Orders Become More And More Hot In High Cost Era.

On May 5th, the 109th Canton Fair ended.

Reporters interviewed the island city exhibitors found that, as a "wind vane" for foreign trade, the Canton Fair has also provided more judgement on the market trend while realizing the export growth.

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.

Current

According to the reporter, the shortage of workers, exchange rate fluctuations,

With the coming of high cost era, orders are becoming more and more "hot".

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 paction 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 paction 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 the previous experience, foreign buyers can accept less than 50% of the price.

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 pfer 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 paction is not optimistic after deducting the price rising factor.

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Enterprises try to change their contingency

There is a single dare not answer, profits are shrinking, and the prospects are uncertain. This is the general feeling of this trade 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 pform 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.