Wenzhou Shoe Enterprises Seek Upgrading And Pformation, And Find New Ways To Sea.

On the afternoon of June 28th, the largest overseas merchandise exhibition held in Wenzhou came to a close in Ipoh, capital of Perak, Malaysia.

The four day Malaysia Wenzhou China Famous Products Fair has brought the following achievements to more than 160 exhibitors in Wenzhou: the number of visitors to the exhibition reaches more than 20 thousand passengers, and nearly 5000 professional businessmen have come to negotiate with them, and more than 50 enterprises have received an intention order of about 12 million US dollars.

This is the tentative result of the first collective appearance of the "made in Wenzhou" in the ASEAN market after the liberalization of trade in goods between China and ASEAN Free Trade Area this year.

Exploring the market --

Landscape needs to be developed

On the opening day of the exhibition, a detail made Wenzhou enterprises see the local enthusiasm for "made in Wenzhou": Zheng Keyang, adviser to Perak state affairs minister, deliberately put on "Wenzhou made leather shoes" and said with a laugh, "live advertisements will always be over to the end of the exhibition."

For Wen enterprises, the exhibition has its special significance.

Su Xiangqing, director of the Municipal Bureau of foreign trade and economic cooperation, analyzed that on the one hand, the demand for the European and American markets was cooling down in the post financial crisis era, and the emerging market "bullish"; on the other hand, with the export tax rebates of the 406 commodities being abolished in July 15th, the pressure of Wenzhou enterprises' export increased sharply.

Under such pressure, it is in the right time to try to enter the huge market of ASEAN.

Look at the market around us: 1 billion 900 million population, nearly 6 trillion dollars gross domestic product, trade volume of 4 trillion and 500 billion dollars...

With the completion of the China ASEAN Free Trade Area in January 1st this year, the "zero tariff" of more than 6800 commodities has been implemented. ASEAN has become the "fat meat" in the eyes of many enterprises.

With the help of "zero tariff", the volume of trade between Wenzhou and ASEAN has gone up. ASEAN has become a new trade growth point. From 1 to May this year, ASEAN exported 346 million dollars, an increase of 20.57% over the same period last year, and in February it grew by 256.33%.

Malaysia is the highest trade volume of ASEAN in our city.

"Taking Malaysia as a breakthrough, let Wenzhou products enter the Southeast Asian market in an all-round way".

This is the intention of Wenzhou enterprises.

Zhang Xiaoqun, chairman of the exhibition, Wenzhou Hao Feng Exhibition Co., Ltd., has a huge market in Malaysia from fruits, vegetables, poultry products, seafood, textiles, clothing, machinery and equipment, daily hardware, electronic products and so on.

At the exhibition, Industrial and Trading Company of Zhejiang Hung Shun saw the potential of the market: the company's medical device supplies were concerned, and the largest private hospital in the world invited them to negotiate.

Li Ande, general manager of the company, revealed that the company has expanded more than 30 customers in the ASEAN market this year, and its sales volume has increased by 30% over the same period.

"It can be said that this is an undeveloped virgin land. The company will look for and expand more sales channels in the future."

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One step ahead --

Key to identify matching points

As the largest exhibition held in Southeast Asia in recent years, the Wenzhou enterprises holding collective exhibitions can be described as "one step ahead".

However, from the analysis of the final results of the exhibition, the related products in home appliances, packaging machinery, medical equipment and other fields are generally well reflected in the local market, while for printing, paper, footwear and other enterprises, the "exhibition effect is worse than expected".

"The challenge of ASEAN's emerging market lies in how to grasp the entry point of the market and find an accurate market position."

The responsible person of the Municipal Bureau of foreign trade and economic cooperation said that as a way to explore the road, it is more important for Wenzhou enterprises to find their own "key" to open the door of the market through this exhibition.

Take Wenzhou shoes and clothes, bags as an example, most of the enterprises did not receive orders from large professional buyers in the exhibition, which disappointed many entrepreneurs.

But on the same day, the products on display were sold out and the enterprises saw the direction.

"This reflects that the traditional" made in Wenzhou "has certain competitiveness and influence here, and Wenzhou enterprises can enter more middle and low price shoes and clothing products here.

Ma Zhongliang, deputy general manager of Wenzhou Hua Deli shoe industry Co., Ltd., found a way: from the five or six small orders that the enterprises took during the exhibition, the safety shoes exhibited by the enterprises were compared with the counterparts in Malaysia. "This particular consumer group of construction workers will be the direction for us to aim at the ASEAN market."

Some enterprises have found the "key" at the exhibition.

Yaohua Group Machinery Co., Ltd. is negotiating with customers for the last minute of closure. The company's water purification equipment is favored.

Shang Youwei, from Malaysia, has been selling water purification equipment for more than 10 years. He said: "the product from Wenzhou has a higher technology content than the local similar products."

Similarly, Wenzhou Jilong electronics also has a US $1 million intentional order with its patented product.

Prospects for expansion

Or become opportunities for pformation and upgrading

During the exhibition, the opening of Wenzhou's first overseas exhibition center for famous and famous products in Ipoh is another breakthrough for Wen enterprises to enter the ASEAN market.

From famous exhibitions to construction exhibition centers, and then to the completion of next year's Wenzhou business city, this is a strategy for Wenzhou enterprises to "step into ASEAN". The aim is to extend the "Wenzhou name purchase" mode in ASEAN and start the "Wenzhou made" brand in ASEAN.

"While expanding market share, Wenzhou enterprises need to carry out some deep cooperation and development of capital and technology in ASEAN, in order to promote industrial pformation."

Liang Hui, Vice Minister of the Exhibition Department of the provincial council for the promotion of trade, analyzed.

It is understood that in addition to the construction of industrial parks in Vietnam and Longjiang by Wenzhou enterprises, more enterprises, with the help of the exhibition "looking for market", have invested strategic vision in capital investment of "finding resources" and "finding space".

To Wenzhou shoe enterprises, entering the ASEAN market is a good time to avoid trade barriers and look for new cakes.

It is understood that with the help of the zero tariff of China ASEAN Free Trade Area, some shoe manufacturers in Wenzhou are ready to pfer part of their production lines to Southeast Asia. Indonesia, Kampuchea, Vietnam and some other places with shoes making foundation are all interested in investment.

"According to our investigation, the local fashion design shoes are exquisite, and the shoe manufacturers are very strong in product R & D and design.

It is a good opportunity for Wenzhou shoe enterprises to pform their production capacity and their R & D capability effectively.

At the exhibition, some shoe makers were invariably responsible.

"In the post financial crisis era, this series of economic and trade actions is of special significance for promoting the pformation and upgrading of traditional industries."

Su Xiangqing hopes that more enterprises will invest and develop ASEAN's emerging market through "going out" to make more room for pformation and upgrading of their own industries.