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China'S Labor-Intensive Enterprises Are Facing A New Round Of Survival Test.

2011/4/25 10:58:00 106

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Labor-Intensive Survival Tests The Price Of Finished Products.

The labor-intensive enterprises, such as consumer goods, gifts and home decoration, constitute the main body of the two phase of the fair.

24, we know that raw material prices and labor.

Rising cost

Many unfavorable factors such as exchange rate fluctuation and weak market in Europe and America have led enterprises to "profit bottom". While labor-intensive enterprises feel the "pain", they are facing a new round of survival test after the financial crisis.

Zheng Zaisheng, chairman of the Fujian Nanping metal products Co., Ltd., a clocks and photo frames, said that the increasing cost pressure has made the company feel difficult to sustain.

If the RMB exchange rate continues to fluctuate, it is expected that many enterprises, including their own companies, will be doomed to failure.

Since 2005, every Canton Fair has been declining.

Old Guang Jiao

"Regrets, because the product itself does not possess the technological content, it can only be used in product design.

He will raise the product price by 10% at this Canton Fair, but it will soon be digested by inflation and exchange rate fluctuations, and business will become more and more difficult.

He said that it is a knife stand on the neck of a Chinese enterprise to understand the depth of foreign businessmen.

Although the volume of export pactions remained stable in the first quarter of this year, profits were much smaller than last year's.

At the same time, the homogenization competition of Chinese enterprises is serious. The competitive strategy of price war can only make products cheaper.

He believes that this is not good for the development of the entire national industry. Chinese enterprises have come to the point that they can not change their ideas.

Chinese customs statistics show that in the first quarter of this year, China's toy exports amounted to US $1 billion 830 million, an increase of 16.3% compared with the same period last year.

Liu Ziqin, chief executive of Jiangsu Kaiyuan International Group Light Industry Import and Export Corporation, believes that the increase in export volume should be the result of price increases.

She said that with the rise of international oil prices, the impact of labor-intensive products such as stuffed toys has been the first to bear the brunt of domestic raw materials.

With the negative effects of RMB appreciation and labor costs rising, enterprises will enter a state of no profit.

Liu Ziqin said that Europe and the United States occupy more than 60% of the total export volume of their enterprises. At this fair, the European and American businessmen who come to discuss more remain at wait-and-see level, and the order is also very cautious.

In addition, as a labor-intensive product, the production of toys is greatly restricted by labor costs and labor shortage. Young employees can not keep up with them, so it is also difficult to expand production and increase the proportion of domestic sales.

Although the economic situation is getting warmer, the purchasing power of the European and American markets still needs to be activated. The customers in Europe and America are mainly the market participants of the two phase of the Canton Fair.

Zhang Xiaolei, manager of Qingdao new Hongmei Furniture Manufacturing Co., Ltd., said that the number of merchants in Europe and the United States declined significantly.

On the other hand, furniture enterprises are greatly influenced by the rising prices of raw materials.

Cloth price

Rose 30%, timber prices rose six to eight percentage points, the whole furniture export industry survival environment is not optimistic.

Zhang Xiaolei said that foreign businessmen are generally sensitive to price and slightly raise the price of products by 4% - 5%, and orders will drop immediately.

Therefore, when the raw materials are rising, the company does not dare to improve the price of the finished furniture. The only thing we can do is to develop more new products.