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    RMB Appreciation &Nbsp; The Domestic Footwear Industry Will Enter The "Warring States Period" From The "Spring And Autumn Period".

    2010/12/9 13:20:00 113

    Footwear Enterprises Foreign Trade Footwear Industry

      

    RMB appreciation,

    Shoe enterprises

    Profitability worsened


    December 9th orders,

    OEM

    Production and shipping to dealers are the basic form of foreign trade chosen by Chinese labor-intensive industries.

    In the past, few enterprises had overseas sales channels, nor did they have to bear the risk of export footwear sales.

    But this also means that the production and processing enterprises at the lowest end of the industrial chain can only get extremely small profits.

    The footwear industry as a labor-intensive industry, with limited profits, and the rapid rise of raw material prices, the increase in the cost of production, and the rapid appreciation of the renminbi will undoubtedly add to the difficulties for the struggling shoe manufacturers themselves.

    According to the survey, this speed of appreciation has brought unprecedented pressure and challenges to shoe manufacturers in the Pearl River Delta region.

    A large number of small and medium-sized shoe enterprises either went bankrupt or moved away.

    Less competitive small and medium-sized shoe enterprises can not raise their prices due to fierce competition in the international market. Export profits will decrease with the appreciation of the renminbi in the case of international market prices unchanged.

    According to the estimation of relevant departments, the sales profit margin of textile shoes and clothing will decrease by 1%% - 6%% every appreciation of 1%%, and the profit margin will drop by 10%% - 60%% when 5%% - 10%% is revalued.


     

    domestic

    footwear industry

    Or will enter the Warring States period from the spring and Autumn period.


    Ants hunt for food, often feelers.

    It is food that goes in; no food, then retreat.

    The appreciation of the renminbi has made the export shoe enterprises "find food" in a difficult position. The old mode of operation has extended to the sales market, and the number of "food" has dropped sharply.

    This requires Shoes Companies to produce more "tentacles", adjust their business and even incorporate terminal sales into their own business models.

    In fact, it embodies a principle of enterprise survival, which is advantageous to advance, but no benefit to retreat.

    This has led to other changes in the export pattern of the footwear industry under the influence of the tide of the market.

    The appreciation of the renminbi, many exporters, often only look at its negative, not to see its positive.

    The appearance of RMB appreciation has led many exporters to "tighten their belts" and adopt two ways of "avoiding" and "escaping".

    It is precisely because of the "withdrawal" of so many people that instead of giving enough room for the market, they are actually "able to take advantage of it".

    Choosing to open up a multinational market is, on the face of it, a challenge, but in fact it is an open field. The larger the market, the greater the profit.

    Xu Zhihua, general manager of PEAK group, believes that this year, the domestic footwear industry will enter the "Warring States period" from the spring and Autumn period. The result of the future will be the whole industry entering the era of oligopolistic competition. Not only will there be more small and medium-sized enterprises withdrawing from the market, but also some of the original brand enterprises will be able to integrate in the new round of shuffling, thus forming a situation of 5 to 8 brands competing for hegemony.


    RMB appreciation shoe enterprises usher in "improvement" opportunity


    Although the appreciation of RMB has become the "black hole" of the profits of shoemaking enterprises, the appreciation of RMB has created conditions for the development of the market mechanism for the survival of the fittest, and has a positive impact on the whole Chinese shoe market.

    Faced with the squeeze of profits, some shoe enterprises have turned pressure into a driving force. By increasing investment in science and technology, adopting new technologies, developing new products, improving the technological content of products, carrying out industrial restructuring, improving enterprise management and management, actively developing overseas investment, realizing the gradient pfer of shoemaking enterprises, upgrading their competitiveness, and consciously changing from passive to active, creating new living space.


    RMB appreciation is a double-edged sword, both advantages and disadvantages.

    The change of exchange rate is not just a change in numbers, but also affects the real gold and silver in the pocket.

    Is the rapid appreciation of the renminbi a wolf for the shoemaking enterprises that are facing "internal and external troubles"? Or is it just a rose with thorns?

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