RMB "Ben Six" Shoes Fall Into Profit Black Hole

From yesterday's (5) trading day adjustment trend, yesterday (7), the RMB appreciated against the US dollar again by 172 basis points, broke through the 7.01 pass at one stroke, and the RMB traded against the US dollar at the middle price of 7.0020 yuan, setting a new high since the exchange rate reform. It is also the twenty-ninth highest innovation this year.

Because it is only a short distance away from the 7 yuan pass, it will enter the "six" era.

According to the exchange rate of 8.11, the appreciation of RMB has reached 13.67% since the reform.

According to industry experts, the rapid appreciation of the RMB against the US dollar has highlighted the acceleration of the Chinese government's promotion of the RMB against the US dollar in the past 08 years, which reflects two pressures. First, there is inflation risk in China. The appreciation of the RMB against the US dollar will help to ease inflation. Two, it is the continuing pressure on RMB appreciation abroad.

black hole

A pair of shoes sells for less than 25 yuan a year, losing 4 million 500 thousand yuan.

The appreciation of the renminbi has become a black hole for labor-intensive export enterprises.

The data show that the European Union, the United States, Japan and China Hongkong have been the four traditional markets for the export of textiles and clothing in mainland China, accounting for about 60% of the total exports.

Among them, the US market was worst affected by the subprime crisis. In the 1-2 month, the export of textile and clothing to the US has even seen a negative growth of -7.79%, and the growth of export volume has dropped to -13.62%.

Compared with other products, footwear products are the export champions of light industry, and the degree of dependence on foreign trade is very high. Therefore, footwear enterprises are more representative on the issue of RMB appreciation.

Export cost increased by 20%

This afternoon, Liu Er Jie of Chengdu AI min leather products Co., Ltd. is busy with the export of a new batch of shoes.

She lamented that this year's business is becoming more and more difficult. "With the implementation of the new labor contract law, the cost of workers and the cost of materials have become urgent problems to be solved."

What makes her more depressed is that in the past 3 years, the export cost of the company will increase by 15% to 20% every year, thanks to the appreciation of RMB and other factors.

"In the first two months of this year, it has increased by two or three percentage points."

Exclamations cost more than Liu Erjie alone.

Li Chuan, general manager of Sichuan arts and crafts import and Export Corporation, said that on the one hand, the profits brought by the appreciation of the renminbi were shrinking. On the other hand, because of the rising cost of raw material prices, the chemical and footwear industries of new capital were closed down last year.

Reporter survey found that at present, due to the export tax rebate, labor law and other policy adjustments, the soaring cost of raw materials, and the increase of international shipping fees and the decline of international market demand, has made many labor intensive industries generally increase production costs by more than 10%, but most enterprises and customers negotiated price increase can only be increased by 3% to 5%.

Orders should be reduced by at least 12%

This year, faster than the exchange rate is the heartbeat of the exporters.

After breaking through 7.4 in December 10, 2007, the exchange rate of the US dollar accelerated against the central parity of the renminbi. Its curve, like a narrow narrow funnel, became steeper in an instant.

In the first two months of 2008, the appreciation of the renminbi has been equivalent to 43% in 2007.

"From 5 and June, our orders are reduced by about 12%."

Not only the cost is increasing, but also the uncontrollability of the exchange rate directly leads to the caution of the enterprises.

Liu Erjie said that according to the orders received by AI min, due to the recession of the US economy, orders for this year are decreasing significantly compared with the same period in the past. Because of the change of exchange rate, the enterprises themselves dare not take too many orders, and worry that the profit margins will be narrowed even more.

In addition, exchange loss is also a factor that can not be ignored.

Peng Jun, chairman of the state capital of the shoe limited company in Western China, said that for many shoe enterprises, it usually takes nearly a month from delivery to delivery, and the change of exchange rate will directly bring pressure on the paction price of export enterprises during this period.

A pair of shoes is 25 yuan less.

Not only is the order reduced, but also the profit margins of shoes are shrinking.

According to the experience of exchange rate changes in the past, RMB appreciation of 10 percentage points per unit, the growth rate of exports should be slowed down by 3 to 4 percentage points in general.

In this regard, every import and export enterprise has tightened nerves on the appreciation of the renminbi.

According to the joint securities institute, the US dollar exchange rate will be 1:6 by the end of 2008, based on the mobile average of the latest two months.

"A pair of shoes should be sold at least 25 yuan, and the profits of enterprises will become thinner."

Faced with one and then another three yuan exchange rate innovation is high, Chengdu flower early month shoe industry boss Chen Changguo is very helpless.

He said that with the appreciation of the renminbi increasing by one percentage point, the profits of shoe companies will drop by one percentage point.

For example, Chen Changguo said that according to the previous exchange rate of 8.26, 15 dollars and a pair of shoes were converted into RMB nearly 130 yuan, and now only 105 yuan, the difference in the middle is at least 25 yuan.

According to his company's annual shipment of twenty cabinet shoes to Russia (one cabinet has at least ten thousand pairs of shoes), he lost at least 4 million 500 thousand yuan this year.

Way out: avoid dollar settlement

The rapid appreciation of the renminbi is obviously the most darkest moment for footwear exporters.

Facing the exchange rate risk, it is urgent for enterprises to find a new way out.

"We will suggest that enterprises choose other foreign currencies for settlement."

Peng Jun said that at present, the export volume of shoe enterprises in Sichuan is not very large, and the actual amount is about $2 billion a year. Although the US dollar is declining, the euro and rouble have not changed a lot. In this case, enterprises are encouraged to settle accounts in other currencies such as the euro and reduce the losses of enterprises.

Unlike the change in settlement currency, Sichuan Xinlixin import and export limited liability company chose to set up factories in Burma to reduce costs.

Ma Jin Kang, general manager of the company, believes that enterprises can not predict changes in exchange rates, so they must be considered only from cost.

dividend

Import $100 thousand, province 30 thousand

The rising exchange rate of RMB against the US dollar has made exporters "in jail", but many importers have gained additional dividends.

Wang Lindong, who made fruit imports, has recently laughed.

He started importing fruit 11 years ago, mainly introducing new varieties such as Thailand bananas, longan and New Zealand sweet orange for the market.

Every month, Wang Lindong will send nearly 10 cabinets from Thailand (1000 cases per cabinet) fruit to Guangzhou trading port, diverting products to more than 40 outlets nationwide, and the vast majority of bananas are shipped to Chengdu.

At the beginning of January, $1 could be exchanged for RMB 7.3046.

Wang Lindong said that if the RMB exchange rate fell to 7, then he could pay less than 30 thousand yuan for the goods valued at $100 thousand. He could send 10 containers to Guangzhou every month, which could save 300 thousand yuan.

Study abroad. Save more than 10 thousand a year.

The rise in exchange rate is undoubtedly a great thing for those who study in the United States.

Mr. Lee's daughter, who studies at University of Chicago, takes a scholarship and a half tuition waiver, which needs to pay $20 thousand a year. The cost is entirely borne by Mr. Li. "At least every year, the tuition fee of 160 thousand yuan is charged to the daughter."

But since last year, Mr. Li felt more and more relaxed.

In February last year, he remitted 7000 dollars to his daughter. At that time, the foreign exchange price had dropped to 7.75, which was worth 54 thousand yuan, which was nearly 2000 yuan less than that of last year. By September, when it remitted 7000 US dollars, the renminbi appreciated to 7.52, which was equivalent to RMB 52 thousand yuan. In December, when the cost of living for the daughter was remitted, the renminbi rose to 7.36.

This year, the appreciation of RMB has exceeded 4%, which makes Mr. Li more relaxed.

According to the data released by the University Council of the United States, the average tuition and tuition fees for the 4 year public universities and private universities are 23239 US dollars and 32070 US dollars per year respectively. With the appreciation of the RMB, the families of foreign students can only save 10 thousand to 1.5 yuan this year. After reading 4 years of undergraduate education, they can save at least 40 thousand yuan more than the original one.

Tourism and outbound tourism are more cost-effective.

In addition to studying abroad, the rise of the RMB exchange rate has also had a great impact on outbound travel.

In Chengdu, many travel agencies have deliberately opened up new tourist routes.

A head of a travel agency in Chengdu said that they have increased many outbound routes, such as the launch of luxury cruise ships in Africa and the May, all in line with the appreciation of the renminbi.

Gao Caiqin, an overseas manager of China Youth Travel, Chengdu, said that the rise of the RMB against the US dollar has brought tangible benefits to outbound tourists and increased overseas consumption.

Now spending $1000 abroad is almost 700 yuan cheaper than last year.

However, the industry also suggested that outbound travel had better use credit cards.

Take the United States as an example. If you travel to the United States in February this year, you spend 1000 dollars. When you cash it, you need RMB 7160 yuan, and if you use the credit card, you only need to spend 7010 yuan to repay it today, which saved 150 yuan.