Jilin Province Trading Delegation participated in the 116th Canton Fair
The 116th China Import and Export Fall Fair (Canton Fair) in Guangzhou has concluded in November 4th, 2014. Following the beginning of the 115th Canton Fair (Spring Fair) appeared buyers and turnover chain "double down", the 116th Canton Fair (Autumn Fair) reappeared “double down” showing the world economy recovers slowly, foreign trade situation is still grim.
1. Recovery of traditional market is weak, weak demand in emerging markets. This fair was held under the falter recovery of world international economic, downward pressure on China's foreign trade under the background of organized turnover and overseas buyers attending the chain, both declined year on year. According to statistics of the General Assembly, the Fair export turnover was ￥179.203 billion (US $ 29.16 billion), down 6.1% compared with the same period in 2014 Spring Fair. The exports turnover to the EU, the US, the BRIC countries, the Middle East, Japan and other trading partners has declined, the decline in the 4-19% range, only for ASEAN, Hong Kong, South Korea and China increased, indicating that the traditional market recovery is still weak, shrinking demand in emerging markets. Jilin province has organized 105 companies participated in the trade fair, the cumulative turnover was about $ 210 million, fell 8.7 percent than last fair.
2. Epidemic and regional unrest caused merchants worried. Due to the current world economic situation is still complicated, some areas had suffered unrest situation, Ebola and dengue fever outbreaks and other emergencies also bring buyers uncertainty, buyers attending this year continued to decline. The buyer participants of 116th Canton Fair was about 186,104 people from 211 countries (regions), reducing the 1.07% ratio than 115th. Among them, 14.4% growth in Europe, Asia decrease 1.98 %, 6.42 % reduction in the Americas, Oceania decrease 6.66 %, 13.77 % in Africa.
3. The short single order occupies the mainstream, profit margins shrink. From the order situation, the short single order during three months or less accounted for nearly half, 3-6 months in a single account for more than 30%, six months or more and only one long single order. Accounting for more than 80% in the short single order, low long single order proportion, reflecting the sluggish of world economy, the buyers are very cautious. Many businesses are affected by the rising raw material prices, labor costs and other factors, they can not take large orders. According to the issued questionnaires to reflect, there are 78.8% of export costs, which rose 10% -20% of the enterprises reached 36.5%, or less than 10% of companies accounted for 42%. Specific look, 84.6% of enterprises in raw material prices; 91% of enterprise and employment costs, which rose 49.3% of the companies within 10%, 19.4% of enterprises rose 10% -20%; 38.5% of enterprise land costs; 60.4% of corporate environmental costs. It can be seen that the raw materials, labor and other costs rise so that corporate profit margins further compressed.
4. Leaders help companies seize orders. To fully expand the province's import and export scale, encourage enterprises to seize export orders, Mr. Han Yingzhen, deputy director of the Department of Commerce of Jilin Province attended the Canton, learning more about the status quo of business, difficulties, and exhibitors’ effects etc. According to the relevant companies reflects, the outstanding issues affecting the export turnover firstly is the traditional market rebound but lack of stamina, lack of motivation exports to emerging markets; secondly is the overall cost exports continued to improve the international competitiveness of traditional products needs to be strengthened; thirdly is the lack of innovation capability, marketing channel is still the traditional trade-based. Mr. Han pointed out that the new normal foreign trade has turned from slow growth in high-growth, enterprises should pay more attention to cultivate new advantages. That price has to die alone in the past; companies rely on brand, technology, quality, service and rivals. He encouraged enterprises in product design should aim at the international market and strengthen design and development, meet customer habits in different countries and aesthetic trends. He also pointed out that, in order to consolidate the traditional advantages, enterprises should accelerate the development of its own brand, and promote the transformation and upgrading of their own, to seize the domestic and foreign markets, innovation and marketing network channels, quickened our "Going out" pace.
Next step, we will focus on trade objectives, further guide the transformation and upgrading of traditional industries in accordance with market demand, accelerate new product development, design upgrading and improve product technology content and added value. Secondly, we should organize cities (prefectures) Department of Commerce personnel and import and export enterprises to attend Fairs develop concepts and push them further emancipate the mind, broaden their international horizons, learn from other provinces and business development experience in product design, targeted to build in line with international market demand for products. Thirdly, gather our Jilin brand enterprises carefully prepared in the province booth application related materials, strengthen guidance to the declaration and participating work guidance, make great efforts to recommend our advantage of industrial enterprises, increase the number of brand booth.
