The season of November should be Yiwu foreign procurement season, but this year Yiwu International Trade City seemed deserted, everywhere carrying a calculator foreign in last year was less . By the debt crisis in Europe and America, the Middle East instability, rising costs and exchange rate changes and other multiple factors, the traditional export sector to advance into the off-season.
The impact of exchange rate fluctuations on merchants is also evident. “Now the euro against the RMB exchange rate is 1:8.5, a year ago is close to 1:9, also in the appreciation of the RMB against the U.S. dollar.” Yiwu International Trade City, a business said that the commodity profit had thin, on the exchange rate appreciation of the considerable erosion part of the profits.
Commodity prices rose on average 5 % to 15% this year , mainly due to raw material prices ,the boosted cost of raw materials and labor pose a significant pressure on businesses. In Jiangsu and Zhejiang provinces, there are many transition from foreign to domestic case, especially the international financial crisis, many businesses put the spotlight on the domestic market.
Transformation become the only way to break the impasse. Yiwu, a famous film company’sgeneral manager, said raw material prices is a global phenomenon, the customer can understand this, but the cost of prices for domestic, the customers do not understand.