Exchange Rate Fluctuations To 20%, Foreign Trade Spinning Orders Were Pushed Off.

The 114th Canton Fair, which has just concluded, has declined to varying degrees regardless of the volume of transactions or the number of buyers. Recently, a research report on more than 1000 small and medium-sized foreign trade enterprises in the Pearl River Delta shows that 20.09% of the more than 1000 small and medium sized foreign trade enterprises in the Pearl River Delta have their orders due to exchange rate fluctuations. Since 2013, the average amount of orders taken by enterprises has reached 578 thousand US dollars.

Recent surveys of foreign trade enterprises in the Pearl River Delta have found that there is a single profit that has been squeezed by OEM enterprises. Nowadays, manufacturing enterprises are mostly in the throes of transformation and upgrading. Enterprises are concentrating on reducing costs, building brands and expanding sales channels.

However, the transformation and upgrading of the government led enterprises are facing bottlenecks. In order to complete the transformation of manufacturing industry, many enterprises need further reform. At present, the upgrading is only in some skills and means. The real technological innovation is stagnant due to lack of policy guarantee. Enterprises are looking forward to the policy that can really enhance the enthusiasm of enterprise transformation and upgrading.

　　 Small step upgrade

The transformation and upgrading of enterprises in the Pearl River Delta region have begun to appear in Shenzhen Huaqiang North, Dongmen business circle and other places.

According to CAI, director of the economic and technological Office of Songgang street in Baoan District, Shenzhen, many foreign trade enterprises continue to do foundry on the same side when they export to domestic market, while they start to make their own brands to the domestic shopping malls, and others build their own brands on Taobao micro-blog.

Virginia in Shiyan, Baoan clothing The company, formerly known as the "secret Vitoria" secret agent for international underwear high-end brand, has built its own brand in the country since last year, and opened a store in a large shopping mall. The company's staff Miss Luo told this reporter that the same quality underwear, foreign brands than domestic brands are valued at five hundred or six hundred yuan, the two brands are far apart from the value added.

Liu Wenhu, general manager of Guangzhou Weiye leather goods Co., Ltd. recently relied mainly on reducing costs to improve the enterprise environment. According to him, the gross profit of leather goods industry has dropped from fifty or sixty percent three years ago to twenty or thirty at present. The main profit is mainly due to lower labor costs, raw materials and logistics circulation costs, but now the cost is rising, and the selling price is not raised.

"We have transferred our peers to Vietnam, and the profit can be returned to fifty or sixty, mainly because of the low labor cost there." Liu Wenhu said. Like many enterprises in the Pearl River Delta, they began to shift from their production to key purchase orders, then organize raw materials and subcontract them to some small factories. Relatively speaking, the management costs, site rental costs and production costs of small factories are much lower than those of large factories.

Now, in the Guanlan Foxconn factory, various small and medium-sized factories are stationed. After Foxconn orders, the sub enterprises are subcontracted to lower cost enterprises in order to reduce costs.

Labor costs, rising raw materials and appreciation of the renminbi are the three factors facing the current generation of industries and foreign trade enterprises.

Reporters interviewed a number of manufacturing enterprises, found that the manufacturing industry based on OEM, mainly through the reduction of costs, brand building, and expand sales channels and other small steps to upgrade, and their own parts manufacturing enterprises, efforts to upgrade the value of products through technology upgrading.

Guangdong Shunde Shun Yan new material Co., Ltd. is transformed from the former Foshan Shunde District Shun Yan Plastic Co., Ltd., and boss Fu Manhua is improving the efficiency through changing management methods, allowing employees to enjoy shares inside the company, participating in corporate dividends, and increasing employee benefits, which obviously improves the company's production efficiency. In terms of the technology of plastic production and development, some products can also increase the added value and sales price of products after winning international awards.

"Improve product technology content and performance, do high-end products, do a lot of peers can not do things temporarily, so that enterprises will have pricing power, profits rise naturally." Fu Manhua said. {page_break}

　　 Long painful period

At the just concluded autumn Canton Fair, the two phase of Guangdong's export turnover was US $120 million, down 4.1% from the previous one. This is not surprising for China's manufacturing sector, which is undergoing transformation and upgrading.

Baoan Guanlan yhengchang garment factory Qiu director Chang told reporters that now customers will compare the prices of some Southeast Asian countries. Obviously, the labor cost of Vietnam and Thailand is lower than that of China.

"Workers over there earn less than one thousand yuan a month." Chen Junxie, who worked in VTC group in Vietnam, told reporters that he often saw reports of Chinese enterprises investing in Vietnam from local news in Vietnam.

Today, China's manufacturing industry has entered a painful period of transformation and upgrading. Most of the respondents told this reporter that for most SMEs with insufficient capital, R & D investment is too large, and small businesses lack strength upgrading technology. At the moment, they can only start with subtle improvements, and upgrading is impossible.

Cai told reporters that in the past, because foreign trade was too good to make money, enterprises did not want to spend their energy to build brands, but in recent years, after the deterioration of foreign trade, there was too much competition in the domestic market, and the recognition of the market for brands was getting higher and higher. "

But it's hard to build your own brand. A leather bag sells at three hundred or four hundred of the factory price and sells for three thousand or four thousand yuan to the mall. Liu Wenhu knows this is the value of the brand. But he did not have the courage to put tens of thousands of dollars into this bottomless pit. "If you want to find store outlets, advertise, do not want to start with four or five million, and follow up will continue to invest, but do not know when to return. I might as well take the money to invest in real estate and shops. It is reported that many enterprises in Shenzhen have switched to factories, restaurants, golf courses and other three industries after closing factories.

According to Director Cai, there is a foreign trade enterprise that produces sofa. The price of the product is about twenty thousand or thirty thousand yuan. Last year, the enterprise rented a shop in Shenzhen Century Center, with a monthly rent of 100 thousand. Although it is still insisting on losing money, it does not know how long it will last.

But there are also many successful people. Baoan Guanlan yhengchang garment factory Qiu director Chang told reporters that when a colleague of his factory came out, they lost nearly ten million, but he did not give up. Instead, he hired two from South Korea for a million annual salary. Designer Korean Edition clothes And then spent $3 million on models and publicity, and now he is the first to receive two hundred customers.

But Qiu director is still insisting on doing OEM. "At present, the market is stagnant, the transformation is very difficult to survive, and large-scale investment is too risky. Transformation does need the courage and courage to build up momentum and adequate capital support." He said.

"Now can only continue to do the old customers, not to receive new bills, but also dare not pick up the list." Qiu said, the greater the loss, the greater the loss.

Peng Qinwen, vice president of Shenzhen Jiawei photovoltaic lighting, told reporters that after the listing, the company has been improving R & D capability, especially in the electronics industry. However, any enterprise transformation has a long-term process. It is hard to make money in the early stage. It will not be able to get rid of the past.

Cai said frankly, the Pearl River Delta region encourages the transfer of production shops, leaving behind the development and advanced manufacturing industries, which is inevitably a process of survival of the fittest.

　　 Looking forward to further policy

Ding Li, director of the center for competitiveness of small and medium enterprises of Guangdong Academy of Social Sciences, told our reporter that at present, enterprises are in the throes of pain, and there is little room for survival. "Transformation and upgrading can not be solved by government guidance. The key is to rely on market competition. However, there are many problems of opacity and inequity, and there is no good environment for transformation."

Although the reform of the commercial body launched by the State Council has effectively stimulated the initiative of private enterprises, the implementation of the "six principles" of foreign trade has saved the cost of commodity inspection and accelerated the export speed for enterprises. But in the eyes of many business owners, these rules can not solve the fundamental problem.

A Datong research report shows that the credit payment method of export-oriented small and medium enterprises is still missing, resulting in a large number of small and medium-sized foreign trade enterprises lost a large number of orders. 33.22% of the enterprises had "lost orders" because of the failure to reach an agreement. More than 70% of the enterprises had a funding gap, with an average monthly shortfall of 675 thousand and 500 yuan.

Even more serious is that nearly 30% of enterprises in the overall orders have not yet seen significant growth, the funding gap is still showing a trend of expansion. A number of enterprises have suggested that effective financing services are crucial for small and medium sized foreign trade enterprises in the coming period. Nearly half of the enterprises clearly indicate the need for continuous financing. The main purpose of their financing is upgrading of production equipment, research and development of new products, stocking of raw materials and marketing promotion.

In addition, Zhang Wenpei, director of Mei Fu precision manufacturing Shenzhen limited, told reporters that sales of foreign companies have dropped by 30%-40% this year, while the domestic market has just been developed. An important reason for the company's lack of motivation for its R & D is that there is no protection of property rights system in China, and no talent is left.

Another LED manufacturer, Liu boss, also believes that China's piracy is so severe that people are reluctant to spend time studying it. The cooperation with the state-owned enterprises in the state-owned enterprises is too cumbersome and urgent to reform the system.

In fact, the transformation from low end to high end has the same course in Europe, America, Japan and Korea. But Ding Li believes that because of the differences in system, China is facing more difficulties. "Behind many projects, there are power to support. What enterprises want is not innovation, but how to do well with officials, how to reduce taxes, reduce rent and get subsidies."