Exchange Rate Changes, How Long Can Foreign Shoe Enterprises Last?

Since entering September, the central parity of RMB against the US dollar has started to go all the way, and has continuously hit a record high.

In September 22nd, the central parity of RMB against the US dollar was reported at 6.6997, breaking through the 6.7 pass in one fell swoop and entering the "6.6" era.

In the restlessness of RMB appreciation, many foreign trade enterprises

At the moment, how to struggle with the whirlpool of RMB appreciation is becoming an urgent problem for more and more foreign trade enterprises.

The difficulty of appreciation

Since September, the pressure of the RMB exchange rate has doubled.

"RMB appreciation has great impact on the operation of enterprises."

26, Zibo Huantai a leather enterprise official told the newspaper.

According to the person, the leather products produced are mainly exported to the United States, Britain and other European and American countries.

And the appreciation of RMB since September is making enterprises face the dilemma of reducing profits.

At the same time, the head of a foreign trade enterprise in Zibo high tech Zone is also suffering from the profit predicament brought by the appreciation of the renminbi.

According to the personage, due to the particularity of foreign trade orders, in September, when the RMB appreciated substantially, the orders it had already received would surely face a situation of huge profit reduction.

In addition, other factors including labor cost, product raw material cost and other factors also aggravate the operational difficulties brought by the appreciation.

"At present, there is basically no profit. The business is to maintain customers and avoid losses."

The person in charge of Zibo Feng Zhi Yuan Trading Company had admitted before accepting this newspaper interview.

It is noteworthy that many of the heads of foreign trade companies interviewed by the newspaper think that the appreciation of RMB has exceeded or approached their psychological bottom line.

According to the above director of Huantai leather enterprise, the appreciation of RMB in September exceeded 2%, which has exceeded its psychological limit.

In this regard, a survey of more than 10 provinces and a total sample size of 1900 export enterprises has also revealed that most of the export enterprises can bear the appreciation rate of RMB less than 2%, accounting for 39.7% of the total sample size. The enterprises who can bear the 2% to 4% value of the RMB account for 33.8%, and the enterprises who can appreciate 4%- 5% are 19.1%.

As for the newspaper, Internet and TV coverage of the RMB exchange rate dispute between China and the United States, the head of leather enterprises in Huantai said with reluctantly, "there is no mood at all to care about these things, only hope that the RMB can depreciate."

In fact, the tide of RMB appreciation in September has begun to affect the order of enterprises.

"Orders in September are lighter than in August, with a decrease of about 20%."

Huantai leather enterprises responsible person told this newspaper.

Game warfare of enterprises

Nowadays, with the accelerated pace of RMB appreciation, many enterprises are trying to catch up with all kinds of methods.

"Facing the pressure of appreciation, enterprises are also constantly dealing with it."

The head of the leather enterprises in Huantai said that at present, its enterprises are coping with the tide of RMB appreciation by opening up new overseas markets.

In fact, when we interviewed the foreign trade industry many times, foreign trade enterprises expressed their concern and attention to the emerging foreign trade market.

However, due to the long period of opening up new markets and other factors, facing the sudden rise of the RMB exchange rate, this newspaper survey found that more companies often take two measures to postpone the delivery time and raise the price of products, so as to cope with the tide of RMB appreciation in September.

"We have pushed away some Christmas orders in recent years."

In mid September, the head of a toy enterprise in Zibo once said in an interview with this newspaper.

Now, postponing order delivery time is a common behavior.

Among them, some domestic media have reported that some enterprises in the South have made efforts in order delivery time.

According to the person in charge of a shoe enterprise in the south, the company has signed an order within 3 months with a foreign customer last month.

But in September, the appreciation of the renminbi continued for many days, so that the company could only drag the delivery date of the order, hoping that the renminbi would have room to fall back.

However, some foreign trade people say that the delay in order delivery time can easily aggravate the cost of the enterprise.

At the same time, some enterprises have chosen the measure of product price increase.

"We have raised prices for some of our products."

On the 24 day, the person in charge of leather enterprises in Huantai said, however, the price increase was very small. "We are more inclined to raise the selling price by introducing new products."

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The urgent need for pformation

Although the appreciation of RMB has brought many foreign trade enterprises a lot of pain, in the long run, the appreciation of RMB is also accelerating the pformation of foreign trade enterprises.

Among them, Li Daokui, a member of the central bank's monetary policy committee, said in public that the appreciation of the renminbi can prompt export enterprises to accelerate industrial upgrading and pformation.

Therefore, "export enterprises should pay close attention to the challenges brought by appreciation, accelerate the pformation of enterprises and increase the added value of products."

Li Daokui thinks.

For a time, how to pform foreign trade enterprises has become a topic of concern to the industry nowadays.

At the beginning of this month, Lang Xianping, a famous economist, said in Zibo that the manufacturing industry was facing the loss of the pricing power, and only by taking back the pricing power can enterprises survive.

According to Lang Xianping, the manufacturing industry, including foreign trade enterprises, occupies only the manufacturing link in the entire industrial chain of product design, raw material procurement, warehousing and pportation, order processing, wholesale and retail.

In this regard, Lang Xianping believes that the manufacturing industry will only take the six links in the industry chain in its own hands to take back the pricing power.

Lang Xianping's implication is that the urgent task for manufacturing enterprises, including foreign trade enterprises, is to extend their industrial chains and speed up the pformation of enterprises in order to occupy a place in fierce competition.

In fact, many foreign trade enterprises are speeding up the extension of their industrial chains.

This newspaper has learned that a plastic packaging enterprise in Zibo has invested nearly 5 million yuan to speed up the extension of its industrial chain so as to increase the competitiveness of enterprises.

At the same time, a large number of foreign trade enterprises are changing the pure export mode and starting to take account of the domestic market.

"We are also exploring the domestic market."

The above mentioned foreign trade enterprises in Zibo high tech Zone said.

Although the pformation and upgrading of many foreign trade enterprises are difficult to make all the way, it is foreseeable that many foreign trade enterprises will face more frequent trade disputes and exchange rate problems after pformation and upgrading.