Appreciation of the renminbi in the short term "beat" the appliance industry - home appliances, small appliances, kitchen and bathro

Appreciation of the renminbi in the short term "beat" the appliance industry - home appliances, small appliances, kitchen and bathro

No matter

RMB appreciation

What will bring the impact home appliance industry, it brings the industry's thinking is useful, profound, and this is: the future mode of operation of home appliances business, market

Operation

Models, technological innovation and management thinking must change. Not long ago, Bank of China promulgated on the improvement of the RMB

Exchange rate

Notice of the formation mechanism reform, informing since July 21, 2005, the RMB will no longer pegged to the dollar, U.S. dollar against the yuan trading and price adjustment to 1 U.S. dollar 8.11 yuan, renminbi appreciation against the U.S. dollar of about 2%%.

Although rumors of RMB revaluation long travels uproar, but when the news is really ground when the economy is still causing great concern in all areas of society. It is widely believed that the 2% of the exchange rate changes on various industries will be some impact. China is the world's largest home appliance production base, China's home appliance industry inevitably be involved in the appreciation of RMB. Affect geometry? The international market, the domestic urban market, the domestic

Countryside

Market constitutes a household electrical appliance industry market structure triple. At present, China's home appliance industry, has gradually developed into the world's leading manufacturing center, most of the products output of more than 1 / 3

Sell

To the international market. 2004 Air conditioning

, Refrigerators,

Washing machine

Export growth rate exceeded 50%. Supporting capacity of key components from the upper reaches of view, the strongest supporting air-conditioning, CRT

TV

Second, the other products still rely on imports. This shows that the international market the importance of China's home appliance business has been improving, the Chinese home appliance industry inevitably affected by the impact of RMB appreciation. However, the RMB appreciation impact on the household appliance industry is big or small, all parties is a matter of opinion. Some people believe that advantages of home appliance industry is the traditional export-oriented industries, are low value-added products, most of the domestic supply of raw materials and exports a greater proportion of it, so the yuan appreciation on the adverse effects of large household appliances. RMB appreciation will directly lead to decreased export prices of home appliances, while the domestic procurement costs remain constant, thus lower profits. In addition, the RMB's appreciation is also leading international manufacturer of household electrical appliances when prices fall in RMB, thus weakening local products

Competition

Ability to affect the overall industry profitability. Some people, however, took a more optimistic view, Wang Ning, vice president of China Electronic Chamber of Commerce that China's rapid economic development of this trend, the RMB appreciation is a matter of time, I believe this is already preparing household electrical appliance enterprises, industry there will be no major fluctuations. He said only that there is no settlement before the export of money, because the exchange rate change will have some losses. After that the export will not have any effect, but a corresponding increase in prices, but profits will not change. Of course, higher prices to maintain profits, will certainly reduce

China's exports

Price advantage, exports may decline. Overall, the RMB appreciation will have a negative impact on household appliances. In the short term, the yuan revaluation benefit of imports to the detriment of export. RMB appreciation will make home appliances industry, the price competitiveness of export products decreased, if the enterprises cut prices to maintain their price competitiveness of the way, then the inevitable decline in profit margins; If the reduction is less than the rate of currency appreciation, the cost advantage to some extent weakened, even if profit margins did not decline, but the total profit and market share has declined in

Risk

. In the long term, China's household electrical appliance exporters and the international home appliance giants

Dealers

Bargaining power between the limited appreciation each time after the rise in export prices increase up to less than RMB, while the price adjustment action is always in the future revaluation of the RMB, so the level of export profits will be long suppressed. Joy inequality Although the RMB appreciation will have a negative impact on household appliances, but the influence of different sub-sectors.

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