Orders Are Becoming More And More Hot. Will Grenades Explode At Any Time?

It's a question whether to pick up or not.

In February 4, 2010, Qingdao was launched.

Workers are rushing to make Japanese orders.

For the launch of the mission, 2010 has already taken a reassurance:

This is the opening speech of one of last year's clothing circles, "the worst time to go away".

After 20092010 years of spring, there is more expectation than before.

Like that, many companies' orders are picking up.

Although the price is very low, "even some of the bid is too low to be done at all."

But at the worst time, it has begun to leave.

In the first quarter of last year, the monthly export volume of China's textile and clothing increased year by year.

When the time comes to June, this trend is still obvious.

Garment exports in the first half of last year were US $53 billion 220 million, an increase of 16% over the same period last year.

This trend is also in Dongguan.

"In the first half of last year, Dalang's exports increased by 37%, the gross output value of wool textile industry increased by 71.4%, and the profits of textile enterprises above designated size increased by 115%."

Yin Jinghui, Secretary of the town Party committee, said.

Since then, the bosses of Chinese enterprises seem to have swept the haze of the financial crisis and no longer need to keep their orders.

However, the future is very uncertain.

Soon, orders became more and more "hot".

On April 8, 2010, Vice Premier Wang Qishan of the State Council met with Geithner, the US Secretary of state, who suddenly visited us. This aroused the speculation that "Geithner's surprise visit to China is for the sake of RMB appreciation."

In April 5th, under the strategy of "flexible and flexible", the US government was "deciding whether to list China".

Although there was no clear agreement on the issue of RMB exchange rate during Wang Qishan's meeting, the issue of RMB exchange rate has become the focus of Sino US long-term gaming.

At last, the conjecture became reality.

Under the pressure of heavy appreciation, the central bank announced in June 18th that it should further promote the reform of the RMB exchange rate formation mechanism and enhance RMB exchange rate flexibility.

This is followed by China's re exchange rate reform in July 21, 2005.

In the next two weeks, the renminbi appreciated by 0.7% against the US dollar.

Although for many Chinese enterprises, the appreciation of the renminbi has become a problem in anticipation, it has disrupted the production and operation of enterprises that have just entered the order.

Many enterprises no longer dare to give profits to customers, but to raise prices with customers.

Wang Zhenming, who made shoes in Dongguan, seems to be back in 2008.

"In that year, the appreciation of the renminbi exceeded 7 yuan mark, and even after the exchange rate reform, we had a very high pressure every day."

Obviously, he missed the days of 2009. "The stability of the RMB exchange rate has reduced the losses caused by exchange rate changes."

At this point, "in Dongguan, enterprise orders can be achieved in 8 and September, and many small businesses are not too brave to take orders."

World shoe industry (Asia) headquarters base manager Wen Haibin said.

In September, the yuan began to accelerate appreciation.

In September 22nd, after nine consecutive trading days, the yuan entered the "6.6" era.

In September, the yuan rose to 1.74% against the US dollar and the biggest monthly increase since the reform.

At this time, Yan Mei, a salesman of a trading company in Shanghai, was denied by the boss after 5 million rounds of negotiations with 8 customers.

"You may have earned money when signing the bill, but when it comes to settling accounts, you lose money."

She said.

"At present, the appreciation of the renminbi has basically been in place, and it is not appropriate to further revalue, otherwise the enterprise is not a problem of pformation and upgrading, but a matter of life and death."

Cao Heping, Professor of economics at Peking University, said this time.

But the United States is still putting pressure on it.

In September 29th, the house of representatives of the United States Congress deliberated and passed the "monetary reform to promote a fair trade bill" and imposed special tariffs on the so-called undervalued exchange rate countries.

At the congressional hearing, Geithner said the United States will join forces with other countries to put pressure on China, suggesting that the current appreciation of the Renminbi should at least reach 20%.

Subsequently, the European Union followed the United States to put pressure on the renminbi.

It was in such a noisy voice that Wang Lei, who was engaged in the textile import and export business, took part in the 108th Canton Fair.

In fact, in September, the demand for goods from Europe and the United States came like snowflakes. "The biggest single value is about 1000000, so it was pushed away."

Because he could not find the factory to process.

Faced with orders, no enterprise dare answer.

As a result, many enterprises' production lines stop running, "the more we receive, the more we lose."

Many companies say so.

"Do not suppress the appreciation of the renminbi."

In October 6th, Premier Wen Jiabao appealed at the Sixth China EU business summit.

In fact, the pace of RMB appreciation has not stopped.

In October 10th, the US dollar rose to 6.6912 against the yuan.

In October 29th, the central parity of US dollar against RMB was 6.6908 yuan.

Relative to the reopening of foreign exchange reform in June, the appreciation rate was nearly 2%.

At this point, an order received in August has cost Zheng Bin, boss of Guangdong Chaozhou Sheng Ze company, 80 thousand yuan.

And that is the relatively high profit processing enterprises, "now is also the choice to do the order."

Said Zhang Jie, deputy general manager of Haibei shoes industry.

It is estimated that the net profit margin of the industry will drop by 1 percentage points per 1 percentage point appreciation, while the average net profit level of the garment industry is only 3-5%.

The appreciation of the renminbi continues.

In January 11, 2011, 1 US dollars to 6.6216 yuan; January 12th, 1 U. S. dollars to 6.6128 yuan; January 13th, 1 U. S. dollars to 6.5997 yuan, once again hit a new high since the reform.

UBS Securities predicts that in order to curb inflation, the yuan will appreciate by 6% this year, and the renminbi will reach 6.2 against the US dollar at the end of the year.

"The profit of domestic garment processing enterprises is generally less than 5%, and if the RMB appreciation is 6%, it will lead to the loss of garment export enterprises."

Liu Yueping, President of Guangdong apparel and apparel industry association, said.

"The pressure of RMB appreciation is great and the price of enterprises is hard to quote," said Cai Minqiang, chairman of Guangdong Ming Rui. "The industry shuffling will intensify in the future, SMEs may be washed more, and large enterprises will be washed away accidentally."

In the past year, the pressure faced by enterprises is not just RMB appreciation.

"Power restriction may become the last straw to crush camels."

Zhou Dewen, President of the Wenzhou SME Development Association, said that 30% of the small and medium-sized enterprises in Wenzhou will be forced to stop work and semi shutdown when the already small and medium sized enterprises are living.

In the last year of 11th Five-Year, under the pressure of national energy conservation and emission reduction, many places began to limit electricity.

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This further improves the cost to some extent.

"The cost of electricity in the past 1 days is about 1000 yuan," said Deng Xueping, director of the production and management of leisure and sunshine footwear industry in Zhejiang. "After the electricity is limited, the cost of diesel power is increased by about 2000 yuan per day."

Under pressure cost, "orders in 2010 decreased by 1/3 compared with last year," said Yu Hongfeng, head of sky fashion Ltd., a long-time customer, the US brand Miss Me picked out some lists for Vietnam and India.

A chief executive of a South of Jiangsu company also said that in 2010, some European and American customers began to reduce the volume of purchases.

Facts have proved that in ZARA, H&M, UNIQLO and other brand clothing stores, the new spring season is no longer a single "MADE IN CHINA", the products are mostly from Indonesia, Bangladesh, Mexico and other countries.

Many lists have begun to pfer abroad.

In fact, in 2010 1-11, Vietnam's sports shoes output increased by 20.2% over the same period, and the output value of China's leather shoes enterprises increased by 23.4% over the same period last year.

Has the cost advantage of "made in China" become a thing of the past?

Obviously, the pressure of cost is still increasing.

In the orbit of inflation, Chinese clothing is rarely spared.

Cotton price is a clear proof.