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    Emerging Markets Will Become New Engines Of Foreign Trade.

    2010/11/9 9:16:00 53

    Market Foreign Trade

    "In the past two years, China and

    emerging market

    Bilateral state

    Trade

    The development momentum is very good. The trade volume between China and Africa has exceeded 100 billion US dollars, and the trade volume between China and Latin America is over 100 billion US dollars.

    But our enterprises also have some shortcomings, such as technical equipment and backward areas.

    It is especially pointed out that Chinese enterprises are especially lack of understanding of the international market.

    市場的專業人才和外語人才。我們的企業尤其要對目標國家的法律環境非常了解,特別是對勞工的規定要充分了解。此外,銷售渠道也是中國企業‘走出去’后常常會碰到的問題,銷售網的建立有時不僅需要著眼于一個國家,更要覆蓋周邊區域。這就需要了解整個地區的貿易和投資有何優惠政策。”


    Wang Jinzhen, vice president of CCPIT, thinks that the construction of technological equipment, talents and sales network is the key issue for Chinese enterprises to develop new markets.


    "First of all, emerging markets are by no means a bulk market.

    The familiarity of consumers in these areas to the international market is not worse than that of consumers in Europe and America. Enterprises must use design and quality to open up the local high-end market.

    Secondly, we must not rush to gain instant benefit.

    Enterprises should not regard emerging markets as a supplement to the European and American markets. They must prepare for long term operations before entering the industry. They will get a lot of benefits if they work hard and gain patience.

    Third, size and eat.

    Companies accustomed to dealing with European and American markets will feel small because of the small size of orders in emerging markets.

    But the prospect of the emerging market is obvious to all. If the enterprise develops its market at a very small time, it will get twice the result with half the effort in the future.

    Finally, risk management.

    Risk is the price of opportunity. If we want to pursue business opportunities in emerging markets, we must make good risk management and never rush ahead.

    The financial system and judicial system in emerging markets are not perfect. Enterprises should be careful to find partners and carefully assess risks.


    Lin Tianfu, President of the Hongkong Trade Development Council, believes that there are many failures in developing new markets, and some of them are worth learning.


    "In September last year, Guangdong's rate enterprises visited Indonesia, Vietnam, Malaysia and Singapore. The Guangdong cyclone brought about not only the contract amount of nearly $10 billion 900 million, but also the rapid start of the blue ocean strategy in emerging markets.

    "Made in China" has greater competitive advantages both in terms of price and product quality, and is still more popular in emerging markets.


    Guan Weiping, deputy director of Guangdong SME Bureau, said that after the financial crisis, under the strong guidance of the provincial Party committee and the provincial government, Guangdong promptly adjusted the market structure, increased the development of emerging markets such as Singapore, South Korea and Africa, made the export areas more diversified and improved the export share of emerging markets. Therefore, the import and export trade of Guangdong in the first half of the year has improved.


    As far as the specific market is concerned, the Middle East is more affluent and has a strong capacity to pay. It is a potential market, but the key is to understand its local culture, while ASEAN countries have a relatively stable demand for Chinese products, and more importantly, technology export and cooperation, including the "knowledge City" that Guangdong and Singapore will work together to build.

    The importance of service trade may exceed that of general trade. "


    Jiang Lin, director of the Department of Finance and taxation of South of the Five Ridges College of Zhongshan University, believes that emerging markets have potential but will not be effective soon. The problem is that China does not know enough about these markets, and exports are mostly low-end products, and the industrial structure should be adjusted to increase technological content.


    "Since the beginning of this year, Guangdong has made great progress in actively developing the Middle East market.

    In the first half of this year, Guangdong's exports to the Middle East were close to Japan's exports, exports 7 billion 210 million US dollars, maintained an increase of 5.6%, and exports to ASEAN decreased slightly by 0.7%, but narrowed by 2.5 percentage points over 1~5 months.

    Exports to the main export markets of Hongkong, the United States and the European Union decreased by 23.8%, 15.3% and 22.9% respectively, with no marked narrowing in the decline.


    An official of the Guangdong Provincial Department of foreign trade and economic cooperation said that Guangdong's exports to emerging markets were warmer.


    "This year, the company has been working to expand some of the past cold markets, especially in South Africa and India."


    A large shoe company official said that the innovation of the external development channel has been effective, and in the past two months, the order of emerging markets accounted for more than 30%.

    According to statistics from the industry, exports of Wenzhou shoes to Switzerland, Cuba, Jordan, Lebanon, Syria, Pakistan, Angola, Uganda and other countries increased sharply in 1~7 months this year, with an increase of more than 60%.

    At the same time, in the past "blind spots" such as Azerbaijan, Equatorial Guinea, North Korea, Zimbabwe and other countries, there has been a "zero breakthrough" in recent months.


    "Since the early adoption of emerging market development and the" two leg walk "strategy of domestic and foreign trade, foreign trade orders have not declined this year, increasing by more than 20% over the same period last year.

    As the volume of business increased rapidly, we entered 20% of the middle-level employees.


    Xu Yunxu, chairman of Wenzhou tengxu Garments Co., Ltd. believes that the growth of the company's foreign trade revenue is due to the timely development of emerging markets.


    "From 2001 to 2004, the jewelry market was very good and many laymen joined in.

    The original jewelry has great room for research and development, but the layman will only copy and fight the price war.

    At that time, I thought that instead of waiting for the market to be adjusted to death, it would be better to take the initiative to develop new markets.

    I immediately sent my sister to the Middle East and Russia, Spain and other places to investigate.

    In January 2006, Xinguang set up a branch in Dubai, the United Arab Emirates. In the next 3 years, enterprises set up 13 branches in Dubai and Russia, Spain, Mexico and Brazil. "


    Zhou Xiaoguang, chairman of Zhejiang Xinguang Group, believes that the biggest advantage of Chinese enterprises in developing emerging markets is to get out of the quagmire of homogenization competition.


    Overview of overseas emerging markets


    In order to have a more comprehensive understanding of emerging markets and guide retailers to take effective measures to achieve success in these markets, McKinsey Co conducted an exclusive survey of clothing purchase attitudes and behaviors in countries such as Brazil and India.

    The Sino Russian economic and trade cooperation network and the official website of "falling in love with Africa" also conducted research on the clothing consumption behavior of Russia and African people respectively.

    The following is the professional reference given by our website.

    {page_break}


    Brazil


    Clothing consumption concept


    Brazilians like to buy clothes with credit cards.

    In the survey of clothing market in emerging countries, more than 60% of Brazilians agree with the phrase "I think using credit card shopping is very good".

    By contrast, the proportion of consumers in India, Russia and China who agree with this expression is 30%, 24% and 13% respectively, which can be confirmed from the growth rate of Brazil credit card business by more than 26% per year.


    Brazilians prefer to buy clothes and have a special sense of fashion.

    According to the survey, nearly 80% of Brazilians expect new clothes, which is much higher than that of China and Russia, and more than 50% of Brazilians buy clothes to go out with friends and family members.

    Fashion is a consistent pursuit of Brazilians. Only in Brazil, fashion is listed as one of the three attributes of the first choice shop, and this fashion trend is mostly guided by the stars of local soap operas.


    Recognition of foreign brands


    Local retailers and local brands they sell are admired by the Brazilians.

    In the survey, 81% of Brazilians say "trust local brands", and only 11% of Brazilians believe that "foreign brands are superior to local brands", a much lower proportion than in China, India and Russia.

    Nevertheless, some international brands have been successful through effective localization strategies, such as the European clothing retailer C&A, which has established its image in Brazil through its activities featuring the super model.


    India


    Clothing consumption concept


    In the survey, nearly 40% of Indians gathered around some special events, such as weddings and religious festivals, which was much higher than other emerging markets.

    In addition, in India, shopping is a family activity, which is more prominent than other countries: nearly 70% of shoppers always go shopping with their families.

    74% thought shopping is the best way to kill time with the family, which is two times the average of Brazil, China and Russia.


    For most commodities, the average consumption of the people in India is very low, which is only about 5%~25% in developed countries.

    Most consumers are particularly sensitive to price and still sacrifice quality because of cheaper prices.


    In India, women are the main decision-makers in the purchase of clothing for the whole family.

    But India men also play an important role: half of India women say their husbands have a significant impact on which shopping malls they often visit, which is much higher than that of Brazil (3%), China (8%) and Russia (18%).

    In addition, the men's clothing market in India is larger than that in the women's clothing market, and traditional clothing is still dominant.


    Recognition of foreign brands


    Indian recognition of foreign brands should be divided into two levels. The nobles and the rich in the upper part of India love international luxury brands. "From LV's travel kit to Cartier's exquisite jewellery, they have been armed to the teeth", while rural Indians are accustomed to wearing traditional costumes.

    With the rapid development of India's economy, more and more people become richer, and the demand for high-end brand clothing is also growing.

    In India, the construction of high grade shopping streets and large shopping malls is in full swing. Many of the consumers are still under 25 years old.

    According to the consulting firm, the growth rate of India's high-end consumer market will reach 25% in the next three years, showing a blowout trend.


    In addition, India's local brands have begun to turn to the production of business casual brands in order to cope with the competition of foreign clothing brands. For example, ParkAvenue, AllenSolly and Reid&Taylor, which ranked the top three of the brand recognition list, were originally good at making traditional clothing brands such as sari and India. Now they are also making modern style business suits for men.


    Russia and its periphery


    Clothing consumption concept


    Russians buy clothes very much.

    Although exports of Chinese clothing to Russia are large, there is still a lack of well known enterprises and famous brands in the Russian clothing market.

    With the increasing income of Russian residents, their demand for high-end clothing has increased rapidly.

    According to the survey, Russians in 10%~15% have the ability to buy top quality clothing, but the demand for cheap and low-grade clothing is less and less.


    Recognition of foreign brands


    Russians are more open to foreign brands, which is related to their history.

    In the mid 90s of last century, almost all Russian consumer goods were foreign goods, and imports accounted for more than 90% of the Russian consumer goods market.

    At least on clothing, the present situation has not changed much. Imported garments occupy the low-end consumer market in Russia.


    Africa


    Clothing consumption concept


    The level of development of Africa's 56 countries is extremely uneven. The economies of South Africa, Egypt, Cameroon and other countries are relatively fast, and they attach more importance to clothing consumption, while most African countries have no concept of clothing brands.

    For example, Kenya people like American style second-hand clothing, 80% of Kenya people buy second-hand clothing, close to 1 million Kenya people's lives directly related to second-hand clothing trade.


    In recent years, due to the economic development of African countries, especially the West African countries, some Africans have obviously felt the backward way of life, and they are beginning to challenge traditional challenges.

    Although they account for only a small proportion of the African population, they are leading the trend of Africa.

    Nowadays, newspapers in African countries often introduce fashion advertisements and fashion advertisements, and often appear African American models in TV cameras.

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