Exchange Rate Appreciation: Garment Enterprises Take the Initiative to Increase Their Competitiveness in Dilemma

In recent years, domestic inflationary pressures have increased, raw material prices have fluctuated sharply, labor costs, energy costs and other factors have continued to rise, and problems such as complications and labor shortages have become prominent, leading to increased operating risks for export-oriented enterprises. Under this circumstance, it is very important to accurately understand the predicaments faced by the apparel industry and optimize the competitiveness of enterprises. Many companies constantly improve themselves under pressure, from the strengthening of management innovation, to people-oriented persistence, to social responsibility. Interpretation is an urgent measure.

"The appreciation of *** makes companies take orders very sly, take orders, profits are low or even lose money; do not take orders, the cost of the company's costs are still there." Dongya Garment Co., Ltd. Executive Director Xue two bolt said, for * The impact of the appreciation of the ** is basically absorbed by the company itself, making the already meager profits compromised and affecting the company's living space. At present, in order to ease the exchange rate pressure, the company has adopted industrial upgrading by upgrading production efficiency, reducing intermediate consumption, and improving product quality, technical content, and added value to avoid exchange rate risks.

According to Wu Huiyang, a shoe production manager, the impact of exchange rates is irresistible, and passive waiting is not an option. By actively improving the management level and product competitiveness, the exchange rate risks are evaded, and foreign companies are under signing. Prior to the order, the price of the U.S. dollar will be negotiated in advance, or an appropriate price increase will be made for the newly designed product. At the same time, the period of the received foreign orders is limited, and the general selection period is relatively short, which shortens the time for the delivery of funds. On the one hand, it can ease the pressure on the exchange rate appreciation of enterprises; on the other hand, companies also improve production efficiency.

According to industry sources, most of Shishi’s export companies’ profits are between 3% and 5%, especially for small and medium-sized foreign trade companies that derive their profits from export rebates. Facing the appreciation of the renminbi, many small and medium-sized export enterprises have begun to adjust the prices of their products in accordance with changes in exchange rates, which is one of the countermeasures for foreign trade companies to cope with exchange rate changes. However, on the whole, companies should focus on increasing the value-added products, increase investment in R&D, speed up scientific and technological innovation and the introduction of talents, and use high value-added new products as an important means to improve the competitiveness of enterprises.