The Pressure Of RMB Appreciation Brings Pressure On Guangdong Silk For Half A Year.

Under the current circumstances, once the exchange rate expectations are not able to keep up with the magnitude of the appreciation of the renminbi, it is easy to lose money.

In order to keep profits, it usually takes only two or three months.

In the 1~4 month of this year, the total value of Guangdong's import and export trade was US $207 billion 380 million, an increase of 14%, accounting for 26.2% of the total import and export volume of the country.

Although it still holds the throne of the national foreign trade champion, the increase is 10 percentage points lower than the 24.4% increase in the whole country.

Affected by many factors, such as RMB appreciation, export rebate, adjustment of processing trade policy, rising cost of raw materials and labor, and the subprime mortgage crisis in the United States, Guangdong's exports of textile, clothing, toys, shoes, furniture and other traditional industries all slowed down or declined this year. Clothing and accessories were exported to US $6 billion 650 million in 1~4 months, down 15.1% from the same period last year, which has dropped sharply compared with the 31.2% growth rate in the same period last year.

However, the influence of Shenzhen Gore Fashion Co. Ltd. is not large.

In an interview with the first financial daily, Xu Yuping, general manager of the enterprise, said that this is mainly related to the business strategy of the company, and has taken a step forward toward the high value-added links such as design and brand, and the export of its own brand has guaranteed a huge profit.

At the same time, the proportion of the domestic market is 70% when walking on two legs at home and abroad.

Xu Yuping said that more than 70% of the company's order production is outsourced to other factories, and he will devote more energy to design and sales, trying to go the way that most of the garment enterprises in Guangdong are mainly OEM export.

When the orders of Chinese made garments, which were posted on foreign brands, flooded around the world, he persuaded himself to resist the temptation of quantity. The orders for OEM production were firmly unanswered. More than 3000 export orders and orders with a profit margin of less than 25% were basically unconnected.

"In the process of foreign trade export, I found that the larger the volume of foreign trade orders, the less profit. Some foreign buyers rely heavily on orders and strive to lower prices.

At present, many garment enterprises that are engaged in export business in China are very difficult. The processing enterprises have only about 10% profits. A garment often earns only a few cents, and the exchange rate changes, which will have a great impact on them.

We need to change this situation. "

Xu Yuping said.

Wang Yongli, deputy general manager of Guangdong Silk Textile Group Co., Ltd., in an interview with our reporter, also said that under the current circumstances, once the exchange rate expectation is not able to keep up with the magnitude of the appreciation of the renminbi, it is easy to lose money, and the enterprise has also had a case of a wrong prediction.

In order to maintain profits, generally only two or three months short list, more than half a year's large single dare not answer, and enterprises continue to improve the quality and design to raise the price to deal with the exchange rate changes, many styles, fast change gradually replace the previous large-scale production.

In addition, the company has been constantly optimizing its commodity structure. Since 1993, it has begun to build its own export brand. Its own brand export exceeded 420 million US dollars last year, while domestic brand products amounted to 400 million yuan.

In order to get considerable profits in the fierce competition, Xu Yuping also chose to break through from strengthening design and brand.

His company has been working with famous designers in Italy since 2004 to create its own brand.

Xu Yuping told reporters that not only do trade middlemen and large retailers come to China for a large number of orders, but also some small and medium-sized retailers in Europe and the United States have come to China to find sources of goods. The retail price given by overseas terminal retail customers is considerable, but due to the small amount of orders, the more demand for styles and colors, and the higher production costs, OEM based enterprises are almost unwilling to accept such orders, but he has seized the opportunity to create their own clothing brands into the international market.

In addition, he also set up online order business on the platform of Alibaba, Hongkong TDC and his website. Online pactions can save the profits of 15%~20% by eliminating the links of intermediate buyers. This year, this business is growing rapidly.

Xu Yuping's business model is developing a trend of Guangdong's foreign trade.

With the continuous appreciation of RMB and the gradual loss of cost advantage, the risk of large-scale OEM export is increasing. On the contrary, small orders with high added value are favored by Guangdong export enterprises.

In Guangzhou, Shenzhen and Dongguan, where manufacturing costs are high, such trends have been observed in traditional industries such as clothing, shoes, furniture and so on. Some large and low profit orders are gradually shifting to the relatively low cost Guangdong wings or the central and western parts of China.

The government is also encouraging enterprises to develop in this direction.

Since its accession to the WTO, Guangdong's foreign trade has maintained a rapid growth of over 20% for many years. This year, Guangdong's foreign trade target is only expected to grow by 10%.