[Canton Fair] Orders Less Gross Profit &Nbsp; Qingdao More Than 10% Garment Factories Closed Down

Exports of clothing are sluggish, rubber exports are sluggish, and toy exports are sluggish.

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10% more garment processing plants

"During this period, the number of orders in Europe and the United States sharply decreased, and the reduction reached 40% or even 50%."

Wang Yong, general manager of Qingdao Yongda foreign trade company, said that this is mainly due to the economic downturn abroad and the decline in consumption ability. "From the overall situation, the impact of export to Japan and Korea is relatively small, and now it is preparing orders for spring and summer next year, from the winter order situation, which has dropped by 15% to 20%."

Although the order is reduced by 20%, Wang Yong is somewhat lucky. "As a foreign trade company, we have a small impact. The most affected garment processing plant is, without order, they lose their source of economy, and they cannot change careers to do other things."

It is understood that by the international economic impact, the island city has done at least 10% of the foreign trade garment processing factories have been closed down.

"Most of the failures are small and medium-sized enterprises, because they are mainly processed for a foreign trade company, or for overseas oriented customers. Once the order is interrupted, they will be faced with a grain break."

Wang Yong explained that due to the large number of customers, the orders of large processing enterprises can be maintained for some time even though orders are reduced.

Similarly, there is a similar situation in the home textile industry as the textile industry.

"Our home textiles are mostly processed and processed, which are labor-intensive products. This period of time has obviously felt the recession."

Liu Ailing, the responsible person of a home textile enterprise in Chengyang, told reporters that during this period, they felt the narrow market. "Our products belong to the products with relatively high prices, so they were obviously affected in overseas markets. According to the general statistics, the order volume has been reduced by at least 20%."

Processing plants began to look for foreign trade companies.

"In fact, the impact of the international economy is not limited to the garment industry, but also the rubber industry."

The head of a foreign trade company based on export of rubber products said reluctantly.

"There is a very simple example. There are many processing plants of rubber standard parts such as rubber pipes in Hebei. They used to directly contact overseas customers, and reduced the link of foreign trade companies. Now their customers are also reducing import volume, which has led Hebei's processing plants to initiate contact with foreign trade companies in the island city."

The responsible person said that in the past, they first contacted foreign customers, asked their needs, and then sought the domestic processing plants for goods. "Now it is just the other way round, the processing factory looks for us, and we try to contact our customers through the source of our customers."

During the interview, the reporter learned that the biggest problem facing the export of rubber products is the standard parts, that is to say, the rubber products processed according to the international standard.

"Special products are better, after all, are targeted customers, export volume has not changed significantly."

The relevant person in charge said that although the export volume had little effect, the impact was not too small. "For us, it is for the overseas automobile enterprises to supply the corresponding rubber parts, because the overseas car is unsalable, which causes the auto manufacturers to press our money, this period of time is particularly severe."

Affected little, but also faced with predicament.

Of course, there are many industries affected by the international economy, and the toy industry is also beginning to be affected.

"Although our orders are not shrinking too much, we are obviously feeling the pressure and are now preparing to expand to the domestic market."

Zhang Qiang, director of Qingdao He Yi Toys Limited, said that the overseas market of their toys is Europe. "Because the products we export are mostly regarded as gifts by overseas businessmen, the temporary impact is not very big, and I wonder how much the next signing will be affected."

Zhang Qiang said that although their businesses had only gone through 4 years of development, they still groped for the first two years, and they have been on the right track for the past two years. "We were prepared to expand overseas markets. After all, toys exported as gifts were exported to low-end products, and most of them were mid end products. When we were heading towards high-end products, there was a problem in overseas economy, which had to be a blow."

As Zhang Qiang said, although their orders have not been substantially reduced for the time being, their development path is blocked. "This is like a long distance runner preparing to sprint, the finish line is suddenly gone, and we have no direct direction."

Pressure on half of enterprises export profits decline

Far more than those industries are affected. After all, rising labor costs and rising Renminbi exchange rates are increasingly playing a role in Qingdao's local businesses.

"From the general situation of the Canton Fair closed last week, the scale, product quality and brand awareness of Qingdao exhibitors have been greatly improved than that of the previous session, but labor-intensive products are still the main exhibitors in the city, with low product value, low added value, fierce market competition, and sensitive to the rising raw materials, shortage of labor and appreciation of the renminbi."

In a summary of the Canton Fair which has just been announced by the Municipal Commerce Bureau, the staff wrote this.

"Although the city's turnover has maintained a steady growth of 4.1%, the actual paction is not optimistic after deducting the price rising factor."

"The questionnaire shows that 67.8% of enterprises increase the paction cost of pferring the cost of production factor, and the paction price is increased, of which 64% of the enterprises whose price increases more than 5%.

However, enterprises reflect that the operating pressure of enterprises has not been reduced due to the increase of comprehensive cost, and 47.6% of enterprises' gross profit has dropped by about 5%.

The staff of the Municipal Bureau of Commerce said that due to the low number of visitors, the difficult price negotiation caused by the price fluctuation of raw materials, the fierce competition in the surrounding countries and the increasingly tight trade environment, the textile and garment exhibitors in Qingdao increased the pressure of receiving orders, and the actual turnover of textile and clothing decreased by 21.7% compared with the previous one.

According to the latest statistics, the "Qingdao made" mechanical and electrical products paction has increased steadily, and the turnover of light textile products is rather low.

Affected by the debt crisis, the demand for holiday necessities and household decorations decreased in Europe and the United States, and the demand for holiday gifts and home decorations decreased. The actual turnover decreased by 10.5% compared with the previous one, and the actual turnover of textile and clothing decreased by 21.7% compared with the previous one.

Island enterprises should be quietly United.

To cope with export problems, local enterprises are not idle.

"In November 2nd, the main members of the trading group also met."

A person in charge of the exhibitors told reporters that last week, the key foreign trade enterprises, including double star, Yi Fa, Xi Ying men, Yijia native animals, Jintai home textiles, Jintian textile and Yuanfeng, gathered together to share their "tricks" to deal with the crisis.

"Some concentrate on visits, consolidate old customers, arrange three to four customer focus visits every year, some find substitutes for raw materials, explore imported fabrics to reduce costs, and export diversion. Since they are not selling well to Europe, they go to Asia to find new buyers in Japan."

A participant at the meeting said that in addition to improving production efficiency and reducing labor and other traditional methods, some enterprises also adopted the way of ensuring profits to reduce product quotes for new customers and get long-term stability.

The relevant person in charge of the Municipal Bureau of Commerce believes that the local enterprises in Qingdao should fully understand the complicated forms.

In particular, in the future, exchange rate fluctuations, raw material prices and labor shortages will become normalization. In such a state, enterprises must constantly change their thinking, adjust their strategies, take the initiative in brand building, R & D investment and market development, and seize the opportunity to enhance their ability to deal with risks.

Today, the garment industry, the rubber industry, the toy industry, and even the export of agricultural and sideline products are also supported by the old customers overseas. Is this the way to go? "Of course, we can't support it, old customers can only rely on it for a short time. We still have to rely on ourselves."

Zhang Qiang is very rational, "we have to develop to the high end, produce high value-added products, such products can not be replaced."