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    RMB Appreciation &Nbsp; Shoe Industry Is Hurt.

    2010/9/27 9:26:00 40

    RMB Footwear Industry

    The latest data from China Foreign Exchange Trading Center show that in September 21st

    RMB

    The central parity of the US dollar rose 6.7, to 6.6997, 113 basis points higher than the previous trading day, and eighth consecutive trading days to rewrite the new record high since the reform.

    It is understood that since September, the RMB appreciation against the US dollar has risen to 1.6%.

    Profit margin

    The lower footwear export brings more losses.


    "The most influential sectors are textiles, shoes and hats, which have large export volume but low profit margins."

    According to a person who has been engaged in export for a long time, the appreciation of RMB will not only bring about the increase of price cost, but also weaken the competitiveness of export enterprises.

    He pointed out that at present, the overall profit margin of the mechanical and electrical industry is 8%~10%, and the impact of RMB appreciation can also be digested. However, a lot of low profit textile and footwear exports will lose nearly half of its profits due to the sharp rise in foreign exchange.


    How

    Avoiding risks


    In response to exchange rate changes, export shoe companies are more active than anyone else.

    At present, there are only two ways to see and feel, one is to make an essay in time, and the other is to write articles on price. Two


    Delay in delivery of orders is the simplest and most common method adopted by enterprises at present.


    Li Jia, general manager of Wenzhou Jihua leather shoes export enterprise, told reporters that last month, the company signed a batch of orders with an American customer and delivered it within 3 months.

    But what he never expected was that the renminbi began to appreciate continuously in September 13th. Now, if the goods are delivered immediately, the company may not earn any money, but the company has been dragging away, hoping to wait for the RMB exchange rate to fall back.


    Although the delay in delivery may be the immediate solution, it is not a permanent solution after all. If the RMB continues to appreciate, the more the company will wait, the more it will lose.


    If we do not want to wait for death, there is another way out for enterprises. That is to raise prices.

    At the end of the international OEM chain, it is difficult to raise prices when squeezed under layers of pressure.


    Li Guorong, Secretary General of the Wenzhou Hardware Chamber of Commerce, said that for the rapid appreciation of the renminbi, the measures to be taken by the enterprise are related to its size. Large enterprises will have specific plans, while small businesses are very passive and can only "follow the market".


    He said that the export enterprises, if they need large quantities of orders for many years of cooperative customers, can scale down the purchasing cost of raw materials according to their original price.

    If only one thousand or two thousand small orders are needed, the price will be raised by about 5%.

    In addition, as far as possible to recommend new products to old customers, about 10% of the new price, European and American customers can still accept.

    But for new customers, all prices are raised.


    Forced pformation of enterprises


    The appreciation of the renminbi has exposed the loss of the low cost competitive advantage of China's export footwear enterprises, but has also become the export oriented footwear enterprises with export oriented economy to enhance their innovative ability and improve the added value of their products.

    Therefore, for export oriented footwear enterprises, how to improve the profit margins of gold products in the future will be a key issue. Upgrading and upgrading of export products is very important.


    First, concentrate on producing products with high technology content.

    For export shoe enterprises, there are many defects and shortcomings, lack of market risk and share, weak development ability and lack of personality, which make the export shoe enterprises face huge business difficulties.

    At present, the proportion of export oriented footwear enterprises in the whole technology intensive industry is relatively small, and the phenomenon of brand loss is also serious.

    Therefore, enterprises can only gradually improve product quality and added value, and then gradually adjust the price of products according to the exchange rate changes.

    In terms of product development, we should introduce more skilled talents, and carry out multi category production under the premise of quality assurance.


    Second, change the marketing mode and raise the right to speak.

    Nowadays, most export oriented enterprises rely on price wars to attract foreign markets, lack of independent innovation and self expanding marketing channels. This marketing mode has affected the image of export oriented shoe enterprises and can not get long-term development.

    Therefore, the urgent task of adjusting export shoe enterprises is to be good at seizing the favorable channels and establishing a win-win mode. Through the promotion of event marketing, exhibition marketing, soft Wen, website and so on, the market share will be increased and the two sides will be integrated.

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