The reason for seeking a solution to the dilemma

The dilemma faced by garment companies is the export dilemma caused by the appreciation and the rising cost of domestic upstream products and business operations. This phenomenon has recently intensified.

According to the chairman of a clothing company in Shandong, most small companies in Shandong now have a meager export profit of only 3% to 5%. If *** rises again, there is no money to be made, and small companies exporting to Shandong may stop production. Industry insiders pointed out that due to the current economic situation is still unstable, the recent appreciation of the renminbi, inflation and rising labor costs have become China's export enterprises "heart stone." According to a survey of 378 buyers, 52% of international buyers said that the main challenge facing the current procurement is the increase in the price of Chinese export products.

From the feedback of some companies, in addition to abandoning US dollar bargaining and settlement, price increase has become the main strategy for companies to respond to the appreciation of ***. However, experts believe that product price increase is a very complicated issue and it affects the whole body. On the one hand, the textile export market is fiercely competitive, and the middle and low-end product markets are even more saturated. If the price increases are not profitable, they will lose the market; on the other hand, export tax rebates, labor laws and other policy adjustments,* ** Accelerated appreciation, the soaring cost of raw materials and other comprehensive factors have caused the textile industry's production costs to rise by more than 10%. It is impossible to survive without raising prices. For textile companies, raising the price of export products is tantamount to a "double-edged sword" and a hard-to-play card.

The survey also showed that in the face of the appreciation of the ***, 68% of buyers said that the appreciation of the *** impact on its procurement in China, including 54% that the export price of Chinese products has increased; 16% said orders for China It is decreasing; 15% indicates that exchange rate problems have increased barriers to payment; 11% said that this directly leads to frequent changes in export quotation; 4% indicates that the impact is not obvious. The survey also pointed out that for Chinese suppliers, in addition to reducing product prices and controlling costs, finding another way to survive has become a top priority.

It is undeniable that the cyclical nature of the market economy and its inherent laws determine that under such circumstances, the elimination of some companies is a natural process, but there are always some companies that will eventually get out of the dilemma. What are their methods? The authorities also have to calm down and look for reasons.