RMB Appreciation And Pressure On Export Shoe Enterprises

The exchange rate between the US dollar and the renminbi has entered the "6 Yuan era". This has created great pressure on the export oriented leather and footwear enterprises. Some companies have changed the old customers in Eastern Europe to RMB settlement. The rest of the countries have tried to settle the non US dollar currencies such as Euro, Australian dollar, etc. The Anglo American customers do not agree to shorten the contract term with non US dollar settlement, sign a 1 month short term contract and reduce the risk to the lowest. This is the first choice for many enterprises to export themselves.

Hebei Rongcheng Zhongtian Apparel Group has changed all its orders to RMB settlement since January, and has completely cancelled the account credit sale. By constantly adjusting the production structure to expand the proportion of the domestic market, the domestic market accounted for 15% of the enterprise's production and sales in 2006, reaching 35% last year, and now it can reach 50%.

Enterprises such as big water, Jinhai and Ji Hongxing also take the diversified market road as the direction of enterprise development.

At the same time, enterprises dig deep their potential, improve management level and production technology, cooperate with domestic and international famous companies to produce high value-added products: aoxen group holds hands, Beijing copper bull group produces for the Columbia clothing company; Hongxing group produces south polar shirts and American Wrigley shirts; Zhongtian apparel company is Montagut, snow processing.

At the same time, the provincial clothing brand enterprises, such as "Dali" and "Yong GUI", actively enhance the influence of crystal brand, expand domestic sales, gradually enhance the popularity and reputation of Rongcheng clothing, and form a trend of pition from middle to low grade men's clothing. The added value of products increases, which greatly eliminates the adverse impact of the depreciation of the US dollar.