Lixin Brand Breaks Through Domestic Market

The gradual appreciation of the renminbi has become one of the most influential events this year.

In the first quarter, the renminbi created a quarterly new record against the US dollar, with a total appreciation of 4.06%%. Since 2005, the appreciation of the yuan to the end of last year was only 12%%.

According to the estimation of relevant departments, the sales profit margin of textile shoes and clothing will decrease by 1%% - 6%% every appreciation of 1%%, and the profit margin will decrease by 10%% - 60%% when 5%% - 10%% is revalued.

Faced with the situation of rapid evaporation of profits under the pressure of exchange rate, how should private enterprises in Quanzhou respond?

Try to pick up orders for short term delivery only.

"3 months ago, we signed a contract, and after 3 months, the renminbi appreciated, and our profits evaporated."

Lee, who makes clothes, is intolerable about the background of the dollar's acceleration of the bottom market.

Some enterprises also adjusted their business strategy in time, taking into account the exchange rate risk in the coming months when signing export contracts with foreign investors.

Miss Cao, who makes bags in Quanzhou, said that the current price of RMB against the US dollar is about 7.02 yuan.

Although some of her us orders have been signed at the rate of 6.7 to 6.8 in advance, but in the light of this trend, once the exchange rate continues to rise, "don't say profits."

As long as possible only in 1 to 3 months within the delivery of short-term orders, which is now a lot of spring enterprises difficult choice.

Taking into account the exchange rate problem, Quan enterprises have begun to avoid long time US dollar orders.

However, many enterprises are unwilling to give up the important customers who have been hard to cultivate in the past four or five years. When facing their long-term orders, the salesmen will take the "dismantling" way to deal with them.

The relevant people of the provincial shoes and hats Association believe that these methods can only be for a short time, not a permanent solution.

Encourage non US dollar currency settlement

As early as 5 months ago, Quanzhou Lixing garment Weaving Co., Ltd. began to encourage customers to settle accounts in euros.

In contrast to the renminbi, the euro has risen more strongly against the US dollar, which has made Quanzhou's enterprises like the rise of the euro very popular.

According to the calculation, compared with half a year ago, foreign trade enterprises using US dollar settlement will reduce the income of 5%%, while using euro or yen settlement can earn more 3.5%%.

In the second place, many enterprises believe that RMB settlement can at least guarantee basic interests.

At present, some enterprises in Shishi have largely avoided the influence of the foreign exchange market by stipulate the renminbi in the outer agreement.

This way has also been supported by many foreign businessmen.

According to the insiders, some foreign businessmen have changed their devaluation dollars instead of holding renminbi to trade.

The Department of external affairs believes that the current export market in Quanzhou is mainly concentrated in the United States, Japan, the European Union, ASEAN, Russia, Ukraine, Canada, Egypt and other countries and regions.

In a group of non dollar countries, enterprises should be bold in demanding settlement in the currency of the exporting country, which is reasonable for both sides of the trade.

At present, the export of footwear industry in our city has tried to use RMB settlement, and export of bags, clothing and other industries is exploring in euros.

In the future, Quanzhou enterprises also look forward to more flexible settlement methods such as rouble and yen settlement.

Spring enterprises are accelerating the development of the domestic market.

Changing the way of settlement can really help exporters to catch their breath. But to avoid the problem of RMB appreciation and the depreciation of the US dollar, expanding domestic sales is the real magic weapon.

"Stop all export business" - the lean shoes and garments of Quanzhou with nearly 20 years of history of sports shoes are undergoing a pformation.

After launching the brand new "Yue Shi" outdoor brand, the company plans to use all its strength in the domestic market.

It is estimated that in May this year, "Yue Shi" will have more than 300 terminals in the country.

"Our expectation is to balance internal and external sales."

Green Group Deputy General Chen said that the proportion of Green's internal and external sales has changed from 3: 7 to 4: 6, and is expected to achieve a flat state in the near future.

The Pak Tak Group, which is also a children's clothing company, has expressed similar ideas.

In the town of Shen Hu, which exports up to 95% of the underwear export, a number of brands such as the dragon and the fir clothing are also brewing the expansion of the domestic market: the Dragon program has opened stores in the whole province since the beginning of this year, reaching 100 in 3 years.

And the fir clothing will first set up more than 10 professional sports underwear stores in main commercial streets of Quanzhou.

This year may be the year of many domestic textile enterprises in China.

According to incomplete statistics from global shoe net marketing department, the brand of newly born shoes in Quanzhou area is estimated to exceed 100 last year.

This is mainly due to the expansion of domestic sales.

Quanzhou shoes and clothing industry veteran Mr. Wang believes that in today's brand building, the small and medium-sized enterprises in distress should pay attention to product personalization and avoid fierce homogenization competition, so as to open up new territories in China.

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