Improving Bargaining Power Has Become A Sincere Expectation Of Export Textile Enterprises.

The 108th session China Import and Export Commodities Fair At the Pazhou Exhibition Hall in Guangzhou in November 4th, 199266 overseas buyers from 208 countries and regions were present at the fair. The number of buyers attending the meeting declined slightly compared with the previous session, with a slight increase in turnover, but it has not yet returned to the level before the international financial crisis.

Affected by the rising prices of raw materials and the expected increase in the RMB exchange rate, the pressure of participating enterprises in this Canton Fair has increased sharply. In the uncertain foreign trade, how to avoid foreign trade risks, change the way of foreign trade development, and improve "made in China" Bargaining power It has become a sincere expectation for many participating enterprises.

　　 Influenced by exchange rate and labor cost increase, the past single list and long list do not dare to answer.

"During the financial crisis, there was no single connection. Now the customers in Europe and the United States are going to make big orders and long lists, but we dare not answer them." Chen Lang, chairman of Guangdong Ming Liang daily necessities Limited, has no alternative. Since June, the exchange rate of RMB against the US dollar has increased by nearly 2%. If the RMB revalued by 3% over the next 3 months on the existing basis, many of his orders will not be profitable. And at this juncture, raw materials generally rise in price and labor costs have risen considerably, and he feels like he has become a "sandwich cake".

At present, European and American customers have come to the market to change their past small bills and short lists, which is a long list and millions of dollars a year. For Chen Lang, this is a desirable business in the past. But today, he really dare not take it. He has persuaded the customers repeatedly to split the long list into short lists and small bills.

The Deputy Secretary General of the Canton Fair and Liu Jianjun, a spokesman for the press, said that a prominent feature of this Canton Fair is that the number of purchasers in the developed regions of the European and American countries has increased rapidly. Among them, the European Union has increased by 24.62%. They generally have very high purchasing expectations, and there are many factors that can increase the value of the renminbi. In order to avoid the risk of exchange rate, the enterprises adopt the measures of "not to pick up small bills, but not to pick up short lists."

Chen Haiming, general manager of the star group of fridge exporters, is right to say that they are now afraid to take orders for more than 2 months. If the order exceeds 2 months, the order price will be raised according to the specific circumstances, so as to write off the exchange rate risk, and all orders over 6 months are rejected.

Some enterprises said that in the past, in the face of exchange rate fluctuations, the long term order quotation would give special consideration to the factors such as RMB exchange rate fluctuation and raw material price rise, and avoid the exchange rate risk by way of forward lock up, price setting and exchange rate fluctuation. However, what worries most enterprises now is that the effectiveness of these methods is weakening. Labor intensive products such as ceramics, toys, light textile industrial products and so on, lack of bargaining power, and "raise price" behavior is not accepted by customers. {page_break}

　 　 Export enterprises Through RMB settlement to avoid exchange rate risk, the surrounding market began to accept "RMB settlement".

Facing the pressure of exchange rate fluctuations on enterprises, Du Yuanyuan, chairman of Guangdong Dongguan Dongguan high Hua Electronics Co., Ltd., introduced to reporters the unique way to avoid exchange rate risk. "In view of the company's business involving Europe, Southeast Asia and Southeast Asia, the company adopted different settlement methods for each market, and determined three settlement methods, such as US dollar, euro and RMB. If three currencies settle accounts for 70%, 20% and 10% respectively, then a dynamic equilibrium will be formed. The US dollar will depreciate, and the euro or Renminbi will appreciate relatively, which will offset the risk of exchange rate losses of enterprises."

At this Canton Fair, many enterprises believe that "RMB settlement" is the most reliable guarantee for the current exchange rate risk. If the proportion of RMB settlement can be expanded, it will be a powerful protection for export enterprises. Zhuhai GREE electric (000651) vice president Wang Jingdong said that although the company's export business was mainly based on US dollar settlement, the company tried "RMB settlement" in some special businesses targeting Southeast Asia and some special markets.

Liu Jianjun, a spokesman for the Canton Fair, said that according to the monitoring data, interest in RMB settlement was significantly increased by the export enterprises and overseas purchasers of the Canton Fair, and the volume of business increased by no less than doubled. Hongkong, Southeast Asia and other neighboring markets had begun accepting RMB settlement. However, buyers of the traditional markets such as Europe and the United States are still hard to accept the "RMB settlement". This is the reason for their habit. There are also reasons for the exchange rate changes, as well as the RMB itself.

But in the final analysis, "RMB settlement" represents the bargaining power of export enterprises and export commodities. Competitive commodities, bargaining power, enterprises require "RMB settlement" success rate is high, on the contrary, they have to accept the rules of exchange rate game formulated by buyers.

　　 "Export processing" sales mode quietly changed, brand products traded better than general merchandise.

Faced with the pain of raw materials and exchange rate felt by many textile enterprises, Zhou Jinsong, President of Guangzhou wheat Europe Garments Co., Ltd., said he did not feel the pressure in this area, because they had long been rid of the "export processing" sales mode, joined the French market, and participated in the competition of style and design. Now he personally feels that their brand is also a medium brand in France. The price of each product is 10 euros higher than that of the same kind of enterprise, and the factors such as exchange rate and raw material price increase are all in the dark. What he needs now is to recruit distributors from overseas markets.

Reporters at the Canton Fair exhibition hall to see, many foreign trade enterprises on the stalls to play the "recruit dealers" signs. Tang Mingyi, the representative of the Russian General Chamber of Commerce in China, said that the Canton Fair had brought the investment project of the Moscow International Trade Center of Greenwood, which aroused the interest of many Chinese enterprises. In the past, Chinese enterprises were the top customers in the Canton Fair, but now they are looking for cooperation in the Canton Fair, and the whole world is looking for business opportunities. This shows that the way of Chinese enterprises' foreign trade is changing.

At the same time, reporters also feel that this Canton Fair has independent intellectual property rights, independent brands, independent marketing enterprises bargaining power significantly enhanced, brand products traded better than general merchandise. Hisense's intelligent 3D LED LCD TV, using its own Hitv OS operating system, has become the first truly intelligent TV in the world. AI min leather relies on its own brand to enter the high-end market in Europe and the United States, and its export volume has increased by more than 30% for several consecutive years. Texas toys 100% has been awarded the national design patent and favored by European and American businessmen. Some enterprises have passed the quality, environmental protection and safety certification. Their products are more expensive than similar products, but they are well received by purchasers.

Liu Jianjun said that in view of the needs of enterprises and the need of the state to change the mode of trade, the 109th Canton Fair will form the "canton fair product design and Trade Promotion Center". The pilot will display overseas creative works, provide design services that meet the international market demand for export enterprises, and strive to improve the added value of products and the competitiveness of the international market, which will provide another platform for export enterprises to transform the mode of foreign trade development.