Chengdu Shoe Enterprises Should Respond To The Pressure Of Appreciation &Nbsp; Reflect On Increasing The Added Value Of Products.

Raw materials, labor costs and other significant increases, coupled with the appreciation of the renminbi this year,

Export of labour intensive commodities declined

In October 24th, the latest data of Sichuan Provincial Department of Commerce showed that in the first three quarters, the import and export, export and import volume of our province exceeded the level of last year, and the increase was 16.4, 21.5 and 10 percentage points higher than that of the whole country.

However, under the overall upward trend, many labor-intensive commodity exports have dropped sharply.

Among them, clothing fell by 38.4% over the same period last year.

"RMB appreciation has great impact on the export of labor-intensive goods in our province, but it is also an opportunity."

The director of the foreign trade department of the Provincial Department of Commerce, for example, said, "under the background of RMB appreciation and compressing the profits of enterprises, only by adjusting the product structure, increasing the added value of products and brand value can enterprises survive and develop, especially the labor-intensive enterprises."

As the provincial commerce department responsible person said, under the tremendous pressure of RMB appreciation, many shoe industry in Chengdu also began to reflect constantly.

A manufacturer mainly engaged in border trade women's shoes revealed that the original profits were not high, which was reduced to below 3% because of the continuous appreciation of the renminbi. "Before it was mainly US dollar settlement, we started to use RMB to start settlement this year, and signed the contract in accordance with the contract.

It is reported that, in addition, many Chengdu shoe enterprises have agreed on the forward exchange rate with their clients to reduce the pressure brought by the appreciation of the renminbi.

"But these are not permanent solutions. We are now considering how to start the brand and increase the added value of the product."