Dongguan Foreign Trade Shoe Enterprises Seek Profit From R & D And Quality Of Workers.

In December 10th, under the pressure of rising domestic raw material prices and RMB appreciation, many

about

Foreign trade and Economic Cooperation Bureau

Cautious order is a reasonable phenomenon.

Foreign list has been centralized to large enterprises

According to the deputy section chief of Dongguan foreign trade and Economic Cooperation Bureau, there are more than 14700 foreign-funded enterprises in the city. The annual export and import value of foreign trade is more than 100 billion dollars. The main export products are electronic appliances, leather goods, textile and clothing and toys, and electronic appliances account for a large proportion in the export volume.

As the RMB exchange rate and raw material prices fluctuate, some export oriented footwear and other enterprises will not be clear about the future trend. If the risk is assessed, they will reject some orders.

"At present, we do not have specific statistical data, but according to the situation we are in control, the rejection is still exist, but it is not so serious."

Deputy chief of Ye believes that in the post financial crisis era, Dongguan's shoemaking enterprises and other enterprises have enhanced their capabilities unilaterally, especially in large enterprises.

"After the financial crisis, foreign orders tend to concentrate on large enterprises.

The order of the 300 strong enterprises this year is relatively stable, because they are large enterprises with stronger strength.

It is reported that the export growth rate of Dongguan's top 300 export enterprises last year was 31%, 4% higher than the average level of Dongguan.

Deputy chief of ye said that according to the total export volume, a list of "Dongguan's top 300 export enterprises" will be set up, updating every quarter, but basically not much.

The foreign trade and Economic Cooperation Bureau has given preferential policies to these large orders and large exporters.

Under normal circumstances, export enterprises apply for export tax rebates to the state tax department, which are "declared in the month and rebate in the next month". However, the top 300 export enterprises with more orders and exports are adopting the preferential treatment policy.

"We want to see that through supporting big enterprises, we can make them bigger and stronger."

Deputy chief of the Ye explained that on the one hand, after the enterprises became bigger and stronger, they had greater power to speak in the international trade market. On the other hand, these large enterprises would outsource some of their orders to small and medium-sized enterprises, thus making the order of Dongguan as a whole stable.

In addition, ye deputy chief also said that under the current situation, the foreign trade and Economic Cooperation Bureau has increased cooperation with export credit insurance companies, giving enterprises support in the export credit insurance premiums, and once the company has shipped the goods, but will not receive the payment, it will get the corresponding compensation from the insurance company.

To a certain extent, this has enhanced the confidence of the enterprise.

Trader

Looking for balance of interests

"At least, they are very satisfied with our performance at present. We can fully meet the requirements of these first-line brands.

{page_break}

"Cheng Yuqing said that the first tier brand traders in Huajian's manufacturing industry recognized their performance, and the intention for further cooperation in the future is relatively strong, which is in sharp contrast to the current reluctance of some enterprises to take orders.

Mr. Wang, a trader who orders foreign shoe brands, said they did encounter some enterprises' refuses to take orders, but there are always companies willing to do so.

"We are also looking for powerful enterprises, and not looking for one, usually looking for a few, but also to spread risk."

Cheng Yuqing also said that the cooperation between traders and OEM enterprises is a two-way choice. Usually they will find a few to disperse their own risks.

"Now the market situation is clear that the price of raw materials and the appreciation of the renminbi have brought pressure on foreign trade enterprises, but they do not have to discuss with traders. It is mainly about communication and finding the balance of interests that both sides can accept."

He said, "he is always looking for people to do, rather than looking for a powerful enterprise to do, as long as we do not lose money, we all have money to earn, or we can find a balance."

"The export volume of Huajian group in Dongguan is 1 billion yuan in November and 8 in the same period last year, an increase of 40% compared with the same period last year."

Cheng Yuqing said that the worry is not the order, but the recruitment problem.

"Now is the peak season, our orders can not get through, workers resigned at the end of the year, recruitment is not good, this is what we are worried about."

Foreign trade enterprises

Looking for profit from R & D and quality of workers

When it comes to profit points, Cheng Yuqing has his own view.

He said that to suddenly change the current situation and make the company profitable, it is not to say that we have bought several advanced equipment and made some reform, and the effect will be immediate.

"This is supported by the long-term technology and strength of the enterprise, but in the long run, from the independent R & D capability, the natural cost will be reduced."

He said Huajian is currently learning TOYOTA's Lean culture of corporate culture.

"As long as we improve the quality of workers, train skilled workers, save energy and reduce consumption, we can find profit margins."

He said, now China's workers' quality and production technology can also be improved, and the industrial chain can also be improved. There are still profit margins.

expert

Large enterprises have advantages in capital, procurement, bargaining and so on.

Professor Jiang Lin of South of the Five Ridges College of Zhongshan University believes that the current phenomenon of rejection is mainly in Dongguan's small and medium-sized footwear processing enterprises.

"The uncertainty of the market and the weak bearing capacity of SMEs are the main reasons for refusing to take orders."

According to Jiang Lin analysis, the fluctuation of raw material prices and RMB exchange rate has made some owners uncertain about the future trend of the market, coupled with the low profit margins of small and medium-sized processing enterprises, and "when profit margins can not offset risks, they often choose to refuse to accept orders."

However, Jiang Lin believes that large enterprises have greater advantages in terms of capital, procurement and bargaining, and thus relatively few refusal.

"Large enterprises have relatively strong funds, such as futures, options trading and other means to break down the price of raw materials increase the risk of rising costs, such as the production cycle is 3 months, after the company's receipt of the present futures price after the purchase of raw materials, 3 months after the delivery of raw material if the price of raw materials, or according to the predetermined price.

Jiang Lin explained, however, because futures and options pactions need to pay a certain deposit, they will occupy part of the funds of enterprises, so small businesses choose this way relatively little.

In terms of procurement, large enterprises often purchase raw materials in large quantities, so they can "bargain" with suppliers, and often get a certain discount. In addition, large enterprises have large orders due to their strong production capacity. Once a large enterprise refuses to make a list, it is difficult for the ordering party to find more suitable large enterprises. Therefore, the bargaining power of large enterprises in the pricing negotiations with the trading partners will be stronger.

{page_break}

Jiang Lin believes that upgrading and pformation as soon as possible is the fundamental way to solve the problem of rejection.

"Enterprises should proceed from their own realities and carry out upgrading and pformation.

Because orders can ensure the survival of enterprises and how to survive. "Jiang Lin said that in the market situation is uncertain, for enterprises, survival is the most important.