You meticulously calculated your costs and set your retail price. But a sudden shift in the currency exchange rate¹ could shrink or even completely wipe out your profit margin before your jeans even leave China.

Yes, currency swings are a real risk, but they can be managed. The best protection is to partner with a factory that invoices in USD², discusses risk-sharing clauses³, and helps you lock in rates for major orders.

I remember a client, a talented designer from New York, who came to me after getting burned by his previous supplier.

He had agreed to a price quoted in Chinese RMB because it looked slightly cheaper at the time. Over the three-month production cycle⁴, the RMB strengthened against the dollar.

When the final invoice arrived, the amount he had to pay in USD was nearly 8% higher than he had budgeted. It was a painful lesson that a "cheaper" quote is not always the final price.

This is why at DiZNEW, the first financial conversation we have is about currency. I believe my job is to provide financial stability for your projects, not just manufacturing expertise. We will build a plan together to protect your bottom line.

Do They Offer Invoicing in USD to Reduce Exchange Risk?

You want simplicity and predictability in your budget. Dealing with shifting exchange rates feels like gambling with your business funds, and all you want is a stable, reliable price for your product.

Yes, we invoice 100% in US Dollars for our American clients. This is the simplest and most direct way to eliminate exchange rate risk on your end. The price you are quoted is the price you pay.

For a designer like Dean in New York, the primary currency of business is the US Dollar. It makes no sense to introduce unnecessary risk by invoicing in a different currency.

While our factory's operational costs—like labor and local materials—are in Chinese RMB, we take on the responsibility of managing the currency conversion.

When we provide you with a quote and a Proforma Invoice⁵ in USD, we are making a firm commitment to that price.

Any fluctuations that happen between the time you place the order and the time you pay the final balance are our risk to manage, not yours.

This approach is fundamental to our role as a strategic partner. We provide you with the budget certainty you need to run your business effectively, allowing you to focus on design and marketing, not on monitoring foreign exchange markets.

USD vs. RMB Invoicing: Client Perspective

Feature	Invoicing in USD (Our Method)	Invoicing in RMB
Price Certainty	High: The price is fixed in your currency.	Low: The final cost in USD changes with the market.
Budgeting Risk	Low: You know your exact cost from the start.	High: Your profit margin is exposed to market volatility.
Simplicity	Very Simple: Pay the USD amount on the invoice.	Complex: Requires monitoring rates and calculating conversions.
Who Manages Risk	We (the factory) manage the exchange risk.	You (the client) manage the exchange risk.

Can We Agree on Forward-Dated Exchange Rates?

You are planning a large collection with a long production timeline of three to six months. You know a lot can happen in that time, and you worry a major currency swing could ruin your budget.

Yes, for significant orders with long lead times, we can work with our bank to secure a forward exchange contract. This locks in the current exchange rate for the duration of your order.

A forward exchange contract⁶ is the ultimate tool for budget certainty⁷ on a large project. Think of it as pre-booking your exchange rate.

Let's say you are placing a $100,000 order for your winter collection, which will be delivered in six months. Instead of worrying about what the USD/RMB rate will be then, we can lock it in now. The process is straightforward.

We agree on the fixed rate based on the market at that moment. Then, our finance team contracts with our bank to guarantee that rate for the future payment date.

There might be a small fee from the bank to do this, which we would discuss with you completely transparently. This strategy removes all guesswork.

Whether the market rate goes up or down, your final payment is based on the rate we locked in together. It's a powerful tool for large, seasonal commitments.

What Tools Help Hedge Against RMB Fluctuations?

You have heard financial terms like "hedging⁸" but they sound complex and expensive. You are not a currency trader, you are a jeans designer. You just want practical, simple ways to protect your business.

The most effective tools for you are clear contract terms. We offer USD invoicing as a standard hedge, and for more advanced needs, we can include specific exchange rate clauses in our agreement.

My job is to make complex financial risks simple for you to manage. You do not need to become a financial expert.

You just need a partner who is. We use our own financial team and banking relationships to monitor the markets and manage our exposure.

For you, the tools are the clear agreements we put in place together at the beginning of our partnership.

The most fundamental tool is USD invoicing, which acts as a default hedge by putting the risk on us. A more advanced tool is an exchange rate linkage clause in the contract.

This clause states that if the rate shifts beyond a certain percentage (for example, 3%), we agree to share the difference. This creates a fair system for both of us.

The most robust tool, for large orders, is the forward contract we discussed. We will help you choose the right tool for your specific order size and timeline.

How Do They Handle Invoicing if Rates Shift Mid-Order?

You have signed the Proforma Invoice and paid the deposit. A month into production, you see news about a big change in the exchange rate. You panic, wondering if your final bill is about to change.

If your invoice is in USD, a rate shift is not your problem. The price we agreed upon is locked. The amount on your final invoice will be the exact USD amount from your initial Proforma Invoice.

This is the core promise of invoicing in US Dollars. Once we have issued the Proforma Invoice (PI) and you have confirmed the order with a deposit, that price is set in stone.

It is our commitment to you. We build any potential currency risk into our own financial planning⁹ so that you do not have to.

Your job is to create amazing jeans; our job is to deliver them at the price we promised. The only exception would be if we mutually decided to include an "exchange rate linkage clause¹⁰" in our contract from the very beginning.

This is an option for clients who want to share in the risk and potential reward of currency movements.

In that specific case, if the rate moved more than the agreed-upon percentage, we would calculate the adjustment for the final invoice as per our contract.

But this is an explicit agreement made upfront. For 99% of our clients, the rule is simple: the USD price you see is the USD price you pay.

Conclusion

Managing currency risk is about clear communication and a transparent partnership. A good factory protects your profit by offering stable pricing and flexible solutions, ensuring a secure and predictable business relationship.

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