The second phase of the 111th Canton Fair will continue to be held at the Pazhou Complex. It will display three categories of consumer goods, gifts and home decorations, and set up 17 exhibition areas. When reporters visited the venue yesterday, they found that compared with the first-phase mechanical and electrical products companies, the second-phase exhibitors of daily consumer goods, gifts and home decoration products were more labor-intensive. In the context of raw materials, labor costs, and the recent rise in the RMB exchange rate, many second-tier export companies are under pressure.
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Increasing costs and diluting the profits of exporting companies
Wang Shaoxian, business manager of Yada Technology Group, complained to reporters that the biggest problem for the company is that the price of the product will not rise. "The exchange rate has risen, and the price of export commodities should also rise according to the exchange rate. However, foreign customers only recognize the previous price, and the freight rate rises, even higher than the exchange rate. Once the price rises, the product cannot be sold. Now there is almost no money to earn. â€
Regarding the increase in raw material prices, Wang Jun, manager of Tangshan Baozhu Furniture Co., Ltd., calculated an account: â€œThree years ago, the unit price of birch was around 2,100 yuan, and now it has risen to 3,000 yuan; rubber wood was only 2,000 yuan before. Now the price has doubled and it has risen to more than 4,000 yuan."
The sharp increase in labor costs is clearly the biggest factor for labor-intensive companies. Liang Xiaoli, chairman of Taifeng Industrial Group Co., Ltd. revealed that the overall cost of the company's labor force has increased by 10% this year. At the same time, the price of the product has dropped by 5%, and the profit has been very thin and thin.
Develop new products to enhance their competitiveness
However, the ability of companies to respond to changes in the international market has also been greatly enhanced in recent years. In order to keep their products in good profits in the rising tide of cost, in order to make the price increase more emboldened, the reporter interviewed many companies in the Canton Fair exhibition hall to learn more, increase technology investment, speed up product update speed, and become Many labor-intensive enterprises are "magic weapons" for their own greater interests.
Wu Lingfei, the sales representative of Zhejiang Linya Arts & Crafts Co., Ltd., told the reporter: "We are now sticking to the traditional European and American markets, designing new products and improving our competitiveness; on the other hand, we are actively developing emerging markets such as the Middle East."
Wang Junxi said that in view of the current situation, the company adopted two measures to "winter": first, to develop emerging markets, to maintain production by updating products; second, to increase domestic sales, the company's export and domestic sales ratio is currently seven to three. "A lot of foreigners have seen the opportunities in the Chinese market, and they have come to China to build factories. We have to participate in domestic exhibitions now, increase the proportion of domestic sales, and make up for the losses caused by the reduction in export sales."
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