Charter flights to sea to "grab orders"!! Textile market is becoming more and more popular

2022-10-11 66
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On August 29, according to the report of the well-known domestic media First Finance, "I thought it would be around 6.8 for a period of time, but I didn't expect it to break through 6.9 so quickly“

After the unexpected interest rate cut by the Central Bank, the RMB quickly depreciated from around 6.7. On August 24, data from the China Foreign Exchange Trading Center showed that the central parity rate of the RMB against the US dollar was 6.8388. The exchange rates of onshore RMB and offshore RMB against the US dollar were 6.8351 and 6.8582 respectively, the lowest in nearly two years, and depreciated by about 7.5% compared with the mid April.

This year, the textile market has been trapped in a situation of "a pool of stagnant water". The market lacks the injection of good news, and enterprises also operate conservatively. The whole market is "not prosperous in the peak season, not weak in the off-season". The sharp deva1uation of RMB this time is undoubtedly a "red envelope" for textile enterprises. It is estimated that for every 1% depreciation of the exchange rate of RMB against the US dollar, the sales profit margin of the textile and clothing industry will increase by 2% - 6%, and the income of enterprises with high export proportion will be more obvious.

The exchange rate has always been a concern for foreign traders. However, due to the tepid market this year, the deva1uation of the RMB has not shown obvious benefits. Foreign trade orders have a 2-3 month payback time. If the exchange rate can maintain this trend, in the long run, foreign traders will definitely benefit from receiving orders and making profits. But is that really the case?

Meng Zhuo, manager of a garment foreign trade enterprise in Anhui Province, told First Finance that because the RMB exchange rate has declined significantly recently, they have decided to suspend the operation of locking the exchange rate for all orders at the end of this year.

Foreign trade enterprises took the initiative to reduce prices and stabilize orders. "Although the company's performance is also good, after July, it felt that the stamina was obviously insufficient, and by the first ten days of August, it was already obvious." As the sales director who has always been in the front line, Meng Zhuo said frankly that the foreign trade situation is not too optimistic from the current domestic and foreign markets.

After suspending foreign exchange locking for the next order this year, they plan to lock foreign exchange by 30%~50% for orders of more than 500000 dollars from March to April next year.

"Our performance has declined this year, so we will take the initiative to reduce prices. Foreign customers are generally unsalable, and some major customers will ask us to reduce prices." Du Chuankui, the head of Shanghai New Capital Industry Co., Ltd., said to First Finance and Economics that their performance began to decline this year, by nearly 35%, because they had reaped double-digit order growth under the global epidemic. In addition to the deva1uation of RMB, the price of raw materials that had gone up all the way had also dropped by 15%~25%. Therefore, in order to "grab orders", they have been calculating costs accurately recently, trying to find the most appropriate price reduction ratio.

Du Chuankui said that the company has planned to reduce the price for customers by about 10% in mid September, which is an adjustment based on the 20% price increase for customers in the previous two years.

Zhao Benzhi pointed out that the most realistic difficulty for foreign trade enterprises was the delivery delay caused by the poor logistics before this year, which directly led to the overstock of inventory of some buyers, which is bound to significantly reduce the order volume of the next quarter, which is their most worried.

As the main business is garment foreign trade of recycled materials, compared with traditional textile foreign trade, Zhao Benzhi's orders are relatively less affected by the overall environment. However, clothing products are seasonal, and it is difficult to recover lost time. "Once the sales season of products in spring and summer is missed, there is no way to continue to sell them when autumn and winter come, and they can only wait until the spring and summer of the next year. This will have a huge impact on the use of funds and the purchase of orders in the next quarter."

Charter flight "order grabbing" continues

According to the data released by the General Administration of Customs, in the first seven months of this year, China's total foreign trade import and export value was 23.6 trillion yuan, up 10.4% year on year. Among them, the export reached 13.37 trillion yuan, up 14.7% year on year.

Wei Jianguo, former vice minister of the Ministry of Commerce and vice chairman of the China International Economic Exchange Center, said to First Finance and Economics earlier that the development of foreign trade should strengthen "order grabbing", focusing on solving problems related to logistics and port stagnation. "Order grabbing is mainly to compete with Southeast Asian and Latin American countries". Some win by quality and service, and some win by price advantage and after-sales service. Ningbo, Zhejiang, Yiwu and other places have set a precedent for foreign trade enterprises to seize orders at sea or purchase chartered flights from foreign investors in China.

On August 30 and September 21, the second batch of Ningbo commercial charter flights in Europe will set off again to help enterprises expand the international market and ensure the smooth return of foreign traders who go to sea to grab orders.

On the afternoon of August 28, Yiwu's third chartered flight of international buyers this year took off from South Korea, carrying 163 people to Hangzhou Xiaoshan Airport. Prior to this, 107 Indian foreign businessmen and 163 Pakistani foreign businessmen who arrived in Hangzhou by chartered flight on August 9 and at the end of July, respectively, had ended health management measures such as centralized isolation and home monitoring, and opened the offline shopping and large procurement mode in Yiwu International Trade City.

On August 24, 49 foreign businessmen from India and Pakistan came to Yiwu International Trade City with orders, and started the offline procurement trip. Pakistani businessman Asif Hamid said on the same day that three cabinets were being pulled out, and five more containers of goods were waiting to be pulled out in the next week. Loki, an Indian businessman, also said that his overseas customers had given many orders for new products, and what he needed to do was to confirm the price and finalize the order in Yiwu.

On the same day, the Securities Times reported that:

On August 29, Sun Xiao, spokesman of the China Council for the Promotion of International Trade and Secretary General of the China Chamber of International Commerce, said at the monthly regular press conference that a recent questionnaire conducted by the China Council for the Promotion of International Trade against more than 500 enterprises showed that the main difficulties faced by enterprises were slow logistics, high costs and few orders. 56% of enterprises said that the price of raw materials and logistics costs were high. 62.5% of the enterprises said that their orders were unstable, with more short orders than long ones.

Sun Xiao said that the demands of enterprises were mainly focused on maintaining the stability and smoothness of international and domestic logistics, implementing rescue and assistance policies, and facilitating cross-border personnel exchanges. Some enterprises look forward to resuming domestic exhibitions and opening up overseas exhibitions to obtain more orders.

Sun Xiao also said that in the past three months, with the effective control of the domestic epidemic, especially the accelerated implementation of the national package of policies to stabilize the economy, foreign trade imports and exports recovered steadily, and enterprise expectations and confidence are gradually improving.