Foreign Trade Downturn &Nbsp; Export Textile Enterprises To Fight Emerging Markets

Under difficult circumstances, many export oriented enterprises are passing through.

"Since the first half of this year, the volume of foreign trade sales has plummeted, especially in Europe and the United States.

In an interview with reporters, Zhang Sheng, Sales Department of Saint Ge clothing company in Guangdong, said:

Foreign trade downturn

Media reports said that at the Canton Fair, which opened in October 15th, most export executives said that foreign trade is becoming more and more difficult now. "Customers in Europe and the United States are hard to find. They hesitate to wait and see.

The data released by the General Administration of Customs in October 13th showed that China's import and export value was $324 billion 830 million in September, up 18.9% from year to year, a 1.2% decline, and a trade surplus of $14 billion 510 million, narrowing by 12.4% over the same period, and narrowing for two months this year.

In the first 3 quarters of this year, the growth rate of China's import and export trade was at a high level.

The monthly growth rate dropped from 31.5% in March to 18.5% in June, and rebounded to 27.1% in August and 18.9% in September.

In October 20th, in connection with the "stalls" of many factories in the wholesale clothing market in Guangzhou, a manager surnamed Ma told reporters that the current foreign trade of clothing was still in the doldrums, many merchants were mainly domestic, and there were also some exports to Hongkong and Taiwan.

Judging from the total volume of foreign trade imports and exports in China from 1 to August this year, China's export surplus has been decreasing.

According to a survey conducted by the Shenzhen Association of foreign invested enterprises for its 200 member enterprises, 90% of the surveyed enterprises fell 10% to 15%.

"Now for foreign trade enterprises, cost control is very important."

A staff member of the overseas sales department of Guangdong de Hao run Da electric Limited by Share Ltd said.

A number of enterprises responsible person said that due to the rising cost of raw materials and labor, profit margins were squeezed.

This year, steel, copper and other shocks rise, cost growth leads to corporate profits decline, competitiveness decline.

It is understood that the EU is China's largest trading partner in the main export targets of China's foreign trade. In the export products, the hardware and electrical products have maintained the status of the first category of export commodities for 16 consecutive years, accounting for 60% of the total export volume and an increment of over 70%.

In the second half of last year, the euro continued to depreciate more than 15% against the yuan. In recent days, the European debt crisis intensified, resulting in a low level of electromechanical exports.

The downturn in foreign trade is reflected in the export profit margins of some industries. Because of the impact of domestic economic inflation, the overall cost of some foreign trade processing enterprises has risen sharply, and at the same time, the overall export momentum has gradually deteriorated due to the weaker bargaining power.

It is understood that the rapid appreciation of the RMB against the US dollar has led to no profits or even losses for the export of the enterprises. Therefore, the larger the list, the more losses, the better not to take orders.

On the one hand, the cost of raw materials, labor, exchange rate and other reasons has increased. On the other hand, it is also facing the economic downturn in Europe and the United States, coupled with domestic monetary tightening, and foreign trade downturn is inevitable.

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Export diversion

On October 19th, Shen Danyang, spokesman of the Ministry of Commerce, said in an interview with the media that China's foreign trade development has been unstable and uncertain factors have increased in recent months.

Shen Danyang also predicted that China's foreign trade will face more severe challenges in the fourth quarter of this year and the first quarter of next year.

Public data show that this year the RMB exchange rate has repeatedly been high, the cumulative appreciation has exceeded 4%.

This proportion exceeds the expectations of export oriented enterprises.

The recent dispute over the Sino US exchange rate bill has exacerbated the worries of enterprises in the future.

Where is the way out for China's foreign trade and how to deal with the weak market in Europe and America? Reporters interviewed by different companies in textile and clothing, electromechanical and other enterprises found that there are two ways to deal with the problem: a common way is rising prices, and the price of enterprise orders is up 5% to 10%.

The cost of production remains unchanged, and the appreciation of RMB is bigger than expected.

In order to offset exchange rate risk, many enterprises do not receive orders over 3 months.

Under the current difficult situation, many enterprises have begun to actively pform, improve the added value of products through innovation, and raise the voice right in the buyer's market, among which the main brand of "energy saving and environmental protection" has become a trend.

Take solar radio and flashlight as an example, some enterprises can harvest millions of orders from Europe and the United States alone this month.

"Market forces forced enterprises to adjust and pform.

The new round of adjustment and shuffling begins.

Enterprises with strong adaptability can gain opportunities for growth and development, otherwise they can only withdraw from market competition.

Luo Kunming said, "there is no big improvement in the current business environment. What export enterprises do is to actively adjust and pform and speed up the optimization and upgrading of industrial structure.

From low-grade products with low added value to high-end products with high added value.

In addition, many export oriented enterprises are trying to develop middle and low end emerging markets by diversifying their trade partners to make up for the gap between the European and American markets, among which BRIC is the focus.

"Through the contact with merchants in emerging markets such as India, we find that the product quality of these countries is not high, but in fact there are more opportunities," said Zhang manager, Guangdong Saint clothing company.

"Compared to mature markets in Europe and the United States, this emerging market should not be underestimated," Zhang said.

Judging from the current macro-economic trend of China, the overall improvement of business needs to wait until the first quarter of next year. Only policy changes can improve the foreign trade industry.