The production data for the first quarter of this year show a big hit to the leather industry caused by COVID-19. According to China Leather Industry Association the sales revenue, which was generated by medium and large sized tanneries, leather products manufacturers and footwear producers, was down by 21.67% from last year, while the profit plunged 33.9%.
The exports for the first quarter achieved USD14.39 billion, decreased by 19.9% than last year, the imports were USD2.97 billion, dropped 16.2% year-on-year.
The sales revenue generated by 591 medium and large sized tanneries was USD3.05 billion, a decrease of 20.92% year-on-year.
The tanning industry produced 119 million sqm of light leather in the first three month, decreased by 14.97 from last year.
The imports of semi-finished leather was 132,000 tons in terms of quantity and USD204 million by value, decreased by 15.0% and 24.4% respectively, while 15,000 tons of finished leather was imported, worth USD243 million, down by 26.7% and 30.8% respectively year-on-year.
The exports of handbags in the first quarter was USD4.41 billion, dropped 19.8% from last year, while the imports USD656 million, down by 21.2% than last year.
The sales revenue achieved by medium and large sized shoe companies was USD17.3 billion, decreased by 19.8% from last year, while the manufacturers’ profit dropped by 36.8% year-on-year.The exports of shoes in the first three month were 1.73 billion pairs with USD7.78 billion by value, a decrease of 24.1% and 20.7% respectively than last year. 52 million pairs of shoes were imported in the first quarter, worth USD1.14 billion, down by 5.4% and 5.6% respectively year-on-year.Among them, the exports of leather shoes were 121 million pairs and USD1.55 billion by value, decreased by 19.4% and 20% respectively than the same period of last year, while the imports of leather shoes achieved a slight increase of 1.6% by quantity, reaching 14 million pairs, the import value was USD423 million, dropped 11.4% from last year.
The China Automobile Industry Association recently released the data on auto production and consumption for the first quarter of this year. It shows that 1.15 million cars were sold in domestic market, down by 47.3% from the same period of last year, according to the date from China’s National Bureau of Statistics, the car manufacturer profit plunged 80% in the first quarter.
Now automakers are mobilizing and the Chinese government including the local government in major cities are introducing favorable measures and policies such as subsidies and tax cuts in efforts to stimulate the auto production and consuming market. According to the China Automobile Industry Association, with the implementation of those policies and measures, the auto market will accelerate the recovery. The encouraging news is that in April, 1.53 million cars were sold in domestic market, up 45.6% month-on-month.