Editor: Chengmanlin: Liu Yuchen camera: Li Hui now it's one months from Christmas in the West, but many Westerners are already looking forward to Christmas this year. After all, in the past two years, the global financial turmoil has let many countries and regions of the people after a two of cold and thick Christmas. With the dawning of the global economic recovery this year, we can finally have the heart to design and dress up this year's Christmas tree. Is it better for Chinese companies, which occupy half of the world's Christmas supplies, to do so this year? We look at the reporter in Yiwu commodity market in Zhejiang Province survey. Enter Yiwu small commodity market Christmas supplies distribution area, a dazzling array of Christmas supplies let the festive breath. However, compared with the atmosphere created by Christmas goods, the customers of each shop seem to be deserted a lot. Why is that? These operators told reporters that in late October, Christmas supplies export part of the total end, has been to the annual inventory time. Wangxiaoli Technology Gift Company Staff Wangxiaoli: European orders We in the middle of September, the latest at the end of September has been all shipments are now October is only a number of Southeast Asian orders in the shipment. Generally around October 20, all of our Christmas orders, the export of all has ended. Christmas orders are known as the national export of foreign trade barometer or vane, then, inventory this year's Christmas orders, compared with 2009, in order to the number of changes in the amount of what happened? Christmas Supplies dealers: better than last year. Reporter: From where can reflect is good? Christmas Supplies Dealer: Because our export list is higher than last year, we still have the export list in the factory is not finished. Wang Jianyue Zhejiang Ruian hua da handicraft Factory staff Wang Jianyue: Some of the list has not been taken over, do not, not all, because the received also can not be done. These dealers told reporters, and last year around the difficult to get orders compared to this year's Christmas supplies demand has a strong rebound, most of the European and American merchants door-to-door delivery orders, we still dare not all, but according to their own production capacity and order of Feishou to choose. How many orders have been taken and fulfilled in a year? Wangxiaoli: This year, the volume increased by 30%. Jinlin Zhejiang YIWU Christmas Supplies Industry association secretary General Jinlin: Our whole, basically we count, this year's sales data than last year's growth 20-30%. Jinlin Secretary-General told reporters that their association's statistics are from the Yiwu of nearly 400 Christmas supplies dealers selected samples, and these Christmas supplies dealers from the country's main origin of Christmas goods, their total exports of products occupy the country's exports of similar products of the vast majority. Jinlin: Domestic Products in YIWU (export) accounted for about 75%. Based on this background, Jinlin that 2010, China's entire Christmas supplies industry's export growth rate should also be in 20%-30%. In other words, China's Christmas supplies across the industry than last year showed a strong rebound. However, in the face of this Shansheng growth, dealers are not happy, we all in unison reflected that the income increased, the profit and the most difficult last year flat or even reduced. Wangxiaoli: Profits are about the same last year, because last year we were in a difficult period with our guests, so we almost put our own profits down very low last year. Christmas Supplies Dealers: Overall, there is no increase in profit, the profit must be lower. With sales increasing, how can profits be reduced? The dealers told reporters that one of the main reasons is that they purchase from the domestic manufacturers of the price has been more than the beginning of the contract with foreign suppliers to sign the price of the increase of about 10%, which compressed their middlemen profit space. and Yiwu small commodity market agencies monitoring shows that for several months in a row, shipped to the Yiwu market, Christmas supplies prices continue to rise. Zhang Xiang, Vice manager of information Development Department, Yiwu Commodity City Group, Zhejiang Province, China Zhang Shangmi: In recent months, the price pressure is more significant. Why do Christmas products manufacturers in recent months have been rising prices? It is understood that from Yiwu small commodity market exports to foreign Christmas supplies mainly from China's Zhejiang and Guangdong and other fields. Reporter encountered a manufacturer from Guangdong representative, he told reporters that even if the latest Christmas supplies of the ex-factory price increased by about 10%, the manufacturers of the day is not easy, in Guangdong region, this year even a lot of Christmas supplies enterprises closed. Pan Yong Guangzhou Yong Yue Christmas jewelry factory in charge of Yiwu distribution Pan Yong: A lot of small factories have closed down, do not come, single small, single, it's small, a lot of manufacturers are not quite down. Heard the previous dealers say, I'm afraid it's a little surprising. If the manufacturers fail to happen in 2008 or 2009 may be fine to understand, but has survived the most difficult two years, the situation is good, orders more, but the days of these enterprises are more difficult, then, what happened in this? The reporter rushed to the Christmas supplies manufacturer comparatively concentrated Zhejiang Ruian to carry on the investigation. Zhejiang province Ruian distance Wenzhou more than 30 kilometers, is the main origin of Christmas supplies. Ruian Christmas Supplies manufacturers distributed in the urban areas and various townships, but the most concentrated or Linxi township. The development of handicraft industry in this township has been more than 30 years of tradition, over the years, the local formation of more than 200 enterprises, the main Christmas supplies, basically all for export. At present, the Christmas supplies industry has become the absolute leading industry Lin Xi Township. Zhang Hong in Zhejiang province Ruian Lin Xi Xiang Township head Zhang Hong: Our whole country's annual output is about 600 million, the total of 600 million, handicrafts accounted for about 500 million, Christmas gifts accounted for 500 million. Township head told reporters, Linxi Township of Christmas goods Enterprise this year, the average profit has slipped a lot, some production enterprises have not been supported. Zhang Hong: Some businesses are about 5% to 6% of the benefitsRun, but if the decline of 3%, the margin of this profit is very little, it produces no way to produce. Reporter in Lin Xi Township interview, a lot of exports of European and American Christmas supplies enterprise has ended this year's production and shipments. Only a small number of the surrounding and the mainland market enterprises are still in the local production, the company is one of the two companies. Wang Lianming Ruian Christmas Gifts Co., Ltd. General Manager Reporter: Like your order this year and last year compared to the increase or decrease? Wang Lianming: This year is about 40% higher than last year. Reporter: Then your profit will not increase about 40% Wang Lianming: Our profit this year is still a lot lower than last year. Reporter: Your profit than last year probably drop how many Wang Lianming: 5% or so. The order increased by 40% and the profit fell by 5%. Wang Lianming: With the rise in raw materials this year and the emergence of labour (rising prices), our profit this year is still a lot lower than last year. The official said that the price of raw materials is still in his expectation, the most troubling is that the labor costs rise too fast. Referring to the labor force, the reporter noticed a detail, in this enterprise's factory, the worker who is working is old and few. It doesn't feel like a factory, it's kind of like a family workshop. Reporter: You see you use a lot of local people, the elderly, younger than the relatively small, to pay their wages and from the outside pay is relatively low? Wang Lianming: No. Or the outside recruit wages (same). Because people do not, the recruitment of people difficult, so the outside of the recruitment and last year, the difference of about 30%. Last year is 900 (yuan/month), this year is probably (monthly), 1200, 1300 also no one. The person in charge said that, like this, both men and women are not only helpless but also more realistic, the production of handicrafts is handmade, difficult technical content is low, wages are not very high, in order to recruit workers have to pay a rise again. This situation is very common in local Christmas goods production enterprises. Chen Yongjing Zhejiang Aoguang Handicraft Manufacturing Company Deputy general Manager Chen Yongjing: This year's labor costs compared with last year, for example, we last year, one months in 1500 yuan to 1200 yuan, this year is already 1500 to 2000 yuan. Such a worker's wages, the increase in the range of more than 20%, reached about 30%. Labor costs and raw material prices to rise in tandem, greatly pushing up the cost of each item. Lin Yi-meng Zhejiang Ruian Crafts Co., Ltd. Chairman Lin Yi-meng: For example, like this product, the product of this bell, are one of a tie up. Originally this, like last year we this thing, tie a thing a single piece of piecework as long as a penny, this year will rise to, like a period of time before busy, will rise to 1.5 points. Like this a ball above we have 96 of almost 100, then the light in this one ball of the wages above we are 1.5 yuan. and metal irons.。 Our accessories this year also rose by about 20%, this product we last year, for example, cost is 5 yuan, this year my cost will be 7.2 yuan. That's equivalent to saying it was up 40% on our original cost. Lin Yi-meng said that production of such a bell ball cost from 5 yuan to 7.2 yuan, but at the beginning of the order on the agreed price of only 6 yuan, if or in accordance with the contract price performance can only lose money, even if they will be some orders to increase the unit price to 7 yuan, is also a loss of trading. What's more, the renminbi has appreciated steadily this year, and orders are settled in dollars. This change in the exchange rate for export-oriented enterprises is a direct decline in profits. Wang Lianming: It has a great effect on the price of our product. Reporter: How much impact Wang Lianming: Profit reduced by 3%, because the renminbi appreciation, because we are doing US dollars (settlement). Chen Yongjing: This year the U.S. dollar's exchange rate has been from 6.9, 6.8, this year is 6.826.83. The first half of the year to maintain this state, in the second half of September began to drop to 6.7, is now 6.6. The dollar's lower exchange rate is a direct way to shrink our net profit by 3% to 5%. For these Christmas goods production enterprises, in the production process, raw material prices and labor costs rise has increased the production cost of about 20%; to the sales link, because of the exchange rate changes in the renminbi continued appreciation of the dollar and directly swallowed the sales profit. At both ends of the attack, many Christmas supplies enterprises have been overwhelmed. But predicting the future, the local parties generally believe that cost and exchange rate pressure will only increase but not reduce. Chen Yongjing: This purchase cost, this is not we can control, if do not rise that is temporary. In the long run, there is a tendency for materials to rise. Lin Dream: Now the dollar continues to depreciate, and will be more devalued. Shong Zhejiang Province Ruian Foreign Trade Bureau deputy Director Shong: We all know that is the exchange rate is expected, now should be said to be very serious, like a bit of currency war smoke. In Ruian, Zhejiang, the gloomy expectation of future production is filled with the whole Christmas supplies industry, which has aroused close attention and faint concern of local departments. Zhang Hong: This industry can not be because of the appreciation of the renminbi, with external pressure to destroy the industry. Shong: Even then, we could all be bankrupt. Closed down so one aspect is that our government's tax wealth is gone, one is the biggest one is that our employment has been very difficult, especially you see, the whole mountain inside, ravine ditch inside a regional economy. This is a lot of the people out of work, unemployment is no way out of income, which causes social instability. In fact, in the past two years, we have been in the production of Christmas supplies to the company tracking reports. In the most difficult period after the global financial crisis, even in the face of substantial reduction in orders, there are many domestic enterprises and foreign ordersBusiness through thick and thin, together through the cold winter. But now, watching the global economy warmer Day by day, orders increase day by day, Christmas supplies industry road, how the road more and more narrow it? Although this year's overseas Christmas orders rebounded sharply, but many of the production of Christmas goods companies are not laughing. As a result of the increase in human costs, coupled with fluctuations in exchange rates, the risk of business operations is not falling, or even frequent losses of the danger of failure. Embattled, how to break through the pressure? This is a company of Walter's processing workshop, the reporter noticed that a device is rotating a golden line, these thin lines look like brass line. Lin Dream: This yellow line is not copper wire, this is not copper wire, this is the wire line. Because we can also say that is the process line, because we do crafts, the original brass copper, because the price of brass copper is now rising too much, we in order to reduce costs, we this is to use wire baking paint. The price is about One-third of the price of copper. Lin Yi-meng told reporters that they are under the pressure of raw material prices have to think of alternative materials. Such an alternative, the cost of raw materials did fall a lot, but the use of wire instead of copper wire is suspected of shoddy, will affect the quality of crafts? Lin Yi-meng: This is not to affect other quality problems, use, is tantamount to saying that the use is the same. Lin Yi-meng told reporters, Christmas goods are different from the collection of handicrafts, it belongs to festival crafts, the festival used up basically useless, the next year will appear new color styles. Therefore, Christmas supplies generally require a safe and beautiful environment, rather than the requirements of durability. Therefore, the search for suitable alternative materials has become the main way for many manufacturers to reduce the price of raw materials. However, the use of this method is also very limited, because many Christmas items are used to use cheap materials or scrap. Lin dream: Like that pine cone, there are some raw materials like trees, scrap, scrap, are our town inside the local. Originally is the value of the lower, is the price of this thing cheaper. Zhang Hong: So this is a big product for the country, and we have a price change here that has little impact on us. In the survey, these manufacturers reflect that in the Christmas supplies industry, labor costs rising pressure to exceed the price of raw materials, coupled with more and more difficult to recruit, is difficult to parry. So some manufacturers simply give orders to local farmers to complete. However, this is ultimately a stopgap measure, and in the way of production from the factory to the family workshop backwards. The reporter found that some enterprises have begun to reduce artificial brain. Lin Dream: For example, like this bell, last year we basically are one to wear up, for example, a shot with a gun to spray. This year we got a machine, made a hanger, a hanger. For example, put on 50 60, it put on the machine directly like this roll over, roll past one, that is, manual is reduced a lot, and a lot of paint saved. ThisRow of the iron frame is Lin Yi-meng mentioned the hanging, the use of such a pendant, the original pure manual work into a half mechanized operation, both improve efficiency, but also greatly reduce the number of artificial. Lin Yi-meng: We now estimate that at least half of the labor. Lin Yi-meng said that the cost of making these steel hangers was not much, but it has reduced the costs by at least 100 workers this year. Many factories in Lin Xi Township, reporters have seen similar technical renovation projects, but it looks relatively simple, are half mechanized and half manual state. And this kind of mechanical operation is not used much in the production. Wang Lianming: All by hand, belong to labor-intensive. Like this year's pure handmade should also almost half of it, as far as possible to say to automate it. This year, these manufacturers to deal with raw material prices and rising labor costs have been a surprise to seek a breakthrough, but they can see some hope, but catch up with the appreciation of the renminbi, so that exports frustrated, and the future of the expected appreciation of the renminbi more serious. So some enterprises to take adjustment, from exports to domestic sales. Zhang Hong: Thanks to the appreciation of the renminbi, some companies have moved to the Yiwu domestic market. Christmas Supplies Dealers: And then we start to prepare for domestic sales. Chen Yongjing: We see this gift market, the space of so many consumers in China is huge, the potential of this market is very big. In order to reduce losses, spread the risk, many Christmas goods enterprises began to try to reduce costs, transfer the market, but anyway, Christmas supplies the largest consumer market or in the overseas mainland Christmas business opportunities, although it is more and more strong, but, after all, can not be compared with the mature overseas market. How can this delicious Christmas cake be enough to eat? Domestic Christmas goods enterprises face a difficult choice. In Ruian Forest Creek Township more than 200 Christmas supplies production enterprises, there are 19 large-scale enterprises, but the output value of more than billion of only one, is the Austrian light group. It is almost Linxi Township Christmas supplies a banner in the factory. However, the reporter found that the company's Christmas supplies production scale and plans appear to have signs of contraction. Chen Yongjing: Last 2009 's output value to 2010 This period of time, this amount is in stable no growth, no growth is a reason is that we in the planning, that is, considering this cost has no advantage, labor-intensive products, so said in these products did not do to expand marketing and marketing. Although the company did not give up Christmas supplies, but has a control of the size of production, instead, they are another product of the company to increase production of wooden toys expansion plan, while also developing other products and intends to enter the animation market. The fundamental reason for their adjustment is that the Christmas goods are labor-intensive industries, low compressive resistance and weak competitiveness. The current plight of Christmas supplies reflects the biggest bottleneck in the development of labour-intensive industries, Ruian's authorities see. Jin Shaolong, director of Economic and Trade Bureau of Zhejiang Ruian Jin Shaolong: CraftProduct production is a labor-intensive industry, then how to improve its value-added products, improve its technical content, this is a problem we should face. Shong: Is the technology content is relatively low, mainly by hand. Then there is the certainty that there is no way out, and that is that our government will guide them to the transition. Reporters noted that at a critical juncture, these enterprises themselves have been forced to upgrade the sense of urgency, they also realized that must produce high value-added products. Lin Yi-meng: At present our profit is added value. Make a product only 1 yuan of money 2 yuan of profit, basically is 10% profit, or one or two cents. Now we recently some products to make or have twenty or thirty yuan of money, there are those things, so because of the new things we are in accordance with the cost of the present, the guests do not have these things, there is nothing to compare, the profit will be slightly better. In addition to the product's urgent innovation, the local government also embarrassed to find that as their leading industry, Christmas supplies unexpectedly did not sound brand. Zhang Hong: is to encourage enterprises to create a brand. Jin Shaolong: It's important to create your own brand. Create a brand in such a way, to create a well-known brand, to drive our handicraft production of the entire enterprise, this is our future development in a direction. However, to the current Christmas supplies industry relatively backward production status, to create a brand, to upgrade the industry where to start? Ruian authorities revealed their specific plans. Jin Shaolong: Take the project as the hand, promote our leading enterprise's cultivation, by the original door-to-door production of handicrafts of small workshop-style, then we provide large projects, to do the land, to do the project for the protection, then, to catch the landing of new projects, so that a group of enterprises from the original small-scale production, to the flow of water, has been a product of such a way to automate production, improve its efficiency, improve its product value-added. Half an hour observation: and clothing, shoes and hats and other commodities such as the bulk of exports, Christmas supplies are really not very visible. But this little window does look at the export processing industry a rare microscope. On the one hand, it directly to Europe and the United States and other countries of the consumer market, from the Christmas order can direct observation of the economic well-being of these countries; On the other hand, Christmas goods industry set the domestic export processing of many characteristics in one, low technical content, low profit, low price, low concentration of industry, The sadness and joy of this industry largely reflects the overall state of the export processing industry. Because of this, the Christmas supplies industry crisis we can not ignore. In the post-financial crisis era, the export processing industry depended on the low cost, low wages have become yesterday, the past competitive advantage has finally shown its fragile side. No matter what kind of response, some contradictions and difficulties have come to a time when the business and industry must be taken seriously. In this sense, the Christmas supplies industry's warning is more like a special Christmas present for all export processing industries.
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