Reforming Export &Nbsp; Implementing Independent Brand

In addition to a number of enterprises like Nanhai Bao Ming Industrial Transformation business, reporters found that a batch of Spin , ceramics , footwear industry In the traditional manufacturing industry, we also feel the market forced mechanism, and actively adjust to the export market and research and develop our own brand products.
More and more losses to ASEAN

[status quo]

In the first half of this year, the total export volume was about 5 million US dollars, an increase of 68% compared with the same period last year. The increase was third in the South China Sea garment enterprises. Before the "glory" figures, Pan Zhaowen, the boss of Nanhai Jiarong Garments Co., Ltd., said that basically there was no money to make. Its gross profit has been reduced from about 8% last year to less than 3% this year, and workers have dropped from more than 2000 at the peak to about 700.

"The reduction in orders, the soaring cost of labor, the soaring cotton prices, the impact of the US dollar exchange rate, and the increase in the production cost of enterprises are all around 30%." Pan Zhaowen said that in 2008 the financial crisis failed to get export orders, and now there are orders not to answer. Because profits are too thin, many enterprises profit only 1% to 2% or even lose money.

There are quite a lot of export enterprises like Pan Zhaowen. Huang Biao, deputy head of textile department of the South China Sea entry-exit inspection and Quarantine Bureau, said that export clothing is generally a way to make small profits but quick turnover. According to the current cost, enterprises should raise their prices at least 15% before they have normal profits, while customers are willing to raise their prices by 5% or less.

According to the statistical analysis of the Ministry of Commerce, orders for textile enterprises generally increased by 15% to 20% over the same period this year, and the price range of individual products increased even higher. However, foreign businesses generally had difficulty in accepting more than 10% to 15% of the price increase. With the fluctuation of the US dollar exchange rate, many private export enterprises began to "fight" from the United States to ASEAN. It is reported that in the 1-7 month of this year, the private enterprises in the South China Sea exported to ASEAN for 270 million US dollars, an increase of 39.4%.

The head of the Nanhai concept board company said that the US dollar exchange rate had a certain impact on the export products of the company. In response, the company has shifted the main market from the United States to other areas such as Africa and the Middle East, and domestic sales are also an important breakthrough channel.

RMB cross border settlement

[suggestion]

As the products are exported to the United States and settled in US dollars, the exchange rate issue has also affected the export garment enterprises such as Jiarong. Data show that the RMB exchange rate has risen from the highest 8.6 in 1994 to 6.4 today, and the appreciation rate has reached 25.3%. Especially in recent years, the annual appreciation rate is relatively large.

Pan Zhaowen said that many enterprises, according to the exchange rate at the time of order, may still have 5%-10% profits. After a series of processes such as development confirmation, procurement, production and delivery, when they get the money, it is usually 35 months later. According to the exchange rate at that time, the net profit may be less than 2%-3%. "The more you do it, the more you will lose."

Faced with the great impact of RMB appreciation on export enterprises, Huang Biao suggested that export textile and garment enterprises could adopt cross-border trade settlement means to defuse the exchange rate risk.

He said that the Executive Council of the State Council formally decided in April 2009 to conduct cross-border trade RMB settlement in Shanghai and Guangzhou, Shenzhen, Zhuhai, Dongguan and other cities. The "cross-border trade RMB settlement pilot management measures" was also formally implemented in mid September last year, and the conditions for the cross-border trade settlement policy of the people's Republic of China were ripe.

"With an order of about 200000 yuan, the settlement of RMB by cross-border trade can reduce the loss of 600 yuan in exchange rate. Although the amount is small, the meaning is different. " Huang Biao said that in the first quarter of this year, the RMB settlement of cross-border trade in China was 360 billion 300 million yuan, of which Guangdong accounted for 30%, and the export enterprises avoided the loss caused by the exchange rate by 326 million 700 thousand yuan.

He said that at present, the South China Sea export enterprises use cross-border trade in RMB settlement is not much, many enterprises do not know how to open RMB settlement overseas, and suggest that the government should unite with major commercial banks, publicize policies to every enterprise, encourage enterprises to adopt cross-border trade RMB settlement in export business, and try to resolve the losses caused by exchange rate changes.

Set up brand and test water for domestic sale

[initiatives]

Not only is export clothing, but the entire textile and garment industry in the South China Sea is now in a difficult time. Some garment export enterprises have already felt the market forced mechanism, and have taken the initiative to attack and make rapid self-regulation.

In Pan Zhaowen's view, under the increasingly fierce market competition environment, the survival space of low-end products in European and American countries is getting smaller and smaller. Only by focusing on product design and taking the route of independent brand can enterprises get better survival and development space.

Because of the difficult export market, Pan Zhaowen began to cultivate free brands and try to do domestic sales. In July this year, he promoted some of his brand jeans in Beijing and Shanghai. "At the stage of publicity and promotion, he has been investing money, but not changing is a dead end."

Compared with export enterprises, the majority of domestic textile enterprises in the South China Sea indicated that they had better maintain their basic operation and wait and see. Chen Shubin, executive director of the Nanhai Textile Industry Association and Qiao Li Chemical Fiber Weaving Co., Ltd., told reporters that according to the current environment, the South China textile related enterprises can keep running well. He frankly said that under the circumstances of not understanding the market, he did not dare to act rashly at the moment. "More than 90% of Xiqiao's textile products are sold domestically, and the whole textile industry is cautious at the moment, maintaining the operation in the second half of the year, giving priority to wait-and-see."