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How Can Export Shoe Enterprises Get Rid Of The Difficulties Of RMB Appreciation?

2010/7/1 16:09:00 105

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RMB Appreciation Shoe Enterprises Export

In June 19th, a spokesman for the people's Bank of China said that it would "further reform the RMB exchange rate formation mechanism and enhance RMB exchange rate flexibility".

And in June 22nd, the central bank authorized the China foreign exchange trading center to announce that the middle price of the US dollar to the RMB exchange rate in the foreign exchange market was 6.7980, breaking through the 6.80 pass and setting a new high since July 2005.

With the further promotion of the new round of exchange reform, the renminbi will probably further appreciate in the future.

Export shoe companies may be in a difficult position again because of RMB exchange rate reform.

RMB appreciation

Export type

Shoe enterprises

It will suffer the loss of foreign exchange when the export income is converted into RMB, and the loss caused by the decrease in export volume.

When RMB appreciates, on the one hand, the price of export products will increase in foreign markets and sales will decrease. For export commodities with low export price, export revenue will increase, but for export commodities with high export price, export revenue will decrease.

On the other hand, foreign exchange earnings from export need to be converted into RMB. The appreciation of RMB will bring exchange loss to export earnings.

Commodity prices with high export price elasticity were much reduced, and commodity income with low export price elasticity decreased.

In short, export oriented shoe enterprises will suffer losses in the appreciation of the renminbi.

Then, export type.

Shoe enterprises

How can we get out of this predicament?

Intensify product research and development, and strive for competitive advantage by differentiation.

Since the reform of exchange rate regime in 2005, the magnitude of RMB appreciation has been increasing, and the complex and changeable international and domestic economic situation since 2008 has made many pressure on all export enterprises.

In this regard, shoe enterprises should actively plan measures to develop their own unique export competitive advantages by developing differentiated products.

By increasing the development of new products to improve the technical content and added value of products, the characteristics of their export products have been formed. Therefore, the bargaining power of enterprises is strong enough to pfer the pressure of cost increase to foreign customers, thus enhancing the affordability of export enterprises.

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Pay attention to scientific and technological innovation and enhance the core competitiveness of shoe enterprises

On the basis of adhering to the independent innovation, shoe manufacturers should also pay attention to the introduction of advanced technology and equipment from abroad, so as to enhance product quality.

On the basis of advanced equipment, we successfully develop new products, reduce the actual cost and environmental cost of products in production and application.

The importance of shoe enterprises to technological innovation can ensure that enterprises can enhance the added value of products, enhance the implementation and implementation of strategic planning of product technology content, ensure the continuous improvement of the competitiveness of enterprises' export products, and ensure that enterprises can continuously improve their ability to deal with exchange rate risks.

Pay attention to brand channel construction and establish good export image.

Faced with the fierce competition in the market environment and the needs of its own sustainable development, firmly promoting the brand channel construction and establishing a good export image are one of the effective measures for shoe enterprises to adversely affect and enhance the export tolerance of enterprises.

The honorary title of "national inspection free product", "China famous brand product" and "AAA credit" can set up a good image for the export of shoes enterprises and form a certain brand awareness and competitive advantage.

along with

RMB appreciation

With the acceleration of pace and the accumulation of appreciation, the bearing capacity of export oriented footwear enterprises is declining. Coping with exchange rate risk has become an important issue affecting the survival of export oriented footwear enterprises.

Although in August 1, 2008, as part of the measures to support some export enterprises, the Ministry of Finance and the State Administration of Taxation issued a notice to raise the export tax rebate rate of some textiles and clothing from 11% to 13%.

Moreover, the market generally expects that the pace of RMB appreciation will slow down in the second half of the year.

But in the longer term, the trend of RMB appreciation will still be inevitable. In the long run, export enterprises will still face the negative impact of exchange rate appreciation.

Therefore, for

Exit

The impact of RMB appreciation on the footwear industry is bound to be a process of reshuffling, and some weak enterprises that rely solely on the expansion of scale and the survival of the sole labor force may be eliminated in the fierce market competition.

Therefore, the export oriented enterprises should be psychologically prepared for the RMB exchange rate reform. We should actively take various measures to take the initiative to deal with the RMB exchange rate changes and avoid exchange rate risks.