China 's Luggage Exports The Main Constraints

- Oct 24, 2017 -

(1) increase in production costs, lower prices advantage

Raw materials and labor prices, leading to the increasing cost of production of luggage enterprises is also a key factor restricting the development of the industry. Most of our luggage enterprises take the low-cost expansion, to win the development model, low prices, low profits, price competition is often the local small and medium manufacturers compete for the main means of the market. However, in recent years, leather, nylon, polyester fiber and other raw materials prices continue to rise, the future growth trend is more obvious, which to some extent, suppress the profit margins of these manufacturers and growth strategies, its development has a blocking effect.

(2) the constraints of non-tariff barriers

With the increasing number of luggage trade in China and the continuous opening up, the luggage industry has entered the high incidence of international trade friction. Since 2005, there have been many trade frictions for Chinese travel bags. At the same time, due to the production of luggage involving textile fabrics, leather, plastic, metal and other raw materials, often encountered technical barriers. The United States, the European Union and other developed countries put forward labor standards, corporate social responsibility standards and other restrictive measures; have become China's exports of luggage barriers.

China Light Industry and Crafts Import and Export Chamber of Commerce official said that at present, China's luggage exports still rely on price advantage, squeeze the EU, the United States and other countries of the market share, and too low prices, it is easy to trigger the importing country's anti- Trade barriers. In particular, the REACH Regulation, implemented by the European Union on June 1, 2007, requires registration, evaluation and licensing of chemicals and their downstream products entering the EU market.

EU security standards, not only to China's luggage exports to bring trade barriers to the worries, but also increased the cost of detection of enterprises, China's luggage exports to the EU market have a great impact.


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