Chinese shoemakers eye EU high-end market

WENZHOU - Since the European Union (EU) erased anti-dumping duties, shoemakers in east China's Zhejiang province have shifted from a low-cost strategy to target the high-end EU market.

Aokang Group Co Ltd, one of 1,200 Chinese companies affected by the tariffs, is abandoning its low-cost strategy and forging ahead on a new path to avoid being involved in a new round of trade frictions with the EU.

Based in Wenzhou, the shoe-manufacturing export hub in east China's Zhejiang province, Aokang Group, one of China's leading shoemakers, experienced both the rise and fall of shoe exports over the past several years.

In October 2006, the EU imposed a two-year 16.5 percent anti-dumping tariff on imports of Chinese leather shoes.

These measures were introduced in response to Asian footwear being sold below production cost in Europe. The policy was extended and remained in effect until March 31 this year.

Prior to the anti-dumping measures, Aokang had once received an order for 1.5 million pairs of leather shoes from GEOX, a well-known Italian footwear brand. Later, the influence of the anti-dumping duties resulted in fewer orders from the buyer, according to Wang Zhentao, Chairman of the Aokang Group.

"Since the end of the anti-dumping duties was announced by the European Commission last month, orders from GEOX have increased by about 70 percent in the first quarter of 2011 over the same period last year," Wang said.

"Twenty thousand pairs of leather shoes have recently been exported to Europe by Aokang," Wang added.

Xie Rongfang, head of the Wenzhou Shoe Industry Association, said that the export of leather shoes from Wenzhou will increase steadily by 10 to 20 percent.

Since seeing its opportunity to return to the EU market, Aokang has raised both the quality and retail price of its products.

Li Haiying, distribution manager of the Aokang Group, said that Aokang has started to select high-end orders from numerous European buyers rather than seek out new orders.