"Long Single" Change "Short List" To Ease The Pressure Of Export Pressure On Shoe Companies
The May 27th exchange rate has great influence and lacks bargaining power.
Exit
U.S.A.
All of them were long bills before, and the short list increased gradually from last year. Now 40% of orders are short.
A few days ago, Wen Ruiqiang, manager of Zhongshan silk Limited by Share Ltd, told reporters.
In the recent 109th Canton Fair, one of the biggest characteristics of pactions is the "long single" change "short list".
RMB rate
Maximum impact
So many short lists are because exporters worry about exchange rate and policy adjustments.
Qiu Yi, director of Shiqi Office of Zhongshan inspection and Quarantine Bureau, said that in the supervision of Zhongshan bonded logistics center, Shiqi office found that the short and large volume of enterprises increased significantly, and the most important factor was the upgrading of the RMB exchange rate.
In this regard, insiders said that enterprises could solve the problem by locking the exchange rate, adopting RMB cross-border settlement, and pferring costs to overseas buyers.
Wen Ruiqiang, general manager of Tong De silk, however, said that the exchange rate was also agreed with the other party. The company demanded that the settlement after a year be based on the current exchange rate so that the other party would not be willing to do so, even if the average exchange rate was hard to achieve.
Many enterprises have also shown little feasibility in raising the factory price.
Tong Jia
footwear industry
Export commissioner Yang Mengru said that Tong Jia shoes had nearly twenty thousand employees, and nearly 0.2 pairs of shoes were produced each year. They negotiated a price increase of only $0.2 to $0.3 for each pair of shoes.
Therefore, in the absence of bargaining power, these methods are wishful thinking for the vast majority of export enterprises, leaving only one for themselves: short list, no long list.
Short list can ease financial pressure on Enterprises
The reporter understands that foreign trade has occupied a large share of foreign trade orders for a long time because of its stability and predictability. It makes most small and medium-sized enterprises have a relatively stable source of profits.
However, once foreign trade enterprises sign long lists with foreign traders, it means that enterprises lose the bargaining power in this long cycle. They must bear the pressure of rising cost of materials, appreciation of the renminbi and wage rise.
"The choice of short list is due to predictability of RMB exchange rate, raw materials and labor costs in the short term, and the flexibility of enterprises has been strengthened."
Wen Ruiqiang introduced that the short list strengthened the ability of enterprises to avoid the risk of rising costs. The short period of payment was short, and the speed of capital turnover was accelerated.
However, Wen Ruiqiang believes that the short list also has its own shortcomings.
Because of the short list, enterprises must complete the procurement of raw materials, sample production and delivery of products in a very short time, which puts forward higher requirements for the organization, production and coordination ability of enterprises, especially the quality of employees.
This requires a large number of skilled labor reserves, and in the current situation of difficult recruitment, export enterprises have added a lot of pressure.
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