Encounter Exchange Killer Shoe Enterprises Pformation Urgent

The appreciation of RMB has an impact on export enterprises. It is imperative to achieve industrial pformation step by step. The profit is 3%, and the local currency appreciation is 4%.

The accelerated appreciation of the renminbi this year has triggered a loss of exchange, which has added to this small profits export business.

Although these former foreign exchange earning households have alleviated the losses caused by exchange rate fluctuations by various measures, they can only be solved urgently.

To fundamentally solve the problems of survival and development faced by Chinese export enterprises, it is urgent to upgrade and upgrade industries.

The first biggest killer of exchange losses was "the price reported in the previous quarter is still being implemented, and when it comes to export earnings, it is far away from the foreign exchange rate originally quoted."

A Zhejiang business owner made a rough calculation. The contract period was 1 million dollars for 6 months, and the value was about 7200000 yuan at the beginning of the year. When it reached the payment period, it only cost about 6800000 yuan, which shrank by 400 thousand yuan.

"For some enterprises, exchange losses have become the" biggest killer "of squeezing profits.

Zhang Xianping, an analyst with Donghai securities, who is studying export enterprises, said that the acceleration of the appreciation of the renminbi means that the profits from the US dollar denominated export enterprises will suffer direct exchange losses.

"Small and medium-sized export enterprises with low profit margins have been hit most, especially textile and garment enterprises."

CIC securities analyst Kong Jun said.

Reporters learned that the average profit margin of textile and garment industry was around 3%, while in 2008, the yuan appreciated 4% against the US dollar in the first quarter.

"The loss of foreign exchange is difficult to control, leading to the fact that export companies are afraid to take orders with longer contracts."

Kong Jun said, "on the one hand, some enterprises are facing difficulties in survival. On the other hand, enterprises are afraid to take long-term orders."

Zhang Xiaoji, Minister of Foreign Economic Research of the development research center of the State Council, recently reminded that the cost pressures of export enterprises are rising and profit margins have dropped significantly.

In addition to exchange losses, the rapid appreciation of RMB has weakened the price advantage of export products, and indirectly reduced the profit margins of enterprises.

Taking the textile and garment industry as an example, according to the relevant departments' estimation, the sales profit margin of the garment industry will drop by 1% to 4% every 1% appreciation of the RMB, so many export enterprises try to save profits from the "first killer" exchange loss.

A person in charge of clothing export trade in Zhejiang, Eral, said: "with European merchants, we will try to demand settlement in euros, and the risk of the euro exchange rate is much smaller than that of the US dollar".

"Dealing with old customers usually locks on a rate acceptable to both sides of a paction."

Said the head of the sailing company.

Reporters learned that spot settlement, settlement of currency diversification, long-term orders "dismantling", the conversion of RMB loans into US dollars, and more imports to reduce costs are common strategies for exporters to deal with exchange losses.

"To change the status quo, enterprises must enhance the bargaining power of trade, pfer relevant costs, and increase profit margins."

Zhang Xianping said, "ultimately, we can only rely on improving the added value of products."

Guangdong's export footwear industry is adjusted to save itself. Guangdong's footwear exports occupy half of our country.

In the first half of this year, the number of export footwear products in Guangdong decreased significantly, but the export value still increased, and the number of export enterprises decreased by nearly half. However, the average export price of each pair of shoes increased by nearly 30%.

Experts believe that the first half of this year's footwear exports "one liter and one drop" indicates that the adjustment of industrial structure is accelerating.

In 2007, Guangdong's footwear exports amounted to 3 billion 470 million pairs, valued at 9 billion 200 million US dollars, accounting for 42.5% of the total export volume of footwear products in China.

However, this year, due to the continued appreciation of the renminbi and the sharp rise in raw materials and other unfavorable factors, Guangdong footwear exports have seen a sharp decline after years of continuous growth.

According to the latest statistics of Guangzhou customs, Guangdong exported 1 billion 630 million pairs of footwear products in the first half of this year, down 15.8% from the same period last year, worth 4 billion 960 million US dollars, an increase of 9.2%, and the export average price was 3 US dollars, an increase of 29.6%.

Affected by many factors, Guangdong footwear export enterprises have significantly reduced this year. Enterprises with export performance dropped from 5811 in the same period last year to 3924 in the first half of this year. Among them, the decline of footwear export enterprises in the Pearl River Delta was even more obvious, from 5043 in the same period last year to 2617 in the first half of this year, with a drop of 48.1%.

For this data, Qiu Xiaoguang, President of Guangdong Footwear Manufacturers Association, believes that this reflects a good sign of the structural adjustment of the footwear industry. It shows that small businesses are being accelerated by large enterprises, some enterprises are pferring to Guangdong's northern Guangdong mountains and East and West wings, and some small businesses that originally made shoes for export have been pformed into supporting factories for large factories.

Rely on industrial pformation to achieve final upgrading. "If export enterprises can have their own brands, their profits will increase to about 6 times now, enough to meet the appreciation of RMB, raw materials and energy costs."

Zou Jianhua, executive director of the China World Economic Association and professor of Zhongshan University, studied the industrial economy of the Pearl River Delta for a long time. He recently visited the more than 170 enterprises in the Pearl River Delta region and said: "in the long run, solving the problem of low profits of most export enterprises can only rely on the upgrading and pformation of industries, and the establishment of private brands."

According to the press, most of the export enterprises in China are processing enterprises without their own brands and low added value of products. Only 10% of the profits can be obtained in the whole industry chain, while the brand enterprises occupy 50% of the profits and the sellers occupy 30% of the profits.

"Enterprise upgrading is not just upgrading from technology."

Professor Zou Jianhua emphasized that enterprise upgrading should start from four aspects: enterprise system, technology, product and market concept.

"Especially the enterprise system, taking the PRD as an example, many enterprises are still in the initial stage, and it is urgent to establish a modern enterprise system."

Professor Zou Jianhua believes that upgrading products must focus on cultivating products that can meet export needs and meet the needs of the domestic market, rather than just "sell abroad".

In addition, Professor Zou Jianhua suggested that in the process of industrial upgrading, we should pay attention to the combination of government guidance and market regulation, and combine key breakthroughs with cluster development.

According to the introduction, in order to cope with the current predicament, the Pearl River Delta region with "three to one supplement" and "two high one low" enterprises are actively creating "professional towns", such as Dongguan Houjie furniture professional town and Changan construction professional town.