Canton Fair: Overseas Businessmen Recognize That China Is Still The Best Place To Purchase.

Carrefour Global Sourcing president Wu Bo Ye said that because of the economic downturn, European consumers are more interested in high quality and low price. product As a result, China's manufacturing competitiveness is strong, so this year, it will not only reduce procurement in China, but will also increase, and it will also increase next year. Not only that, from the current exhibits, PRD enterprises pay more attention to R & D, products from low-end to high-end, are striving to enhance the value chain upstream.

　 Quotations have generally increased by 20% to 30%.

"What if we do not raise the price? If the enterprise absorbs all rises," cost There is no way to live, only to die! "A person in charge of the Export Department of Foshan Xintai and Sanitary Ware Co., Ltd. is quite representative. It is reported that the export price of the company has been adjusted two times this year because of the rising cost, but a large number of orders have been lost. As for emerging market countries, because their products are on the high side, the market is not large.

"Orders in the first half were half less than in previous years," the official told Nandu reporters. "The situation in the second half is not optimistic." Due to the impact of the European debt crisis, the European market is depressed, coupled with the increase in production costs this year, orders for this year have been greatly reduced. "In response, we will increase the development of the domestic market and make a good brand." The responsible person said that the domestic economic performance is good, and the high-end consumer market is developing very fast. The company will gradually shift its focus to China.

"We also raised the price. Fortunately, the customer accepted it." Guangzhou Panyu Hongyuan Furniture Manufacturing Co., Ltd., a person in charge told the Nandu reporters that their products were mainly exported to two countries in Canada and Holland, and the positioning was also in the middle and high-end. However, the two countries had not been implicated in the European debt crisis for a while, and the economy was relatively stable, so orders remained stable. The official said that this is because its products are more distinctive and competitive. The person in charge predicts that if the cost continues to rise, the price adjustment will not be ruled out. Nevertheless, the company has prepared for a rainy day and hopes to open up more customers through the Canton Fair and diversify its sales channels.

China is still the best place to purchase.

In the battle of price increase, between export enterprises and overseas purchasers, what is the best way to win? "20%-30%'s raise is difficult to pass on to consumers at once." Fu Zhongsen, President of the British China Trade Association, said 16, and in the era of globalization, buyers will not keep a close eye on a market. Besides China, there are Vietnam, Indonesia and so on. Buyers are bound to look for products with lower prices. As a result, China's export enterprises are bound to face greater pressure.

However, in the eyes of Wu Bo Ye, President of Carrefour Global Sourcing, China is still the best place to buy in the world: "in fact, not only China, but also the global cost of rising, and China's products are very competitive for the European market." Wu Bo told Nandu reporters that compared with other countries, the price increase of Chinese exports is not outstanding. He analyzed that, as buyers, they will compare prices and pay attention to quality and seek products with the highest cost performance. In this respect, China's competitiveness is still very strong. "Although China's competitiveness may not be as strong as it used to be in some low threshold categories," Wu Bo said, "but in terms of high quality products, China is still a very attractive purchasing market."

"Because of the economic downturn, consumers in Europe are more in need of better quality and cheaper products, so goods from China and Asia are now more able to meet the needs of European consumers." "China's export enterprises are also very smart and will move at any time," Wu Bo said. For this reason, compared with other regions, China's manufacturing seems to attract more overseas buyers. The 72% of Carrefour's global purchases are from China, Wu Bo said. And this year, the number of buyers from Europe and South America has increased significantly. The number of buyers this year has exceeded 100. "This year, we will not only reduce procurement in China, but increase it on the contrary," Wu Bo said. "And I predict that we will increase procurement in China next year."

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Upgrading to the value chain

In the interview, many enterprises admit that there is indeed no shortage of orders, but they dare not take orders. "We can not judge the trend of future raw materials, dare not blindly quote, sign the bill, take as long as possible short-term, one-time orders, as far as possible to avoid signing large quantities, long-term orders." Yang Guofang, director of Zhongshan Hanlin Electrical Appliance Co., Ltd. At the opening press conference of the Canton Fair, Liu Jianjun, deputy director of the China Foreign Trade Center, also said that because of the exchange rate problem, the participating enterprises were afraid to make long lists and large bills, but tended to make short lists and small bills. In this regard, Carrefour Global Sourcing president Wu Bo Ye suggested that export enterprises should increase cooperation with overseas buyers to develop new production methods, such as avoiding excessive assembly and over processing in the production process, so that production costs can be reduced. In addition, further improving the quality of products can reduce the impact of rising raw material prices if products are to be more developed to the value chain. Fu Zhongsen, President of the British China Trade Association, also suggested that Chinese enterprises could increase cooperation with developed countries such as the United Kingdom, improve production and upgrade to the upstream value chain, thereby countering the pressure brought by rising costs.

"China has already been very competitive in low-end products, but the manufacture of low-end products should not be the focus of China's future strategy," Wu Bo said. In the interview, exhibitors generally indicated that the added value of products was the only way to go. Guangzhou Panyu Hongyuan Home Manufacture Co., Ltd. said that the company's products took the high-end line and focused on design, but in the first half of the year, although the price was raised, the order was not lost. Liang Yanguang, director of Yangyang metal products Co., Ltd., Xinhui District, Jiangmen, said: "the matching products developed this year for new coffee machines are very difficult to manufacture, and we can only produce them at home, thus ensuring the order level this year."

The Canton Fair also pays more attention to design and innovation. It is reported that from this session, the product design and Trade Promotion Center (PDC) will expand to cover every issue of the Canton Fair. At the same time, 4 thematic design forums and 4 product design docking workshops will be held. In addition, in from November 9th to 11th, the first green innovation technology product exhibition will be held. The total area of the exhibition is expected to reach 40 thousand square meters.

Overseas retailers switch to China

There is another interesting new trend in this Canton Fair, that is, overseas retailers are trying to turn to China, or even to close their stores in the country. Matthew Star, President of the US retail association, revealed that on the 14 day, GAP just announced that it would close its stores in the United States and open more stores in China. He said that China has become an increasingly important market for distribution and retail from its important manufacturing and purchasing markets. Especially now, due to the economic downturn in the United States and the rapid development of China's consumer market, American retail enterprises are increasingly concerned about the Chinese market. This is a trend. "Not only luxury goods in the United States, but also many other types of goods, retailers in the us want to enter China." "The purpose of the Canton Fair is to build a bridge between China and the US in the retail market," he said.

Fu Zhongsen, President of the British China Trade Association, also said that because of the European economic downturn, more British companies are eyeing the Chinese market. He hoped that more Chinese enterprises could cooperate with SMEs in the UK. Carrefour Global Sourcing president Wu Bo Ye said that for retailers and manufacturers, the rise in workers' wages is good news. This is because, in addition to stimulating consumption, the rise in wages can promote economic development, and in this trend, people's demand for commodity quality is even higher. In terms of textiles, although production costs have been somewhat improved, some countries in South Asia, such as Bangladesh, Cambodia and India, are far less productive than China.