High Cost Era: Orders Are Becoming More And More Hot.

On May 5th, the 109th Canton Fair ended. According to the statistics of the organizing committee, the export volume of the Canton Fair was over $36 billion 800 million, and the number of purchasing merchants reached a record high. The Qingdao Exhibition Group achieved an export turnover of US $1 billion 690 million and maintained a steady growth of over 6%. Reporters interviewed the island city exhibitors found that foreign trade "Wind vane", the Canton Fair has achieved growth in exports while providing more judgement on the market trend.

Orders are mostly short-term.

The "double growth" of purchasers and trading volume means that customers are back. However, orders have increased, and foreign export enterprises have not felt at ease. From the feedback information of the exhibitors in the island city, the fact that the cost rises too fast affects the order of enterprises.

The best example is the 90% short list and 10% long list in the Canton Fair. "Financial crisis is not a single, big stop. Now, after the receipt of the bill, the cost will go up very badly. If you send the price according to the order, you must lose money. If you don't ship it, you will have to pay the penalty and pay more. Huang Tao, manager of a handicraft company in Qingdao, has expressed the aspirations of most enterprises. "Our enterprises are worried about the exchange rate and policy adjustment, and the cost continues to rise. In the absence of bargaining power, we can only take a short list."

According to the reporter's understanding, due to factors such as shortage of workers, exchange rate fluctuations and rising prices of raw materials, the exhibitors in the island city are cautious in their orders. They generally avoid the risk by not taking the long list. Some enterprises even choose to order or postpone the delivery date.

The coming of the high cost Era Order At the same time, buyers are also worried about the future market.

Taking light industry products as an example, the key exhibitors of Qingdao run yuan, zhe Xin, Lisheng and Da Mao reflect that the new customers' orders are generally small and complicated, and the difficulty of organizing production is increasing. It is difficult for European and American customers to increase their prices and increase their risks. According to statistics, in the island city light industry products business orders, within 3 months short list reached 55.5%, an increase of 7.5 percentage points over the previous session.

Profits are not seen.

Unlike previous years, the word "price increase" was shouted out by most enterprises at the Guangzhou Fair. General merchandise in the Canton Fair has increased by 5% to 10%, which has never happened before.

Take Qingdao as an example, in the two phase of the Canton Fair, Qingdao surveyed 80 exhibitors from different industries. 76.2% of the enterprises said that the transaction price was higher than that of the previous session, of which 35.5% of the enterprises whose price increased by 10% accounted for 30.2% of the price increase between 10% and 15%.

However, while the transaction price is rising, the profits of enterprises still go down. "The speed of price increase is much lower than that of cost rise, and the pressure of operation is still very large. From past experience, foreign buyers can accept less than 50% of the price increase. Some enterprises, in order to keep customers and market share, maintain capital or even lose a little. Qingdao Business Bureau responsible person said.

Raising prices can not offset the rise in costs, and the profit margins of enterprises are further squeezed. Labor intensive, low profit margins, low transfer cost rise of light industrial products export "price increase profit" situation is more prominent. According to the survey data of Qingdao exhibitors, the price of textile enterprises in Qingdao increased by more than 15% at the Canton Fair, but 78.3% of the textile and garment enterprises reflected a drop of more than 5% in gross profit of export products. Holiday gifts, shoes, food, bags and other labor-intensive products are faced with the "high cost, low profit" dilemma.

The Qingdao Trade Fair of the Guangzhou Trade Fair achieved a total turnover of 1 billion 690 million US dollars and maintained a steady growth of more than 6%. However, the actual transaction is not optimistic after deducting the price rising factor.

Enterprises try to change their contingency

I dare not answer. profit In the long run, the prospect is uncertain. This is the general feeling of the Canton Fair to foreign trade enterprises. Faced with the grim situation, some enterprises try to get rid of the difficult situation by seeking change.

At this fair, new and innovative products with high technology content have been favored by buyers. Some smart Qingdao enterprises have improved their business by developing new products, improving the structure of new products and keeping pace with market demand.

"We insist on launching a batch of new materials and new products every 3 to 4 months." Li Zhen, chairman of Qingdao Jintian Textile Co., Ltd., said that innovation is the only way to attract customers and expand market share. At the Canton Fair, Jintian textile introduced toys using new colored cotton, pushing the green environmental protection series, attracting customers' attention. The three day turnover was US $2 million 400 thousand, an increase of 72% over the previous session.

"In the situation of rising costs and shortage of labor, enterprises must adapt to this change. We need to enhance their innovative ability, adjust their product mix and enhance their core competitiveness, so as to resolve the pressure brought by rising costs." Professor Zhou Shengqi, Professor of International Trade Department of Business School of Qiingdao University, said, "and changing is not to require enterprises to master" core technology ", a good idea, a good design inspiration, and a little difference in overseas sales can become the basis for enterprises to transform their foreign trade development mode.

At the same time, under the pressure of continued appreciation of the renminbi, the use of RMB for valuation, signing and settlement has become the preferred choice for the island's foreign trade enterprises. According to the statistics of Qingdao central sub branch of the people's Bank of China, as of April 15th, 25 banks in Qingdao accumulated 723 yuan in cross-border RMB business, accounting for 21 billion 400 million yuan, and overseas settlement areas in nearly 30 countries and regions. The volume of business in the province is far ahead.