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    The Appreciation Of The Renminbi Is Worsening. Foreign Trade Textile Enterprises "Reduce Their Pressure" And Help Themselves.

    2011/5/2 15:26:00 60

    Appreciation Of The Renminbi Is WorseningForeign Trade Enterprises

    "The cost pressure is big, the order is few, the foreign trade profit margin is smaller and smaller, the second half year will expand the domestic sale proportion."

    In April 29th, Zhou Chun, general manager of Qingdao Zhongtian knitting textiles Co., complained about the current situation.


    In the North Longwan Industrial Park of Jimo garment industrial park, which was gathered by foreign trade enterprises, after interviewed many small and medium-sized foreign trade enterprises, it was found that the rising price of raw materials, the appreciation of RMB and the rising labor cost have brought tremendous pressure to export enterprises. At the same time, foreign orders have been reduced, and under pressure, enterprises have been forced to reduce their pressure and save themselves.


    Busy pull domestic order


    "Are you here to place orders for Jimo knitwear? My friend is doing this, or shall I introduce you to you?" a taxi driver and Liu Yuchun's foreign accent enthusiastically introduced him.

    "Most of the foreign trade enterprises in Jimo are engaged in the manufacture of clothing, knitwear, and OEM production. Several of my relatives are engaged in the processing of foreign trade clothing processing, and now they have little foreign orders to help pull out domestic orders."

    Liu Yuchun said frankly.


    In the foreign trade market of Jimo, sales personnel, besides enthusiastic introduction of goods in their stores, will ask if there are orders for clothing processing, and they have friends to do the processing of foreign trade garments, which can help to introduce them.

    When the reporter pretended that he was only a small order, only processing hundreds of clothes, a salesperson of Wang surnamed hesitated for a while, indicating that the order was too small, but he quickly gave a telephone number to the guide reporter. He said he could contact the manager of fan Xing.


    Qingdao Mei Jie Er Garments Co., Ltd. mainly carries on the printing process of Jimo foreign trade knitting enterprises. Zhang Lin, director of the printing workshop, tells the reporter that the printing business has begun to become cold and cold this year because of the low orders from neighboring manufacturers.


    Zhou Chun, who has been engaged in foreign trade business for more than 10 years, said that in recent two years, the foreign trade processing market was not optimistic, the cost was rising, but the price given by foreign customers was pressing again and again, and orders were also affected. Last month, a about 2000000 yuan order was quoted by a company in Indonesia.


      

    RMB appreciation

    "Add insult to injury"


    Shao Juncai, who is engaged in foreign trade intermediary services in Jimo, told the reporter that the appreciation of the renminbi is also one of the important factors that increase the cost and profits of foreign trade enterprises.

    "Current

    RMB rate

    It has broken through 6.5, and has been able to swallow a lot of profits from domestic manufacturers, which is a sharp increase for SMEs.


    The appreciation of the renminbi will affect the settlement price of China's exports, which has a serious impact on labor-intensive small and medium-sized export enterprises.

    "Now the gross profit of the factory is only 10%-15%. If the appreciation of RMB exceeds 15%, the enterprise will not be profitable at all.

    In 2008, the small and medium-sized enterprises in southern China had a "closed down tide" because of the appreciation of RMB and so on. At present, Jimo has already had this sign.

    Shao Juncai said with concern.


    "

    Foreign orders

    "Not really reduced," Shao Jun said. "The total amount of orders has not changed, the market has not been reduced, the problem is in the order price, because the price is not satisfactory, many foreign customers are unable to find foreign trade processing enterprises because of the low bid price, while domestic enterprises are unable to receive orders due to the increase in quoted prices, or because the price of cotton yarn is unstable, and they dare not take orders.


    "Decompression"


    Not only small and medium-sized enterprises are facing such a situation, but also the large foreign trade enterprises such as the development group have felt the pressure of rising costs.

    According to people familiar with the matter, in order to deal with the rising cost of cotton and manpower, the group adopted a variety of measures to solve the cost pressure.

    If we reduce the proportion of cotton products, increase the proportion of chemical fiber products, pay attention to energy conservation and increase the recycling rate, we should adopt new technologies and use marine materials such as chitin to reduce costs.


    Small and medium-sized enterprises also have a lot of brains in coping with cost pressures.

    In order to reduce labor costs, Zhongtian knitted fabric Co., Ltd. set up the factory in Hebei.

    "At present, Zhongtian has two factories and 350 employees in Jimo, but now it is difficult to recruit workers, and the profits of enterprises are reduced.

    The factory can only be set to a relatively low labor price to reduce costs. "

    Zhou Chun said.


    Fighting for the domestic market has almost become a life-saving straw for small and medium-sized foreign trade enterprises.

    In the interview, the reporter reported that many small and medium-sized enterprises plan to focus their efforts on the domestic market.

    "At present, foreign trade accounts for 80% of turnover and domestic sales account for 20%.

    The second half will be adjusted, and domestic sales and foreign trade will account for 50% respectively.

    Zhou Chun said, "many foreign trade enterprises that have failed in Jimo recently are too low in profit to earn money in a busy year.

    Enterprises need to adjust their mindset. Even if their profits are low, they can support them. "


    "Before the price of cotton yarn is low, foreign trade business is good, but now the veil price is not stable, and orders are also afraid to pick up."

    Wang Jinggang, general manager of Qingdao Bo Yang Fashion Co., Ltd. summed up his 10 years of foreign trade business.

    He was determined to create his own brand without seeing the prospect of foreign trade processing.

    "Making your own brand has big investment and less profit in the early stage, but after 3 years, the brand will be stabilized and profits will not be tied down by foreign customers.

    Self created brands increase the added value of products, and the impact of RMB appreciation will be relatively small. "

    He said.

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