Quanzhou shoe company "walking on two legs" to respond to exports

Recently, most of the Quanzhou enterprises that participated in this session of the Canton Fair have stated that “the export situation next year will be more complicated.” They expressed their concerns about the foreign trade situation next year. According to the participating companies, they are currently most worried about the three major problems of falling orders, continued appreciation of the renminbi, and continued high prices of raw materials next year. “If the external economy cannot maintain stability, the superposition pressure faced by export companies will be even greater. Big".

Use settlement tools to lock in risk

"The next year the yuan will not appreciate further, and many companies are not at all interested in producing orders that have a cycle of more than three months." Chen Quanyi, a foreign trade company in Quanzhou, said that the exchange rate instability makes it difficult for companies to quote prices to their customers. " Customers with high quotations will lose, and the original meager profits will be 'eaten' by the renminbi, and they will end up at a loss.”

"In the short term, most export companies can ease the pressure caused by the appreciation of the renminbi by raising prices." Manager Chen believes that foreign purchasers cannot repeatedly accept the price increase request. In the long run, they will move to the domestic market to achieve "two Walking on legs is a good way for export companies to cope with changes in exchange rates. “The west is not bright and the east is bright. The domestic market has developed to a relatively mature level. Foreign brands have all seized the Chinese market. Quanzhou export companies cannot even focus on overseas markets.”

Industry insiders believe that companies can also respond to the appreciation of the renminbi by changing the quoting method. In addition, it can also use forward settlement, currency options and other financial instruments to guard against exchange rate risks, lock forward exchange rates in due course, and avoid the risk of large exchange rate fluctuations, thus ensuring revenue.

Upgrade product development channels

"Most Quanzhou export companies have sufficient orders this year, and Europe and the United States and other developed countries 'restocking' is an important reason. It can be predicted that orders for 'supply stocks' from European and American markets will be reduced next year." Wuzhou Ceramics Co., Ltd. Guo told reporters During the exchanges with foreign and new customers participating in the Canton Fair, he found that some European customers were more cautious in negotiating orders than in the first half of the year, and some customers indicated that orders would be reduced next year.

In the face of possible reduction of orders next year, planning ahead for the market in advance will become an urgent need for export companies. “Now foreign buyers are more concerned about the novelty and innovativeness of product styles than prices.” Guo said that more than 80% of the exhibits brought by them at the Canton Fair are new, including one set of exteriors printed on Chinese classics. Beauty's exhibits are popular with customers because they are rich in unique "Chinese elements." "Ordinary products have a slim profit, and the profitability of products that use self-owned brands will be even higher. Therefore, in recent years, companies actively promote their own brands in Egypt and other Middle East markets. And achieved positive results."
Centralized procurement "by price"

“In the face of this year's price increase of raw materials, we mainly through the purchase of raw and auxiliary materials group, 'in order to reduce the price' to ease the cost pressures.” The relevant person in charge of a furniture export company in our city, each furniture export orders, The customer's requirements for raw materials are all different. Usually after the customer orders, the company will select the supplier with the most appropriate price and quality, and will place all the raw material orders for the same supplier, so as to obtain a larger bargaining space through the way of big orders. .

Industry insiders suggest that companies in the apparel, luggage, and other industries can reduce costs by replacing fabrics of similar quality but at a lower price. “Strong companies can invest in upstream raw material production companies, independently research and develop new alternative fabrics, etc. Ways to solve the problem of rising raw material prices."

Export transformation must follow the "wind vane"

The Canton Fair is a "barometer" of China's foreign trade situation, and it is also a "wind indicator" for the export of enterprises. In addition to harvesting orders, the biggest gain for the participating companies is to spot the “wind direction” to determine product development directions and corporate development strategies.

With unpredictable foreign markets, unstable RMB exchange rates, and high pressure on raw materials costs, this is the three strong winds that the Canton Fair has given to export companies in Quanzhou. The owners of Quanzhou Enterprises have felt a sense of coolness, and their judgment on the foreign trade situation in the coming year has become more complicated. With difficulties.

In the face of the new situation, the policy proposed by the company can be described as “Eight Immortals Crossing the Sea, Each Displaying Supernatural Power”, and whether it is effective yet remains to be tested by the market. However, they have always changed their minds and integrated the opinions of various experts. It is believed that the following two points are worthy of attention and consideration by most export companies.

“Walking on Two Legs” – The 12th Five-Year Plan just released indicates the direction for export companies. In the future, China’s economic development will focus on increasing the income of the people. This will greatly activate the domestic demand market, and companies will stare at the consumption upgrade belt. The business opportunity came from this, and it also found the cornucopia of the future.

“Do not put eggs in the same basket”—The prospects for the global economic recovery are not yet clear, but the emerging markets represented by the “BRIC countries” have a strong momentum of development. Actively exploring emerging markets is an export company that instigates new growth poles. "Fulcrum."