The Era Of "Low Growth And High Cost" Of China'S Export Textile Enterprises Is Coming.

China Export enterprises The era of "low growth and high cost" is coming.

The 109th China Import and Export Fair has just come to an end. Canton Fair Still crowded, and the deal was active. But the auspicious picture did not add happiness to the vast majority of export enterprises. On the contrary, this index is going down all the way.

Worried about exchange rate and policy risks, foreign trade traders only dare to take short-term orders with relatively low profit margins.

What is more painful to these enterprises is that although the cost is rising obviously, the price of the products is going up hard.

A member of the Ministry of Commerce who participated in the Canton fair said: "the biggest feeling of the participants is the exporter. Price increase But the room for growth is very small. "

High cost

It is reported that while the expected orders increase over the same period last year, many exhibitors are not confident of earning more profits after receiving orders. "Buyers often compare the same products of the entire exhibition hall before placing an order, and the price is very low. It is not easy to see profits from orders, but it is difficult for enterprises to survive. A exhibitor from Shenzhen who is an electronics accessory told reporters that he said the gross profit margin was 4%-5%, half of what it used to be. "A series of unfavorable factors, such as exchange rate, raw material and labor cost, have gathered together, and our profit margins have reached the top." A exhibitor said so, but because of the fierce competition in the homogeneous competition of domestic enterprises, even if profits were squeezed, the price increase would be very cautious.

The head of Suzhou Kaiyuan International Group, who exports plush toys, also expressed the same view. He said that on the one hand, the cost increase, especially the oil price increase, led to a marked rise in the price of chemical materials, and on the other hand, it was difficult to raise prices.

At the same time, the short list has also become the first choice for foreign trade companies. "We dare not accept the long list, the exchange rate risk is too great," an exhibitor said.

This year's China Trade Fair (China East China Import and Export Commodities Fair) also shows this concern. Short and medium accounts for 89%, and orders for more than 6 months account for only 10%.

Analysts Wang Wang analysis, the main reason for the export of short and medium term orders in the previous two years is that buyers are more cautious about the latter market, mainly based on phased replenishment and unwilling to make longer orders. This year, the situation is quite different. Because of the frequent changes in exchange rate and raw material prices, export enterprises generally dare not sign long bills or even dare not.

According to the Ministry of commerce data, the average profit margin of China's export enterprises in 2010 was 1.47%, which dropped to 1.44% in 1-2 this year.

"Despite the sharp increase in costs, the difficulty of raising export prices is not small." The Ministry of Commerce said.

According to reports, he said that the order price of textile enterprises in the China Trade Fair generally rose 15%-20% over the same period, and the price range of individual products was higher. However, foreign businesses are generally unable to accept the increase in prices above 10%-15%. Some European and American customers have begun to reduce their purchases in China, and some low-end goods tend to purchase from low cost regions such as Southeast Asia.

With rising prices of raw materials, rising labor costs and the "three high" of RMB appreciation, the price rise of export enterprises is inevitable. However, in order to ensure competitiveness in the international market, the price increase is far below the rise in cost.

On this Canton Fair, the rumors of export tax rebate reduction have deepened the concerns of export enterprises.

"If we cut 5%, we really have no profit." Mr. Yang said.

In fact, after the "two sessions" in 2011, the state will further spread the news of the export tax rebate reduction in the "high pollution, high energy consumption and resource" industries. The export tax rebate rate of textile and garment will be reduced from 16% to 11%. The rumor was mentioned again at the Canton Fair.

But the Commerce Ministry denied the news. He said, "yes, we have done some research, but at the moment, we have not decided to reduce the export tax rebate."

Low growth

It is reported that after the financial crisis, China's exports were strong and the export growth rate in 2010 was 31.3%. Even at the beginning of the year, the most neglected textile and clothing, after twists and turns, also reached a 23% growth rate.

However, the foreign trade situation, which is hidden behind the beautiful data, is not very optimistic.

After 6 years, in the first quarter of 2011, China's foreign trade suffered a deficit of 1 billion 20 million US dollars again. Although this will not become normal, it is undeniable that China's exports are undergoing a period of reshuffle.

In fact, many analysts generally lock this year's foreign trade growth zone at 15%-20%.

The Ministry of Commerce said: "at the Canton Fair, we visited some enterprises, we can see that the pressure of rising costs, the polarization of foreign trade enterprises intensified, and the survival situation of SMEs is worrying."

Many large export enterprises reflect the good order at present, but at the same time, due to the general cost increase and the acceleration of RMB appreciation, most small and medium-sized enterprises generally say that it is difficult to support, and some of them have been cut down or stopped production. Their survival may even be more embarrassing than the outbreak of the international financial crisis.

At present, the number of small and medium enterprises in textile industry is the main body. Over 95% of the enterprises produce low-end OEM products. Under the background of industrial restructuring, the polarization of export enterprises is intensifying. The industry will probably play a big shuffle of "strong Heng Qiang and weak ones". Industrial resources will accelerate to large enterprises. "There are only two kinds of enterprises that can survive in the international market in the future. First, enterprises with an average profit of more than 5% still have room for relaxation. Two, enterprises with bargaining power can pass on the pressure of increasing costs through raising prices. He said.

Trade frictions are more and more diversified, and technical barriers to trade are showing substantial growth. From the initial quota restrictions, anti-dumping, special protection, to the current anti subsidy, technical barriers, corporate social responsibility, recall and other forms.

According to statistics from the Ministry of Commerce, 35% of the world's anti-dumping investigations and more than 70% countervailing investigations are targeted at Chinese exports. In the long run, it may even be normal.