Profits Of Some Enterprises Increased But Profits Hit Bottom.

"In the first half of this year, our

"At present, the company is already marginalized."

Pan Zhaowen regrets that enterprises are from 2002 to 2004.

According to the insiders, the export clothing generally takes a small profit but quick turnover way. According to the current cost, enterprises should raise their prices at least 15% before they have normal profits, while customers are willing to raise their prices by 5% or less.

In the process of negotiating prices, many enterprises have split up with old customers who have worked together for many years because of the price negotiation.

At present, many enterprises in the textile and garment industry are operating at zero profit.

According to the statistics of the Ministry of Commerce, orders for textile enterprises generally increased by 15% - 20% compared with the previous year, and the price range of individual products was even higher.

However, foreign businesses are generally unable to accept more than 10% to 15% raise prices. Some European and American customers have begun to reduce their purchases in China, and some low-end goods tend to purchase from low cost regions such as Southeast Asia.

Pan Zhaowen's Jiarong Garments Co., Ltd., because of the "Eagle enterprise" in the South China Sea, is not nervous about financing. The high cost is the biggest reason for the company's low profits. "In 2008, the financial crisis could not get the order, and now there is an order not to answer."

Pan Zhaowen said that because the products were exported to the United States and settled in US dollars, the exchange rate problem also had a certain impact on them.

The RMB exchange rate has risen from the highest 8.6 in 1994 to about 6.3 today, and the appreciation rate has reached a new high. Especially in recent years, the appreciation rate is relatively large every year.

According to the exchange rate at the time of order, many enterprises may have a profit of 5% to 10%, etc. after a series of processes such as development confirmation, purchase, production and delivery, when they get the money, it is often 35 months later. According to the exchange rate at that time, the net profit of 2% to 3% is likely to be reduced. "The more you do it, the more you will lose."

"Compared with the same period last year, sales increased by 10%, but profits were very thin."

Tan Mingkuang, chairman of Foshan Everbright Clothing Co., Ltd., is also deeply impressed by this. Now the labor cost has increased by about 20% a year, coupled with the appreciation of the renminbi and the high cost of production, which has seriously restricted the growth of profits.

The increased cost can not be directly reflected in the product, but only by "running volume" to increase profits.