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At present, the suspicion of the appreciation of the renminbi is shrouded in the China International Trade Fair, which is known as the "New Spring First Exhibition" in the foreign trade industry. Although orders for this year are expected to be better than last year, labor-intensive industries such as textiles generally suffer from three major problems: RMB appreciation, difficulty in recruiting and rising raw material costs. Some exhibitors have reflected that under the pressure, China's foreign trade industry has accelerated industrial upgrading, and the transition from "cheap" to "material beauty" is the general trend.
Compared with the slightly deserted fair of the 2009 China International Fair, with the bottoming out of global trade, domestic exhibitors' enthusiasm for the 2010 China Fair has rebounded significantly. Of the 3,376 exhibiting companies, 95% are from Jiangsu, Zhejiang and Shanghai, and 5% are from Japan, South Korea, India, the United States, Hong Kong and Taiwan.
The reporter saw at the scene of the China Fair that although the popularity of the opening day was not high, the confidence of exhibitors in mining the "first bucket of gold" of the New Year was quite sufficient. Wang Xiaotong, business manager of Jinfang Trading Co., a subsidiary of Zhejiang Textiles Import and Export Group, said that the amount of orders in the hands of enterprises has increased by about 10% compared with the same period of last year.
"The most urgent thing now is that enterprises have orders but can't find workers." Du Songbao, the teacher in charge of technical guidance of Jinfang Trading Co., said that the "labor shortage" in the coastal areas such as the Pearl River Delta and the Yangtze River Delta has been deeply affected. A large number of low-end textile export enterprises.
"The low rate of returning to the factory is due to the fact that the current treatment in coastal areas and the inland ratio are not particularly attractive." Zhou Junping, manager of the Commercial Health Department of Fujian Jianjian Group, who is mainly engaged in sports and leisure wear, said that the salary level of ordinary workers in Fujian textile enterprises is now At 1800-2300 yuan / month, and some inland factories can also open to 1,500 yuan, and workers can also take care of their homes. If you rush to raise wages, enterprises will undoubtedly take certain risks if the order situation is unclear and the cost is difficult to transfer.
In addition, among the 20 textile raw materials and products tracked and monitored by the industry's first textile network, 12 products rose more than 50% in 2009. The appreciation of the renminbi is even more of a problem for foreign trade companies.
"Different enterprises have different tolerances for RMB appreciation." Wang Qianjin, editor-in-chief of the First Textile Network, believes that, for example, small and medium-sized textile enterprises that are barely profitable at this stage, if the RMB appreciates by 3%, these factories may not be able to hold back. If the appreciation is 5%, even a strong company with a strong strength will be breathless. "Of course, companies can announce price increases, but only if you are large enough and have considerable bargaining power."
Due to the increase in labor and raw material costs and the appreciation of the renminbi, the price competitiveness of China's labor-intensive product exports is being severely tested. "Our often we say that the price increase, foreign companies said they want to transfer orders to Vietnam, Bangladesh and other countries," said Zhou Junping, manager of the Fujian Jianjian Group Business Department. Many export companies will face the "guarantee of customers" or "guarantee profits" this year.
Although price competitiveness is challenged, the overall competitiveness of China's manufacturing industry remains outstanding. "Taking the textile and garment industry in Zhejiang Province as an example, within 30 to 50 miles, the supporting industries such as buttons, fabrics, printing and dyeing are readily available, and these are not available in some Southeast Asian countries." Wang Qiang pointed out that in the future, domestic labor is intensive. In the layout of the industry, the manufacturing process may be gradually moved inward, while the high value-added parts such as design and sales remain on the coast. In the competition route, there is also a certain emphasis, no longer "price is cheap" as the main appeal, but to "material beauty" as the still.
At this year's China Fair, textiles made from new materials such as soybean fiber and bamboo fiber have become a trend, and foreign trade companies are also interested in attracting the attention of overseas merchants through this innovative product. In addition, Yang Wei, the head of the overseas business of Busen Clothing, a well-known brand company, told reporters that although Busen is taking the "domestic + foreign trade" route, it is not a simple OEM production when exporting, "30%-40 % are sold through their own brands."
"Our experience is that although the sales of self-owned brands overseas are large in the early stage, the benefits are 5-6 times higher than the OEM production, which is worth the effort." Yang Wei said.
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"Three Difficulties" Promote "Made in China" from "Inexpensive" to "Material Beauty"
"Export value added is generally not high. At present, the basic profit we earn is a few points of profit, and the renminbi is once again appreciated. This is not enough." At the 20th China East China Import and Export Fair held in Shanghai, A foreign trade clerk of a company in Zhejiang sighed at the reporter.