Continued Depreciation Of RMB Brings 1%-2% Profits To Fabric Enterprises

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< p > recently, the RMB has depreciated. As of April 24th, the exchange rate of US dollar against RMB has dropped to 6.1589. According to industry analysis, the continued depreciation of the RMB has obvious stimulative effect on the export volume of labor intensive enterprises such as textile fabrics with low profit margins. Now let's take a look at the details of the world's clothing and shoe net. < /p >
< p > according to a lot of foreign trade enterprises engaged in textile < a href= "//www.sjfzxm.com/news/" > fabric > /a > industry, after being restricted by foreign trade environment and cost pressure, business operation is very difficult, even to the edge of bankruptcy. And the continued depreciation of the renminbi has given some breathing space to enterprises. The depreciation of the renminbi will bring 1%~2% profits to the enterprises in terms of European and American orders. < /p >
Besides, P also said that although the depreciation of the RMB did not immediately bring about an obvious increase in export orders, it still reduced the pressure on the cost of fabric export. This is good news for enterprises, and to a certain extent, it has buffered the operational pressure brought by the rising cost of labor and other issues. < /p >
Before P, many foreign trade enterprises have already felt the export bonus due to the fluctuation of < a href= "//www.sjfzxm.com/news/" > RMB exchange rate < /a >. "In the past, the RMB has maintained a long-term appreciation trend, and the cost pressure of product export is very large. Only by choosing a price increase of 15%~20% will enterprises have profit. Now, with the depreciation of the RMB, the quotation space of export orders is more flexible, and there will be more orders and profits. Mr. Li, who manages the fabric export in Keqiao Textile City, said that the continuous decline of the RMB against the US dollar is undoubtedly an exciting news for those who run small foreign trade enterprises like him. "Recently, the confidence of everyone doing foreign trade in the circle of friends has risen again, and the monthly export business earned more than tens of thousands of yuan compared with last year's two months." < /p >
< p > however, some industry experts say that the dividend effect of "a href=" //www.sjfzxm.com/news/ "RMB devaluation" /a "can not help solve the practical difficulties faced by fabric exporters. < /p >
At present, the export mode of domestic fabric enterprises is still too traditional. The mode of processing trade has not changed. With the increasing cost of labor, logistics, financing and many other aspects, the competitiveness of many enterprises is not high, and profits continue to decline. P The fluctuation of exchange rate does not change substantially for the long term development of enterprises. In order to become bigger and stronger, enterprises should enhance their efficiency from the aspects of management, innovation and brand. Only in this way can the core competitiveness of enterprises be increased and the profit margins of products can be improved. < /p >