Either increase the price or die

For the ninth consecutive trading day, it rose continuously and hit a record high for the eighth day in a row. The middle price of the renminbi against the US dollar continued to “fear”. On September 22, the central parity of the renminbi against the US dollar once again surged by 113 basis points to 6.6997, breaking through the 6.7 mark and entering the “6.6” era.

According to an authoritative report, more than 70% of export enterprises can afford RMB appreciation of less than 4%.

The reporter learned that the foreign trade companies that danced on the tip of the knife now ignore the wonderful "currency war" between China and the United States. What they are busy with is how to avoid the risk of RMB exchange rate. What may be commonly used is: delayed delivery of orders and price increases.

How to avoid risks

In response to changes in the exchange rate, export companies are more aggressive than anyone else. There are only two ways to see and touch now. One is to make a fuss about time, and the other is to make a fuss about the price.

Postponing the delivery of orders is the simplest and most common method adopted by companies today.

Li Jia, general manager of Wenzhou Jiayu Leather Shoes Exports, told reporters that the company had just signed a batch of orders with a US customer last month and delivered it within 3 months. However, what he did not expect was that the Renminbi began to appreciate continuously from September 13th. Now, if the goods are delivered immediately, the company may not be able to earn money. Unfortunately, the company has been dragging its feet and hopes to wait until the RMB exchange rate falls back.

Although postponing delivery may solve immediate problems, it is not a long-term solution after all. If the renminbi continues to appreciate, then the more companies pay, the more they will lose.

If you do not want to "wait for death", there is still a way out for businesses, which is to increase prices. At the end of the international OEM chain, squeezed under layers of pressure, it is easier to raise prices, but you must mention if you want to lose money.

Wenzhou City Hardware Association Secretary-General Li Guorong said that for the rapid appreciation of the renminbi, the company's response measures are related to its scale, large companies will have specific plans, and small businesses are very passive, only "accompanying the market."

He introduced that for exporting enterprises, for old customers with many years of cooperation, if large quantities of orders are required, the scale effect can be exerted at the original price, which can relatively lower the procurement cost of raw materials. If you only need one or two thousand small orders, increase the price by about 5%. In addition, as far as possible to recommend new products to the old customers, about 10% of the new price, European and American customers can still accept. However, for new customers, the price will be increased.

Huang Chun, general manager of Shantou Chenghai toy exporting company, adopted an “innovative” price increase. He told reporters that an electric toy car exported to the United States had a profit of less than 1 yuan, but when he added an activity switch button to the same toy car, the cost did not increase much, but the price rose. 10%, the most important thing is that this is completely acceptable to foreign investors.

Forced business transformation

The appreciation of the renminbi has exposed the loss of low-cost competitive advantages of China's export enterprises, but it has also forced export-oriented enterprises, mainly export-oriented economies, to enhance their innovation capabilities and increase their added value.

The National Information Center Research Institute Liu Li told this reporter that although the new round of appreciation of the renminbi may be a gradual process, it seems to be more terrible for the development of the enterprise: the company may not notice the pain, but when the company When you want to transform, you have lost your chance. The teaching of "warm boiled frogs" is precisely due to this.

Therefore, for export-oriented companies, how to improve profitability by increasing the gold content of products in the future will be a key issue. The upgrading of export products is very important.

Xue Xiaowei, director of Baode, a large-scale toy factory in Shenzhen, told reporters that their countermeasures were to increase the added value. The company concentrated on producing high-end electronic toys such as voice-activated, electric and other high-tech electronic toys to reduce competitors, and secondly, reduce costs. , Manufacturing outsourcing in Southeast Asia countries such as India and Vietnam. In October, the Canton Fair was about to open, and their company decided to bring a group of high-tech toys to the Canton Fair and hope to attract foreign investors.

He suggested that enterprises should accelerate their transformation and upgrading, improve the competitiveness of their products, and increase the price of their right to speak. At the same time, make use of current financial instruments to avoid exchange rate risks, and when commissioning, financial institutions are commissioned to conduct forward foreign exchange collection, swap transactions, and hedging transactions to avoid exchange rate risks.