Quanzhou Foreign Trade Shoes And Clothing Enterprises Need To Cross The "Three Barriers"

The 110th Canton Fair ended last week.

At this Canton Fair, the volume of export volume in the past main market of export enterprises - the European and American markets decreased by 19% and 24% respectively, and the potential markets such as Africa, Asia and Latin America grew significantly.

The "export report card" reflects the overall status of the export industry.

How to deal with the downturn in the external demand market has become a top priority for many foreign trade enterprises.

After visiting the exhibitors of Canton Fair in Quanzhou, reporters found that foreign trade enterprises, which had experienced the baptism of the financial crisis, were ready to cross the "three barriers" in the face of internal and external troubles such as sluggish external demand and rising domestic production costs.

Demand in Europe and America decreases?

"Gold rush" in emerging markets

"In May, when I joined the exhibition, I was not optimistic. This is worse than then.

It is no exaggeration to say that we feel that customers have reduced 1/3 or even more.

Although there are more customers in Europe and America, many of them are spectators.

Referring to the effect of exhibitors, Liu Aiping, head of Fujian Mu Lin shoes and Garment Development Co., shook his head frequently.

According to him, the main products of the EVA are footwear products, which are popular with European and American consumers. Exhibitors can attract many businessmen from all over the European Union and the United States. But this year, they obviously feel the decrease of merchants.

The official statistics of the Canton Fair confirmed Liu Aiping's statement.

According to statistics, the number of purchasers in Europe and the United States increased, but the number of inquiries was more, and the actual turnover decreased by 19% and 24% respectively.

However, another group of data provided opportunities for foreign trade enterprises: in the Canton Fair, emerging market pactions were active, India, Russia, Brazil and other emerging economies increased by 9%, and potential markets in Africa, Asia and Latin America increased by 39%.

In view of the low market situation in Europe and America, Quanzhou foreign trade enterprises such as AI Pai, Lai Deng Ke and Xie Xiang trade have all set their sights on emerging markets.

"At present, the South American market has become our biggest growth spot, increasing by more than 20% per year.

The steady growth of old customer orders and the increasing number of new customers.

Besides, the Middle East market is also good.

Zheng Dongfang, vice president of Ai Group (China) Co., Ltd.

It is reported that AI faction has developed agents in South America, Europe and the Middle East.

"Although the general situation of this Canton Fair is general, our order is still increasing, and it depends on emerging markets such as Turkey, Japan and Russia.

Although their orders are relatively small, they win in a large number, and several small orders add up to a large order.

Jinjiang Lai Deng Ke shoes and clothing trade Co., Ltd. business personnel also said that the company's market structure has also been adjusted, the share of emerging markets has gradually expanded.

OEM profits decrease?

Promoting original design and brand

At the Canton Fair, the biggest disappointment for exhibitors was that the European and American markets had fewer spectators.

According to the reporter, price is the glue point of buyers and sellers.

"Domestic raw materials, labor and financing costs have risen, pushing up product prices by 10%~30%.

However, foreign businesses generally do not accept the increase in prices, which is 5% good.

Many exhibitors in Quanzhou have said that the traditional OEM (OEM) mode allows enterprises to be at the lowest end of the "smile curve". They have neither brand nor channel, and have no voice in international pactions.

Although it is difficult to raise prices, many enterprises are still facing difficulties. They have successfully used innovative products to impress their customers and win the high-end market.

On the booth of dsen clothing, the reporter met Andy, a German businessman, to negotiate new orders.

It is reported that the customer has been working with the company for four years, and the design and R & D capability of the company is what they want.

"The biggest advantage of our company is that the product is designed independently, and then it is provided to customers. Therefore, there are more customers in Europe, Germany and the United States, and the price is not bad."

The staff of Tai Sen garment exhibition booth introduced.

Speaking of independent design, AI Pai and Da he metals are quite representative.

The former mainly promotes personalized creative products, original dolls, creative homes, personal adornment accessories, etc. the latter mainly promotes stationery products based on cartoon characters. These two companies integrate functions in creative design, making cultural and creative products practical and ornamental, and win the favor of high-end merchants in Europe, America, Italy, Japan and South America by borrowing creative products.

Another foreign trade enterprise has reached the brand name in the international market by establishing its own channel.

According to Zhang Shaohua, general manager of the company, the company has tried to sell its own brand "climbing climbing" overseas since 4 years ago. Now it has brand agents in Germany, Saudi Arabia, Dubai and Southeast Asia, and has established an independent sales channel.

"It is difficult to make independent brands abroad. Even after so many years, we feel that we are still in the stage of foundation.

But after doing it, it feels great benefit. There is much less profit lost in the middle market, and deeper understanding of market demand, and more control over terminal sales.

Moreover, I believe that the domestic manufacturing industry will lose the cost advantage one day, so we will stick to the brand road.

Zhang Shaohua said.

It is reported that the Shishi Canton Fair exhibitors from 30 backbone enterprises, such as Jian Jian, ye Bao, Dina, Hua Fei and Kai Lai, have fewer companies looking for OEM processing orders than in previous years.

Exchange rate loss is great?

Using financial instruments to reduce risks

At the current Canton Fair, exchange rate fluctuations brought by the appreciation of the renminbi are also the focus of attention of many foreign trade enterprises.

The yuan has repeatedly hit a record high against the US dollar, and after the US Senate passed the renminbi exchange rate bill, many companies lamented: the exchange rate has changed, and months of hard work have gone.

Although the company hopes to reduce losses through RMB settlement, the current settlement of RMB accounts for a small proportion in international trade.

From the current Canton Fair, only a few countries in Southeast Asia and Hong Kong and Macao in China accept RMB.

Therefore, more and more Quanzhou's foreign trade enterprises begin to try to use financial instruments to reduce risks.

"Now the main business customers only accept the US dollar settlement.

Now the profit is not high, if we do not take any measures to avoid exchange rate fluctuations, the loss will be great.

We are now buying some financial instruments to lock in the exchange rate and minimize losses.

Bo Jia, Xie Xiang Trade and other enterprises responsible for each person said.

According to them, although many orders are short, they can be shipped at least three or four months later. During this period, the losses caused by exchange rate fluctuations can only be borne by the enterprises themselves.

An insider at the scene made an estimate to reporters that the RMB appreciated by 1 percentage points every time, and the profit of the company should be reduced by at least 3 percentage points.

According to the size of the order, the loss of the enterprise due to exchange rate fluctuations can range from several hundred thousand yuan to tens of millions RMB.

It is understood that enterprises should adopt three ways to deal with exchange rate risk: first, sign the exchange rate locking contract, commonly known as "lock remittance"; two, try to sign short lists to avoid long bills; three, use financial derivatives and export credit insurance.

At present, most foreign trade enterprises in Quanzhou are short sellers.

"More and more businesses are trying to lock in this year, which is a good start.

Quanzhou's foreign trade enterprises can also learn from the experience of multinational companies in avoiding exchange rate risk: hedge the proportion of foreign exchange earnings, and adjust the hedge ratio accordingly according to the estimated risk of exchange rate fluctuations.

Even if the renminbi suddenly appreciates, losses will still be expected.

Suggested by the insiders.

Although the situation is not good enough, Quan enterprises still have the courage to face the international market.