The Cost Rises Rapidly, And The Enterprises In The Pearl River Delta Are In The Dilemma Of Receiving Orders And Quoting

Since the beginning of this year, the labor-intensive products export enterprises in the Pearl River Delta are facing unprecedented challenges due to the rising cost. They are in a dilemma when accepting orders and quotations. They are not only worried that the price is too high and the competitive advantage will be exhausted, but also that the quotation will not keep up with the cost increase and lead to losses. "Quotation" perplexes enterprises "toy export is not ideal from January to February this year, mainly because the appreciation of RMB exceeds our expectation, coupled with the sharp rise of labor cost, some of our export products have already suffered losses. At present, many toy export enterprises are confused and don't know how to take the next order. " Li Chaoxin, the general manager of Guangdong finance and economics Daily, said in an interview recently. Li Chaoxin said that the biggest challenge facing Guangdong toy enterprises is the pressure of cost. Due to the rising costs of labor and raw materials, many toy factories have raised their prices by 10% - 35% this year. As a foreign trade export enterprise, the biggest test is the prediction of RMB appreciation in the coming months. If this part is included in the unit price in advance, it is estimated that the next price increase is too high to be accepted by customers. However, if the price increase cannot keep up with the appreciation rate of RMB, the enterprise will easily lose money. "Guangdong toys are facing reshuffle. After some enterprises are eliminated, they hope that the whole industry will have new development. We are adjusting our strategy to survive the cold winter. On the one hand, we will hand over a lot of production orders to factories in Hunan, Jiangxi and other places for processing. The cost of factories in the mainland is slightly lower than that in Guangdong, so as to absorb some of the rising costs. On the other hand, we mainly accept short-term small orders to reduce risks. " Li said. The recent appreciation rate of RMB can be described as "speeding up". According to the middle rate of 7.1418 on Friday (22nd), the cumulative rise of RMB against the US dollar has exceeded 13% since the exchange rate reform, and the rise since 2008 has also exceeded 2%. Last year, the growth rate was only 6.9%. The rise of labor cost also makes labor-intensive enterprises in the Pearl River Delta feel headache. According to preliminary calculation, the implementation of the new labor contract law will make shoe enterprises invest 130 yuan more per worker per month on average, and the cost of each pair of shoes will rise by 1 yuan, which will have a great impact on some enterprises with low added value. Zhang Huarong, chairman of Huajian group, China's largest export manufacturer of women's shoes, told reporters that due to the intersection of various factors, the profit space of almost all shoe enterprises has been compressed. Last year, the company raised its order price by 3%, but its profit fell by 5%. Orders have been raised by 3% - 4% in the first and second quarters of this year, and continue to rise in the third and fourth quarters. It is planned to increase the price by 8% in the whole year. "We mainly process for some big brands in the United States, and it is estimated that most customers can still accept the price increase. No matter whether the customers accept it or not, we must raise the price. We can not rule out the possibility that the price increase will affect the reduction of orders. But if the price is not raised, it will be very difficult for the enterprise to operate. " Zhang Huarong said. Adjustment of production layout: due to rising costs and increased market risks, many large enterprises have indicated that they will not expand their production scale in the Pearl River Delta this year. In an interview with our reporter, Guo Weiwen, a spokesman for Wanbang shoes, a Taiwan funded enterprise, said that it is difficult to recruit workers in Guangdong in recent years. However, due to the closure of some shoe enterprises this year, it will be relatively difficult to recruit workers. But the company has no plans to expand production at its Qingyuan plant in Guangdong this year, but will expand capacity in India. Zhang Huarong also said that in the past, more workers were added to expand production after the Spring Festival, but the scale of shoe-making in Dongguan would not be expanded this year. At present, the production capacity of Huajian group in Ganzhou, Jiangxi Province is approaching that in Dongguan, Guangdong Province. The two production bases each have more than 10000 employees. Ganzhou has an annual output of 8 million pairs of shoes, while Dongguan has an annual output of 10 million pairs of shoes. The labor cost of Ganzhou is more than 10% lower than that of Dongguan. What's more, Jiangxi workers are relatively stable. Next, we will further adjust the production layout to reduce the large quantity of low price Shoes were transferred to Jiangxi Province for processing, and high-end shoes with small quantity, high difficulty and high added value were produced in Dongguan.