China's leather makers should readjust their trade strategies to achieve sustainable development, despite rapid trade growth, an industry official said on Friday.

"The export and import of leather products maintained rapid growth during January to May this year, but large quantities of low-value-added product exports are abnormal," said Su Chaoying, general secretary of the China Leather Industry Association.

According to association's statistics, China imported US$2 billion worth of leather products from January to May this year, 18.3 per cent more than the same period of last year.

During the same timeframe, the country's exports of leather products totalled US$6.51 billion, a year-on-year growth of 9.8 per cent.

Among the total, the export volume for fur garments was US$132 million, up 198.1 per cent over the same time last year.

"The major reason for such good growth in fur garment exports is the increase in the international market demand triggered by the recovery of the world economy," Su said.

Exports of raw leather and leather garments totalled US$530 million and US$660 million, respectively. That represents a respective year-on-year growth of 17 per cent and 4.6 per cent.

The statistics also show that the country exported US$2.24 billion worth of leather shoes, a growth of 10.6 per cent over last year.

But a potential problem exists. Exports of China's leather products mainly focuses on Europe, North America and Japan.

"If these three markets limit their leather imports from China, or market demand shrinks, China's leather industry will be hit hard," Su said.

He urged leather producers and traders to explore new markets like Africa, the Middle East and South America, to lessen their business risks.

In addition, leather makers should also strengthen self-discipline in the industry to avoid price wars.

"One of the features in China's leather trade is large quantities exporting at low prices," Su said.

It is not a normal phenomenon, which can arouse anti-dumping or other protective measures from foreign countries, he said.

An example is the European Union's likely decision to launch an investigation on shoes made in China this year, to limit Chinese shoe exports and protect its own shoe industry.

Chinese leather producers should adjust their strategies from the current focus on low-priced products to exporting high-value-added goods with their own brand identities, experts say.

Source: China Daily