Wenling Shoe Enterprises Export Doubled &Nbsp Every Year. What Is The Secret?

Founded in 2003, Zhejiang good brothers Shoes Co., Ltd., the chairman of the company, Li Chuanfa was busy because of the company's packaging and other supporting projects.

By exporting the production base to Egypt, Russia and other countries, the export has doubled in recent years.

Even in the 2009, which was most severely affected by the financial crisis, exports increased by 95.9%. What is the secret?

Chen Meigui, deputy director of the Wenling Municipal Bureau of foreign trade and economic cooperation, explained that the establishment of overseas institutions can greatly enhance export stability and risk tolerance.

In 2009, the international financial crisis hit Wenling's export enterprises, but enterprises with sales organizations outside the country generally had better export situations than those without overseas institutions.

In addition to the good brothers company, Jia Li Le electrical and Mechanical Co., Ltd. set up offices in the United Arab Emirates, Iran, Laos and so on. Last year, the export volume increased by 38.2%. The Sino Bo construction group and Dajiang Industrial Co., Ltd. set up trading companies in Libya and the United States respectively.

It is understood that as of now, there are 99 overseas enterprises approved by Wenling, most of them are overseas marketing networks, and some are overseas processing and manufacturing enterprises and overseas agricultural bases. Qianjiang Group's acquisition of a Italy company has become the first case of pnational purchase and purchase of Wenling enterprises.

These approved overseas enterprises are widely distributed, but the industry is relatively concentrated, mainly footwear, accounting for 46% of the total number of households, and 25% of the total number of pumps.

At present, the scale of overseas investment in the city has gradually expanded. Last year, the average investment volume of 7 new overseas projects was 2 million 500 thousand US dollars, only 100 thousand US dollars in 2004.

Because the government does not stipulate that enterprises must "go out" in policy, they must be submitted for approval.

According to preliminary statistics, Wenling enterprises have more than 100 branches in Dubai, but only more than 10 of them have been approved.

By analogy, there may be nearly 1000 enterprises in Wenling to set up overseas institutions, and the specific investment amount can not be estimated.

This year, Wenling has entered the list of foreign investment in the top ten counties and cities in the province.

Why do enterprises set up overseas institutions can greatly enhance the stability of exports? Chen Meigui said that most of the export enterprises in Wenling and Taizhou are exporting through middlemen, and obtaining market information is more indirect and slower.

Enterprises directly set up overseas institutions, engaged in product promotion, information collection, customer liaison and after-sales service, which is conducive to the establishment of a better overseas marketing network system.

Good brothers, while processing semi-finished products at home, then export abroad to produce finished products.

Because China's finished shoes enter the international market, they have to pay high import tariffs, but the tariffs on shoes, accessories and semi finished products are relatively low. Good brother's practice can avoid higher tariffs on finished products and effectively resist related trade barriers.

But the low level and vicious competition are a big hidden danger for Wenling and Taizhou enterprises to "go out".

According to people concerned, the scale of overseas enterprises in our city is generally small, the product grade is low, and the lowest investment amount is only 50 thousand US dollars, and most of them are concentrated in a certain area, which is likely to cause vicious competition.