*** Appreciation of compressed export profit floor market focus on domestic

The ever-increasing pressure of *** appreciation has forced some export companies to turn their attention to the domestic market. A floor factory in Jilin Province is such an export company. On the 29th, Mr. Jin, a person in charge of the company’s marketing department, said in an interview that the exchange rate of *** against the U.S. dollar continued to increase and was calculated based on the exchange rate difference from the beginning of the year to the present. With the same pricing, each export of 10 million US dollars worth of products will earn less than 1.6 million yuan.

In the interview, it was learned that the export pressure brought about by the appreciation of the renminbi caused the export companies' overseas markets to be further compressed and they had to find new sales channels in China.

The loss of several million yuan Mr. Jin is the head of the marketing department of a wood product manufacturing company in Jilin Province. The company’s main product is flooring. According to Mr. Jin’s introduction, the company was originally a flooring factory specializing in exports. , Has been engaged in overseas sales for more than a decade. However, since the beginning of this year, the exchange rate of *** against the US dollar has continued to rise. If the floor of the export is still sold at the original price, the company's profits will be continuously compressed, and it is now on the verge of cost sales. "What export companies fear most is the exchange rate changes, especially the exchange rate of *** against the US dollar. As long as the appreciation of ***, the export of companies will be affected. The higher the appreciation, the greater the loss of profits."

“The company’s main customers include some countries in Europe, the United States, and Asian countries have customers in South Korea and Japan. Checkouts with these countries are through the US dollar, and the company’s procurement of timber and other raw materials is through ***, that is to say, *** The appreciation is equivalent to the product disguised price reduction.” He calculated for the reporter, on January 8 *** exchange rate against the US dollar was 6.8279, and on November 29 was 6.6675, according to the exchange rate difference of 0.1604, each export 10 million The dollar product, the company earned less than 160 million yuan.

Although Mr. Kim is not willing to disclose to reporters what the company’s specific export amount is, he still told reporters that according to the export situation in previous years and the growth of exports in recent years, “a good month’s export value may reach Ten million US dollars, that is to say, the losses caused by exchange rate changes are not just a 1.6 million yuan.

The opportunities in the domestic market Mr. Kim said to reporters with a bit of helplessness, “Overseas is not like domestic products, especially floorings such as flooring. There are many requirements and regulations. It is very difficult to get into overseas markets. For example, the company re-priced all the products at the beginning of this year, and in Europe and America, including Japan and South Korea and some other countries, the established price will not be easily changed, and once the price increases, it means that a considerable part of customers will be lost. ”

He also told reporters that since the beginning of this year, the *** exchange rate against the U.S. dollar has continued to rise, but the company has not dared to easily adjust the price. The result is that the greater the appreciation rate, the more the company’s profits will be squeezed. Pressure.

It is in this embarrassing situation that the company began to adjust its market strategy in July of this year, reducing its overseas sales share, and putting products into the domestic market. "The domestic market is a big market with many opportunities. The high-end products go very well and the prices are more advantageous," said Mr. Jin.

The surge in appreciation pressure In fact, under the pressure of rising renminbi appreciation, exports to domestic sales have become a means by which a number of export-oriented companies can resolve the pressure of appreciation. On the 29th, during the interview, the reporter learned that many export-oriented enterprises have turned their sights from overseas to the domestic market. The buying potential in the domestic market is increasing day by day. Under the background of continuous appreciation of the ***, the profits from domestic sales are not less than those of foreign countries.

According to Dr. Zhao Guoyu of Tianfu**, compared with the overseas market, the domestic consumer market has been fully expanded, and people’s purchasing power has also increased. He told reporters that with the continuous appreciation of the ***, many companies with overseas markets as their main sales channels have felt a great pressure for appreciation, and some of them have begun to switch to the domestic market and seek greater development in the domestic market.

"In recent years, the purchasing power of the domestic market has been unprecedentedly increased. When high-end flooring products sold overseas are sold domestically, there will certainly be a market. The price of the same products sold in the country will be even higher than overseas. For these export-oriented export-oriented enterprises, sales profits may be even greater,” said Zhao Guoyu.