Global currency war, home textile furniture industry increases the proportion of domestic sales

The global currency war has intensified recently, and the RMB appreciation is expected to be strong. Prophet and consciousness of the "large exporters" who have worked hard in the market for many years, many companies turned to the domestic market to find opportunities. In particular, export enterprises such as textile and apparel, furniture manufacturing, etc. seize the concept of "Chinese consumption" and seek to increase the proportion of domestic sales.

In the past, the export enterprise's "flowering inside the wall and smelling outside the wall" pattern is becoming "the first moon near the water tower". Under this background, the domestic industrial structure and economic structure are quietly changing, and the domestic economy will gradually embark on the development track of consumer substitution for exports and domestic markets for overseas markets.

Prospects for domestic sales are impressive for many listed companies Nuggets

The major exporters transferred domestic sales with frequent success stories and were favored by various investment funds. Rebecca, the world's largest wig processing company, achieved a 470.61% year-on-year increase in sales revenue in the domestic market. Lu Xinyao, the company's board secretary, said that domestic sales are in the initial stage of the outbreak. "In the next five years, the first-line sales revenue will be 1 billion yuan. After excluding the distributors' share, the company's revenue will be 500-600 million yuan." Lu Xinyao said. Affected by the expected improvement, in the second quarter, Rebecca's top ten circulating shareholders increased their holdings to varying degrees. Among them, E Fund's fund "collectively increased holdings".

The sales revenue growth of woolen fabrics and garment companies in Shandong Ruyi comes from the trend of domestic sales has been established. In the first half of this year, the company's domestic sales revenue increased by 98.92% year-on-year, while export revenue decreased by 38.31% year-on-year. The proportion of exports in sales revenue decreased from 40.11% last year to 31.66%. Shandong Ruyi ’s proposed Dong Mi Su Xiao introduced that since 2008, enterprises have increased their domestic sales and used the advantages of the group ’s industrial chain to gradually transform from manufacturing enterprises to brand management enterprises.

The largest furniture exporter, Yihua Wood, recently issued no more than 175 million shares of stock. The funds raised were mainly used for the construction of domestic marketing networks to build 16 experience centers in major first- and second-tier cities. In the words of Wu Huadong, general manager of the company, the domestic market is developed to "walk on two legs". According to him, the main European and American markets abroad are more mature, and the trade and technical barriers in environmental protection and other aspects have increased. However, the demand for furniture from domestic consumers has grown significantly, and the new increase in the domestic market is obvious.

According to data released by the China Furniture Association, the domestic market has maintained a growth of more than 15% for many years, with annual sales exceeding 400 billion yuan. "In the first half of the year, there has been a significant increase in domestic sales. In fact, we have been paying attention to the domestic market since 2006, and have adopted some substantive methods, including the formation of an independent business unit for the domestic market last year. 2-3 years should be a key period for the good news of Yihua Wood's domestic market. "Wu Huadong said.

Enterprise transformation is naturally to pursue greater profits. Compared with the constantly compressing export profits, the domestic profit margin is obviously more advantageous. Wu Huadong introduced that the average profit margin of Yihua Wood is around 20% -30%, but the profit margin of direct stores is relatively high.

At the same time, the domestic market returns more timely, and the capital turnover is faster than exports. According to Su Xiao, the export of woolen fabrics to foreign markets is the settlement of letters of credit or wire transfer, and the letter of credit is usually received within 90 days. The supply of well-known domestic manufacturers such as Youngor is to verify a credit line, which is basically a rolling monthly settlement.

Under the expectation of changing the economic growth mode and increasing urbanization rate in the future, the domestic consumption space is huge, which also provides opportunities for export enterprises with production capacity and technological advantages to develop markets. Chong Quan, deputy representative of the International Trade Negotiations of the Ministry of Commerce, said recently that the domestic sales market is expected to reach USD 2 trillion in 2010, which is much higher than the total exports.

Zhang Yansheng, director of the Foreign Economic Research Institute of the National Development and Reform Commission, said that in the next 10 years, if 10 million migrant workers in China are transformed into urban residents every year, there will be 100 cities with more than 100,000 migrant workers. Calculating by 3.5 times, the cake of China's domestic demand market will increase by 3.5 times, which can support China's development in the next 30 years.

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