China'S Light Industrial Export Enterprises Are Conservative.

China Light Industry Arts and crafts import and export chamber November to 45 light industries

Wu Zhenchang, chairman of Guangzhou Chuangxin footwear industry, told the first Financial Daily reporters yesterday that the company has eaten about 2% of its profit this year, and more than 50% of its raw materials are being purchased at home. The exchange rate is now like a "warm boiled frog" for enterprises, which is close to boiling point. Compared with Southeast Asian shoemaking enterprises, the cost competitive advantage of Chinese shoe enterprises is becoming weaker and weaker.

Wu Zhenchang said that the price of raw materials in the near future is also very strong, but this is a global problem. Shoemaking enterprises in other countries or regions are in the same starting line in this regard, but exchange rate and labor cost make enterprises more and more difficult to digest. Labor costs have risen by 20%~30% this year, coupled with exchange rate fluctuations, some orders have to be abandoned, raising prices is not so easy, and orders are becoming more conservative.

Not only is the pressure on the export market, the appreciation of the renminbi makes domestic purchasing power stronger, and this year, the China ASEAN free trade area is fully activated, and Southeast Asian shoe products enter the Chinese market to enjoy zero tariffs. Southeast Asian shoe enterprises will divide up some domestic markets.

According to the current trend of orders, light industry enterprises generally believe that exports will continue to warm up next year. Of the 45 enterprises surveyed, 32 expect export growth to be over 10% next year, accounting for 71%.

Gu Wu, general manager of Shenzhen huun Kun Industrial Development Co., Ltd., said that from the 108th session of the Canton Fair, the situation of toy export orders is pretty good next year, and the market orders of South America and Russia are growing faster, while the European and American markets are relatively stable.

It is expected that the cost will continue to rise next year. Many customers expect immediate orders at the current price. But in general, enterprises will not be able to pick up large bills or long orders unless they accept the price increase.

"This year's profit has also declined, and the profit of toys is already thin. Next year's orders must be raised. It is estimated that the cost of labor and raw materials will stabilize. The most uncertain factor is the exchange rate. Therefore, our price increases are mainly adjusted according to the exchange rate expectations. Next year's 2 and March orders will be quoted by 6.5 against the US dollar, and by October next year, the order will be quoted at 6.2, and according to the order situation, the bank will lock in the exchange rate."

Gu Wu said.