The Exchange Rate Of RMB Against The US Dollar Hit A New High This Year, And Textile Foreign Trade Is Deeply Involved

The appreciation of the RMB has entered the fast lane, causing a large number of foreign trade enterprises to suffer from internal and external troubles. The number of overseas orders decreases, the profit decreases, the internal salary increases, and the price of raw materials increases. Foreign trade enterprises are facing the choice of transformation.

"This year, spin The industry is in a difficult situation, with exports falling month by month but costs rising. " As the largest domestic clothing Xu Weimin, the chairman of Shanghai Silk, an export enterprise, also admitted that the Group's foreign trade business has felt "cold" and brought "crisis" to the Group.

"Made in China must transform, but it does not mean to do clothes To do high-tech and real estate, but to change the way of business. " Experts pointed out that in order to develop, textile enterprises should first shift to cost depression, and more importantly, enhance their own "blood making" function. From simple OEM to self owned brand. Even stripping the traditional low value-added industries is the final way out for foreign trade enterprises.

　　 Squeeze profits of foreign trade enterprises

Since this year, the central parity rate of the RMB against the US dollar has hit a new high 18 times since the exchange rate reform in 2005.

The ferocious rise of the RMB exchange rate may bring more "welfare" to the overseas tourism and consumption of citizens. However, for foreign trade enterprises, it means sharp decline in orders, decline in performance and compression of profits. From the known data, in 2012, China's foreign trade growth was only 6.2%, not only 16.3 percentage points lower than the growth in 2011, but also lower than the 7.8% growth of gross domestic product (GDP) in that year.

Shen Danyang, spokesman of the Ministry of Commerce, said frankly at the recent regular press conference that the appreciation of the RMB has had a relatively negative impact on the export contracts and profits of Chinese foreign trade enterprises. The sampling survey of foreign trade companies conducted by the Ministry of Commerce also shows that 77.5% of foreign trade enterprises' profit on contracts in hand from January to April has declined significantly due to the rapid appreciation of the RMB, and 73.4% of enterprises expect that their export profit for the whole year this year will only be flat or decline year on year.

Foreign exchange rate pressure and low demand; There is also the rising cost of labor and raw materials. Foreign trade enterprises can be described as suffering.

"At present, the RMB is appreciating while the US dollar is continuously depreciating, so the original price advantage of our enterprise will disappear with the appreciation of the RMB. In order to maintain the profit of the enterprise, the enterprise has to increase the price of its products. In this way, the original competitive advantage of our products will disappear, and the orders of the enterprise will inevitably be greatly affected." A person in charge of a foreign trade enterprise told the reporter.

Faced with the pressure of RMB appreciation, some foreign trade enterprises have even faced the dilemma of "not daring to accept orders". "In the past, the order receiving cycle could last from three quarters to one year, but now it is usually one quarter, and even only one or two months. For orders over one year, most people dare not accept them. There are orders but no profits, so they would rather not do them."

　　 Textile foreign trade is deeply involved

As the pillar of the foreign trade industry, the textile industry is deeply involved and representative, and the performance situation is more severe because of the low added value of the industry itself. A set of data directly reflects this impact: for every 1% appreciation of RMB, the profit margin of cotton textile, wool textile and clothing industries will decline by 3.19%, 2.27% and 6.18%.

Many textile listed companies said that due to the rapid appreciation of the RMB this year, their foreign trade sales declined significantly compared with previous years. Shanghai Sanmao said that the company's total import and export trade so far this year was 84.43 million yuan, down 23% from the same period last year. The main reason was that the import and export business of the company was affected by the problem of overdue large amount accounts receivable of three Japanese customers. However, even if there is no such thing, the company will decline by 5%~0% this year compared with the same period last year.

Nanfang, which also owns textile foreign trade business, also said frankly that it has felt difficult to carry out foreign trade business, and many problems have not been solved, such as the EU economic recession, trade war with China, etc.

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An insider pointed out that while enduring the suffering of declining foreign trade orders, clothing enterprises also have to endure high operating costs. Under such pressure, not only the profits of the enterprise itself will shrink, but also the huge inventory problem will be brought.

There are 50 listed companies in the domestic textile and clothing industry. As of the 2012 annual report, the total inventory is about 57 billion yuan. Compared with 2011, the inventory of the above 50 companies totaled 53.373 billion yuan, an increase of 3.609 billion yuan, or 6.76% year-on-year. High inventory not only caused the capital chain crisis of clothing enterprises, but also hindered the updating speed of clothing products, and also caused a serious decline in corporate profitability.

Some garment factories in coastal areas have moved their factories out, or even closed their factories. Some invest their funds in the property market or stock market, such as Youngor, Vico Essence, Red Bean, Black Peony, etc.

As the first clothing listed company in China, Shanshan has also started diversified development modes such as clothing and lithium battery. In the semi annual report this year, the operating profit of its lithium battery material business has been very close to the operating profit of the clothing business.

"Doing business should be 'doing well but not doing well'. It is not necessarily sustainable in the long run to increase corporate profits by doing sidelines or some other left-wing ways. The best way to break through is to use more brains on products, adjust the product structure, increase the added value of enterprises, and form their own competitiveness." Zhang Xukun, vice president of Zhejiang Business Research Institute, said.

　　 Transform and find a way to break through

In the current crisis, every foreign trade enterprise is looking for a way out. At present, there are three major directions for the transformation of foreign trade enterprises: first, move the factories to areas with lower production costs, and at the same time open up trade in emerging markets; Second, enter the domestic trade market; The third way is to rely on innovation in technology, products and design to build independent brands for foreign trade. "In the long run, the third way is the final choice. You can't always marry foreign brands," said Feng Zhengzhou, president of Shanghai Export Commodities Enterprises Association.

In the export competition, many enterprises have tasted the benefits of strengthening design and cultivating independent brands. As the largest garment export enterprise in China, Shanghai Silk Group did not stick to the stable days of OEM. Many years ago, we quietly embarked on a new "Silk Road": "under pressure", we created the Lily brand of business women's wear, and actively transformed and upgraded from OEM to independent brand.

"Foreign trade can still survive. But the prerequisite is transformation." Xu Weimin, chairman of Shanghai Silk Group Co., Ltd., told reporters that in the past, Shanghai silk mainly relied on the low-cost price advantage of "OEM" and "OEM" to win foreign markets. "But the low price competition is not sustainable. If we still want to use foreign trade to stabilize the enterprise, the OEM and OEM models must be involved in research and development."

As early as more than ten years ago, when the foreign trade situation was still very good, Shanghai Silk Group had "freed up one hand" to conceive enterprise transformation. "In 2000, we began to cultivate our own women's wear brand 'Lily'. In the first ten years, Lily did not make a profit, but we did not give up. Now, this brand has become the core competitiveness of the group. In the near future, the whole group is likely to rely on it for food." Xu Weimin said with great emotion.

Shanghai Silk Group has felt the pressure from foreign trade. From January to April this year, the Group exported USD 151.32 million, up only 0.2% year on year. Last year, the Group exported USD 537.27 million, down 5.03% year on year. "At present, 90% of the income of Shanghai Silk Group still depends on foreign trade exports. Without Lily's income, we cannot stabilize the current situation of narrowing foreign trade growth." Xu Weimin said frankly.

In 2012, the total sales of Shanghai Silk Group reached 4 billion yuan, and the Lily brand reached 400 million yuan, accounting for 10%.

"To stabilize foreign trade, we need to expand domestic demand. So we need to let the Lily brand develop rapidly. Our vision for Lily is that by 2020, the sales revenue will reach 5 billion yuan, and the retail sales will reach 10 billion yuan. Lily will account for more than 50% of the total group share, and the profit will account for more than 70% of the total company.". Xu Weimin introduced that Lily now has more than 500 stores nationwide, and has also opened sales stores in more than 10 countries overseas and landed in Milan Fashion Week. "By 2020, we want to build Lily into a leader in Chinese business fashion, and then become a world-class women's clothing brand," said Xu Weimin.

　　 Get rid of the image of "OEM"

With Lily's increasing contribution to the Silk Group, Xu Weimin revealed that Shanghai Silk Group will gradually get rid of its original image as a pure foreign trade enterprise.

"At present, Shanghai Silk still retains the OEM OEM and original design and development mode. From the gross margin, OEM is only 5%~10%, design and development is 10%~20%, and independent brands are up to 50%~60%. Industries with low profits and slow growth will be gradually divested. It is believed that the proportion of future 'OEM' in the size of the head office will be less and less."

Xu Weimin said that Lily is developing healthily at present. "At present, Lily's inventory rate is very low, between 10% and 20%. Her net assets reach 80 million yuan, but her cash flow is 110 million yuan. Her capital situation is very high quality." In order to compete well with Zara, H&M, Uniqlo and other international fast fashion brands, Lily proposed the concept of dislocation sales. "At present, the homogenization of the clothing market is serious. After full market research, we decided to focus on business fashion, take the path of professional and dislocation development, and strive to win the largest share in the business fashion market." In addition, following the development of the times, Lily opened an online store last year. "Last year's income was more than 20 million yuan, accounting for 6% of Lily's income."

"Lily has developed very well. Many venture capital companies have approached us, but we think that the development of the enterprise is still in the rising stage, the capital situation is also good, and there is no such demand." However, Xu Weimin also told reporters that although Lily or Shanghai Silk has no plans to raise capital for listing in the near future. "But if we want to go public in the future, we should adopt the overall listing model of the group.

　 Sustainable development of retail industry

The "China Retail Sustainable Development Innovation Mode Summit Forum" was held in Shanghai recently. The Summit Forum was hosted by Lily brand of Shanghai Silk Group and attended by Alibaba, Yintai, Wanda and other enterprises. The meeting believed that with the arrival of the era of China's consumer Internet, the structure of China's retail business will undergo tremendous changes, and traditional retail and clothing enterprises will face challenges and need transformation urgently.

Liang Chunxiao, Vice President of Alibaba Group and Director of Alibaba Research Center, said, "After 2012, e-commerce will bring about new ecology, new models and new business patterns. The future business landscape will see earth shaking changes."

Liang Chunxiao pointed out that quantitative change is bound to bring qualitative change. "The e-commerce economy has taken initial shape. We predict that by 2020, the scale of online retail will reach 10.1 trillion yuan, accounting for 16.3% of the total retail sales of consumer goods, an increase of 10 percentage points over 2012. At the same time, the scale of China's e-commerce economy will reach 47.8 trillion yuan, about 5.8 times of 2012." The business model will enter the era of C2B mass customization from B2C, The business landscape has changed.

Lin Chen, chief operating officer of Yintai Business, further pointed out that the retail industry of department stores has reached the stage of value remodeling, which will have an important impact on boosting the retail industry. "In today's increasingly homogeneous department store channels, we must reshape the value."