Chinese Shoes And Clothing Enterprises Face Domestic Market Instead Of Foreign Trade
“來看看吧,100%羊毛,50塊一件!”
Two weeks before the new year's Eve, Fang min will appear on the sidewalk of the Shuicheng Road in Changning District, Shanghai, at about 9:30 every night. Full carton Cardigan Fluffy and jolly: "feel 100% wool is absolutely good." Fang Min, who wears a pair of glasses, keeps asking the passers-by to look down. Compared to the shyness at the beginning, his voice has become as natural and skilled as the "professional vendors".
方敏是楊浦區一家外貿企業的業務員。自去年10月份以來,他推銷這批羊毛衫已經有3個月了。在春節前兩個月,公司董事長把他們這些業務員召集起來,舞動胳膊下達死命令:不把這批積壓的出口訂單產品全給賣掉,今年的年終獎一分錢沒有!于是,他和公司的7名業務員走上了最原始的營銷渠道——擺地攤。
At about 8 o'clock every morning, the lorries of the company send them to various stall spots along the central elevated platform. These stalls are located at some subway estuary, but the stalls are not fixed. For example, the first week, they scattered along the subway line 2 to Changning, Huangpu, Pudong and other places. After 11 p.m., they will gather at the subway entrance of new line two on line two, and focus on marketing.
Fang Min would not have been so "down". He worked for a company that exported hundreds of millions of dollars in the past year. But since the second half of last year, export sales have begun to shrink. The woolen sweater, worth only about 2000000 yuan, was originally driven by orders from a European Brand Company. The order was made in July. Soon after the collapse of Lehman brothers in September, the company suddenly disappeared. The dress was all put on the stall.
The financial tsunami has swept away a large number of export orders, which made the numerous manufacturing enterprises on the southeast coast fall into a nightmare. Turning to the domestic market, digestion of huge export capacity has become the only straw to survive. According to the survey conducted by the China foreign trade center of the Canton Fair, about 70% of the enterprises participating in the autumn trade fair in 2008 are ready to choose "export to domestic sales".
However, the effort to turn around is very difficult. Fang Min and his boss soon discovered that exporting enterprises to domestic sales was no longer easier than sailors going ashore.
“趕鴨子上架”
Fang Min is the elder of the foreign trade enterprise. After graduating from school in 2000, he entered the company directly. This is a pure clothing processing trade enterprise, buried in the export, declined all domestic trade orders.
When Fang Min entered office in 2000, when the company was the most beautiful, the profit margin of textile export was 10% - 15%, and Fang min also started from the 50 thousand yuan order, with the rapid growth of enterprises. After 2003, the annual export volume of enterprises has remained above 100 million yuan.
Beginning in March 2007, the continued appreciation of the renminbi ended the golden period of the company. By 2008, the profit margin was only 2.5% - 3%. Some salesmen's list is in deficit.
In March last year, Fang Min discussed a list with foreign businessmen that the good price was calculated at the exchange rate of 7.4000, but when the end of the month was recovered, the exchange rate dropped to around 7.2000. The 20 thousand dollar business lost 4000 yuan. Although the exchange rate factor is also considered in the pricing of the contract, the price of the forecast can not keep pace with the appreciation of the renminbi. The pricing of the contract is particularly difficult and high. Foreign businessmen turn around and go down.
2008年9月之后,央行開始降息,議價要素突變,一些老客戶索性退單而去。有的連退單都免了,干脆徹底消失,扔下一堆做好了的衣服,比如那堆價值200多萬元人民幣的羊毛衫。“等死不如找死。”老板被逼無奈,橫下一條心:外貿轉內銷。
In June 2008, the chairman decided to leave the employee for half a month, during which he summoned a layer of his holiday to Zhejiang's Mount Putuo and discussed the Countermeasures for pformation. Fang Min is also one of the participants. The meeting gave orders: the products will be pferred to the domestic market to digest, and all the foreign trade clerks of the company will "turn back" and change to domestic trade promotion.
"It's like catching up with the duck!" Fang Min was very angry and funny. The company's production capacity is considered first-class in China. But for so many years, he has been immersed in the OEM order, and he has no questions about brand, management, design, market network and so on. Now we have to turn to domestic sales to find empty hands. Fang Min summed it up as "six without": no brand, no research and development, no channel, no team, no experience, no system.
There is no way to start from scratch. From scratch, the Mount Putuo conference set the first step of pformation: self licensing. In the next half month, the company quickly completed a series of basic work such as trademark registration, corporate identity design and so on.
The second step is to rebuild the production and marketing system. The company has recruited a group of salesmen, established an internal marketing team, reintegrated the simple business department and processing department, and split the marketing planning, human resources, development and design, technology production, market development and other departments. At this point, a system of product development and marketing has been formed.
痛苦的賒賬鏈條
Over the years, accustomed to a single order processing, like a person accustomed to the mouth, lost the basic ability to make a living. If you want to stand up again, laying your own marketing network is not easy.
"The whole process of pformation is much more complicated and meticulous than foreign trade processing, and the cost is rising exponentially." Fang Min said that after establishing a marketing system for the domestic market, "the company just paid the employees more than 3 times more than before."
Channel construction is the biggest obstacle. After half a year of operation, a lot of cumbersome public relations have been carried out to enter the large and medium-sized shopping malls in Shanghai.
"An important problem in the domestic market is that the cost of capital occupied by the intermediate link is totally beyond the previous budget." Fang Min said, for example, 300 yuan a shirt, processing fee is only 30 yuan. Where did the other 270 yuan go? It is consumed by this long intermediate link, and consumers and producers are not benefited.
In the pformation operation, the most suitable way is the domestic payment mode. Different from the overseas customers' relatively good clearing mechanism, the domestic customers are basically using after sales payment, which is totally different from the cash on delivery of foreign trade. Even some customers don't settle their clothes after they are sold out. At present, about 3000000 yuan has been delayed for half a year, so far it can not be returned.
Such a payment model is deep-rooted. On the eve of the national day of 2008, the top executives of the company came to dinner with three merchants who wanted to act as agents, and Fang Min joined in the negotiation and cooperation at the table. One of the Dalian businessmen insisted on giving him a policy of first payment and payment.
"Now there are a lot of clothing brands that look for me as agents, and more than 30 of them are begging me. If you want me to pay the money first, then we will not talk about it." The businessman said to him.
At that dinner, the chairman drank a lot of wine. After dinner, he returned to his office with a pair of red eyes. He summoned a middle class meeting with a belly fire and announced the reluctantly accepting the conditions of the agent, producing and selling from the cost.
This means that a long chain of "credit" will come into being and become a huge cost and risk.
出口產品成地攤貨
Despite struggling to find a way to open up the domestic market, the inertia that the company has been developing for years has not been easy to change. After a batch of self created brands were put off the line, many of them were stored in the warehouse, plus the previous export orders, and the accumulated clothing value reached at least a million.
Although this is a small number, but careless, it may still be a big problem, because Fang min knows that the company's capital chain is highly stretched.
資金吃緊的一大原因來自“補稅”。和其他加工貿易企業一樣,公司原來做出口時,生產是在保稅環境下進行的,一旦轉做內銷,設備和原材料都必須完稅。根據海關的規定,出口加工企業生產出的成品如果轉為內銷,需“先補稅后銷售”,否則視為走私。而補稅的錢不是個小數目,這給轉內銷的出口企業帶來很大的流動性壓力。為了減輕壓力,盡快回籠資金,董事長想盡各種招數。
"It seems that it is not enough to rely on agents. We must walk on two legs by proxy." The chairman of the board called Fang min to announce that the products of their own brands were looking for agents, and the list of foreign trade unsubscribe was not matched by the product style and the products of their own brands, so they had to go to the wholesale market in Cheap Road and other places by the company's salesmen, or to sell the stalls in the subway outlets. The about 2000000 yuan woolen sweater went to the stalls.
"The money to sell these sweaters is to give you the year-end bonus," the chairman said in front of the scandal. "How much you've been doing this year depends on how much you can sell."
The production process and quality of these autumn and winter clothing are manufactured according to international brand standards, but they can not save their status after being reduced to street level. At the very beginning, the price was 280 yuan per item, but the patronage went away. Fang Min, who used to sit on the computer desk, did not know how to greet his guests. One evening he came down and sometimes he did not sell anything.
最后年關將近,董事長一咬牙:“賤賣!每件50元!”這樣的價位,血本虧大了。即便如此,到大年三十那天,方敏他們也只將這些羊毛衫賣掉三分之一,剩下的只好抱回公司,另想辦法處理了。
"We got the year-end bonus this year, only 1/10 last year." Fang Min, who is still on vacation, told reporters: "I feel that this winter is even colder than last year's snowstorm. As long as the company does not lay off workers, we will thank heaven. We will try hard to sprint again after the end of the year."
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