Trade Fair sector are here to help stimulate and encourage trade during the bad times as well as the good. Our role is to support the industry.”
ACLE will run concurrently with, and in the same location as, two closely allied sector exhibitions: China International Footwear Fair (CIFF) and Moda Shanghai.
ACLE, CIFF and Moda Shanghai will run September 2 - 4, 2009, at the New Expo Centre, Pudong, Shanghai.
QUICK STATS:
China Statistics for 2008
Total export value of leather, fur and leathergoods, was $42.53 billion in 2008, up 10.4% over the previous year.
Total sector imports were valued at $5.45 billion, a decline of 10.5% over the previous year.
Of these totals:
Finished leather exports accounted for $370 million (down 66.6%)
Finished leather imports were %2.67 billion (down 13.7%)
Among the above:
Export value of leather shoes $9.81 billion (up 2.6%) and export volume was 1.13 billion pairs.
Import value of leather shoes were $510 million and import volume was 17.89 pairs, showing an increase of 58.1% and 65% respectively.
Export value of leather garments stood at $990 million, down by 34.7%.
