RMB Continues To Heat Up &Nbsp; Sichuan Shoes Export Encounter "Life And Death Gate"

January 14th only received RMB

Yesterday, the central parity of RMB against the US dollar was reported at 6.5997 yuan, breaking the 6.6 mark for the first time, and the new high since the exchange rate reform.

It is worth noting that the continued appreciation of the renminbi has allowed many small and medium sized businesses in Sichuan.

Investigation of local small and medium shoe factories close to breakeven point

The impact of the continuous appreciation of RMB on Sichuan shoe industry has begun to appear.

According to the statistics of Chengdu customs, Sichuan shoes exported only 8 million 40 thousand pairs in November last year, down 30.9% compared with the same period last year. The export scale for the first time showed a negative year-on-year growth in the same month, and the decline was 23.5%.

"If the RMB continues to appreciate, plus the low price containment in Vietnam and India, the small shoe factories in Sichuan will definitely be eliminated."

The head of an export footwear company in Chengdu said that at present, most of the footwear export companies in Chengdu have a profit margin of around 5%. Only by the appreciation of the RMB exchange rate, the profit margin of enterprises has decreased by 2 percentage points.

Since last year, the price of leather and other shoe fabrics has increased by more than 30%, and the prices of raw materials such as rubber, rivets, heels and so on have also risen to varying degrees.

In addition, the cost of employment is also improving.

Enterprises have to raise prices in order to survive, which directly reduces the price advantage of Sichuan shoes.

"Not only that, in view of the pressure brought by the appreciation of the renminbi, many customers are cautious about placing orders," he said.

Relative to the difficult situation of small and medium-sized shoe enterprises in Sichuan, some large local shoe enterprises can still resist the impact of cross-border RMB settlement.

"The appreciation of the renminbi has little impact on us."

Chengdu AI min leather products company responsible person said, AI min mainly sold to the Eastern European market, before settlement in the US dollar, Euro mainly, last year began to become the first batch of Sichuan's direct use of RMB settlement enterprises, "using RMB settlement can avoid the impact of the change of the RMB exchange rate."

Way to increase added value of products and speed up structural adjustment

"Under the pressure of RMB appreciation, Sichuan enterprises should make efforts to increase the added value of products."

Sichuan province commerce department responsible person said, OEM a pair of shoes profits only a few dollars, up to ten dollars.

But if it is a self owned brand enterprise, the profits will be several times that of the foundries. "Simply relying on the advantage of cheap labor has failed. At present, the low price containment of Vietnam, India and other countries has a great impact on the shoe enterprises in our province.

You know, the monthly income of workers in Vietnam shoe factories last year was only 500 yuan, while Chengdu was at least 1000 yuan, and the labor cost is 2 times that of Vietnam.

The official said that the commerce department has been leading the call for export-oriented enterprises to carry out industrial restructuring, eliminating single, low value products and pforming to high value-added products.

This will reduce the impact of RMB appreciation.