Japan's earthquake has little effect on China's leather industry

The impact of the Great Earthquake in Japan on the lives of the Chinese people was unexpected. Although the tide of salt buying triggered by the fear of nuclear radiation has rationally subsided, but the impact of the great earthquake on the industry, many research institutions, the media are constantly analyzing and estimating.
As a major consumer goods industry, light industry accounts for 19% of the country's total industrial output value. Japan is an important trading partner of China's light industry. In 2010, China imported 14.23 billion US dollars of light industrial products, accounting for 14.97% of the total imports. The imported product structure is mainly plastic products and daily chemical products. China exports 30.155 billion US dollars of light industrial products to Japan. The export product structure is mainly cultural and sports goods, leather fur, furniture, and metal products.
According to data provided by Wenzhou Customs, the total trade volume between Wenzhou and Japan in 2010 was 583 million U.S. dollars, accounting for 3.42% of the total value of imports and exports in Wenzhou during the same period. Among them, Wenzhou's exports to Japan were 364 million U.S. dollars. Exports were mainly leather footwear, electrical equipment, lighters, and glasses; imports were 219 million U.S. dollars, and the main products were plastic raw materials, chemical raw materials, and so on.
As a whole, the earthquake in Japan will not have a negative impact on light industry, and it may also stimulate China’s export to Japan’s external demand market, which in turn will have a positive effect on the development of the entire light industry. Therefore, light industries including food, household appliances, leather fur, plastics, and paper will not be subject to fluctuations caused by the Great Earthquake in Japan.
Leather is one of the light industry industries. As an industry with a strong positive correlation with the national economy, the Chinese leather industry has maintained a good momentum of development in recent years. China's leather products are mainly to meet domestic demand. Of course, due to the large export volume of China's light industrial products and strong market demand, the Chinese leather industry is experiencing a brilliant period of growth with Chinese economy.
In the increasingly fiercely competitive market environment, it is not easy for the Chinese leather industry to achieve such a result, which also proves the vitality and strength of the Chinese leather industry. The market potential of leather and its products is very large. The total global demand for leather is about 100 million square meters, which is equivalent to the production of 300 million leather (standard hides). The output of leather in China is equivalent to nearly 70 million standard leathers, accounting for approximately 23.33% of global leather production. However, from the Japanese earthquake, because the Japanese believe in Buddhism, the development of the leather industry is not obvious. Take automotive leather as an example. Only 3% of Japanese cars use animal leather, while 20% of Chinese cars use cowhide leather. Therefore, the impact of the earthquake in Japan on China's leather industry is very small, and due to the future growth of China's light industrial goods exports to Japan, the market's demand for leather products may be slightly better.
With rational analysis, there will be rational behavior. The tide of salt buying triggered by the panic has been calmed down by transparent government and salt companies. The misunderstanding of the value of listed companies caused by panic has also been clarified. With the implementation of the national "Twelfth Five-Year Plan", China's light industry will maintain a downward and high-speed growth. Natural leather industry will also become one of the "shares" to benefit.