Sichuan Exporters Feel Heavy Pressure On RMB Appreciation And Export Difficulties

8, 7.9, 7.8, 7.7, 7.6...

Since the launch of the exchange rate reform, this series of data changes has been challenging the psychological bottom line of Chinese exporters.

On the 13 day, the data approached the 7.51 yuan pass.

So far, the appreciation of RMB has risen to 10.11%.

In the past two years, the continuous reform of exchange rate has quietly changed the pattern of China's export industry.

Some people were gradually drowned by the flood of economic change, and exporters represented by Ceng Zhongkang were forced to find a way out.

But their rebirth is like a newborn baby, full of vitality, but very weak.

Tentacles, ants search for food, tentacles commonly used tentacles.

It is food that goes in; no food, then retreat.

The appreciation of the renminbi has led exporters to "find food" in a difficult position. The old mode of operation has extended to the sales market, and the number of "food" has dropped sharply.

This requires companies to produce more "antennae", adjust their business and even incorporate terminal sales into their own business models.

In fact, this also embodies a principle of survival of enterprises, which is beneficial to advance, but no benefit is to retreat.

It is difficult to export to the domestic market at 3 p.m. in September 15, 2007.

Ceng Zhongkang tried to improve his voice but could not conceal his exhaustion.

By the end of last month, he had just successfully built the first clothing store in Chengdu, which took only a month to complete.

For the explanation of exhaustion, he said he had a low fever.

Tired.

"There is no way out, the export is difficult, the situation is too tight, we have to seize the opportunity in the domestic market."

Pressure!

Profit!

Some people are reluctant to take orders, OEM production and deliver goods to dealers. This is the basic form of foreign trade chosen by Chinese labor-intensive industries.

In the past, few enterprises had sales channels for overseas markets, nor did they have to bear the sales risk of export clothing. The middle link was controlled by dealers.

But this also means that the production and processing enterprises at the lowest end of the industrial chain can only get extremely small profits.

For example, the profit of textile and clothing is only about 7%, which is often only a few cents for the actual price.

These foreign trade profits are earned through the exchange of US dollars, and since the exchange rate reform, the US dollar in Sichuan's clothing export enterprises has become less and less RMB.

Ceng Zhongkang's nine star clothing costs less than 1.5 yuan for every piece of clothing it produces. In June, the factory earned less than 30 thousand yuan.

Combined wages, taxes and other factors, the average monthly income fell by 10%.

In order to curb the surplus and maintain our export order, the new export tax rebate policy was formally implemented in July.

The export tax rebate rate of the garment industry was reduced from 13% to 11%.

Ning Yong, general manager of Sichuan Wan Kang clothing, said that after July, more than 10 textile and garment enterprises in Guangdong had closed down, but Ceng Zhongkang's colleagues in Wuhan and Zhejiang also had the idea of delisting.

In fact, due to the low capital requirements and low threshold, the quality of the products in the industry is uneven.

Ceng Zhongkang said that in the past, a boss bought two sewing machines, hired a few small workers, and opened a small workshop to engage in clothing production. Now, there are thousands of textile and garment factories in Sichuan, which are expanding the scale and increasing the cost. They are testing these exporters. They are experiencing the pains of their neighbors leaving, and continue to bear the pressure of appreciation of the renminbi, and are getting heavier and heavier.

"We are primary school students, crossing the river by feeling the stones." under pressure, nine star clothing opened a clothing store in Jianghan Road.

From the Sichuan cotton plant of state-owned enterprises, because of the quota treatment, the export trade of the nine star garments has gone smoothly. Its bedding products have entered the United States, Germany, the United Kingdom and Australia.

According to the WTO agreement, the quota for China's export to Europe and the United States was cancelled on New Year's day in 2005, and the agreement on quota has undergone several changes.

"There are more and more restrictions, and foreign trade is getting worse and worse."

In particular, the renminbi has soared for two years. Ceng Zhongkang said he had to consider giving up some foreign markets. The proportion of domestic sales increased from less than 20% to 50% in the past.

At the end of July, Ceng Zhongkang organized more than 10 people to do market research in shopping malls and business centers in Chengdu.

After obtaining the market feedback information, we began to prepare immediately. In less than a month, the company's first store opened and invested 1 million yuan.

"In a hurry, the situation is too tense."

In recent months, the appreciation of the renminbi and the adjustment of export tax rebate have resulted in an average loss of 50 thousand yuan per month for nine star garments.

Because negotiations with buyers have raised prices, they have been afraid to rush to take orders. From 7 to September, the factory signed less than $300 thousand worth of bills.

At the same time, in order to prevent the loss of personnel, they have to pay money to maintain production.

There is also a beautiful shoe industry in Chengdu. Xiong Daiyu, the boss of the company, said that the domestic market is also mature now, and domestic sales are also a rebirth for foreign trade enterprises.

"However, we are still unfamiliar with the domestic market, or primary school students."

In the face of equally fierce competition in the domestic market, Ceng Zhongkang said, we need to cross the river by feeling the stones.

A lot of exporters often look at their negative side rather than their positive ones.

The appearance of RMB appreciation has led many exporters to "tighten their belts" and adopt two ways of "avoiding" and "escaping".

It is precisely because of the "withdrawal" of so many people that instead of giving enough room for the market, they are actually "able to take advantage of it".

Choosing to open up a multinational market is, on the face of it, a challenge, but in fact it is an open field. The larger the market, the greater the profit.

Digestion pressure is chosen to expand the market in many countries, and the appreciation of RMB makes exporters affected to varying degrees.

Fu Debin, chairman of Sichuan Kang Yuan Agricultural Products Co., Ltd., has chosen many countries to open up the market to digest the pressure.

Exports of agricultural products are much more responsive to the RMB exchange rate.

Fu Debin settled at the end of last year, and the company lost nearly 300 thousand yuan because of the appreciation of the renminbi.

With the expansion of the market, it is estimated that hundreds of cabinets will be exported this year. Because of the appreciation of the renminbi, it is expected that this year's losses will be doubled over last year.

To reduce losses and adjust the price once a month, in order to reduce losses, he negotiated with clients and made a monthly price adjustment according to the exchange rate changes.

Before, in order to retain the market, he would rather digest his losses and raise prices.

"But the cost is getting higher and higher, and there is no way to digest it."

The cost of goods pportation to a cabinet in Southeast Asia has risen from $17 thousand in the past year to 20 thousand yuan, or more than 10% this year. The market demand has also increased due to the increased popularity of Chengdu's fruits abroad.

Take Taiwan as an example. Last year, Kang Yuan had only one cabinet for Hongxing kiwi fruit. This year, as of September, 10 cabinets of fruit have been sent.

Although the total output of kiwifruit has increased this year, the purchase price has risen from 7 yuan / kg to 14 yuan / kg, up 100%.

"Free sending Chengdu fruit is crazy to grab". Taking into account the consumption habits and affordability of the old market, its price increase is not large.

In order to avoid the risks brought by the appreciation of the renminbi, we can only develop the market in many countries.

This year, the company's head of foreign trade has gone to India for three times.

Fu Debin had tea and mahjong before the weekend. Now he is busy shuttling between different cities.

In order to promote and promote the new market, the company spent nearly 500 thousand yuan to expand the company's influence by sending samples to various food fairs.

At the beginning of September, they went to Thailand to participate in the world hotel food exposition, and pported nearly a ton of Chengdu fruits to the participants.

In order to promote, in a few years, his fruits were sent to Japan, Singapore and even Holland for free.

The development of a new market has brought him an unprecedented shock. In Thailand, Yamato Ri's profit is 100% higher than that in China. In India, kiwi sales in New Zealand are nearly 1 times more expensive than in Chengdu.

"The fruit sent to Chengdu is being rob locally. Our orders are several times higher than before."

If I do not sell my brand, I will terminate cooperation. In the past, Chengdu fruit is also OEM export.

Therefore, on the fruit export chain, Chengdu fruit merchants are in a passive position.

In order to change this passive situation, in addition to improving fruit quality, this month, they completed foreign trademark registration and began to fight their brands in foreign markets.

The citrus and pears produced by the company have been registered in the fruit base in the relevant departments. Since there are detailed sources in the packaging, fruit can be traced back to any country, no matter which country it sells to, so as to establish trust in the market.

In the past few years of market promotion, Chengdu fruit has become famous abroad. "Now, dealers must sell my brand, otherwise, we will terminate their cooperation with them."