Pearl River Delta Shoe Enterprises To "Kill" Into The Domestic Market (1)

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What worries the government officials and the industry is that the outbreak of the global financial crisis in 2008 caused a strong impulse to export to domestic sales in the PRD enterprises.

When the shadow of the financial crisis is gradually disappearing and enterprises are no longer worried about the problem of overproduction, is there still a market for "export to domestic sales"?

Reporters from the second "Guangdong foreign investment" just concluded

Mentality: "domestic sales" is no longer an expedient measure.

Dongguan port Jay Limited is a Hong Kong footwear manufacturer. Almost all orders are derived from overseas markets, with an annual export volume of about $50 million.

Compared with most Pearl River Delta enterprises, Hong Kong Jie's impact on the financial crisis is not large.

"Enterprises are mainly engaged in the production of special work shoes, and the foreign market is relatively stable."

At the Expo site, Liao Yongjie, manager of marketing department of Hong Kong Jie, told reporters that during the most difficult period of financial crisis, overseas buyers had not placed orders in 3~6 months.

However, when the inventory of the buyers cleared, the amount of orders returned in the past year was restored, and so did the Hong Kong Jie.

At present, along with

"Although the overseas market of Hong Kong Jie is bright, it is necessary to do domestic sales."

Liao Yongjie's reply is quite firm, and his words represent the aspirations of most of the PRD enterprises.

Reporters in the interview found that the current appreciation of the renminbi and the pressure of wage increases forced enterprises to choose the way of domestic sales.

Among them, the appreciation of RMB makes the profit margins of export-oriented enterprises smaller and smaller.

"Products exported to overseas are usually settled in dollars, euros, etc.

Thanks to the appreciation of the renminbi, the company's revenue has shrunk dramatically.

Liao Yongjie said that at present, fierce competition in overseas exports, the company did not grasp the price of the right to speak, can only bear this negative.

The biggest difficulty for enterprises is the general increase of wages in the Pearl River Delta.

"The company used to give workers a monthly salary of around 1500 yuan.

After adjusting wages, workers can get 2000 yuan a month.

Liao Yongjie analyzed that labor costs alone accounted for about 30% of the company's production cost.

And the 20% to 30% wage increase makes the company somewhat unbearable.

"Only from the original single international market to the international and domestic two markets, can enterprises survive."

Liao Yongjie said.

Similar to the situation of Hong Kong's Jay, more and more PRD enterprises realize that selling domestic products is no longer an expedient measure to deal with the decline of orders, but an inevitable choice to win industrial competitiveness.

Difficulties: lack of channels, enterprises' internal marketing "ineffective"

Compared with the outbreak of the financial crisis, the Pearl River Delta enterprises' willingness to sell domestically is stronger and stronger.

However, after interviewed several enterprises, reporters found that in the face of the huge domestic market, enterprises are mostly in the awkward situation of "do not know where to start".

At present, lack of channels and lack of brands are the biggest short selling of domestic enterprises in the Pearl River Delta region.

"The cake in the domestic market is big and difficult."

At the Expo, Wang Desheng, deputy director of the Department of Commerce and service management of the Ministry of Commerce, said that the biggest difference between domestic and foreign sales is sales mode: after receiving overseas orders, enterprises only need to be responsible for production, loading goods onto containers, and trading mode is simple; and enterprises in the domestic market are not simple, they need to build their own channels or use other people's channels.

"Let's not see from abroad to the mainland, but the market is different. This is actually a pformation from industrial mode to business mode, and there is an infinite market risk."

One industry pointed out that 100 enterprises can make processing, and 100 may succeed, but only 100 of the 100 enterprises are successful in brand and retail.

As early as six or seven years ago, the Hong Kong Jie captured the huge business opportunities in the domestic market and began to enter the domestic market.

"Gross profit for export is only about 20%, while domestic sales are as high as 30% to 40%, which has an attractive appeal."

Liao Yongjie recalled that the company registered its domestic brand and set up stores in major cities such as Beijing and Shanghai.

Because he did not understand the domestic market, he did not escape defeat.

The company spent millions of dollars in the end, and ended up losing money.

"Now the company's domestic sales are less than 1% of the total output, with an average of only a few hundred orders per month."

Liao Yongjie said.

Next, Hong Jie intends to fight the domestic market again, and is now preparing for the domestic sales department.

At the same time, the company also began to participate in some domestic exhibitions, such as Expo, China labor insurance products exhibition.

But for the long-term plan, Liao Yongjie is still at a loss.

"The failure of previous years left a shadow on the company.

Companies do not dare to throw more money shop sales channels, and can only rely on existing sales relations to do it slowly.

Liao Yongjie has some helplessness, this method is rather stupid, but in order to reduce the risk, we have to do so.

The difficulties faced by small and medium-sized enterprises such as Kong Jie are very common in the Pearl River Delta enterprises.

"It is very difficult to open channels and make brands for domestic sales, but without going out this step, you will always be at a low level of competition and will pay a higher price.

If we have been in a low level of competition, there will be no hope of industrial upgrading.

Jiang Lin, director of Finance and taxation department of South of the Five Ridges college, Zhongshan University, said.