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Profits Of China'S Garment Foreign Trade Enterprises Have Been Continuously Squeezed.

2011/10/21 11:28:00 17

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Garment Foreign Trade Enterprises Profit Squeeze

along with

Production costs

Rising, and accelerating appreciation of the renminbi, a tiny business.

profit

Sustained

extrusion

In recent days, reporters learned from the Canton Fair whether the price rises or not?

Worry

The general problem of China's foreign trade enterprises.

Due to the strong debt crisis in Europe and the United States, the recovery of China's main foreign trade market is weak, and the market is regarded as the export vane of China. The market is cool. The data show that the first two days of the Canton Fair, the export volume of mechatronics products and Minmetals chemical products to the US and Europe market declined significantly, of which the mechanical and electrical products dropped to 54.9% in the US, and the export of the five chemical and chemical products to Europe declined by 15.3%.

In addition to external

market demand

Slowing down, some analysts believe that the drop in turnover is also related to the current price increase of some Chinese export enterprises.

Shanghai soy Electric Appliance Co., Ltd. exhibited refrigerators, air conditioners and other electrical appliances at the Canton Fair. Its products were mainly exported to Asia, Africa and Latin America.

Li Wenshan, who is responsible for the import and export business of the company, said that the cost pressure of enterprises has been increasing this year, the price of some raw materials has doubled, and the wages of workers have increased by three or four. "This directly leads to the increase of 50 yuan for each refrigerator."

Li Wenshan said that the problem of RMB appreciation is even more worrying for enterprises. For this reason, the price of some commodities of the Canton Fair has increased by 1% to 3%.

Li Wenshan said that customers will be very sensitive if the price rises too much, and the company's price increase has been carefully considered.

On the one hand, the profit space of the enterprise is compressed, and it is difficult to deal with the cost increase without price lifting; on the other hand, the customers do not buy the price of the product, and the price increase may lead to the loss of the customer.

Experienced a rise of nearly 20% of the minimum wage standard, the price of raw materials has also risen along with the domestic inflation factor, while the RMB against the US dollar has changed from 6.8 in last year to 6.3 now.

Rising production costs have made increasing prices more and more foreign trade enterprises have to face the topic.

Of course, in the face of the current situation of squeezed profits, many foreign trade enterprises do not rely on their expectations in raising prices. It is the choice of many enterprises to optimize product structure, expand sales channels and actively understand foreign demand.

Chen Yingyan, a salesman of Zhongshan iron God lock industry Co., Ltd. also sped up the difficulties of enterprises. Due to the rise in production costs and the appreciation of the renminbi, the company's profits have fallen by 5 to 6 percentage points this year.

Chen Yingyan said that the popularity of the hardware exhibition area of the Canton Fair is less than that of the past. The number of enterprises exhibiting locks is rather large. If the company rashly raises the price, the customers will turn their attention to it.

In order to increase profits, Chen Yingyan's enterprises have improved the level and quality of product design, and have shifted their focus to the direction of electronic locks with higher added value.