In December 2010, the foreign trade prosperity index closed at 1,939.92 points, a decrease of 11.69% compared with November, showing a clear downward trend; the foreign trade price index closed at 139.68 points, up by 7.86% from November, and rebounded to a certain extent. The foreign trade confidence index closed at 1059.92 points, down 3.37% from November, showing a slight downward trend.
First, the foreign trade prosperity index in December 2010 showed a clear downward trend.
1. *** Appreciation squeezes export business profits. **** The center announced that as of December 31, 2010, the median price of one US dollar was 6.6227 yuan, the highest since the exchange rate reform in 2005. In recent years, although the transformation and upgrading of the industry have accelerated, overall, the price factor is still an important factor affecting exports, and the sensitivity of export prices to exchange rate fluctuations is very high. Since the second half of 2010, the exchange rate of *** against the U.S. dollar has continued to fluctuate, and the appreciation of the *** has been around 3%. This undoubtedly squeezed the limited profit margins of the industry and enterprises. This round of exchange rate fluctuations has produced three major adverse effects for the textile and apparel industry. The first is to further reduce the company's profit margin; Second, the appreciation of *** has relatively increased the cost and quotation of China's textile and clothing, which has weakened the competitive advantage of China's textiles in the international market to a certain extent; Pressure and expectation have become the biggest headache for export companies negotiating with their bargaining orders. Concerns over late-stage trends have even led directly to the loss of some orders.
2. Some orders accelerated to Southeast Asian countries. In 2010, the average unit price of China’s major commodities to the world’s total exports increased, especially in the second half of the year, and the first time in the year to double-digit growth. Shaoxing is China's textile export town. In the first 10 months of 2010, the average unit price of each garment in Shaoxing rose to 3.53 US dollars, an increase of 13.33% year-on-year. In the face of this price increase, many foreign companies stated that “more than 20% of price increases are generally unacceptableâ€. Under such circumstances, some foreign companies have already planned to reduce their purchases in China and have already transferred some orders to emerging manufacturing countries with lower costs. Fukuyama's own orders have been processed and manufactured by wholly-owned subsidiary Dalian Fushan for many years. However, since the second half of 2010, Fukuyama Corporation of Japan has begun to visit third countries such as Myanmar and Indonesia to conduct inspections. It has begun contact with relevant responsible parties to prepare for processing outsourcing or set up factories directly. The thinking of the headquarters of Fukuyama Corporation in Japan is that the processing costs of the Dalian subsidiary have been relatively fixed, and the future trend is that the cost will still increase. Under this general trend, we will gradually consider transferring some of our orders to third-party countries with more price advantages. These orders include both Fukuyama’s own orders and the orders of its customers in Europe and the United States.
3. The export market is diversified and new profit points are sought. To ensure profit, you must try to spread the risk. Faced with higher and higher cost pressures, “diversification of export markets†is also a good way to find new profit points and spread risks. For example, apart from Europe and the United States, major customers of the company may expand Asian markets such as Japan, Malaysia, and South Korea. In particular, they need to pay close attention to emerging export markets, such as the Middle East and South America, which are more active in the past two years.
Second, in December 2010, the foreign trade price index rose to a certain extent.
1. The price advantage of export enterprises has gradually weakened and prices have to be raised to ensure survival. According to statistics, 29 provinces, municipalities, and autonomous regions in 31 provinces and municipalities across the country have raised the minimum wage standard since 2010, with an average increase of 23%. The data shows that in 2010, wages of migrant workers rose by nearly 30% to 40%; in the next three years, the increase rate of migrant workers' wages will reach 30% each year, and the minimum will also be maintained at an increase of more than 20%. In addition, the price of raw materials, such as raw materials, has generally increased by 30-100% since 2010. These factors are superimposed with the factors of appreciation of ***, so that the price advantage of China's textile and garment export enterprises is gradually weakening, and many companies have to raise prices to ensure their survival. In the face of exchange rate fluctuations and rising cost pressures, coupled with the baptism of the financial crisis, more and more foreign trade export enterprises in Shaoxing have already become acutely aware of business transformation, product innovation, marketing upgrades and enhanced research and development capabilities, and improved products. The added value of these words is no longer a hollow slogan, but must be deeply involved in the actual business operations.
2. Shaoxing textile companies need to grasp the pricing power of products. The corporate management community believes that first-class enterprises have the highest realm of product pricing, and Shaoxing's textile companies need to grasp the pricing power of products. Over the years, when it comes to the competitiveness of Chinese manufacturing in the international arena, whether it is a business owner or an expert or scholar, the industry must finally point to the point that it must grasp the pricing power of products, otherwise it can only earn less than 10% of the bottom of the industry chain. Weak processing fees. What makes people happy is that some companies have already achieved this in their own fields with strong innovation and R&D capabilities. Having mastered the pricing power, the profit of the company has been greatly improved, and because the pricing power is in its own hands, the initiative to negotiate with customers is also in their own hands, so that the impact of exchange rate fluctuations is very small.
It is expected that the foreign trade prosperity index will decline slightly in January 2011. In 2011, Shaoxing textile and garment export enterprises, which have stood up for a long time, will face the “low growth and high costs†in 2011. Under the influence of many unfavorable factors such as high costs, increased exchange rate fluctuations, and the impact of the European debt crisis, the export environment of the industry in 2011 has become severe. In the first 10 months of 2010, the total value of China's textile exports has exceeded the full-year level in 2009. It is estimated that the total value of textile and apparel exports will reach nearly US$200 billion in the year, a record high for the past year, and the Chinese textile industry and apparel industry share over 30% in the international market. , has or gradually tends to be saturated. In addition, domestic production costs are also rising sharply. The average input cost of China's manufacturing industry rose sharply. In 2010, the cost of raw materials for textiles rose by about 30%-80% over the previous year, and the increase in the cost of major raw materials such as cotton was more than doubled. In terms of labor costs, the wage increase in the Yangtze River Delta and the Pearl River Delta is generally 20% to 40%. At the same time, the government has increased its efforts in energy conservation and emission reduction, which has objectively increased the environmental protection costs of enterprises. With the sudden increase in costs, the profitability of corporate exports has been continuously reduced. In particular, some small businesses may find it difficult to absorb the rapid rise in costs. Only enterprises with bargaining power that can survive in the international market in the future can pass the pressure of cost increase through price increase. Industry insiders expect that the increase in labor costs and other costs will continue to affect the export situation of Shaoxing County's textile and apparel companies. The appreciation of *** is expected to constitute a ** for textile exports, resulting in the loss of export orders, reduction of foreign exchange settlement, and a decline in profits, leading to export recovery. Gradually slow down. Faced with the challenges of complex situations at home and abroad, Shaoxing County textile enterprises are still in a position to actively change the mode of economic development. Therefore, Shaoxing export textile enterprises must continue to make efforts in new product research and development, brand cultivation and other aspects, transform traditional industries to increase the added value of products in order to truly grasp the bargaining power and initiative in the international market. Industry analysts believe that companies must accelerate the pace of transformation and upgrading, structural adjustment, improve the quality and efficiency of economic growth, rely on scientific and technological progress and innovation, and gradually achieve high efficiency, high quality, low carbon and brand.
Issued:
Ministry of Commerce of the People's Republic of China:
China Textile City Construction Management Committee “China·Keqiao Textile Index†Compiling Office
First, the foreign trade prosperity index in December 2010 showed a clear downward trend.
1. *** Appreciation squeezes export business profits. **** The center announced that as of December 31, 2010, the median price of one US dollar was 6.6227 yuan, the highest since the exchange rate reform in 2005. In recent years, although the transformation and upgrading of the industry have accelerated, overall, the price factor is still an important factor affecting exports, and the sensitivity of export prices to exchange rate fluctuations is very high. Since the second half of 2010, the exchange rate of *** against the U.S. dollar has continued to fluctuate, and the appreciation of the *** has been around 3%. This undoubtedly squeezed the limited profit margins of the industry and enterprises. This round of exchange rate fluctuations has produced three major adverse effects for the textile and apparel industry. The first is to further reduce the company's profit margin; Second, the appreciation of *** has relatively increased the cost and quotation of China's textile and clothing, which has weakened the competitive advantage of China's textiles in the international market to a certain extent; Pressure and expectation have become the biggest headache for export companies negotiating with their bargaining orders. Concerns over late-stage trends have even led directly to the loss of some orders.
2. Some orders accelerated to Southeast Asian countries. In 2010, the average unit price of China’s major commodities to the world’s total exports increased, especially in the second half of the year, and the first time in the year to double-digit growth. Shaoxing is China's textile export town. In the first 10 months of 2010, the average unit price of each garment in Shaoxing rose to 3.53 US dollars, an increase of 13.33% year-on-year. In the face of this price increase, many foreign companies stated that “more than 20% of price increases are generally unacceptableâ€. Under such circumstances, some foreign companies have already planned to reduce their purchases in China and have already transferred some orders to emerging manufacturing countries with lower costs. Fukuyama's own orders have been processed and manufactured by wholly-owned subsidiary Dalian Fushan for many years. However, since the second half of 2010, Fukuyama Corporation of Japan has begun to visit third countries such as Myanmar and Indonesia to conduct inspections. It has begun contact with relevant responsible parties to prepare for processing outsourcing or set up factories directly. The thinking of the headquarters of Fukuyama Corporation in Japan is that the processing costs of the Dalian subsidiary have been relatively fixed, and the future trend is that the cost will still increase. Under this general trend, we will gradually consider transferring some of our orders to third-party countries with more price advantages. These orders include both Fukuyama’s own orders and the orders of its customers in Europe and the United States.
3. The export market is diversified and new profit points are sought. To ensure profit, you must try to spread the risk. Faced with higher and higher cost pressures, “diversification of export markets†is also a good way to find new profit points and spread risks. For example, apart from Europe and the United States, major customers of the company may expand Asian markets such as Japan, Malaysia, and South Korea. In particular, they need to pay close attention to emerging export markets, such as the Middle East and South America, which are more active in the past two years.
Second, in December 2010, the foreign trade price index rose to a certain extent.
1. The price advantage of export enterprises has gradually weakened and prices have to be raised to ensure survival. According to statistics, 29 provinces, municipalities, and autonomous regions in 31 provinces and municipalities across the country have raised the minimum wage standard since 2010, with an average increase of 23%. The data shows that in 2010, wages of migrant workers rose by nearly 30% to 40%; in the next three years, the increase rate of migrant workers' wages will reach 30% each year, and the minimum will also be maintained at an increase of more than 20%. In addition, the price of raw materials, such as raw materials, has generally increased by 30-100% since 2010. These factors are superimposed with the factors of appreciation of ***, so that the price advantage of China's textile and garment export enterprises is gradually weakening, and many companies have to raise prices to ensure their survival. In the face of exchange rate fluctuations and rising cost pressures, coupled with the baptism of the financial crisis, more and more foreign trade export enterprises in Shaoxing have already become acutely aware of business transformation, product innovation, marketing upgrades and enhanced research and development capabilities, and improved products. The added value of these words is no longer a hollow slogan, but must be deeply involved in the actual business operations.
2. Shaoxing textile companies need to grasp the pricing power of products. The corporate management community believes that first-class enterprises have the highest realm of product pricing, and Shaoxing's textile companies need to grasp the pricing power of products. Over the years, when it comes to the competitiveness of Chinese manufacturing in the international arena, whether it is a business owner or an expert or scholar, the industry must finally point to the point that it must grasp the pricing power of products, otherwise it can only earn less than 10% of the bottom of the industry chain. Weak processing fees. What makes people happy is that some companies have already achieved this in their own fields with strong innovation and R&D capabilities. Having mastered the pricing power, the profit of the company has been greatly improved, and because the pricing power is in its own hands, the initiative to negotiate with customers is also in their own hands, so that the impact of exchange rate fluctuations is very small.
It is expected that the foreign trade prosperity index will decline slightly in January 2011. In 2011, Shaoxing textile and garment export enterprises, which have stood up for a long time, will face the “low growth and high costs†in 2011. Under the influence of many unfavorable factors such as high costs, increased exchange rate fluctuations, and the impact of the European debt crisis, the export environment of the industry in 2011 has become severe. In the first 10 months of 2010, the total value of China's textile exports has exceeded the full-year level in 2009. It is estimated that the total value of textile and apparel exports will reach nearly US$200 billion in the year, a record high for the past year, and the Chinese textile industry and apparel industry share over 30% in the international market. , has or gradually tends to be saturated. In addition, domestic production costs are also rising sharply. The average input cost of China's manufacturing industry rose sharply. In 2010, the cost of raw materials for textiles rose by about 30%-80% over the previous year, and the increase in the cost of major raw materials such as cotton was more than doubled. In terms of labor costs, the wage increase in the Yangtze River Delta and the Pearl River Delta is generally 20% to 40%. At the same time, the government has increased its efforts in energy conservation and emission reduction, which has objectively increased the environmental protection costs of enterprises. With the sudden increase in costs, the profitability of corporate exports has been continuously reduced. In particular, some small businesses may find it difficult to absorb the rapid rise in costs. Only enterprises with bargaining power that can survive in the international market in the future can pass the pressure of cost increase through price increase. Industry insiders expect that the increase in labor costs and other costs will continue to affect the export situation of Shaoxing County's textile and apparel companies. The appreciation of *** is expected to constitute a ** for textile exports, resulting in the loss of export orders, reduction of foreign exchange settlement, and a decline in profits, leading to export recovery. Gradually slow down. Faced with the challenges of complex situations at home and abroad, Shaoxing County textile enterprises are still in a position to actively change the mode of economic development. Therefore, Shaoxing export textile enterprises must continue to make efforts in new product research and development, brand cultivation and other aspects, transform traditional industries to increase the added value of products in order to truly grasp the bargaining power and initiative in the international market. Industry analysts believe that companies must accelerate the pace of transformation and upgrading, structural adjustment, improve the quality and efficiency of economic growth, rely on scientific and technological progress and innovation, and gradually achieve high efficiency, high quality, low carbon and brand.
Issued:
Ministry of Commerce of the People's Republic of China:
China Textile City Construction Management Committee “China·Keqiao Textile Index†Compiling Office
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