Profits Of Foreign Trade Garment Enterprises Are Being Squeezed Again

< p > > a href= "//www.sjfzxm.com/news/index_cj.asp" > exchange rate < /a > after a period of adjustment, from the middle of October, the US dollar reproduced a breakthrough trend to the RMB exchange rate.

A few days ago, the RMB exchange rate against the US dollar reached 6.0743.

The acceleration of RMB appreciation has also affected the nerves of our export enterprises. Many export enterprises said in an interview with reporters that the recovery of external demand is not obvious this year, and the situation of enterprise orders has not improved, and the successive appreciation of RMB is undoubtedly "adding insult to injury" for them, which further squeezes profit margins.

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< p > a person in charge of a foreign trade enterprise engaged in < a href= "//www.sjfzxm.com/news/index_c.asp > > trousers industry < /a > told reporters:" this year, the RMB increase has reached 2%, while the processing profit margin of < a href= "//www.sjfzxm.com/news/index_c.asp" > textile industry < /a > is generally between 4% and 7%, and profits are rapidly dissipated on the exchange rate.

The impact of exchange rate fluctuations on such a light industrial enterprise is indeed great. Insiders say that the recent breakthroughs in the RMB exchange rate have made the enterprises feel heavy burdens. If they reach or even break through the "6 yuan mark" by the end of the year, they will probably have a serious impact on the whole enterprise.

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< p > in the face of the continuous appreciation of RMB, some enterprises have adopted such measures as locking the exchange rate, avoiding financial instruments, settling renminbi, negotiating a single price and raising quotations, and more enterprises have settled the pressure by means of RMB settlement.

"It is not so difficult as we think, the key is whether the firm's own attitude is strong enough, we are more insistent on the RMB quotation, and the fixed overseas customers will often agree to settle it in this way."

Mr. Ke, director of binglu Shijia, said that many export businesses of the company have been settled in Renminbi.

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< p > Mr. Ke reflects that some long-term cooperative overseas customers will not change suppliers to a certain extent because of changing the settlement method. They are generally welcome to settle the RMB.

At the same time, in the case of increasing cost and exchange rate fluctuations, export enterprises, through RMB settlement, lock costs and stabilize profits to a certain extent, which is an effective way to avoid exchange rate risks.

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< p > in addition, some veteran people in the industry suggested that foreign trade enterprises should change their marketing strategies and enhance their ability to resist exchange rate risks.

We should improve our market competitiveness, strengthen links with foreign businessmen, reduce intermediate links, strengthen internal management of enterprises, reduce management and operation costs, and play the role of industry associations and industrial agglomeration advantages to avoid vicious competition between peers. We must change the management mechanism and marketing strategy.

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< p > foreign trade companies and production enterprises should improve the technological level and marketing ability of foreign trade and enhance the overall ability to resist exchange rate risks.

At the same time, export enterprises should gradually change their marketing strategies, while expanding their original international market, actively develop new markets, implement diversified market strategies, expand the leeway of the market, and look for products with low price comparability, so as to avoid fierce competition in traditional markets and homogenization.

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