European Debt Crisis Hits China'S Orders, Foreign Trade Enterprises Reduce Exports One By One To Boost Exports

In November 30th, the global sourcing fair was opened at the Shanghai New International Expo Centre.

In order to promote sales, most foreign trade enterprises do "add and subtract". On the one hand, they try to meet the needs of European and American buyers by lowering profit margins. On the other hand, they focus on strengthening exports of emerging markets, while the market for domestic trade with different marketing modes is quite cautious.

35% foreign trade enterprises are affected by the European debt crisis.

The EU, as China's largest export market, accounts for more than 80% of China's annual exports.

However, this year, the European debt crisis has greatly affected China's exports.

According to the organizers of the global resources sourcing fair, the actual closing of the 110th Canton Fair (China Import and Export Fair) and the European and American purchasers fell by 19% and 24% respectively.

The willingness of buyers and sellers to sign long lists declined significantly.

The number of short lists has reached 88% in 6 months.

Earlier this month, a survey of 581 Chinese exporters showed that almost all of the companies surveyed felt the impact of the European debt crisis, 35%

The respondents said their impact was quite obvious, and nearly 60% of the respondents said they were affected to a certain extent.

66%

The suppliers surveyed indicated that exports to the European market had declined in the past few months, 22%

Companies can maintain stable exports, while only 12% of enterprises say exports are still growing.

According to the analysis of a senior foreign trade personage, from the regional situation, Zhejiang's foreign trade enterprises are relatively concentrated, and the upstream and downstream industry chains are linked well, with larger adjustment space against the pressure of rising raw material costs and profit margins.

Relatively speaking, Guangdong and other southern provinces and foreign trade enterprises face more obvious impact.

According to the head of a Zhejiang clothing company who attended the exhibition yesterday, the cost of raw materials and labor costs increased considerably this year, but the old customers were unwilling to raise the price of the order.

The profit margin has already been reduced by two percentage points, but in order to maintain the normal operation of the enterprise, orders are still received.

And since the beginning of this year, the demand for high-end fabrics and garments has begun to decrease. On the contrary, orders for knitted underwear, pajamas and other necessities are increasing.

Although the economic situation in Europe is not optimistic, it is still one of the major overseas markets for Chinese exporters.

Chinese suppliers remain cautiously optimistic about the forecast for exports in 2012.

In the above survey, about 29%

The companies surveyed expect growth in exports to Europe next year, while 34%

Companies believe sales will remain stable.

Therefore, nearly half of foreign trade enterprises will provide more flexible product quotes in the face of buyers' changing demand. 30% of exporters are willing to reduce the minimum order quantity to match buyers' purchasing behavior.

And nearly 20%.

The company plans to introduce more basic styles or lower end products.

Strengthening emerging market exports to make up for losses

Ren Lifeng, vice president of China's Ministry of internal trade development, global resources, told reporters that the domestic consumer market is developing constantly, benefiting from the favorable policies implemented by the Chinese government.

According to the global resources survey, nearly 20%

The companies surveyed said they plan to strengthen their penetration in the domestic market.

Yesterday, reporters randomly interviewed several exhibitors of clothing and gift foreign trade enterprises. Most businessmen thought that the pattern of foreign trade and domestic market were quite different, and the pformation was difficult.

Although the profit margin of foreign trade market is usually only 3% - 5%, the source of orders is relatively stable, which can meet the basic needs of survival and operation of enterprises.

Although the profit margin of domestic trade is 3 higher than that of foreign trade orders, the domestic market involves the development of sales channels, which is a strange field for export enterprises.

Reporters have learned that although some enterprises have begun to set foot in the domestic market, the proportion of domestic trade accounts for only 2 to 3 of the total volume of business.

In addition, foreign trade export enterprises hope to increase the share of emerging market exports to make up for the decline in the volume of orders in the US and Europe.

42%

The surveyed suppliers are expected to further consolidate their market position in South America and Latin America, the Middle East, Africa, Eastern Europe and the Asia Pacific region in the coming months.

Yesterday, Wei Jianguo, Secretary General of the China National Economic Exchange Center, suggested that China should increase exports to emerging countries, especially African countries next year in the "2012 World Economic Outlook Forum".

China's exports to Africa have increased rapidly, and the African market is expected to enter the first phalanx of China's foreign trade next year.