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    Chinese Enterprises: Sell Clothes To Korea

    2008/10/17 0:00:00 57

    China is currently the largest trading country in South Korea, and the volume of trade between the two sides will continue to grow. Korea's famous brands have entered the Chinese market successively, and the "Korean wave" has been surging in China.

    In China, some people are trying to make Chinese clothing enter the Korean market, such as the Chinese city of Seoul, Korea, which has begun trial operation.

    So how can China's garment enterprises seize this opportunity to enter Korea successfully?



    We know the fact that more than 70% of the Korean market is from Shandong.

    The famous brand clothing "TNGT" produced by LG fashion company, a famous clothing company in South Korea, was sold back to the Korean market after the production and production in China, and accounted for 80% of the total production in Shandong. The major brand garments sold by the Elantra fashion company in Korea were sold in Shandong and Jiangsu and sold back to Korea.



    We are also aware of the fact that Chinese clothing without brand is usually only available in the open market, and it can hardly be found in supermarkets and big stores.

    In South Korea and elsewhere, Chinese made clothing is often sold on the stalls.



    It is precisely because of this situation that the Haihe chamber of Commerce in Yantai, Shandong and South Korea began to prepare for the project "Seoul China town" after last year's investigation and investigation.

    "To do business in Korea" is the original intention of the project.

    At present, Seoul Chinatown has the conditions of opening and running, and is attracting investment from Chinese manufacturers.




      

    Seoul Chinatown



    Seoul Chinatown is located in the main commercial wholesale distribution area in Seoul, South Korea - East Gate Business District.

    The project is divided into two floors and four floors on the ground. The four floors on the ground are mainly used for clothing, knitwear, bedding, shoes and socks, bags and so on.



    "Through the operation of Korea Companies and shops, the real realization of the front shop (Seoul Chinatown) post factory (own factory), investors have a business platform to enter their products into the international market."

    South Korea Zhonghua Department Store Co., Ltd. responsible person said.



    As a result of the fact that most of the Chinese businesses in South Korea operated in the past were small traders, there was no large scale or high-grade professional market to carry out wholesale business. Seoul Chinatown is the only Chinatown that is operated by Chinese enterprises in Korea. The purpose is to sell Korean goods, well-known brand enterprises and brand products in the world to the market, and set up a window for overseas manufacturers to sell their products wholesale to Korea and overseas markets.



    At present, Seoul Chinatown has been fully attracting investment from Chinese manufacturers and commodities manufacturers, and has set up more than 10 investment offices in Beijing, Shanghai, Baigou, Nanjing, Hangzhou and other cities.

    Seoul Chinatown business side especially emphasized the strength of manufacturers and merchants when they invited business.

    It is reported that Baitou, which is famous for its bags and at home and abroad, will build another box and package city in South Korea. Wenzhou businessmen will also set up shoe city.



    The cost of buying a shop in Seoul Chinatown is about 13 square meters, and the cost will be around 700 thousand yuan.

    The selling price of the same shops on the first floor is about 100 thousand yuan per square meter, and the cheapest ones on other floors should be sold for more than 43 thousand yuan. The average investment recovery period is about 5-8 years.

    For those who do not want to spend a lot of money on buying shops, rent a standard berth in the professional market near the east gate, the rent is about 8000-16000 yuan / month.



      

    Present situation of Korean clothing market




    For apparel companies who want to penetrate products into the Korean market, it is necessary to understand the current situation of local clothing market in Korea.

    Pu Xunzhe, director of market development department of KOTRA representative office in Beijing, said that in South Korea, brand clothes are basically sold in high-end department stores, and the situation is similar to that in China.

    These famous brand clothing factories are usually located in Korea.

    Most brands or brand names are mostly located in factories such as Shandong, Fujian, and Northeast China. Some of them are only commissioned to manufacture products and have no own factories in order to save costs. At the same time, they sell products to the US and European markets after China's production, especially in the US apparel market.

    These people used to sell Korean products to the United States, but now because of the increased production cost in Korea, most of them are entrusted to Chinese enterprises.



    "The textile market has great demand for each other. Korea also needs a lot of Chinese products, and China needs a lot of Korean products.

    Because of the differences in geographical environment, the products are different and complementary. "

    Mr. Pu Xunzhe believes that it is perfectly feasible to sell Chinese clothing to Korea.



    For many reasons, many people who want to do business in Korea will consider how to get along with Korean businessmen.

    In this regard, Mr. Pu Xunzhe believes that there is no particular taboo to deal with Korean businessmen.

    "They are all Asians and have similar customs.

    When trading, no matter which country businessmen should be careful.

    At present, there are many regular enterprises, many of which claim to have a lot of sales, but actually they are enterprises and individuals of the purse company.

    Everything is based on the contract and the terms of the contract should be detailed so as to avoid any unpleasant things in the future.

    Generally speaking, Korean enterprises will accept these conditions. "



    In addition, Mr. Pu Xunzhe reminded that when dealing with the ROK, it is necessary to judge in the specific business and see whether the other side's actions are against the industry's operating habits or violate the contract content.

    Two, we can entrust the credit investigation agencies in Korea, but they will charge. The amount of fees must be discussed with the South Korean enterprises. The key is to check what content, basic investigation, detailed investigation, in-depth investigation, etc.



    Relevant system



    In accordance with the provisions of the foreign investment promotion act and the foreign exchange act of Korea, the company registration may establish local juridical persons in Korea (similar to domestic limited liability companies, with the overwhelming majority of companies), individual investors (similar to domestic self-employed), branch offices and liaison offices.

    South Korea stipulates that the amount of foreign investment should reach 50 million won (about 400 thousand yuan). The company's registration is generally entrusted by lawyers and lawyers.



    There are two main tax standards in the operation of Korea Companies.

    One is the surcharge (similar to the domestic sales tax): it is generally 10% of sales.

    For self-employed persons, the surcharge of less than 70 million won (about 560 thousand yuan) is 5%, and the surcharge of 70 million won is 10%.

    In the sale of commodities and other business activities, Korea usually charges the price and the additional tax separately.

    The second is income tax: about 10% to 25% of total profit, depending on the size of different industries and profits.



    The levying of tariff in Korean tariff is divided into two kinds: the price tax and the quantity of goods as the standard, but in actual execution, most of them are levied according to the standard of the price tax.

    According to the data provided by Korea Zhonghua department store, the customs tariff rate is 10% to 12%, the leather product is 8% to 20%, the socks and shirts are 10%, and the luggage is 8%.



    The principles of Korea's tariff policy are basically the same as those of WTO.

    The basic legal basis for the establishment of the Korean tariff system is the tariff act. The structure of the tariff policy is the Ministry of Finance and economy, and the executing agency is the customs office and subordinate organizations.



    South Korea currently imports tariffs on imports only, with an average tax rate of 8%.

    The rates of import tariffs in Korea include the tariff rate and the provisional tariff rate, the elastic tariff rate and the replacement refund tariff rate (above determined by the government of Korea according to needs), and the concession rates decided by the South Korean government and other countries, such as the WTO agreement tax rate, the concession tax rate stipulated by the ESCAP (ESCAP) trade agreement between developing countries, and the concession rate of GATT among developing countries.

    The tariff rate applicable to a product is determined according to the concession rate of ESCAP between developing countries, the concession rate of GATT among developing countries, the agreement tax rate of WTO, the elastic tariff rate, the provisional tax rate and the basic tax rate.



    Customs policy. Customs declaration is made when goods are imported.

    Relevant written materials should be submitted when declaring.

    Import declaration can be carried out before the goods arrive in Korea. This declaration is known as "declaration before departure" or "declaration before entering the port".

    When goods arrive in Korea, they are first stored in bonded warehouses.

    Import declarations can also be carried out before or after the goods are stored in bonded warehouses.

    In order to speed up customs clearance, the "direct port clearance system" is adopted for container cargo directly from wharf. However, due to the limited conditions and imperfect system, the customs clearance system has not yet been fully implemented.

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