Guangdong Foreign Trade Shoes And Clothing Enterprises Actively Fight For Domestic Sales

The biggest obstacle lies in the poor sales channels, the high risk of self built channels, the high threshold for business cooperation and the high fees. In from May 18th to 21st, the second Guangdong foreign investment enterprise products (domestic sale) Fair (hereinafter referred to as Guangdong Expo) was held in Houjie, Dongguan. The reporter was informed at the meeting that many foreign trade enterprises in Guangdong were actively fighting for domestic sales, but it was easier said than done.

The reporter understands that the first hurdle of domestic sales is that there is no suitable sales channel: self built sales network has high cost and high risk. It has a high threshold and a lot of charges with shopping malls and supermarkets (hereinafter referred to as Shang Chao), and has no experience or two talents to take the road of network sales.

The Expo will be fully funded by local governments, aiming to build a domestic docking platform for Guangdong's foreign trade enterprises. Exhibitors can get free booths. Some key supporting enterprises can also get reimbursement for the decoration expenses of the booth. Buyers can enjoy the star treatment, not only can they enjoy free accommodation at the 50 star rated hotels around the airport, but also provide free spanportation to the airport. Some key buyers can also enjoy spanportation subsidies.

At the meeting, Caixin reporter was informed that the exhibitors were all foreign trade enterprises interested in expanding the domestic market. Some forerunners have been groping for seven or eight years in the domestic market. Most of the enterprises began to try to sell domestic products after the financial crisis in 2008, and a small number of enterprises are still waiting to see the market.

Many exhibitors told reporters that influenced by the increase in labor costs, material costs and the appreciation of the renminbi, and foreign buyers generally lowered their quotations, the profit margins of foreign trade enterprises were more squeezed than before. Cruel reality forced companies to turn their attention to the domestic market.

The most direct obstacle of foreign trade enterprises to domestic sales is the difficulty of channels. For most SMEs, self built channels are not realistic, and the best way is to cooperate with business super companies. However, the entry merchants must face a lot of audit. Even if they pass the audit, they will face high admission fees, bar code fees, all kinds of shop fees, stack fees and sales rebate fees. Within a certain period of time, if we fail to meet the business quota, we will face the fate of being excommunicated.

The owner of a Shenzhen eyewear foreign trade factory told reporters that what he expected most was that someone could tell him exactly how much the cost of domestic sales was, and whether he could afford it.

If we build our own sales channels, these enterprises are generally faced with problems such as brand building, talent finding and pricing inaccuracy. A business manager of a children's clothing factory in Dongguan said that in order to adapt to the domestic market, they decided to redesign a group of children's clothing. "This requires a market sensitive and experienced designer, but we haven't found a suitable job for over a year."

"The difficulty of packaging a brand is much higher than before. We can not imagine how much it costs to raise the awareness of a new brand," said the head of a shoe factory in Hong Kong.

Wen Haibin, manager of Dongguan Houjie footwear alliance management department, told reporters that in the past, foreign trade enterprises only needed to make products according to the requirements of foreign partners, and then they could receive payment by packing and shipping. "They do not need to consider complex problems such as styles, R & D, sales channels, terminals, etc." All of the problems should be taken into account in the current domestic sale. "The situation in the internal market is so complicated that it is very difficult to adapt to it."

According to Liang Yaowen, director of Guangdong provincial foreign trade and Economic Cooperation Department, at present, the import and export trade of all kinds of enterprises in Guangdong has been completely stabilized. In December last month, the import and export volume of foreign, private, state-owned and collective enterprises increased by 33.7%, 34%, 25.6% and 15.9% respectively, and the number of exports to the US, EU, ASEAN and Japan also increased by two digits.

Despite the recovery of foreign markets, many enterprises still face the dilemma of shrinking sales. Wanshan gift design company, a factory set up in Humen, has been affected by the financial crisis. At present, there are only one or two people left in the past 800 factories. Luo Shiquan, general manager, said, "what we left behind was our 10 or 20 years old staff. We must continue to think for them." The exhibition is to find opportunities, "if there is a glimmer of hope, we will go ahead." He said.

The second Guangdong Expo held 2351 booths, and 1058 foreign-funded enterprises in Guangdong province came to show eight kinds of products, including household appliances, electronics, clothing, toys and food. More than 8400 buyers have sent procurement teams to discuss docking with exhibitors.

According to the Organizing Committee of the general assembly, all well-known international business enterprises that have invested in mainland China have sent buyers to participate in the procurement. Among them, 57 large buyers such as WAL-MART, Carrefour, mart and so on set up 100 booths in the procurement negotiation area, forming a docking with all kinds of production enterprises.

According to the statistics of the organizing committee, the four day Expo has signed 5369 projects, with a total turnover of 53 billion 900 million yuan, and the number of contracted projects and total turnover increased by 10.04% and 5.95% respectively compared with the previous Expo. Among them, the turnover of household appliances was 18 billion 700 million yuan, accounting for 34.67% of the total turnover, and 4 billion 400 million yuan for food and beverage products, accounting for 8.16% of the total turnover, and 3 billion 600 million yuan for clothing and clothing categories, accounting for 6.68% of the total turnover. The turnover of these three products is in the top three.