On The Face Of The New International Situation, China’s Textile Export Strategy

Improve the situation of domestic textile machinery seems to be a little earlier than other sectors. Recently, many channels from orders received the news of textile machinery enterprises, in one way reflects the gradual recovery of the global textile and garment industry trend. But look at the current international and domestic situation, the domestic textile machinery industry exports still face several disadvantages.
First, the international market demand is still weak. Financial crisis has not bottomed out, with Goldman represented the international financial institutions will create new financial risks. Second, international trade disputes have not decreased. Learned from the China Chamber of International Commerce, perhaps the anti-dumping cases in 2010 over 2009. Third, the pressure of RMB appreciation still exist. May 10, the major domestic financial institutions of RMB deposit reserve ratio by 0.5 percentage point again, this is the third time this year the central bank raised the financial institutions of RMB deposit reserve ratio. The rise, the deposit reserve ratio will reach 17%, 17.5% from the record high of remaining one step away. Although the increase in deposit reserve ratio to control the credit scale, the solution of excess liquidity in the market problems, but for the domestic textile machinery enterprises, it also improved the company’s borrowing costs, to businesses offering you order to undertake is a big uncertainty. In addition, the appreciation of the yuan weakened the competitiveness of textile exports. Fourth, inflation pressure is expected to enable enterprises, and enterprises less competitive, export earnings fell sharply, textile exports more difficult.
Companies still need to strengthen internal strength
Period after the financial crisis, how to enhance their export capacity, and enhance international competitiveness, as the domestic textile machinery enterprises are facing new problems. How do?
Enhance the company’s core technology products, timely to carry out process reengineering and industrial upgrading. Financial crisis must eliminate a number of outdated production capacity and industry. Only enhance its strength and excellent skills on their own, to the rapidly changing international market crisis clusters of Li Yong tide. Stick to the previous mode of production, will be eliminated. With weak demand, the profitability of conventional products will be further squeezed, the present market situation, we must form a unique differentiated product, such as the textile industry to meet the small quantity and variety, deep processing, high-grade demand and high efficiency, energy saving, reduce the labor advantage of textile machinery and equipment, regardless of financial conditions and what changes occur in market conditions, will not fundamentally change the user demand for such equipment, even contrarian growth, the situation will arise . As for the cotton spinning equipment out widely, the market will have to look at his face, watching changes in the environment. We need to understand domestic and international market trends, and textile fiber fabric demand, according to their needs targeted development of unique products or auxiliary device to guide customers to consume. One hand to promote sales, but also to avoid vicious competition in the market to ensure a certain profit margin. Such as special fiber products, not asking for much production, but to fill the market gap.
Accelerate the strategic shift timely
Textile exports to the region to speed up the traditional strategic shift. Textile exports from the domestic point of view, our traditional markets in Southeast Asia and other countries. These countries are the economic impacts of the relatively large, very optimistic about the export of textile machinery and equipment, the face of declining demand in Europe and America market.
If an enterprise to speed up access to new markets, develop some emerging market countries for consumer habits and market characteristics of the product, will be able to dig out of Europe and the United States order to reduce the development of other opportunities after the business. Now South America, Eastern Europe, Africa, Southeast Asia and the Middle East economy has developed rapidly in some countries, the purchasing power of the local market is increasing. As the domestic enterprises, should continue to consolidate the current market orders are possible, such as Vietnam, Indonesia, Bangladesh, India, greater attention to adjust the energy into Central Asia, the Middle East and South America market exploration and development.
Flexible use of settlement
Take an active interest rate market, flexible use of means of trade settlement.
Timely adjustments to the currency of settlement for example. For example, Wuxi Hongyuan dollars in 2008, the trend of sharp decline, on the orders of Slovenia adopted the euro settled, and when high in the euro timely settlement to ensure the realization of profits. However, the relative two years ago, the dollar is still causing a drastic shrinkage of the export profits. With the reform of RMB exchange rate mechanism basically completed, the existing exchange rate mechanism, export exchange risk has passed. Enterprises to abandon the “fixed exchange rate” or “do not ask the export exchange rate,” the old model, depending on the exchange rate mechanism as the price mechanism, and enhance awareness of the risk of exchange rate changes, business negotiations should reserve space for the cost of the RMB exchange rate change mode of operation with international standards as soon as possible, learn how to use risk management tools, master control, an effective means of avoiding exchange rate risk, improve product profitability.
Continue to improve the business management
Agents play advantage and brand advantages, increase exports varieties. Of the textile machinery enterprises, in addition to relying on the local network of sales agents and foreign, on the basis of some research, you can also try to dig the way personnel overseas market demand, a more comprehensive understanding of markets and service markets, increase export product categories comprehensive attack. On the other hand, should play a brand, to explore strategic alliances, the domestic advantages of enterprises together with their respective advantages varieties provide the best combinations, the implementation of packaged process of selling and enhance overall competitiveness.
Improve incentives and enhance the vitality of the enterprise. Enterprises to enhance the development potential, the key to rely on talent; to enhance textile machinery export capacity, and ultimately to mobilizing the enthusiasm of foreign personnel. In the beginning of the century, Hongyuan company implemented a sales and income distribution linked to a certain extent, the initiative to stimulate foreign trade, and promote the export performance to improve. But the company felt there were deficiencies in the mechanism. The middle of 2009, the decline in exports combined with the situation, the company re-reform, equity participation to foreign workers, giving equity incentives, the company has independent legal entity established import and export companies, foreign trade staff in order to maximize the initiative.
Forewarned is forearmed, while not pre-waste. Complex in the world economic situation is still the existing situation, the textile machinery business only through constantly enhancing product competitiveness and business competitiveness can be seen in prison in the future market of their own cup of soup, making progress and even greater development space. SABUNG AYAM