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    More Than Half Of The Garment Companies Are Affected By Exchange Rate Losses.

    2012/11/7 9:14:00 24

    Clothing CompaniesIndependent Clothing BrandsTextiles

     

    Yesterday, the exchange rate of RMB against the US dollar closed again, which was 6.2447, which is the eighth time since the nine trading days.

    In the case of continuous RMB trading, the export industry has become one of the most "uncomfortable" industries.


    "Now many clothes in the mall are no longer Made in China, China's

    Clothing company

    The export sector has already been squeezed.

    Lu Zheng commissar, chief economist of Industrial Bank, said that the economic downturn in Germany during the 2001-05 period was only half that of the euro zone. It had to push ahead with the reform of breaking the rigid labour market, resulting in slower real wages and slower fiscal spending.

    Now, looking back, the "failure" of the year laid the foundation for Germany to shine.

    Think of the pain of 1997-03 and the high growth of 2004-07 in China.

    It is a pity that more people say that because of the rising labor costs, the exporters who are mainly manufacturing industries are out of breath, and the constant appreciation of the RMB exchange rate makes the industry face challenges.


    Chen Jing, an analyst at Bank of China, said that the RMB exchange rate continued to rise and the cost of its exports increased significantly, making Chinese enterprises less competitive in the same international business.

    At present, China's exporters still rely mainly on labour intensive manufacturing.

    textile

    And other industries are among the best in export products.

    Data statistics show that RMB appreciation is 1% per cent, and the profits of textile foreign trade enterprises are down by 1% to 4%.

    If the cost can not be reduced, the profits of the enterprises will be quickly suppressed.

    In the first half of this year, 25 of the 41 textile and garment companies had negative earnings, and some of them lost more than one million yuan.


    Lu commissar said that not only China's own processing trade industry has declined, even foreign direct investment (FDI) has been reduced, and the international high-tech spillover is reduced, China will fear "Income Trap".

    Therefore, China must realize the pformation of the mode of economic development, aiming at summarizing the achievements of the independent garment brand building of clothing textiles, and promoting the sustainable development of independent clothing brands and textile talents.

    Change the low-end processing industry no longer has the advantage, and high-tech can not do.


    Lu's political commissar believes that the only way to save China's economy is to strengthen the flexibility of the RMB exchange rate, that is, continue to gradually expand the floating range of exchange rate, so that the RMB will be able to cope with the future exchange rate changes.

    However, many experts also believe that the appreciation of the RMB exchange rate is short-term.

    Li Wei, an economist at Standard Chartered Bank, said that the yuan did not support the momentum of continued appreciation on the economic fundamentals.

    China's home textile enterprises have few independent clothing brands, but their core competitiveness is still scarce, and their quality is still lacking.

    In order to improve enterprise construction

    Independent clothing brand

    Enthusiasm.

    After the US launched the QE3, the dollar depreciated and the renminbi appreciated. Many of the individuals and companies holding the US dollar would adjust their foreign exchange ratio, which magnified the space for the appreciation of the renminbi. After the adjustment, the renminbi will probably return to normal.

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