2010 RMB Passive Appreciation &Nbsp; Pearl River Delta Export Shoes Or Affected

Miss Liu is a customs clearance operator of a freight forwarding company in Shenzhen. She told reporters that most of the company's export customers and European buyers generally used the US dollar settlement. "The price of the two products to the same product is usually formulated every year or half yearly, and the US dollar price tag on the customs invoice has not been changed significantly recently." She said.

Miss Liu said that the volume of shipments to Europe in 2009 was still growing, but the number of shipments to Europe still had a certain increase over the same period of April and May. However, there has been a reflection of export customers. European buyers are interested in reducing the number of orders in the future, especially for many toy exporters. "Maybe it is because toys are not necessities." Miss Liu guesses.

More than 80% of the import and export enterprises interviewed by our reporter reflected that the export to Europe was mainly settled in US dollars, but it was not directly affected by the weakening of the euro. However, because the European customers were paying the US dollar in the process of purchasing to China, the euro depreciated the value and increased their purchasing cost, so they became very cautious when placing orders, and we were generally not optimistic about the trend in the coming months.

The impact of US dollar settlement business is limited.
 

From the 107th spring fair, we can see the clue. A total of 203996 overseas purchasers from 212 countries and regions attended the meeting, an increase of 8.4% over last autumn's fair. However, the purchasers of the European Union decreased by 15.2% compared with the autumn trade fair last year, and the purchasers increased to 3.8% in the US. In addition, the number of purchasers in emerging markets increased significantly, and the number of purchasers in Asia, America, Africa and Oceania continued to grow.

Wu Jianfeng, general manager of the Export Department of Guangdong Hongyu Ceramics Co., Ltd., in an interview with our reporter, said that orders were basically settled in US dollars, and no apparent changes have been seen in European customers. Due to the introduction of new products such as 3D technology bathroom wall tiles, the number and price of orders have not yet fallen.

He pointed out that building ceramics and textiles, toys and other industries belong to labor-intensive industries. Gross profit is not high. The cost of raw materials, labor and other costs has eroded a lot of profit margins.

Wu Jianfeng said that in order to deal with the appreciation of the US dollar, the bank has been able to carry out forward lock remittance through banks. However, because the amount of business settled in euros is very small, considering that the cost does not intend to rely on financial instruments, it is mainly through developing new products to win customers, and reducing the cost through technological innovation to maintain the price advantage.

In addition, he pointed out that the company also pays more attention to the diversification of the international market. The global market of the company is relatively scattered, and it also reduces the market risk to a certain extent.

One way export to European enterprises
    

For enterprises that only export to Europe without importing from Europe, the impact of the depreciation of the euro is relatively large.

In the interview with our reporter, Lin Cai Lang, director of business promotion at Anlong fairytale world (Hongkong) Limited, the largest children's footwear enterprise in Hongkong, said that exports to Europe are not clear now, especially in the euro area.
 

"The industry thought that the EU anti-dumping duties on Chinese shoes would be terminated. It was not thought that the EU would continue to extend the anti-dumping duty of 16.5%, and that the prices of Chinese manufacturing enterprises were rising due to rising costs and the depreciation of the euro. These factors combined to make it difficult for EU buyers to raise their retail prices. For example, in France, a pair of shoes that only sold 8 euros last year doubled over the past year, and the rapid rise in prices made it impossible for consumers to accept them easily. In order to reduce procurement costs, some European customers transfer orders to Vietnam and other countries. Lin Cai long said.

For some Chinese clothing enterprises such as [6.511.72%] and shoemaking, while European economy is weak, they are eager to buy European brands or agency brands to expand domestic sales. Lin Cai long said that there is no such plan for the time being. European children's shoes have certain differences with Chinese market in terms of size, color, price and so on.

{page_break}

Limited export of household electrical appliances

TCL group [4.001.01%] (000100.SZ) and Shenzhen Konka (000016.SZ, 200016.SZ) stakeholders in the newspaper interview said that the proportion of European companies occupying Europe's turnover was very low, so the impact of the depreciation of the euro on the company's operating conditions was very limited.
 

An employee of Shenzhen Konka believes that the export market of Chinese household electrical appliance enterprises is mainly in the three world countries such as Latin America, Africa and Southeast Asia. Generally, the US dollar settlement is adopted, while the competitive brand effect has not yet formed in Europe. Therefore, the fall of Euro dollar caused by the debt crisis in Europe will not have much impact on the export business of the company.

The head of TCL group points out that the company has adopted certain derivatives to hedge and avoid the risk of exchange rate fluctuations.