As Christmas approaches, gift exporters are afraid to take orders

Christmas and New Year's Day are approaching. Foreign toy and Christmas gift retailers are ready for the annual shopping peak. For most of China's toy and gift production and processing companies, it is another state of mind. Recently, ToysRUs, the largest toy retailer in the United States, said that this year's Black Friday promotion was held in advance of Thanksgiving. This move not only attracted US domestic customers to wait in line, but also attracted customers from South America and Europe, and its CEO Girard Stoch said: "This will be the best performance ever."

Dongguan Chashan Xiangkai Electronic Gift Factory is a production and processing company that specializes in the export of low-voltage battery lights and Christmas lights. General manager Zhang Haonan told the author: “This year, the market has improved, and the export orders received by our factory have increased by 20% compared with last year.”

According to a number of Christmas gift processing companies interviewed, production orders for all types of Christmas products have soared from last year.

According to the statistics released by Guangzhou Customs on November 25, from January to October 2010, the toy export volume of Guangdong Province reached US$6.02 billion, an increase of 29% year-on-year, and the single-month export value of toys achieved a year-on-year increase for 10 consecutive months. In the first 10 months, Guangdong's toy and gift manufacturing and processing enterprises' export growth rates to the European and American markets reached 21.9% and 27.7%, respectively.

In spite of the increasing volume of orders from companies, many domestic toy and gift processing companies have stated that they are "injured inside."

In this regard, Hu Yuping, general manager of Shenzhen Mingxin Toys Factory, said: "This year's cotton prices are very strong, and labor costs and the appreciation of *** have a huge impact on corporate exports."

Mingxin toy factory mainly produces plush stuffed toys, the main raw material is cotton. It is reported that the beginning of the beginning of the cotton price has risen. The price of cotton in the Zhengzhou ** Exchange in May hit a new high of RMB 33,720 per ton. However, although it has declined afterwards, the price of cotton still fluctuates around 28,000 yuan per ton. During the same period, the main raw material for Christmas gifts has risen from 8,000 to 9,000 yuan per ton for the Spring Fair to 13,000 to 14,000 yuan per ton.

Not only is the price of raw materials rising, “This year, workers’ wages have increased by 30%, and profits have decreased. Business is increasingly difficult to do because of this.” Zhang Haonan said.

In addition, fluctuations in the exchange rate of *** have further increased the concerns of companies about the future market instability.

“Now the raw material prices are not stable, and we do not know whether the *** will appreciate again.” Hu Yuping said that this led companies to choose to “avoid” when facing export orders.

“Now the price of raw materials is one price per day, and we dare not order orders.” Hu Yuping said that if the price of materials continues to rise, if orders are received, they will suffer serious losses. In the face of his simple economic logic, the orders that the original companies were eager for are now becoming The "hot potato".

Zhang Haonan also expressed the same concern. "I don't know what will happen to the market next year. What we want now is how to set the next year's quotation in order to protect our profits."

For the Chinese manufacturing industry that has just emerged from the financial crisis, there is no product pricing power in the hands. How to maintain and expand the production profits of enterprises has become the most pressing issue.