It Is Difficult To Calculate &Nbsp For Exchange Rate Fluctuations, And Foreign Trade Clothing Is More Difficult To Cross.

"In the past, 250 thousand yuan owed money owed, but now, the money has become.

Chen Jingping runs a clothing processing company in Yantai, whose products are mainly exported. Recently, influenced by factors such as exchange rate, technical barriers, and labor cost, the days have been stretched.

Workers are raising salaries and businesses are facing layoffs.

"It is time to pay wages to the workers, but the money has not yet arrived."

How to solve the livelihood problems of 300 employees is Chen Jingping's heart.

Since March 1st, Yantai has raised the minimum wage standard, increasing 190 yuan per person per month, 300 yuan is 57000 yuan, and it needs to pay 684000 yuan a year to catch up with the profits of the company for one year.

This year the workers have raised salaries, but at the same time they are also facing.

Chen Jingping said, 2008 finance

Chen Jingping admitted to reporters that because of the increase in costs, many enterprises choose to raise prices to make up for the losses, but at the same time, China's apparel industry's low price advantage in the international market is difficult to sustain.

A while ago, when he went to the Canton Fair, he found that some European and American businessmen were more willing to buy clothing from cheaper places such as India, Vietnam and Kampuchea. In the low end, China has no obvious advantage as it did in the past few years.

At present, labor shortage often occurs in China, and the trend of rising labor costs is difficult to change. The cost of labor in Kampuchea is relatively stable, and the tariff of garments exported from Kampuchea to Europe and the United States is also lower.

Some powerful colleagues are planning to pfer the company to Kampuchea, where they can produce directly after receiving orders, and finally add freight, and the cost will be lower than that in China.

Unable to understand exchange rate fluctuations and give up more than ten odd businesses

Chen Jingping's company mainly produces shirts, which are mainly exported to Europe and the United States, with annual sales of around 8 million yuan.

Recently, due to the impact of exchange rate changes, his company was afraid to answer a large number of orders.

Chen Jingping said last month they received an order for 50 thousand shirts, but the other side insisted on doing it according to last year's price.

At that time, he calculated an account. If the exchange rate was taken at that time, it would mean a loss of more than 30 yuan.

Like this, the meat that the mouth can not dare to eat has encountered more than ten times this year.

In January 12th this year, the central parity of RMB against the US dollar was 1 yuan to 6.6128 yuan, while in November 24th, 1 yuan could be exchanged for 6.3570 yuan.

Chen Jingping told reporters that in the first half of the year, the company has been making a batch of shirts exported to Europe, and the fabrics of these clothes come from Korea.

Recently, the renminbi has been hitting the limit for a long time. Now he is not sure about the trend of exchange rate. If he continues to fall, he can no longer refuse to hand the order; if it is a short fall and then goes into the channel of appreciation, the more orders he receives, the more he will lose.

"The data released by the apparel industry association show that the sales profit margin of the garment industry will drop by about 4% every 1% appreciation."

Chen Jingping said that in order to avoid the risks brought by exchange rate changes, many export processing enterprises in Yantai are very cautious now.

Since the beginning of this year, the pressure of RMB appreciation has exceeded the pressure of raw materials and labor costs caused by domestic inflation.

If you do not return to foreign debt, you will not be in arrears

Chen Jingping's clothing company opened more than 10 years ago, except for the time when the financial crisis broke out in 2008.

Since the second half of this year, the company has been affected in many ways, and its performance has gone from bad to worse. Chen Jingping has also started losing sleep.

In December 13th, when the reporter saw him, he was looking at the financial statements in his office.

"There is still more than 630 thousand yuan of accounts receivable did not come back. This month, the wages of workers really do not know where to raise."

Chen Jingping's words were laughable, but the ashtray full of cigarette butts on the table was enough to explain his anxiety.

Garment processing is in the middle of the whole industry chain of clothing industry. One end is connected with finished product sales, and one end is connected with raw material supply. Because of the recent export orders being less and less, Chen Jingping's products have shifted to the domestic market.

"Has been reluctant to do domestic sales, because domestic businesses have to pressure part of the money, when operating well, it is not obvious, and now, even if more than a hundred thousand yuan owed companies can not afford."

Chen Jingping said that in order to make the company operate normally, the wages of the workers should be guaranteed first.

In this way, the most unwilling to see "triangle debt" appeared.

"Raw materials suppliers are also having a bad time. Yesterday, they received a call from the button factory, saying that they would stop supply at the end of this month without payment."

Chen Jingping said that if the raw material is broken, the operation of the company will be suspended.

Under normal circumstances, their company's account should have at least 800 thousand yuan of funds for circulation, but now only a shopping mall in Qingdao is in arrears of 250 thousand yuan, which accounts for 3% of the company's annual sales and accounts for 30% of the company's liquidity. It is almost 1/3 of the company's annual profit.

Expensive test fees are difficult to cross technical barriers.

The house is leaking for rainy days.

In the wake of the pressure of RMB appreciation and rising cost to small and medium-sized garment enterprises, in June, the EU's "REACH" new regulations set up technical barriers on the breakout of these enterprises.

Chen Jingping said that according to the new "REACH" regulation issued by the European Union, anyone who has been listed as a high standard of concern (SVHC) is required to report to the EU chemicals authority before June 1, 2011. Products that are not notified will not be able to enter the EU market.

"This new regulation is really a disaster for us," he said.

The EU "REACH" law, which came into force in June 1, 2007, is a technical trade barrier.

In order to maintain European orders, Chen Jingping's company specially arranged for this requirement to be studied and responsible for product inspection.

Over the past four years, four batches of substances have been classified as highly concerned substances, including 46 kinds of substances such as o-phenyl two formate, five oxidized two arsenic and three chromium oxide.

"Now, we first need to find out whether the eight new substances in the EU will appear in the products, and tell suppliers to strictly control the production process.

If the product fails to be recalled, the whole chain will suffer losses. "

Speaking of this, Chen Jingping's face was helpless.

The high cost of inspection has led many small garment enterprises to abandon European orders and turn into domestic markets. Chen Jing Ping's company is also struggling.

He said that textile and garment raw materials, excipients and their production process all need to use a lot of chemical substances, and the "REACH" regulation stipulates that every increase in one substance, enterprises must detect more than one substance, each product should carry out dozens of tests, and more than 100 items, each of which costs thousands of dollars.

With such a high cost, almost all small garment enterprises will be swept away.

Chen Jingping said that the new regulations issued by the EU have made the small businesses that compete on price advantage further reduced the scope of raw material procurement, which has virtually increased additional costs.

Small and medium-sized garment enterprises which take the EU as the main market will face the risk of bankruptcy if they do not pform in time.