RMB Appreciation, Pressure On Shoe Enterprises Is Increasing

Yesterday, the central parity of RMB against the US dollar was 6.7858 yuan. Since June 19th, when the central bank announced that the RMB exchange rate reform should be promoted more than ten days, the appreciation of RMB has exceeded 0.6%. It is understood that since the reform of the RMB exchange rate formation mechanism in July 2005, the renminbi has been appreciating slightly. In April 10, 2008, the central parity of RMB against the US dollar broke 7, and entered the "6 era". Since the beginning of this year, the central parity of RMB against the US dollar has been running in the range of 6.826 to 6.828. In June 22nd, the central bank reiterated the second trading days after the reform. The central parity of RMB against the US dollar was 6.7980, breaking the 6.80 pass.

The appreciation of the renminbi will undoubtedly weaken the competitiveness of export enterprises in the international market. Reporters learned that many Swiss enterprises have taken a number of measures to digest pressure.

Global: the affordability limit is 3%.

The appreciation of the renminbi means a decrease in profits for export enterprises.

"The profits of rubber shoes are relatively small, and the appreciation of the renminbi is less." Qiu Xiaosong, director of the office of Zhejiang bridge Shoe Co. Ltd., said the company is preparing to take measures to ease the pressure on appreciation of the renminbi.

Insiders said that the appreciation of the renminbi would be a trend. The cumulative appreciation of the RMB against the US dollar would be between 4% and 5%.

"We still have nearly 300 thousand euros without settlement, once the settlement of foreign exchange has lost nearly 600 thousand yuan compared with last year." Liu Wanbin, chairman of Zhejiang global filter Co., said that at present, the company can withstand the limit of RMB appreciation by around 3%.

Competition: many measures to reduce the impact of appreciation

"We have been adopting various measures to digest the impact of the appreciation of the people." Liu Wanbin said that in recent years, the company has continuously improved technology, energy conservation and consumption reduction, implemented automatic production and reduced labor costs to digest the impact of RMB appreciation. "The cost of products has hardly been reduced." Liu Wanbin said the company had to increase its quotations, which would inevitably lead to the loss of orders from some new customers.

"At present, the increase in Renminbi is still within our tolerance, but the pressure of operation has been very large." The chairman of Zhejiang Sai Feng shoe industry Co., Ltd., said he had learned before the rumor of RMB appreciation that many measures had been taken by the company.

According to introducing, as early as 2004, the company tried to change the business mode, gradually reduce the share of export wholesale, and establish cooperative relationship with foreign chain stores. "Chain stores, as the terminal of the market, are relatively low in price sensitivity, which is conducive to the stability of corporate profits." You Kelong said. In the same year, the enterprise made adjustments to the development strategy, and began to prepare for the transition to the domestic market and tap new profit points while consolidating the international market.

Foreign trade and Economic Cooperation Bureau: accelerating transformation and upgrading

The relevant person in charge of the Municipal Bureau of foreign trade and economic cooperation said that in the context of RMB appreciation and gradual weakening of price advantage, for export enterprises, it is necessary to speed up transformation and upgrading, increase investment in technological transformation, speed up product upgrading and upgrading, improve product quality and added value, improve bargaining power in the international market, enhance the international competitiveness of products, and make up for the impact of RMB appreciation. He said that if conditions permit, it is best to adopt RMB settlement to avoid exchange rate risk.