Half of Foreign Trade Enterprises' Export Gross Profit Decreased The Added Value of Products Needs to be Improved

The slump in apparel exports, sluggish rubber exports, and sluggish export of toys ... The sluggish world economy has spread to almost all of the export industries in the island city, and some "faint" apparel processing SMEs have even gone bankrupt. “The value-added products of the DPRK have shifted, and as such, most companies with low added value will collapse and collapse,” said Zhang Qiang, head of Qingdao Heyi Toys Co., Ltd.

More than 10% of garment processing factories closed down. “This time, orders from Europe and the United States have been drastically reduced, and the number of reductions has reached 40% or even 50%.” General Manager Wang Yong of Qingdao Yongda Foreign Trade Company said that this is mainly due to the foreign economy. In the downturn, the spending power has declined. “From the overall situation, the impact on exports to Japan and South Korea is still relatively small. We are now preparing for orders for spring and summer next year. From the perspective of winter orders, we have seen a drop of 15% to 20%.”

Although orders have decreased by 20%, Wang Yong still feels a bit fortunate. “As a foreign trade company, the impact we have received is still relatively small. The most affected are the garment processing factories. If the orders are gone, they lose their financial resources. Change to do other.” It is understood that affected by the international economy, Island City, foreign trade garment processing factory has been at least 10% have closed down.

"Most of the companies that have gone out of business are SMEs, because they are mainly processing for a foreign trade company or processing for overseas customers. Once the orders are cut off, they are facing food shortages." Wang Yong explained that large-scale processing companies have a lower customer More, although the order is reduced, it can be maintained for some time.

The same applies to the home textile industry in the textile industry. “Our home textiles are mostly work-intensive and are labor-intensive products. We have clearly felt the recession since this time.” Ai-Ling Liu, a relevant person in charge of a home textile company in Chengyang, told reporters that during this time, they clearly felt the narrow market. “Our products are relatively high-priced products, so they have been significantly affected in overseas markets. According to general statistics, the volume of orders for this period has been reduced by at least 20%.”

Processing plants began to take the initiative to find foreign trade companies. In fact, the impact of the international economy is not limited to the apparel industry, the rubber industry also has a huge impact. "Dongcheng City, a foreign trade company responsible for export rubber products, the relevant responsible person said with resignation.

“There is a very simple example. Hebei has a lot of processing plants such as rubber pipes and other rubber standard parts. In the past, they often directly contacted overseas customers, reducing the number of foreign trade companies, and now their customers are also reducing their imports. These processing plants in Hebei began to actively contact the foreign trade companies in Daocheng.” The relevant person in charge said that in the past they first contacted foreign customers, asked their needs, and then sought a domestic processing plant to get goods. “Now it's exactly the opposite Come here, the processing plant finds us, and we try to contact the market through our own customer source.”

During the interview, the reporter learned that the largest conundrum facing export of rubber products is standard parts, that is to say, rubber products processed according to international general standards. “Special products are still better. After all, they are targeted customers, and the amount of exports has not changed too much.” The person in charge said that although the impact of exports is not significant, the impact is not too small. “For us, It is for the overseas automobile companies to supply the corresponding rubber parts. Due to the unsalable sales of overseas cars, the automakers are holding down our purchases. This time is particularly severe."

Not much affected, but also facing difficulties. Of course, there are many industries affected by the international economy, and the toy industry is also beginning to suffer. “Although our order volume has not shrunk, we have obviously felt the pressure. We are now preparing to expand into the domestic market.” Zhang Qiang, head of Qingdao Heyi Toys Co., Ltd., said that their toy's main sales overseas market is Europe, “Because the products we export are mostly given by overseas businesses as gifts, the temporary impact is not very great, and we do not know how much the next time the orders will be affected.”

Zhang Qiang said that although their enterprises have only experienced four years of development, and are still exploring the previous two years, they have only been on the right track for the past two years. “We originally planned to expand overseas markets. After all, exports were toys that were sold as gifts and exported. The low-end products, most of them are mid-range products. When we are heading towards high-end products, there are problems in the overseas economy. This has to be said to be a blow.”

As Zhang Qiang said, although their orders have not been substantially reduced, their development roads have been blocked. “It is like a long-distance runner preparing for a sprint. The finish line suddenly disappears. We have no direction. ."

The pressure on half of the enterprises' export profits has been affected by far more than these industries. After all, factors such as rising labor costs and the increase in the exchange rate are increasingly affecting local companies in Qingdao...

“From the overall situation of the Canton Fair concluded last week, the scale, product quality and brand awareness of Qingdao exhibitors have been greatly improved compared to the previous session, but the labor-intensive products are still the mainstay of this city. The value of the products is low, and the added value is low. The fierce market competition is sensitive to rising raw material costs, shortage of labor, and appreciation of the currency.” In a summary of the Canton Fair just announced by the Municipal Bureau of Commerce, the staff wrote it. “Although the city’s transactions maintained a steady growth of 4.1%, actual transactions were not optimistic, excluding price increase factors.”

“The questionnaire shows that 67.8% of enterprises are increasing the pressure of shifting the cost of production factors and increasing the transaction price. Among them, 64% of the enterprises whose price increase is above 5%. However, the company reported that due to the increase in overall costs, the operating pressure of the Without mitigation, 47.6% of the enterprises' export gross profit declined by about 5%.” The staff of the Municipal Bureau of Commerce stated that due to the low number of merchants, price fluctuations in raw materials caused bargaining difficulties, fierce market competition from neighboring countries, and increasingly tight trading environment. As a result of the combination of multiple unfavorable factors, the pressure on Qingdao textile and apparel companies to take orders has increased, and the actual turnover of textile and apparel has dropped by 21.7%.

According to the latest statistical data obtained by reporters, the turnover of mechanical and electrical products “made in Qingdao” on the current Canton Fair has grown steadily, and the turnover of textile products has been relatively low. Affected by the debt crisis, Europe and the United States reduced the expenditure of non-essential necessities, and the demand for holiday gifts, home accessories, etc. decreased. The actual transaction decreased by 10.5% compared with the previous session, and the actual transaction of textile and clothing decreased by 21.7% from the previous session.

We must cope with the island city enterprises in order to cope with export problems, local companies are not "idle." “On November 2nd, the main members of the trading group also held a meeting.” The person in charge of an exhibitor told reporters that just last week, including Double Star, that is, fat, Xiyingmen, Yijia Tutu, Jintai Home Textiles, Jintian Textile, Yuanfeng and other local key foreign trade companies have gathered together to share their “trick” in response to the crisis.

“Some concentrated visits, consolidate old customers, arrange three to four times a year customers return visits, some find raw material substitutes, explore the use of imported fabrics to reduce costs, and some for export steering, since it is not easy to sell to Europe, Then go to Asia in Japan to find new buyers.” One participant in the conference said that in addition to the traditional methods of improving production efficiency and reducing labor and employment, there are other companies that are taking advantage of the benefits and the new contacts. Customers reduce product prices and get long-term stable big orders.

The relevant person in charge of the Municipal Bureau of Commerce believes that local enterprises in Qingdao should fully understand the complex forms. In particular, in the future, exchange rate fluctuations, rising raw material prices, and shortages of employment will all become normalized. Under such circumstances, companies must constantly change their thinking, adjust their strategies, and take the initiative in brand building, R&D investment, and market development, and seize opportunities. To improve risk response capabilities.

Today, the apparel industry, the rubber industry, the toy industry, and even the export of agricultural and sideline products are all relying on overseas customers. Is this what it is? "Of course we can't go on, old customers can only rely on short-term, we have to rely on ourselves." Zhang Qiang is very rational, "we have to develop to the high-end, production of high value-added products, such a product is irreplaceable." / Chart reporter Wang Lei Wang Chuan â—Ž Related Links Canton Fair Europe and the United States traditional market transactions plummeted The 110th China Import and Export Fair (Canton Fair) closed on November 4, from the transaction market, European and American traditional market transactions dropped sharply, emerging market transactions Steady progress. Although buyers from Europe and the United States have increased, but there are more wait-and-see requests, the two major markets in Europe and the United States have actually traded between 420 million U.S. dollars and 140 million U.S. dollars, which is 16% and 40% lower than the previous session.

In this issue of the Canton Fair, the exhibitors of this Municipality mainly include home textiles, clothing, stationery, shoes, food, bags, etc. Textile and clothing enterprises account for nearly 60% of the exhibitors in the city. Although enterprises reported that cotton and Cotton Yarn prices have declined in the second half of the year, they are still at a high level compared with prices before the price increase. The economic crisis has also caused consumers in Europe and America to change their spending habits, preferring low-priced products, and the export of textile and garment industries is hard to see growth. The ups and downs of agricultural raw materials since last year have also made food exporters at a loss.