Analysis only sees orders, no profits, foreign trade companies seek to change

[China Glass Network] As one of the most important exhibitions in the global consumer electronics industry, the good news from the Global Sources Hong Kong Electronics Show was also confirmed at the Canton Fair in April. Major domestic appliance exporters from the United States, Haier, Chunlan, etc. have said that they benefit from the economic recovery of the European and American markets, and the market demand for traditional household appliances, computer accessories, communications, car GPS, and entertainment electronics has increased significantly.
While seeing the expected increase in orders compared to the same period in 2010, many exhibitors are not confident enough to make more profits after receiving orders.
"These foreigners are very savvy. Generally speaking, the goods are more than three. Before the buyers place orders, they often compare the similar products of the entire exhibition hall, and the price is very low. Only the orders are not profitable, and the company survives. An exhibitor from Shenzhen who is a newer accessory for Apple products told the author that the gross profit margin of his company has dropped from 10% in 2010 to around 4% today.
Many exhibitors said that the pressure on companies behind the growth of orders has not been reduced. Due to factors such as excessively high raw materials prices and rising labor costs due to the rapid rise in CPI, and the appreciation of the renminbi, even if orders are received, can they earn more? More profit, less business confidence.
"I only see orders without profit"
The four-day Global Sources Spring Electronics Sourcing Fair closed on April 15th at the AsiaWorld-Expo in Hong Kong. Global Sources launched its first online show during the show to facilitate buyers. More than 3,000 booths attracted more than 10,000 buyers from all over the world, including strong buyers such as BestBuy, Bosch, Microsoft, Samsung, and more than 20 emerging markets such as Brazil, India and Mexico. Purchasing group.
At the China Sourcing Fair, a person in charge of a tablet computer told the author that orders increased by more than 20% compared with the same period in 2010. A survey of 1,500 export companies showed that about 80% of export-oriented export orders in March increased or remained flat.
At the same time, statistics from the Canton Fair show that as of the 18th, the total turnover of mechanical and electrical products in the first phase of the Canton Fair has exceeded US$16.21 billion, an increase of 10.9% over the previous year and an increase of 25.2% over the same period in 2010. Shanghai Trade groups such as Tianjin and Tianjin all reported significant growth in corporate transactions in 2011.
From April 23 to 27, the second session of the 109th Canton Fair was held. The author learned from a number of export companies that, unlike the concerns that the export situation is still somewhat uncertain in 2010, this year's exhibitors are generally optimistic that the order volume in 2011 will maintain a growth of one to two percent. However, the cost pressure has continued to increase, and profits have not increased.
“Compared with 2010, the comprehensive cost of raw materials has increased by more than 10%.” Zhang Yan, manager of the export department of Ningbo Jide Electric Appliance Co., Ltd., who participated in the Canton Fair, said that the prices of raw materials and labor have risen significantly in the past year, bringing the company very huge pressure.
The data shows that since April, the RMB exchange rate has shown an accelerated appreciation trend, and the appreciation of the RMB against the US dollar is close to 0.5%. On the 22nd, the central parity of the RMB against the US dollar was 6.5156 RMB, breaking through the 6.52 mark for the first time and creating a new high since the exchange reform.
"Now the OEM company is actually only making a policy of export tax rebate." Zhu Xiaomin, president of Shenzhen Haridong Industrial Co., Ltd. believes that in the context of RMB appreciation, private label is the way out for electronic enterprises.
“The gross profit of OEM is only 3%-5%. In the period of economic fluctuations, how much people say, it is very passive.” Zhu Xiaomin said that Hariton officially got rid of OEM in 2010, and currently mainly produces external electromagnetic authorized by Apple. , chargers and other electronic products.
Although the renminbi has appreciated, it can adjust the price to absorb the rising costs.
Raising prices to cope with the crisis “In the face of rising costs caused by various pressures, enterprises are close to the critical point of digestion. Many companies can only be forced to raise prices to maintain a certain profit margin.” Sun Lijian, deputy dean of Fudan University School of Economics, pointed out that The more direct impact of this is the decline in export competitiveness.
In fact, a series of costs such as raw material prices, labor wages, financing expenses and exchange risk control continue to rise, and the price increase has become a passive choice for domestic foreign trade companies.

Floating Charms&Plates

Floating Charms,Floating Plates,Floating Locket Charms

Zinc Alloy Locket,Key Chain,Diy Slide Charms Co., Ltd. , http://www.czcopperjewelry.com