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    Wage Increase, RMB Appreciation, Double Squeeze Toy Export Scale Reduction, Difficult Situation

    2011/2/23 9:12:00 59

    Wage Appreciation Export

    RMB appreciation and production cost

    Rise

    Again, labor intensive toys.

    enterprise

    Forcing into the unprofitable situation, many enterprises are struggling to raise prices in the low season of toy exports.


    According to the latest data from China foreign exchange trading center, 21 yuan is against the US dollar.

    exchange rate

    The median price was 6.5705, and third consecutive trading days rewrote the new record high since the reform.

    The appreciation of the renminbi has made many small profits toy exporters feel the pressure.


    Gu Wu, general manager of Shenzhen huun Kun Industrial Development Co., Ltd., said: "although it is a low season for toy exports, it has been quite busy in recent days, and many overseas buyers have come to us.

    At present, domestic toy export suppliers are less and fewer, competitors are decreasing, we are not worried about no orders, but we still worry about pricing. We support very hard. Before the Spring Festival, we received a big order from the toy giant, the original budget has a certain profit. But according to the current situation, the appreciation of RMB and the sharp rise in labor costs, this order has already suffered losses.

    Therefore, when we buy new orders after the Spring Festival, we generally raise prices by 10%~15%. "


    Gu Wu said that after the Spring Festival, some workers in Shenzhen had gone up to about 4000 yuan due to lack of work. In recent years, the rapidly rising production cost has closed many toys factories, especially the foreign toy factories. Especially in the Pearl River Delta, it is difficult to find a good supplier. The toy factory can only be ordered to Jiangxi, Fujian and other places.


    Liu Ziqin, director of toy export of Jiangsu light yuan arts and crafts import and export Limited by Share Ltd, also said that the price of toys increased by 15% at the end of last year, but with the influence of RMB appreciation and labor cost rising after the festival, and entering the state of no profit, many of the orders on hand now are equal to dry, and a new round of price increases is brewing.


    Liu Ziqin said that some orders were rushing ahead of the Spring Festival to export as soon as possible, so as to make the settlement as early as possible, but the proportion of orders for the first export was not large. After the Christmas rush hour, overseas customers were not in urgent need of the goods.

    Now, entering the toy export off-season, the price rise is very difficult, first look at the exchange rate trend, and then decide the price range of the new round.


    Cai Qisheng, general manager of Dongguan Yin Hui Toys Co., Ltd., told reporters that because of the increase in costs, many toy companies around the border were reducing the scale of production. Some Hong Kong toy factories moved to Vietnam and other places, and the company could still maintain its original scale because of walking on two legs, but the cost pressure continued to increase.


    "Price increase is the most effective way to digest costs, but after the holidays, the toys in the mall are on sale, so it is difficult to raise prices.

    Unlike clothing, shoes and other products, there are not many changes in the style of the toy industry, which is difficult to raise prices. Our enterprises have launched twenty or thirty new toys each year in the domestic and foreign markets, which has been considered as a fast development in the industry, and only those new products can be raised.

    Cai Qisheng said.


    Li Weijian, chairman of Dongguan Jian Sheng Industrial Co., Ltd., who has been in the toy industry for more than 20 years, is not optimistic about the prospect of toy export. With the difficulty of recruiting workers, he chose to reduce the scale of production and reduce the number of workers in the toy factory from five thousand or six thousand to the top 100.

    He told reporters that export toy channels are mainly in the hands of large toy giant buyers such as MATTEL and WAL-MART. Foundry enterprises are not easy to raise prices. Now they can only choose toy orders with high added value, while low value-added toy orders are basically abandoned.

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