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The Exchange Rate Soared &Nbsp; The Dongguan Footwear Industry Sounded The "Red Alert".

2011/3/30 15:22:00 90

Red Alert For Exchange Rate Footwear Industry

RMB

Against US dollar

exchange rate

Recently, it has gone all the way and has broken through the 6.56 pass in one fell swoop.

Dongguan, known as the "world factory", has learned that since the beginning of this year, the impact of RMB appreciation on Chinese factories is expanding due to the sharp rise in raw material prices and labor costs. Many export enterprises in Dongguan are forced to raise prices, but because of limited bargaining power, a large number of SMEs can only support them.

Dongguan great sincerity

Shoe material

Cheng Liangbo, the general manager of the factory, counted the accounts for the journalists. In the past year, the wages of the workers in the factory increased by 20% to 30%, but the price of raw materials and natural rubber increased by more than 200%. As a result, the enterprises faced the predicament of losing money as long as they received orders. At present, the price of the products increased by 15% to maintain the factory's camp.

He said that the payment usually takes six months or a year to settle, and the exchange rate at the time of settlement is calculated according to the exchange rate at the time of signing the contract. However, because the exchange rate of RMB against the US dollar has been rising, the profit that has already been slumped has fallen sharply or even lost money.

Cheng Liangbo said, according to the current situation, if the price of export products is not raised, the factory can only wait and close, but in fact the bargaining space is limited. Even if the price is raised by 20%, it will make up for the pressure of rising cost, and the profit rate of the factory is still very low.

Li Daxiao, director of the British Securities Institute, believes that from the recent situation, the yuan will continue.

appreciation

The trend has not changed.

In view of this, China's export oriented enterprises will face the dual pressure of labor shortage and RMB appreciation for a long time.

Li Daxiao said that China's manufacturing industry is facing tremendous pressure of pformation.

Technical content

The low end manufacturing industry is

bargaining

It can only be passive. Chinese enterprises need to create their own brands, increase the added value of products and expand the bargaining power. In this process, enterprises that can adapt to the environment and seek innovation and change will stand out.