Clothing Exports: Orders Are Increasing By &Nbsp, But Profits Are Falling.

As a world factory, Dongguan's export trade has picked up significantly, but the decline in profit margins is a topic that can not be carried away. Some towns have begun to "lighten the burden" on enterprises.

The total volume of imports and exports was 54 billion 530 million US dollars, up 35.1% over the same period last year. This is the answer that Dongguan handed over in the first half of the year. With regard to the sharp rise in import and export volume, business people say that although the volume of import and export trade is rising, a considerable number of enterprises' profits are decreasing. In this regard, the reporter chose in-depth interviews with the electronics, clothing and toy industries in Dongguan's pillar industries, and found that as the world's factory, Dongguan's export trade picked up significantly, but the decline in profit margins was a topic that could not be avoided. Some towns and towns had begun to "lighten the burden" on enterprises.

　　 Clothing industry Profit margins are low and orders are not readily available.

In the first half of the year, foreign trade in Dongguan's clothing and accessories increased by 27.1% over the same period, an increase of 38.9% over the previous month and an increase of nearly 40% over the previous year.

People in the clothing industry believe that although the volume of clothing trade in Dongguan is increasing, their profit situation is equally unoptimistic. At the moment, many garment manufacturers are reluctant to accept orders for foreign trade. "First of all, it is affected by the economic environment, and some enterprises have difficulty in financing. Secondly, the cost of hiring workers is increasing. Even if orders are increased, enterprises are afraid to hire large numbers of workers. Third, the rising price of raw materials has also increased the economic burden of garment manufacturers to a certain extent.

Dongguan City Textile and clothing Chen Yaohua, chairman of the association, told reporters directly that if we look at the order, this year's Dongguan textile and garment enterprises are very good, but for some enterprises to reflect the low profit argument, Chen Yaohua does not fully agree. He told reporters that we can not simply understand the decline in the profits of the whole industry, for example, the same products, foreign customers in the quantity of a large number of orders, in order to increase the number of customers, will naturally reduce the profit a few orders; some enterprises began to pay attention to management costs, it seems that the export unit price is decreasing, but scientific management leads to cost reduction, profits generally will even increase, which is not surprising in the current Dongguan.

Practice of reducing burden Town Street

In view of the fact that many enterprises reflect the rise of export volume and the decline of profits, some towns have begun to support enterprises in a targeted way.

The reporter learned from the Tangxia foreign trade and Economic Cooperation Bureau that in the month of 1~6 this year, the Tangxia contract utilized foreign capital of 108 million 460 thousand US dollars, an increase of 64% over the same period last year. Since the decentralization of power in the town of Jian Zheng, since July 1st, it has involved the processing procedures for enterprises to process raw materials and transfer funds. The Tangxia foreign trade and Economic Cooperation Bureau has approved the power of examination and approval. Enterprises do not need to go to Dongguan Municipal Economic and Trade Bureau to reduce the time of issuing permits. This not only reduces the link but also saves some costs for the operation cost of enterprises.

In addition, with the improvement of export tax rebate rate, Houjie's export situation has improved. To help export enterprises make good use of the export tax rebate policy and speed up the return of funds, since June 1st, Houjie National Tax Bureau has established a "high-speed export 500 strong" enterprise that month to declare the high speed road for tax rebate in the month, from the "300 strong" 14 export enterprises to 23 households.

Expert interpretation: strengthening internal management, pricing power for external competition

The volume of export trade has risen sharply and profit margins are decreasing. For many enterprises in Dongguan, this is a problem of concern. In the long run, it is a fatal problem.

In this regard, Zhou Tianyun, an associate economist and an economist at Zhongshan University's international business school, thinks that enterprises mentioned RMB appreciation It has an impact on corporate profits, but it is definitely not the main reason, because the exchange rate of RMB against the US dollar has fluctuated less than one percentage point this year. In fact, the drop in profits is the inevitable outcome of the world factory losing the pricing power of international trade. There will only be more and more enterprises, and the competition will become more and more intense. In order to seize the market share, it is the real reason why everyone will compete to keep the price down. Zhou Tianyun believes that in order to ensure stable profits, Dongguan export enterprises can only enhance internal management and raise profits and strive for pricing power. Of course, it is not so easy to strive for pricing power. They must have their own brands and R & D teams, such as Foxconn's OEM enterprises, so as to have their own core competitiveness in their peers. In addition, in export trade, if we want to grab market share and gain long-term profits, we will inevitably lose sight of it. She believes that as a world factory in Dongguan, there is a very good policy idea for changing cage and changing birds and upgrading industries, but the key is to transform the enterprises as soon as possible.