Why RMB Appreciation Affects Shoe And Clothing Enterprises 2

Because China's textile and garment enterprises are dominated by small and medium-sized enterprises, the sensitivity to RMB appreciation is very strong. When profit margins are close to breakeven point, if the RMB appreciation restarts or even accelerates this year, most enterprises will not be able to find it.

The Ministry of finance of Xiangcai securities expects that the appreciation of RMB will be between 3%-5% this year, and this increase will be the upper limit for most enterprises.

However, the counterpart chamber of several labor-intensive products roughly estimated that the net profit margin of the industry will drop by 1 percentage points every 1 percentage points, while the average net profit of these industries is only 3%-5%.

The appreciation of the RMB will undoubtedly weaken the competitiveness of the export enterprises in the international market.

Many export enterprises have taken a number of measures to digest the pressure.

In recent years, most

"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 adjusted its development strategy and consolidated it.

Data show that in February 2010, China's textile and garment exports totaled 12 billion 638 million US dollars, which has been increasing for the three consecutive months, up 89.34%.

In terms of classification, textile exports rose by 78.19%, and clothing exports rose by 96.29% over the same period.

In the 1-2 months, the export volume of textiles and clothing increased by 39.42% and 23.71% respectively.

Under the environment of demand in Europe and America, production orders of domestic export enterprises are gradually increasing.

At present, although there are second risks in the European and American economies, the employment rate index has stabilized, and there are signs of improvement.

With the improvement of employment rate, consumer demand will gradually pick up, especially after more than a year of clothing consumption atrophy, clothing demand will show a greater degree of rigid demand pull.

Therefore, the volume of orders for domestic textile and garment export enterprises will not decrease in the same period.

Experts pointed out that in the context of weakening RMB appreciation and price advantage, for export enterprises, we should speed up pformation and upgrading, increase investment in technological pformation, speed up product upgrading and upgrading, improve product quality and added value, enhance 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.