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Zhang Salter Electronic Toys Co., Ltd. is located in Yiwu, mainly engaged in the production of electric toy, "Santa Claus inside Russia in Yiwu holding at least 70 percent of our business into the cargo."
In addition to raw material price increases beyond, Zhang said this year the pressure is relatively large labor costs there, "This year, wages rose by 15% to 20%."
The first textile web editor Wang forward, said, "export product prices is the trend, both from home and abroad, the costs are increased rigidity." Faced with this unavoidable cost increases, building its Jin told reporters, Yiwu this year Christmas gifts generally rose more than 5%.
"The 5 percent increase, our business by introducing new products to digest." Zhang said, by changing the style of clothes or toys or toy musical connotation action and other ways to innovation, through new products, price increases in order to digest Product cost pressures.
Building its progress noted, Christmas gifts are seasonal products, sudden demand is relatively large. Including transport time, September is the basic order peak of the Christmas products.
Zhang pointed out that this year's peak growth rate of export orders higher than usual 30% to 40%. The face of cost pressures, Zhang said, "Christmas gifts factory margin can reach 10% to 15%." By contrast, gross margins will be much Yiwu wholesalers low, only about 5%.
Product innovation as key to competitiveness
House noted its progress, "the second half of last year to this year, compared with the export rebound, the domestic toy sales situation is not good." Most of the financial crisis resulted in only export companies to change course, to domestic sales, export do together, " the domestic market share naturally reduced. "
Huatai Securities analyst Wang Rong textile and apparel industry pointed out that "the export market is good, because this year's export situation is to restore the market, not the performance of prosperity and some backlog of orders last year, focused on the release of this year, export growth steady recovery."
Wang Rong pointed out that if the export will continue to grow, "depends on foreign demand. Recent changes in foreign demand is not particularly obvious, shortly after the export demand growth may be down, the first three quarters increased by up to 30% of the cases do not appear."
Wang told reporters ahead, "export enterprises are facing more serious polarization, good business orders received endless poor enterprises are facing a lot of pressure." In this regard, building it into that "these companies can innovate in products, with Qualitative competition no chance of survival. "
