Textile And Clothing Low Gross Profit Margin &Nbsp; Enterprises Reluctantly Give Up Long Dan Dadan

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Taizhou Hanfeng import and Export Co., Ltd. is mainly engaged in the export of handicrafts. Hong Hong, the company's manager, told reporters that the average profit per export of an ordinary product is less than 1 yuan.

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The exchange rate is closely related to sales.

For example, a foreign trade enterprise has an annual sales volume of US $10 million. In the calculation of US $10 million, the exchange rate of RMB to us dollar in January 1, 2011 is US $6.621000, which can be exchanged for RMB 66 million 200 thousand yuan, and in April 29th.

The appreciation of the renminbi has broken many foreign trade enterprises' hopes of "overcharging 35 companies".

"How much RMB appreciation, the cost of enterprises will rise directly."

When asked about the RMB exchange rate, most business executives sighed repeatedly.

In 2010, the appreciation rate of RMB against the US dollar was 3.1%.

Less than 1/4 of the cost brought by the appreciation of the renminbi can be passed on to merchants. Most of them are absorbed by the export enterprises and the profit margins have dropped sharply.

"The price of raw materials and appreciation of the renminbi are very prudent for customers to place orders. The past five thousand or six thousand orders have now turned into one thousand orders."

The manager of Foreign Trade Department of Zhejiang fester Garments Co., Ltd. said that the company is now avoiding risks through the validity period and flexible exchange rate.

Apart from letting merchants become "petty", the appreciation of the renminbi has also led to an embarrassing situation that orders are not available, and big orders have become "hot potatoes".

"Small businesses are not sure about the trend of the renminbi. They worry that the more they sign, the more they will lose."

Hangzhou City Foreign Trade and Economic Cooperation Bureau official admitted that the current textile and garment enterprises gross profit margin is only about 3 ~ 5%, large single, long single delivery settlement period of up to six months or one year.

It is understood that at present, most enterprises receive orders for delivery settlement within 3 months, and those with longer delivery times can only give up reluctantly.