The Currency War Is Becoming More And More Intense &Nbsp; Textile And Garment Exporters Are In China.

The global currency war is becoming more and more intense in recent years, and the appreciation of RMB is expected to be strong. Many enterprises have been turning to the domestic market to look for opportunities, especially in textile and clothing, furniture manufacturing and other export enterprises, which seize the concept of "Chinese consumption" and increase the proportion of domestic sales.

Past

There are many prospects for domestic sales.

Large exporters sell domestic products frequently, and are favored by investment funds from all walks of life.

The world's largest wig

Wool textile and garment enterprises Shandong Ruyi sales revenue growth is more from the domestic sales trend has been established.

In the first half of this year, the domestic revenue of the company increased by 98.92% compared with the same period last year, while the export revenue decreased by 38.31% compared with the same period last year. The proportion of exports to sales revenue dropped from 40.11% last year to 31.66%.

Shandong Ruyi intends to be appointed Su Xiao, director of the introduction, since 2008, enterprises to increase domestic sales efforts, and the advantage of the group industry chain, gradually from manufacturing enterprises to brand management enterprises pformation.

Furniture exporter Yihua wood recent non-public offering does not exceed 175 million shares, mainly for domestic financing.

According to the data released by China Furniture Association, the domestic market has maintained more than 15% growth for many years, and the annual sales volume has exceeded 400 billion yuan.

"There has been a marked increase in domestic sales in the first half of this year.

In fact, we began to pay attention to the domestic market in 2006 and took some substantive measures, including the formation of independent business department last year to make the domestic market, which has a foreshadowing for nearly 4 years. The next 2-3 years should be the key period for the good news of Yihua wood's domestic market performance.

Wu Huadong said.

The pformation of enterprises is naturally aimed at greater profits.

Compared with the continuously compressed export profits, the domestic profit margins obviously have more advantages.

Wu Huadong introduced that the average profit rate of Yihua wood is around 20%-30%, but the profit rate of the direct store is relatively high.

At the same time, domestic market returns are more timely and capital turnover is faster than exports.

Su Xiao introduced that the export of woolen fabrics to foreign markets is the letter of credit settlement or wire pfer, and letters of credit are generally 90 days' arrival.

The supply of well-known manufacturers such as YOUNGOR is to approve a credit limit, basically a rolling monthly knot.

Under the expectation of changing the mode of economic growth and the continuous improvement of urbanization rate in the future, there is a huge domestic consumption space. This also provides an opportunity for the export enterprises with capacity and technological advantages to open up the market.

Stephen Chong, deputy representative of the international trade negotiations of the Ministry of Commerce, said that the domestic market size in 2010 is expected to reach US $2 trillion, much higher than the total export volume.

Zhang Yansheng, director of the Foreign Economic Research Institute of the national development and Reform Commission, said that in the next 10 years, if 10 million migrant workers are converted into urban residents every year, 100 cities with more than 100 thousand people will be generated. If the consumption capacity of each peasant worker will be increased by 3.5 times, the cake in the domestic demand market will increase 3.5 times, which will support the development of China in the next 30 years.

Build channel tree brand "horse race enclosure" curtain opening

Many enterprises responsible person said that the export processing enterprises should develop the domestic market, and the quality and technology of the products are not a problem. The most important thing is to promote the brand and establish sales channels.

Many pformation enterprises are using the mode of distributors plus direct stores to expand their channels.

Yihua wood began to attack the domestic market in 2010. In the marketing network construction project, it plans to build 16 Yihua home experience center in China, so as to enter the domestic market as soon as possible, expand its influence and increase its share.

Rebecca is also stepping up its layout to open more than 80 stores in many cities, from manufacturing to consumer goods and even to luxury goods, so as to expand the market.

The acquisition of Brand Company is also a way to quickly build brands and establish channels.

Su Xiao introduced that Shandong Ruyi has successfully acquired Japan's largest ready-made operator, Japan Renner, in addition to using the two private brands of "Lu Jia Na" and "Ying Di long" to set up direct stores.

"Rena has 29 sub brands, and has built stores in China.

From fabric, clothing to brand channels, the group can form a complete channel of the whole industry chain. "

Zhang Yansheng said that in the process of export to domestic sales, enterprises must go through the process from OEM to brand, from other people's channels to their own channels, from product dependence to the development of others to their own development capability.

"This is a hard nut to crack, but if it can not be effectively overcome by most enterprises, the growth of enterprises will slow down, and the development of local economy will slow down accordingly."

Transformation is not a day's effort, internal and external control is strictly controlled.

However, the pformation from export processing to brand enterprises is more like shifting from production wholesale to retail sales, and it is not easy to get through the wall between domestic and foreign trade.

Export enterprises usually get the deposit first, then start the order, and turn to the domestic market. They must carry out the early market input, which also means the increase of the cost and risk of the enterprise.

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"The foreign market is based on containers, and a stool in the domestic market is also for customers.

A large number of outlets must be formed to improve production efficiency and reduce costs.

This model is very painful.

Wu Huadong said.

In the domestic market, the original domestic enterprises have formed a competition pattern, and the new pformation enterprises are involved in it, so the competition will be more intense.

For the furniture industry, there are more than 30 thousand domestic furniture enterprises, and consumer demand is more diversified. Regional, age, culture and lifestyle must be taken into account.

"These more than 30 thousand enterprises are fighting together, competition will be very intense, and each region has the characteristics of consumption in various regions.

To open up the domestic market, we must spend a lot of time, material and energy.

Wu Huadong said.

A home textile enterprise official pointed out that listed companies and large export enterprises are relatively advanced in technology and good in reputation, so it is easier to develop domestic distributors, and to make use of capital market financing is also more convenient.

However, for small and medium-sized export enterprises, the products exported to domestic markets are not as well-known as domestic brands in terms of popularity, especially in channels, and have no right to speak in front of retail outlets such as department stores and supermarkets.

Turning to the domestic market is unlikely to attract distributors, and investment in the early stage can only be wasted.

In addition, although the gross profit margin of domestic sales is high, plus advertising, brand promotion, and distributors and shopping malls are divided, it is very likely that "making money is not profitable", and net profit may not be as high as export.

However, despite the difficulties, entrepreneurs who are optimistic about the Chinese market are full of confidence in "walking on two legs".

"The foreign market will never give up. The market that has been built for decades has been stable, and the competitors are not too keen.

The establishment of domestic marketing mode, team management and after sales service is sure to have a process.

No advertising input, no pre production capacity preparation, the market can not take up, we must be psychologically prepared.

Wu Huadong said.