Textile And Garment Industry Accelerates Pformation &Nbsp, Baoli Or Poly

Cotton is one price per day, wages rise, and no one can be recruited.

At the 108 Canton Fair, a number of executives interviewed by reporters said that under the superimposed effect of multiple pressures such as rising raw material prices, increasing labor costs and RMB appreciation, enterprises generally faced the test of increasing cost pressure and gradually losing profits.

Facing the "boom", the export pressure of enterprises has increased sharply.

At the 108 Canton Fair, the most important thing for journalists to hear is "rising tone", and labor shortage and rising cost of raw materials are intertwined.

"At the beginning of the year, the labor shortage has been extended so far. Many factories have posted notices of recruitment all the year round. Now that they can recruit more workers, they dare to take one more piece and earn more money.

However, due to insufficient recruitment, some orders are being overloaded and postponed.

Dongguan Dongli plastic products Co., Ltd., said Li Yaoguo, business manager.

While labor costs continue to rise,

"Besides

What is most unbearable for enterprises is a substantial appreciation of the renminbi.

Chen Quanyou, deputy general manager of overseas market department of Chuang Jia Electronics Co., Ltd., Chaozhou, Guangdong, said that at the beginning of the year, according to the prediction of RMB appreciation of 3% or 5%, the contract was signed and the production plan was arranged.

For enterprises with a profit margin of only three or four points, a point of appreciation of the renminbi means that the profits of enterprises will be reduced by one point and the profit rate will be reduced by 25%.

In a "boom" sound, corporate profits have been eroded, even the high profit mechanical and electrical products are also unbearable.

Wang Guiqing, vice president of the China mechanical and electrical chamber of Commerce, said that a considerable part of the profits of the mechanical and electrical export enterprises were 3%, and some enterprises' profits were 6% to 7%. Only a small number of enterprises' profits were around 10%.

The dilemma of protecting the market and protecting profits

Facing the pressure of cost pressure, exhibitors increased export prices to varying degrees, but the profits of enterprises did not increase with the increase of prices.

Zhang Su said that since the beginning of the year, many companies have raised nearly 20% of their products, but the high price has not brought more profits.

"In order to protect the market, under the fierce export competition environment, enterprises have limited price increases. Some enterprises are making a lot of money in small profits, mostly in order to keep their old customers, because once customers are gone, it is hard to find them again."

A Shandong textile enterprise suffering from cotton price is responsible for many foreign trade enterprises.

Nevertheless, some orders are being pferred to other countries as the price of Chinese exports rises, making India and other emerging markets benefit from it.

Zhang Su said that in the field of Minmetals industry, many orders have begun to pfer to India enterprises, and buyers are trying to find new markets to reduce procurement costs.