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Tao Export Enterprises "one Expansion A Contraction" Of Profits Shrink by big tree





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Tao Export Enterprises "one Expansion A Contraction" Of Profits Shrink by
Article Posted: 09/08/2010
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Articles Written: 1033
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Tao Export Enterprises "one Expansion A Contraction" Of Profits Shrink


 
Business,Business News,Business Opportunities
Dollar foreign exchange market as the central parity of RMB exchange rate, one U.S. dollar against 7.3797 yuan, the dollar exchange rate breaking the 738 mark, then a new high since the foreign exchange reform. By raw material prices, exchange rates, export tax rebate rate changes, technical trade barriers and other factors, export enterprises in general costs. Many companies offer products to improve, ceramics and other industry insiders said the price increase is only an expedient measure, companies are developing new products through the expansion of higher value added products to increase profits. While reducing the size of low value-added products. Enterprises increasing product competitiveness, product prices due to improve reasonable. It is reported that buyers for new products have expressed interest, and no transfer order.

    This year, the Chinese export enterprises encounter domestic policy and foreign markets, a double blow to the export tax rebate Jiangdi appreciation of Renminbi, debt crisis and Deng multiple times under the influence, plant profit margins with outside company began to seriously decline, some companies Mianlin out. "Ceramic products export tax refund in the end of 2006 down from 13% to 8%%%, in July of this year fell to 5%%, and the industry in January next year, may not pass a tax rebate." Peng Wei Industrial Co., Ltd. of Shenzhen City, the total manager Zhengyou Ming said. However, these enterprises, is for corporate profits before tax. In fact, in July this year, China removed or reduced export tax rebates, more than 2000 kinds of products, such as the garment export rebate reduced by 2%%, plush toys and so on down by 2%%. Most of the enterprises affected. On the other hand, appreciation of the RMB business of foreign exchange losses directly caused. Since the exchange reform in China since the RMB against the U.S. dollar has appreciated more than 10%%, the yuan also on the rise, companies are all worried.

    For this situation, how should make moves to solve immediate business challenges? Faced with this situation, Guangdong ceramic enterprises to take corresponding measures on the one hand to no profit margins to offer tax rebate; the other hand, offer limited period in order to change an offer a month or two weeks, and now offer the maintenance end of the year, several 100 thousand yuan to maintain order offer in January next year, the price depends on the end of next year's tax rebate policy and the appreciation of the renminbi will happen again. Guangdong Shunxiang Ceramic Co., Ltd Sales Manager, said, "This year, eventually helped the company in Guangzhou offer customers increased 10%% -15%%, while the production cycle of each order, transaction cycles, the general control of 45 days - 60 days, and a floating price docking order, not to pick up orders for the whole year long. "she said, the company also customer awareness of change, not necessarily large customer orders like, pay more attention to distinctive, doing high-end products to customers.

    Company that innovation in the traditional products, the profits can be raised to 10%%; if the porcelain shapes innovation and profits 30%% -50%%.

    Interview, many companies have expressed their products offer a higher individual rate of increase of high value-added products is relatively greater. In response, the industry said the price increase is only an expedient measure, business is only through developing new products, increase value-added products, thereby increasing the profit is the last word.

    At the same time, corporate product mix is changing. Tangshan Ceramic Co., Ltd. bone china company has said that the company is currently expanding production scale and high added the bone china, stoneware, low-value corresponding to downsizing. Shunde, the responsible one who believes that "now the company's response is do not do low-end products, and profits of small lead in the current risk of losses." Therefore, they Ding Wei invest in adding new fabrics, the style lovely product Shang . And the enterprise selection process and other means to avoid risks on behalf of, a company official said: "We have a complete industrial chain in the delivery, quality and so are protected. Horizontal comparison, increasing product competitiveness, product appropriately increasing the price is also reasonable. "It is reported that buyers for the new products have expressed interest, and no transfer order.

I am an expert from China Manufacturers, usually analyzes all kind of industries situation, such as bluetooth edr dongle , irda adapter.

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