Export Garment Companies To Work Overtime To Catch Up With Goods Are Surprised.

This year, exports continued to exceed expected growth, and export value hit a record high in the past two months.

In the Yangtze River Delta,

The survey found that many export enterprises have improved their bargaining power, and will take advantage of orders to pick up the cost and pfer them to overseas customers.

At the same time, a large number of export enterprises with scale and technological advantages can increase the added value of profits through product upgrading, and resolve the risks of exchange rate fluctuations and rising costs.

Exports in these areas are clearly better than expected.

However, experts have warned that the risk of export falling behind expected growth is likely to fall in the fourth quarter or the first quarter of next year.

The external export environment may continue to be worse in the future, and the risk of rising internal wage pressure and the fluctuation of RMB exchange rate can not be ignored.

Export enterprises: overtime, rush to deliver goods, orders with high prices, orders

"In the first half of the year, we were really busy, and the workers often worked overtime to make orders. Now the order volume has dropped somewhat, but basically stabilized before the 2008 financial crisis."

Shi Dongguang, director of a garment factory in Dongguan, Guangdong, said.

This enterprise settled in Changan town of Dongguan more than ten years ago. It is a Hong Kong funded enterprise that OEM for outdoor clothing brands in Europe and the United States. Germany, France and Britain are the main markets in Europe.

He noted that the main reason for the surge in orders in the first half was replenishment.

In 2009, the volume of orders purchased by traders was very small. In the first half of the year, inventory was almost digested, and inventory was urgently needed.

In addition, after the financial crisis, some garment factories went bankrupt, the number of factories was reduced, and the concentration of orders increased.

Many export enterprises feel this way.

In areas such as the Yangtze River Delta, the Pearl River Delta and other export enterprises, after the financial crisis, "factory rush orders" became "traders rob factories".

The head of a garment foreign trade company in Jiangsu told reporters that foreign customers' orders had been overheated in the first half of the year, and the processing plant had to start at the price.

Because there are too many orders, many processing plants even ignore the previous cooperative relationship, and who will make the highest price.

After a hubbub, export orders began to return to reason in the second half of the year, but things are getting warmer recently.

Shi Dongguang introduced that at the end of August, factories usually began to order Christmas orders, and after three months' production cycle, the products were guaranteed to be shipped before the festival.

"The first half of this year is replenishment of stocks, which is now a reflection of demand.

It seems that European orders are good, especially when the German economy takes the lead in recovery, and orders for exports to Germany grow fastest.

Shi Dongguang said.

Reporter survey found that some large and powerful export enterprises orders more optimistic.

Lu Xinyao, director of the world's largest wig processing company, told reporters that the order for women's wigs has been released to the end of the year, and the technological winding up order is also scheduled for November. The most flexible ordering of chemical fiber clockwork is also scheduled for 9-10 months.

"The biggest capacity shortage is concentrated in European white wig products, and African products are very normal at the moment."

The survey found that in addition to stable growth in export orders for bulk commodities such as textiles and clothing, orders for electromechanical products dominated by export commodities remained stable.

"Orders have not plummeted, it is now in the rush hour for Christmas gift production in the west, and orders are increasing. They are all busy. The lack of work is still very serious."

The head of an electronics company in Dongguan said.

According to recruitment information of Hui'an talent market in Dongguan, recruitment in recent days has increased by about 10% compared with last month, and the number of job vacancies has increased by 14%, especially the demand for general skilled workers' posts has risen by 37%.

Customs data showed that in the first 7 months of this year, the export of electromechanical products dominated by export commodities increased by 36.2%, which was 0.6 percentage points higher than that of the same period.

Among them, exports of electrical and electronic products were 202 billion 630 million US dollars, an increase of 34.7%, and the export of machinery and equipment was US $169 billion 670 million, an increase of 36.6%.

Rising price: bargaining power is increasing.

In the survey, reporters found that many export enterprises have increased bargaining power, but instead, taking advantage of the order warming trend, homeopathy will increase the cost pferred to overseas customers.

Lu Xinyao said that with the improvement of overseas market demand, the product price of Rebecca has been restored to the level before the financial crisis.

"From 2008 to 2009, according to the operation of the year, we adjusted the price, so that the year's performance reached 20% growth.

At present, prices have returned to batches before the financial crisis.

Now, with the upgrading of products and the emergence of high-end products, the price is expected to continue to improve.

Analysts point out that the bargaining power of China's export enterprises has been improved, which is not unrelated to the expansion of China's export market share in the financial crisis.

In 2009, China overtook Germany as the world's largest exporter, and Chinese products had more rigid demand characteristics. Once the external demand resumed, the right to speak as a supplier would also be enhanced.

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CICC reports that if Japan considers the four tigers of the four dragons as a whole, its export growth will last for 40 years, accounting for 23% of the world's export market share.

Although China's exports have experienced 30 years of rapid growth and exports account for only 9.6% of the world market share, there is still room for development.

"Any big distributor should rely on suppliers to supply the products needed for its operation and become more and more dependent on enterprises. Dealers should take into account the division of enterprises in terms of price and profit distribution, which is the two distribution process."

Lu Xinyao said that Rebecca will work hard on the added value and launch more high-end products. Although the cost of high-end products is higher than that of ordinary products, the absolute value of added value will increase significantly under the same gross profit, which will undoubtedly ease the pressure on exchange rate fluctuations and rising costs.

In addition, the rising cost of exports is not only the pressure China is facing, but also the rest of the world that exports mainly to the manufacturing industry has been saying goodbye to the low cost era, and the global manufacturing industry is undergoing a new round of changes.

Le Yumin, President of the world's largest trading and logistics company, Hongkong Lifeng group, pointed out that the costs of Southeast Asian countries such as Bangladesh, Vietnam and Indonesia are rising.

When China's price rises, most other countries will follow suit.

Most retailers have no choice but to accept price increases.

Not only is China's price rising, it is rising everywhere.

But it will be more difficult to pass the price increase to consumers in the market.

What retailers really want is how to improve efficiency and how to reduce sales promotions.

Future: potential risks should not be ignored

China's export enterprises are not promising, and some potential risks need to be vigilant.

Most analysts believe that the risk of export falling behind expected growth is likely to fall in the fourth quarter or the first quarter of next year.

Lu Zhiming, the Bank of Communications Research Institute, pointed out that from the external environment, the emerging market countries adopted measures such as raising interest rates and tightening the currency to ease the overheated economy, the weak recovery of the developed countries in Europe and the United States, the gradual stabilization of the CRB index and the slowdown in China's export demand.

Coupled with the gradual beginning of the inventory cycle, the external export environment may continue to become worse in the future.

From the internal environment, the pressure of mid and long-term wage increases, the fluctuation of RMB exchange rate and the profit margins of export enterprises have been narrowed, and the growth rate and profitability of export enterprises have been squeezing.

Analysts pointed out that in particular, more flexible industries such as mechanical and electrical products, the future volatility may be greater.

For example, the export direction of machinery and equipment is emerging economies and resource countries. However, due to the uncertainties of foreign economic recovery and the rebound of the US dollar, the demand for machinery and equipment in the second half of this year is at risk of tightening.

In the first half of the year, the overanticipated demand was partly overdrawn. In the future, the export growth of machinery and equipment in the future will be slower than the first half.

In July, the export tax rebate of some industries, such as rubber, pesticides and inorganic salts, had a relatively large impact. Some enterprises rushed out of the export tax rebates before the cancellation of the export tax rebate, resulting in rapid export growth in the last two months. The export of these industries could be substantially reduced in the three quarter.

At the same time, the risk of trade protectionism in China's exports is also increasing.

Since 1995, China has been the biggest victim of anti-dumping in the world for 15 years in a row.

Last year, China's GDP accounted for 8% of the world's total, and exports accounted for 9.6% of the world's total, while anti-dumping accounts for about 40% of the world's total, and countervailing accounted for 75% of the world's total.

In January -5, a total of 14 countries (regions) launched 31 trade relief surveys on China's products, with a total value of about $1 billion 800 million.

Trade remedy surveys from Europe and the United States often bring a significant blow to the entire export industry.

Take the ceramic industry as an example, the EU's domestic industry will appeal to China's imports of tiles to start anti-dumping investigations in late May. According to the Convention, the EU will formally file the case from 10 to 20 this month.

Since the amount involved is over US $200 million, the enterprises involved almost cover the well-known ceramic enterprises in China. Once registered, it will become the largest anti-dumping investigation in China's ceramic industry.

Analysts believe that these potential risks can not be ignored.