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    Shoe Industry Pformation And Upgrading To Cope With The Pressure Brought By RMB Appreciation

    2011/5/4 10:59:00 57

    Footwear Industry Pformation And Upgrading RMB Exchange Rate


    According to the latest data from China foreign exchange trading center, the RMB against the US dollar in April 29th.

    exchange rate

    The median price was 6.4990, breaking through the 6.5 important barrier at once, and hitting a new high since the reform.

    As the exchange rate continues to rise, the pressure on labor-intensive industries is constantly upgrading, and China's footwear industry is the first to bear the brunt.


    The appreciation of the renminbi means that the competitiveness of the dollar denominated commodities will be weakened, and the price of foreign products will remain unchanged. Only by further reducing the prices of products will the cost pressures continue to rise, which will cause a greater impact on the labor-intensive footwear industry.


    At the same time, the export of footwear industry has been greatly affected.

    The appreciation of the renminbi has swallowed up.

    Exit

    In the first half of the year, some of the export orders signed on the market were on the verge of losses.

    Considering the great changes in exchange rate, some foreign trade enterprises are more cautious in holding orders, which leads to the fact that large and long bills do not dare to pick up easily.


      

    RMB

    Appreciation has brought many risks to shoe companies, and many shoe companies are in a difficult situation.

    Experts in the industry have warned that enterprises should raise awareness of risks and take relevant measures to deal with them positively.

    Settling in euros or setting the price validity period has become one of the measures for some shoe companies to avoid exchange rate risks.

    In order to avoid exchange rate risk, some companies agree with customers that the quotations are valid within a range. If the time exceeds the time limit, the price will be adjusted according to the exchange rate, and then the price will be renegotiated.

    At the same time, speed up overseas layout.

    Especially in overseas factories, the integration of local supporting parts, market channels and other resources has become a strategic choice to avoid RMB appreciation.


    However, whether it is settled in euros or set the price validity period, the cost of relocation and compression, and the reversal of the export oriented policy today, these are not radical solutions.

    In the long run, enterprises should improve their export structure and management level, and improve their capability of independent innovation and speed up pformation and upgrading.

    Only by developing our core business, increasing the added value of products through technological innovation, winning by quality and enhancing our competitiveness, is the fundamental way to break through difficulties and base ourselves on the market.


    Facing the pressure of RMB appreciation, it is very important for enterprises to adjust the level of export trade.

    Shoe enterprises should reduce processing trade, increase the proportion of general trade and gain more profits.

    This means that shoe companies should speed up product development and produce more distinctive products.

    The more distinctive products, the less comparable in the international market, the higher the competitiveness.

    At the same time, enterprises should establish a more perfect distribution channel, go directly to the consumer terminals, and respond more quickly and gain greater benefits on the basis of a better understanding of the market.


    Besides adjusting the trade structure, enterprises should also improve their competitiveness by optimizing management.

    The issue of RMB appreciation raises higher requirements for the management and development strategy of enterprises.

    Enterprises need to optimize their business processes, strengthen research and development, improve their management level in an all-round way, and realize the popularization of scientific management technology in practice.


    "Industrial upgrading" should be the ultimate choice of shoe enterprises.

    Enterprises focus on upgrading industries, strive to upgrade their core technology and quality, and gradually export products from middle and low end to high added value, so as to enhance the competitiveness of the international market.

    Some shoe enterprises should give up the illusion of "OEM processing, drought and waterlogging" at an early date, and create China's own footwear brand by creating China's own products. Only in this way can Chinese shoe enterprises freely respond to the appreciation of the renminbi and gain the right to speak in the international market.


    The Yuan's exchange rate with the US dollar has reached a new high, which has set the alarm for the shoe industry.

    Footwear enterprises need to maintain a sense of crisis at all times, create a favorable and stable environment for future development, upgrade management level, speed up pformation and upgrading, increase investment in technological pformation, improve product quality and added value, thereby enhancing the international competitiveness of products and effectively resolving the pressure brought by appreciation of the renminbi.

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