Exchange Rate Factors Bring Fujian Shoe And Garment Enterprises To Participate In The Exhibition To Increase Their Quotations

On the issue of exchange rate, buyers and exporters often wish their country

3 months, short bills are popular.

Affected by the spread of the European debt crisis, China's shoes and clothes and other major foreign trade markets are recovering slowly, especially in foreign trade shoe enterprises.

Recently, 6 professional exhibitions organized by universal resources were held at the Asia International Expo, Hongkong.

There are more than 140 in Fujian.

Because these industries are labor-intensive and more concentrated export enterprises such as shoes and garments, the related enterprises are often smaller and have little added value space and are vulnerable to cost factors.

The global market changes caused by the financial crisis pose severe challenges to these enterprises.

Reporters learned from the exhibition that Minnan enterprises are actively taking measures to increase product research and development, launch low-carbon green products and other measures to cope with the changing export situation.

"Price fixing" is the most serious injury for businesses.

In October 25th, the central parity of RMB against the US dollar was quoted at 6.3425 yuan, breaking through the 6.35 pass in one fell swoop, setting a new high since the reform.

Since the beginning of the year, the RMB exchange rate has hit a new high for several times, and its appreciation has exceeded 4%.

In the context of increasing cost of manpower and raw materials, financing difficulties and external demand, the appreciation of the renminbi has become the sword of Damour, who is hanging on the head of China's foreign trade enterprises.

A few days ago, the US Senate passed a motion aimed at forcing the renminbi to accelerate appreciation. Although market analysis generally believed that the bill was almost impossible to form a law at last, the negative impact brought by it had become a worry for foreign trade enterprises.

Exhibitors are generally worried that the pace of RMB appreciation will accelerate, which will also affect their psychological expectations of the export prices of products.

Reporters interviewed at the exhibition found that the RMB exchange rate affects the sensitive nerves of foreign trade enterprises.

"Recently, the RMB exchange rate has reached a record high, and the profit margins of our enterprises have narrowed considerably. Several export orders signed in the first half of this year have been on the brink of losses."

At the exhibition, many foreign trade enterprises are worried about this.

"We do not dare to pick up the bill now.

Quanzhou Li Jia handbag Co., Ltd. Yang told reporters, "our industry is generally 5% profit margins, the appreciation of RMB once more than 3%, many enterprises will not be profitable."

Mr. Yang said that under such circumstances, the pressure on export enterprises dominated by "price fixing" is undoubtedly enormous.

Exchange rate considerations into cost considerations

Wang, manager of Quanzhou origin, said that their products were mainly exported to Europe and the United States. After the outbreak of the European debt crisis, the orders of the companies plummeted, and many buyers offered to postpone orders.

November is the peak season for orders, but this year the situation is not optimistic.

In order to avoid exchange rate risk, enterprises and foreign businessmen will lock the price for a period of time when signing contracts, generally stipulate the fixed dollar price within two or three months.

"This is a risk shared by both sides."

Manager Wang said.

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Many exhibitors also indicated that they also included exchange rate changes into cost and price factors, such as making an agreement on the exchange rate in export contracts. If the appreciation rate of RMB against the US dollar exceeds 3% within the delivery period, the two sides will re adjust the contract price.

Some enterprises also say that because of the pressure of product competition, they dare not ask for a floating exchange rate method.

Participating enterprises in Fujian to raise quotations

Because the export orders are mostly settled in US dollars, the appreciation of RMB has reduced the profit margins of China's export enterprises in recent years. Facing the accelerated appreciation of the renminbi, we want to raise prices and worry about the loss of orders. Foreign trade exhibitors are very entangled.

"This year, raw materials have been rising, and the wages of workers have also risen rapidly. The minimum monthly wage for workers has been 2500 yuan / month, and even high up to 5000 yuan / month.

With a number of cost pressures coming, we have to raise prices.

Our export price has risen by about 15% this year. "

Mr. Chen, Zhangzhou Li en light industrial products Co., Ltd. said that last year their total sales amounted to about 80000000 yuan, but sales this year dropped by nearly half compared with last year, estimated at around 40 million yuan.

Because of the increase of comprehensive cost, the profit margins of enterprises have been greatly squeezed.

Under pressure, the instinctive reaction of export enterprises is to raise prices.

The reporter interviewed ten enterprises at random on the exhibition site. They almost invariably indicated that "the export quotas have been raised", the increase ranges from 10% to 20%, so as to cope with the pressure of "unbearable cost of raw materials".

But because of the fierce competition in the market, the increase in product prices is mostly lower than the increase in production costs.

A survey conducted by global resources showed that although some suppliers' product prices had risen by more than 15%, most of the respondents said they would raise their earnings by less than 10%.

Innovative products only have bargaining power.

In the face of changes in the international market, the industry analysts believe that only by strengthening research and development efforts and constantly innovating products can we have the right to speak in foreign trade negotiations.

Zhou Wei, general manager of Xiamen xintaihua Travel Products Co., Ltd. said that although exchange rate and cost have a certain impact on export enterprises, the most important thing for enterprises is to develop products with higher added value and improve production efficiency.

Reporters found that the company produced twenty or thirty kinds of picnic bags, each package pays attention to details of the design, there are many changes in detail.

"We invested 2 million yuan in design fees last year, and we can produce new models every month.

Product innovation keeps our orders stable and export prices also rise by about 8%.

Zhou Wei said.

"Keep innovation and ensure quality, and you will be invincible in any economic environment!" Chen manager of Xiamen's IDD company told reporters that their company hired European designers specially, so that the company could quickly understand the preferences and needs of European and American customers, and the products produced could also be favored by local customers.

This year, the company's sales increased over last year, and export prices also rose by 10%-20%.

In 2008, when the international financial crisis broke out, their sales volume also rose.

In fact, no matter what economic environment it is, companies are doing well, paying attention to innovation, grasping the quality of products and serving well.

Chen said.

Huang Tanwei, President of the global resources exhibition, said that the concept of environmental protection in the product is a major trend in the future. Global resources will add a lot of green products from the spring exhibition in April next year, which will attract more international buyers of environmental products.