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European Debt Crisis In The Eyes Of A Foreign Trade Manager

2011/12/13 9:38:00 13

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Liu Chang is a business manager of an import and export company in Hangzhou. At 3 p.m. on December 8th, he walked into the general manager's office to report.

"What is the business of your department in Europe?" the general manager asked after finishing the report.

"Not very well, some salesmen still haven't received any new information.

Order

Some customers who have old customers reflect that customers are reducing procurement plans.

Although it still belongs to the peak season of foreign trade in theory, the weak consumption in European market has affected their company's

Exit

Business.

The general manager sighed. Liu Chang walked out of the office like that when he came.

Liu Chang's foreign trade company purchases tea from Zhejiang every year.

clothing

And export of complete sets of equipment to foreign countries.

The company set up more than 10 foreign trade departments according to different commodities or different varieties of the same commodity. Each business department has a salesman in the European region.

Almost all the managers of the Department reflect that the salesmen in the eurozone are the hardest. The old customers frequently ask for a price cut or an extension of the payment cycle. Some even cancel the order, and the workload is heavy, but their performance is dropping.

Xiao Bao is a salesperson in Liu Chang's business department. He is mainly responsible for promoting clothing in Italy market. In September, he did not receive new orders, but in October he did not.

"My old customers are complaining that the economic situation is not good, we can not sell the goods, the next order should be postponed, and do not rule out the possibility of cancellation."

Xiao Bao is eager to develop new customers to fill the original order cancellation losses, but the situation is not ideal.

Since June this year, sales in Europe have gone from bad to worse. Buyers are constantly coming to the news that new clothes are not very willing to buy. People prefer to buy the old ones last year, because the clothes of the old ones will be discounted.

"This signal makes me understand that although the European debt crisis is a sovereign debt crisis, people are still affected, and people's consumption power has begun to decline."

This is not what Liu Chang is most worried about. After the depreciation of the euro, the list has already shrunk rapidly.

Like many foreign trade companies, Liu Chang's product quotation is fixed at the time of signing the contract, which means that the exchange rate will fall and the sales amount will drop when the company settles.

Liu Chang took out some contracts that had already been concluded, pointing to the above way of settlement, saying that everything here was written in euros and lost on the exchange rate.

"Look at this 80 thousand euro deal, when the contract was signed in September, the euro was 8.7084 against the RMB, and by December, the exchange rate was only 8.4615, which means that we lost 3% on the exchange rate."

In fact,

Zhejiang

Some businessmen have a headache than Liu Chang.

"There are about 700000 overseas Chinese in Wenzhou, most of whom are concentrated in Europe. They feel the impact of the European debt crisis at the earliest and most realistically."

Zhou Dewen, President of Wenzhou SME Development Association, said that these businessmen have clearly felt that the number of export commodities has begun to decrease and trade disputes have increased.

Fortunately, after the baptism of the financial crisis in 2008, they already had the experience of coping with the crisis, and they began to fight for emerging markets in South Asia and the Middle East.