Chen Zhijian: Three Successful Ways To Turn Garments Into Foreign Trade

China, as the "world factory" of garment industry, has a considerable proportion of its output value relying on export from foreign trade enterprises.

Under the economic crisis, many foreign trade enterprises have chosen to pform into domestic brands.

How can pformation succeed?

With this question, the reporter interviewed Mr. Chen Zhijian, head of Lianshan garment factory, Chai Shan, at the eighteenth Clothing Fair.

According to Chen Zhijian, tea mountain Lianxing clothing company is mainly made up of bathing suits, children's wear and underwear. It used to specialize in foreign markets. Under the economic crisis, "turning outside" has become the key to the pformation of enterprises. The company plans to specialize in the "domestic market" with swimwear as its pioneer in 2010.

Referring to the business mode of foreign trade and domestic sales, Chen Zhijian keeps pouring out: "foreign trade" belongs to the order type production, and the whole process is relatively simple.

As long as there are orders, the company can guarantee delivery time and product quality, and does not need to invest a lot of advertisements.

And domestic marketing is different. Brand communication, channel development, consumer demand, market development and so on are all issues that must be considered, and domestic inputs and outputs are hard to calculate in a relatively short period of time. This is a completely different concept for foreign trade enterprises accustomed to "controllable production and controllable profits".

Therefore, "foreign trade to domestic sales" is the change of market location on the surface. In essence, it is a strategic pformation of enterprises, which is related to the survival and survival of enterprises.

Speaking of why "main attack" domestic sales, Chen Zhijian also needs his own view: the tea mountain Lianxing clothing is mainly composed of swimsuit and underwear, and belongs to the typical labor-intensive industry.

The biggest advantage of Chinese enterprises is the low labor cost.

But with the increasing production and processing capacity of swimwear and underwear in other third world countries and the emergence of more and more swimsuit underwear processing factories in China, export profits have become thinner in competition, and usually earn poor processing fees.

Moreover, when confronted with some demanding clients or unable to deliver the goods on time, they often lose more.

The domestic market is relatively high, and profits are much higher. This is the important reason for the pformation of Lianxing garment factory.

"Outward pfer" is bound to be a degenerate process, and growth is bound to encounter difficulties. Chen Zhijian also deliberate: accurate market positioning is the key to the success of foreign trade to domestic sales. To achieve this, we must answer three questions clearly: what do you want to do?

What can you do?

What are you going to do?

1, what do you want to do?

The outward oriented enterprises seeking pformation will often face two choices in the pition stage: whether to start the domestic market around the existing business or to choose new businesses in the domestic market?

In this regard, tea hill Lianxing clothing chose the former.

The swimwear and underwear of the company occupy 80% of the product line respectively. Both production mode and market control are relatively mature. Therefore, it is natural to concentrate on advantages and expand the domestic market.

2, what can you do?

This problem is linked to the previous one. It involves three very realistic aspects: what products can you make?

How much money do you plan to invest?

Where do you need talents?

(1) what products can you make?

The "product" mentioned here does not mean to find a product at random, nor simply put the existing products for foreign trade in the domestic market.

Every outward processing enterprise has its own products. The question is whether these products are suitable for sale in the domestic market.

(2) how much money do you plan to invest?

Second, the issue of capital investment.

Not only the products that are marketable in the domestic market need corresponding capital input (R & D, equipment, proofing, R & D personnel), and marketing research, marketing plan planning, brand planning, terminal image design, construction and marketing team, product reserves in the marketing process, organization setup, brand promotion, dealer recruitment and so on, all require corresponding capital input.

Without corresponding capital investment, everything is a delusion.

(3) where do the talents you need come from?

Finally, the question of where the talent comes from.

This is the biggest obstacle for outward oriented enterprises to do the domestic market.

Because foreign trade orders are only for a long time, enterprises do not have enough reserves to be qualified personnel in the domestic market.

Theoretically, if an enterprise is willing to spend money, it will be able to hire talented people who are suitable for the domestic market.

However, with the following problems, do outward bound enterprises dare to employ high salary to hire marketing personnel when they are preparing to do the domestic market?

Many enterprises do not want to increase investment in domestic marketing talent, and for other considerations, they often choose to pfer their former talents to domestic marketing positions.

3, what are you going to do?

After answering these two questions clearly, it is bound to involve: what are you going to do?

In other words, how do you start marketing in the domestic market?

China has already had 20~30 years of processing experience and capabilities in clothing, but the global production pattern is still changing.

"Foreign trade to domestic sales, the core of marketing," at the end of the interview, Chen Zhijian summed up.