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    Small And Medium Enterprises Developing Overseas

    2010/10/8 16:20:00 54

    Overseas Development Of Small And Medium Enterprises

    At present,

    Overseas Development

    The operation mode of small and medium-sized enterprises is basically the same as that of China.

    Vicious competition

    Development, "just moved the battlefield from China to Vietnam and Africa."

    Chen Jie, who has a painful experience, thinks that he can no longer walk this way.


    A bold decision.


      

    Chen Jie

    Guangdong Foshan is a general manager of Shunchang shoe industry Co., Ltd., which mainly produces OEM for people.

    "Our customers are not very large, but they are very wide. They are all in Asia, Africa, Latin America and Europe. They give me orders, and then I send them goods. It's as simple as that."

    In April 25th, Chen Jie told reporters at the forum of wealth leaders of the third outstanding Chinese businessmen Congress that such a small business has accumulated some wealth over the past more than 10 years.


    But things are different now.

    The RMB appreciation, the implementation of the new labor contract law, the reduction of the export tax rebate rate, the implementation of the export margin account system and the rising land cost all make it impossible for the PRD processing trade enterprises including shoe industry to go back to light again.


    "If China's footwear industry, especially the footwear industry in Guangdong, fails to achieve industrial upgrading without changing the backward competitive way of price war, that is the real crisis."

    Wang Ying, Secretary General of the China Footwear Association of Light Industry Crafts Import and Export Association, said in an interview with the media.


    As a matter of fact, Chen Jie, who is in the front line of the market, also knows this very well. But, "how does it change? Tens of millions of assets are relatively large from a personal point of view, but from the perspective of capital, they are very small and can not afford to toss."

    Chen Jie said that for labor-intensive shoe-making enterprises, although OEM processing is low, its turnover is relatively stable.


    Chen Jie also wanted to create a brand, but after a survey, he gave up the idea.


    Mr. Zhang, Chen Jie's good friend, the head of a small and medium-sized textile enterprise in Dongguan, also made fortune by OEM production for foreign enterprises. In 2000, he began to change strategy and launched his own brand.

    But this brand is still only a "little brother" in the Chinese market, and it is possible to disappear at any time.

    Mr. Zhang's life is far from comfortable. "50 years of age, the hair is busy."


    On the new year's day in 2008, when Chen Jie failed to find a way out in China, and at the same time, the RMB continued to appreciate and the export trade was suppressed. When the new labor contract law was promulgated and implemented, Chen Jie made a bold decision: temporarily shut down the factory.

    As a result, after the Spring Festival of 2008, Shunchang became one of the thousand shoe factories in the Pearl River Delta region.

    {page_break}


    Continue to make OEM abroad.


    In the absence of domestic licensing, Chen Jie turned his attention overseas.

    "Actually, many of my relatives and friends moved factories to Vietnam, Kampuchea and other Southeast Asian countries a few years ago. Some have gone to some African countries, and their living conditions are also good and bad."

    Chen Jie said, the good point is that the cost of labor is relatively low and trade friction is relatively small. "Especially in some African countries, the EU has not only quota restrictions on them, but also the preferential tax policies, and so on."


    However, there are also many bad aspects. For example, people may be blackmailed, they will encounter contract traps and so on.

    "A friend of mine went to Vietnam to invest in a factory with people. The result was that the other side broke up and annexed the whole factory, and millions of dollars had been invested.

    My friend is still fighting in Vietnam, which is chilling. "

    Chen Jie said, "after all, not in the country, many local policies and regulations are not familiar with it. If they are careless, they may fall into a trap. The accumulation of capital in more than ten years will be wasted."


    Of course, any investment is risky. As long as the investigation is well prepared, many risks can be avoided.

    Chen Jie said that after several overseas visits, he found another problem that must be addressed.


    Chen Jie found that, overseas, the operation mode of these small and medium-sized enterprises is basically the same as that of China, and still depends on the development of vicious competition. "It's just moving the battlefield from China to Vietnam and Africa."

    Chen Jie, who has a keenly understanding of this, thinks that he can no longer walk this way. "Today, China, Vietnam, the Laos tomorrow, this migratory bird enterprise is moving, and maybe one day it will follow the footsteps of my friend who has invested in Vietnam, and finally give him a white house."


    "Because there are no other specialties, nor a lot of money, I am going to do OEM first, but this is not a long-term plan."

    Chen Jie said he should look at different countries and find a suitable market for long-term development.


    Sharpening is not the wrong way to cut wood.

    Therefore, from the second half of last year, especially after the temporary closure of the factory, Chen Jie took the initiative to conduct investigations in many overseas countries.


    "I tend to invest in North African countries.

    These countries are basically colonies of European countries, which are closely related to European countries, and their market mechanisms are inherited from European market mechanisms. They are relatively mature. If they can stand there, they can basically maintain long-term development. In the face of the huge consumer market in Europe, making some pition is also simple.

    Chen Jie said that the main purpose of his visit to Beijing to join the Chinese fortune forum is to establish contacts with former Chinese diplomats who have worked in some countries in North Africa to further understand the political environment and investment environment of some countries in North Africa. "If possible, I would also like to invite one or several former diplomats to be my long-term advisers."


    Outstanding Chinese merchants Conference


    It is co founded by the world outstanding Chinese business association and the China Federation of Commerce. It aims to promote the strength and integrity of the global Chinese elite and contribute to the great rejuvenation of the Chinese nation.

    So far, it has held three sessions.


    The third outstanding Chinese businessmen's wealth Leadership Forum is the follow-up activities of the third outstanding Chinese business conference. More than 1100 small and medium enterprises attended.


    Diplomat spring activities


    Approved by the Ministry of foreign affairs of China, the annual gathering of Chinese diplomats and ambassadors from all over the world and representatives of international organizations, jointly organized by the world outstanding Chinese Businessmen Association and the former Chinese diplomat Association, has been successfully held for seven consecutive sessions.


     

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