Net profit is swallowed, raise prices difficult after the sharp appreciation of the yuan foreign trade enterprises how to save themselves?

"I don't even want to settle foreign exchange! But then again, I'm afraid of the back to continue to appreciate."

In the face of the sharp appreciation of the yuan, a record high since more than a year, Shanghai Hai Fei Europe Crafts and Gifts Co.

As the usual orders are shipped 90 days after the settlement, and the order when the dollar to the yuan exchange rate or 7.1 up and down, now fluctuates to 6.8 or so, a direct loss of 4%, "the net profit all of a sudden was appreciated to rise out of it".

In the reverse globalization and the impact of the global epidemic, the original complexity of the foreign trade situation has become more severe. The recent sudden appreciation of the RMB has made its foreign trade business even worse.

Although exchange rate fluctuations are a risk that foreign trade enterprises are not familiar with, the straw that falls under the weight of pressure becomes heavy.

Net profit disappeared, price increases difficult

For cloth dolls, clothing fabrics such as thin foreign trade products, the appreciation of the RMB 4%, is directly swallowed most of the orders of the net profit.

In order to cushion the exchange rate risk, the company will usually take some of the export products lock exchange rate initiatives, but Meng Zhuo frankly: "The sudden appreciation of the RMB is somewhat unexpected, the appreciation speed is also relatively fast, a lot of the lock exchange rate has not yet had time."

The locking of foreign exchange refers to the forward settlement business, that is, to determine the exchange rate in the front, the actual foreign exchange revenue and expenditure occurs in the back. In order to reduce the impact of exchange rate fluctuations, some foreign trade companies will take the method of locking the exchange rate in advance to weaken the risk of two-way fluctuations.

However, locking the exchange rate itself is also risky, in the future the exchange rate trend is relatively clear and stable situation, the company can lock the exchange rate in advance to reduce the exchange rate significantly higher or lower losses. But if the judgment is not accurate, locking the exchange rate will affect the profit.

A few years ago, the trend of the RMB suddenly changed from appreciation to significant depreciation, which caught Meng Zhuo off guard, and made them hold an emergency meeting to stop the locking operation immediately.

At the same time, in the trend of the appreciation of the yuan, the export cost of enterprises naturally want to increase the selling price, but in the current foreign trade situation, want to increase the selling price of how difficult.

In the apparel industry, just recently started to talk about the spring and summer 2021 orders of Meng Zhuo know very well. To get orders in the still severe situation, low prices are almost a prerequisite.

In Xiao Xiao's mailbox, there are a lot of overseas customers to send a "kill letter".

"Are old customers, old products, but every time they turn single, they will kill the price, threaten you if you do not do this price, I will go to find other suppliers." Xiao Xiao is quite helpless. This also allows them to be passive in terms of bargaining, want to raise prices and do not dare, "customers on the price control is very dead, and the Chinese market is too big, you do not do, there is always someone to do."

With the partial transfer of labor-intensive production capacity to Southeast Asia in recent years, customers kill more and more intense - Shanghai can not find cheap, go to the Shanghai neighborhood, the Chinese market can not find cheap, then go to Vietnam, go to the Philippines.

Self-help and " The savior "

In the trade friction and the epidemic under the multiple blows, the imminent Most of the foreign trade into the last quarter of the foreign trade people have been prepared for "this year can not be easy" psychological preparation.

Now due to the appreciation of the RMB triggered by the snow, so that the survival of foreign trade enterprises is even more difficult, but also make self-help and transformation has become more and more urgent.

For Xiao Xiao, their "savior" is the domestic consumer market.

"Foreign trade is not a good day, hope is pinned on the domestic market." Xiao Xiao said, under the influence of the epidemic, this year's exports are expected to shrink by 40% compared with last year. But she is pleased that this year's domestic orders at least quadrupled over last year, has realized the results with the foreign sales of half open, but also to make up for the sudden drop in exports of the revenue gap.

In Li Yanting's view, the new models can allow overseas customers to be more competitive in the market, but also in the pressure of the appreciation of the yuan to keep the orders as well as the key to profits. Compared with the previous pace of launching 10 new products per year, the company is expected to launch about 15 new products this year.

In addition, through the efforts to transform to e-commerce, Li Yanting's company's online orders increased significantly this year, and the proportion of online orders has been more than half of the offline orders are generally delayed. He said that this year's export volume and last year's level should not be a problem.

After more than two months of testing the waters, the company's e-commerce transition has taken off, from keeping the factory running normally, to the supply exceeds demand, Mi Feng Yun opened up new sales channels, but also reduce the risk of exchange rate fluctuations. At present, Mi Feng Yun their overseas incoming less, "export orders from South Korea has begun production, while the United States has not."

Finding Opportunities in Crisis

And clothing, textiles and other traditional industries, compared to exports, in the epidemic, "blessed" bicycle and laptop products such as exports rose against the trend, and even ushered in a blowout, which allowed them to gain a certain degree of initiative.

As an early participant in the export of electric bicycles in the industry manufacturing and sales of companies, Suzhou Mangshi Intelligent Vehicle Science and Technology Limited company's exports in the second quarter also increased by 2.5 times. For them, the fastest growing overseas market is the United States, followed by the European region.

Zeng Xiansheng said that although the industry is bucking the trend of growth, but the epidemic and the U.S. election and other factors, for the company's overseas services still have a greater impact, and the future situation is more difficult to judge. In order to cushion the impact of trade friction, they have been in the layout of overseas assembly plants, and plans to base on online sales, lock more young people group.

On the impact of RMB appreciation, Meng Zhuo, who has been in the foreign trade industry for more than 20 years, also looks far ahead.

Meng Zhuo believes that the yuan to maintain a high level of foreign exports more difficult, but will also have other aspects of the impact, such as expanding the proportion of the yuan in the world's currencies, to prevent China's capital outflow, as well as increase imports to reduce the surplus with the U.S. and other countries, and so on. The benefits of these are likely to be far greater than the losses from a temporary reduction in export volumes.

The so-called crisis, always in danger. The rise in the exchange rate of the yuan, unfavorable to exports but favorable to imports. In the current domestic and international double cycle of the background, improve the added value of the product, try to increase imports and open up the domestic market, but also a longer-term response to the enterprise and the transformation of the opportunity.