Clothing Industry: Low Profits, Orders Can Not Easily Pick Up.

In the first half of this year, Dongguan's import and export trade increased by 35.1% compared with the same period last year. Reporters found that the total volume of import and export trade was US $54 billion 530 million, up 35.1% from the same period last year, which is a reply submitted by Dongguan in the first half of the year (see A20 version July 15th).

In this regard, the reporter chose in-depth interviews with the electronics, clothing and toy industries in the pillar industries of Dongguan, and found that as the world factory, Dongguan's export trade picked up significantly, but the decline in profit margins was a topic that could not be avoided. Some towns and towns had begun to "reduce the burden" on enterprises.

Toy industry: increase in trade volume and profit margin reduced by 10%

Yesterday morning, Xiao Senlin, chairman of the toy company of Dongguan, one of the independent brands in China, was busy with the promotion of the mascot of the Asian Games.

Although it was nearly dusk, the workshop was still brightly lit.

The workers are busy working.

Xiao Senlin told reporters that his company's orders increased by 50% this year, coupled with the domestic market, the situation in the first half of this year is more satisfactory.

Statistics from the General Administration of customs also showed that in 2010 1~3, toy exports increased by 21.8% over the same period last year, basically a resumption of growth.

Xiao Senlin said that the toy industry's exports increased by at least 30% this year, while his export orders increased by 50% this year.

However, the increase in export volume does not mean that the days of the enterprises are getting better.

Xiao forest admitted that the toy industry's profit this year dropped by about 10% compared with last year.

"This is also the situation for most of this year's exports."

Statistics show that the cost of raw materials and labor in Dongguan has increased by 20% recently, and the authorized processing profit in Europe and the United States is getting smaller and smaller.

"Toy exports are on the brink of life and death."

Someone in charge thinks so.

Electronics industry: export trade has generally increased by more than 20%.

Hong an electronics, located in Changan, is an electronics factory with more than 3000 people. It mainly provides spare parts for Canon and step-by-step brand electronic products. Wang Yun, senior management of the company, told reporters that the turnover of their company increased by 20% this year.

Zhang Wei, director of Dongguan Linwei Electronic Trading Co., Ltd. said that the company's turnover increased by 28% in the first half of this year.

But this is only an increase over the same period last year.

In fact, rather than growth, it is better to pick up more accurately.

Because the current export volume has not yet fully returned to the level of 2006.

The growth of exports of electronic products has not brought much relief to Dongguan's electronics companies.

Yin Jianwen, Secretary General of Dongguan Electronics Industry Association, believes that the main reasons for the increase in the volume of pactions and the reduction of profit margins are three aspects: first, the price of some raw materials has risen by half; two is the effect of RMB appreciation; three, the level of scientific and technological content of enterprises has not reached the level of idealization, and the homogenization of enterprises has become more competitive, and the situation of mutual reduction and mutual exclusion has led to the fact that the price of traditional products is getting lower and the profit is getting thinner and thinner.

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Clothing industry: low profits, orders can not easily pick up.

In the first half of the year, foreign trade in Dongguan's clothing and accessories increased by 27.1% over the same period, an increase of 38.9% over the previous month and an increase of nearly 40% over the previous year.

People in the clothing industry believe that although the volume of clothing trade in Dongguan is increasing, their profit situation is equally unoptimistic. At the moment, many garment manufacturers are reluctant to accept orders for foreign trade.

"First of all, it is affected by the economic environment, and some enterprises have difficulty in financing. Secondly, the cost of hiring workers is increasing. Even if orders are increased, enterprises are afraid to hire large numbers of workers.

Third, the rising price of raw materials has also increased the economic burden of garment manufacturers to a certain extent.

Chen Yaohua, chairman of Dongguan textile and Garment Association, told reporters directly that if we look at the order, this year's Dongguan clothing and textile enterprises are very good days, but for some enterprises to reflect the low profit argument, Chen Yaohua does not fully agree.

He told reporters that we can not simply understand the decline in the profits of the whole industry, for example, the same products, foreign customers in the quantity of a large number of orders, in order to increase the number of customers, will naturally reduce the profit a few orders; some enterprises began to pay attention to management costs, it seems that the export unit price is decreasing, but scientific management leads to cost reduction, profits generally will even increase, which is not surprising in the current Dongguan.

Practice of reducing burden Town Street

In view of the fact that many enterprises reflect the rise of export volume and the decline of profits, some towns have begun to support enterprises in a targeted way.

The reporter learned from the Tangxia foreign trade and Economic Cooperation Bureau that in the month of 1~6 this year, the Tangxia contract utilized foreign capital of 108 million 460 thousand US dollars, an increase of 64% over the same period last year.

Since the decentralization of power in the town of Jian Zheng, since July 1st, it has involved the processing procedures for enterprises to process raw materials and pfer funds. The Tangxia foreign trade and Economic Cooperation Bureau has approved the power of examination and approval. Enterprises do not need to go to Dongguan Municipal Economic and Trade Bureau to reduce the time of issuing permits.

This not only reduces the link but also saves some costs for the operation cost of enterprises.

In addition, with the improvement of export tax rebate rate, Houjie's export situation has improved.

To help export enterprises make good use of the export tax rebate policy and speed up the return of funds, since June 1st, Houjie National Tax Bureau has established a "high-speed export 500 strong" enterprise that month to declare the high speed road for tax rebate in the month, from the "300 strong" 14 export enterprises to 23 households.

Expert interpretation

Strengthening internal management

Pricing power for external competition

The volume of export trade has risen sharply and profit margins are decreasing. For many enterprises in Dongguan, this is a problem of concern.

In the long run, it is a fatal problem.

Zhou Tianyun, an economist and vice president of Zhongshan University's international business school, thinks that the appreciation of the renminbi mentioned by the enterprises has an impact on the profits of the enterprises, but it is definitely not the main reason, because the exchange rate of RMB against the US dollar has fluctuated less than one percentage point this year.

In fact, the drop in profits is the inevitable outcome of the world factory losing the pricing power of international trade.

There will only be more and more enterprises, and the competition will become more and more intense. In order to seize the market share, it is the real reason why everyone will compete to keep the price down.

Zhou Tianyun believes that in order to ensure stable profits, Dongguan export enterprises can only enhance internal management and raise profits and strive for pricing power. Of course, it is not so easy to strive for pricing power. They must have their own brands and R & D teams, such as Foxconn's OEM enterprises, so as to have their own core competitiveness in their peers.

In addition, in export trade, if we want to grab market share and gain long-term profits, we will inevitably lose sight of it.

She believes that as a world factory in Dongguan, there is a very good policy idea for changing cage and changing birds and upgrading industries, but the key is to pform the enterprises as soon as possible.