RMB Appreciation, Toy Companies Began To Stop The New List

　 Exchange rate has become a toy industry. Included The most sensitive type of manufacturing industry in foreign trade. nerve 。 It is learned that RMB Under the background of continuous appreciation, domestic toy manufacturers have begun to stop taking orders to protect themselves, or give up prices to compress their profits.

It is understood that the profit margin of Chinese toy manufacturers has been as low as 3%. Such low profitability and the payment cycle of 3 months or longer means that these toy makers are particularly vulnerable to exchange rate fluctuations. Although the RMB has temporarily suspended its unilateral rapid appreciation since September, the central parity of RMB against the US dollar was 6.6908 on the last trading day last week, which has risen 1.79% compared with the beginning of September, which is equivalent to 1.79% of the profit margin of export enterprises. Moreover, according to the forecast of Everbright Bank, the RMB appreciation rate will not exclude 2% to 3% in the year, and preliminary estimate that the appreciation of RMB against the US dollar will be 4% to 5% in 2011.

As an important part of China's foreign trade, the ups and downs of the toy industry also represent the situation of other export manufacturing industries. According to the survey conducted by the global resources enterprise network for 239 Chinese suppliers, 70% of export enterprises believe that if the RMB continues to appreciate, the number of future orders will continue to decline.

　 And the strategy of export to domestic sales also has great risks because of the ability of product price strategy, sales channel and logistics distribution. Experts point out that because of the lack of national toy chains, enterprises must build their own marketing channels. In the process, enterprises are faced with the situation of retail commission, wholesale discount, brand establishment cost, management expenses, bad debts and so on. The large cost of entering the domestic market for the first time may lead to short-term earnings fluctuations, which is a huge risk for small and medium-sized toy enterprises themselves.