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    Foreign Trade Enterprises Have Many Strategies To Relieve Themselves.

    2010/12/2 13:31:00 52

    E-Commerce In Foreign Trade Enterprises

    From the 108th Canton Fair exhibitors returned to the manufacturers, the current uncertain international economic situation makes them dare not take it lightly. exchange rate Change, Trade Friction, labor and raw material costs are still rising. foreign trade Enterprises are most concerned about. At present, the pressure on export enterprises to feel the decline in export profits has taken various measures and strategies to relieve themselves.


       Raise prices strategically


    As raw material prices and labor costs rise, coupled with expectations of exchange rate changes, exporters are generally facing pressure to raise prices. Faced with the problem of raising prices, export enterprises generally feel "in a dilemma": raising prices may be difficult to be accepted by customers, and ultimately lead to customer churn. The price margins of export enterprises will be further squeezed without raising prices. In this regard, the industry believes that in the case of soaring costs, the price increase is the general trend, but enterprises should study the strategy of raising prices and gradually implement.


    It is understood that many companies in the price of bucking will do a good job of persuasion for customers. Wang Jiansheng, manager of Quanzhou shunran bag Co., Ltd., said that the rising prices of raw materials such as cotton not only affected the footwear industry, but also affected the bag industry. "I think we should carefully calculate the cost increase before we raise the price, and then propose a reasonable price increase for our customers on this basis. In fact, the ups and downs of prices are normal for businessmen. The key lies in communication. Communication is good, customers will understand and accept. Poor communication will lead to customer dissatisfaction and even endanger corporate integrity. " In addition, the price increase of suppliers will lead to price increases in foreign suppliers, retailers and many other sectors, which will lead to chain reaction. Therefore, export enterprises should pay more attention to the cyclical nature when they increase their prices. Considering the process of customer acceptance, they can not say that inflation is going up, but they should be implemented step by step.


    In addition, in order to alleviate the export pressure brought about by the rising exchange rate, many enterprises "exchange new products for bargaining power", and adopt new methods to increase bargaining chips for increasing prices and increase export volume. "Rising costs and changes in the foreign trade environment have prompted ceramic enterprises to gradually change the practice of low price sales, from homogeneous competition to differentiated competition, and the new high-tech and high value-added products represent the trend of ceramic industry's transformation to" low carbon economy ". Enterprises can only survive if they raise their prices, which requires new products and brands. Foreign trade analysts said.


      Attention to order skills


    It is understood that many foreign purchasers prefer large orders in recent years due to concerns about the possible changes in the RMB exchange rate and the rise in prices of raw materials and labor costs. "As customers generally expect the new round of RMB appreciation, and the appreciation of the renminbi means the increase in procurement costs, foreign investors want to increase the size of their orders, but they do not require delivery in the short term, but merely sign a large list, hoping to fix prices." Quanzhou Jin Li Trading Co., Ltd., a deputy general manager who did not want to be named, said.


    In view of this situation, export enterprises are "love and hate". It is reported that at present, Quanzhou's export enterprises are very cautious when facing such a large list. On the one hand, they should take into account the production capacity, customers' demand for large single prices is relatively low, and the profit margins of enterprises are low. In addition, if the yuan really appreciates and the price of raw materials continues to rise, such long bills and large bills may not be able to make money, which will bring great risks. Therefore, the common practice of enterprises is to first hedge transactions by means of the foreign exchange market, thereby reducing exchange rate risk; secondly, setting the validity period of the offer, such as telling the customer that the offer is only valid within one month, and that the change in exchange rate, material cost and other aspects may change after one month.


    At the 108th Canton Fair, export enterprises were more cautious in taking orders. According to statistics, out of the uncertainty of RMB appreciation, enterprises account for 52% of the short list within 3 months, and only about 12% of the 6 months long list. It is understood that at this Canton Fair, many exhibitors in Quanzhou did not dare to take orders, and some even refused to take longer period of production orders over 3 months. Many of the orders signed by many exhibitors were mostly short orders within 3 months. {page_break}


      Developing new markets


    Facing the international financial market shrinking sharply, the import demand of overseas enterprises decreasing and the European and American market declining, Quanzhou export enterprises began to change their thinking and open up emerging markets such as ASEAN, South America, Africa, etc., trying to make up for the decline of the market through the growth of the emerging market, and ease the pressure of export by diversifying the market.


    According to relevant personages of Jinjiang Business Bureau, in the 1-9 month of this year, Jinjiang's export growth to emerging markets such as ASEAN, UAE, Latin America, Africa and Russia reached 107.76%, 53.98%, 75.46%, 56.01% and 124.14% respectively, and exports to the EU, the United States and other traditional markets accounted for 33.72% of the total exports, while exports to ASEAN, Africa and other emerging markets accounted for 42.85%, and the export market diversification strategy achieved remarkable results. The city's brand enterprises are actively supporting the provincial special funds to set up overseas marketing networks and carry out overseas brand acquisitions in emerging markets such as Africa, ASEAN and Russia. Up to now, Jinjiang enterprises have set up more than 40 overseas offices in 16 countries and regions.


    Some foreign trade experts believe that because of the economic backwardness in most parts of the emerging market, and the imperfect legal system, the credit environment is generally deviant, leading to a significant increase in export risk. Therefore, export enterprises should pay attention to avoid risks when developing emerging markets such as South America and Africa.


       Leveraging E-commerce


    According to the relevant personages of Jinjiang Business Bureau, many export enterprises in Jinjiang have adopted e-commerce and other modern trade ways to open up online sales channels. According to statistics, at present, China's international e-commerce application platform Jinjiang has developed more than 1000 gold medal member enterprises, and nearly 1000 enterprises have published tens of thousands of effective product information and about 100000 effective supply information in the Jinjiang special zone. The total number of visits has reached more than 10 million times, and the average daily traffic volume has reached 30 thousand times. The export enterprises in Jinjiang have close to 200 million USD through the intention of foreign customers in Jinjiang special zone.


    In fact, in response to the financial crisis, export enterprises have become the trend of e-commerce. Foreign trade enterprises have used e-commerce to expand the market, and have achieved good results and tasted "sweetness". Data show that in the next three years, the scale of the online foreign trade market will reach US $10 billion, and e-commerce will become an important means for foreign trade enterprises to develop their business.


    It is learnt that through foreign trade e-commerce platform, production enterprises can directly communicate with consumers close to the terminal overseas, with obvious time advantages. In addition, as foreign trade e-commerce generally takes international air express, it only takes 7 to 15 days to send products back to money, and there is no risk of collection. Some foreign trade people believe that the traditional way of foreign trade, products from factories through foreign trade companies sell to the importers of corresponding countries and regions, and then go to wholesalers, followed by retailers, eventually to consumers, profits are divided into layers. And foreign trade e-commerce, whether it is small wholesale or retail, products from factories directly to retailers or consumers, this can be more than 20% to 200% profit.


    As for how to do well in foreign trade e-commerce, it is suggested that the industry should first pass the "language barrier". "Small foreign trade wholesale platform, although the seller's backstage operation is mainly Chinese, but the product keyword setting, product description, and buyer communication process need to use English, and the background of eBay is in English." Richard Lee, who has been engaged in the development and promotion of e-commerce platform, is now the head of a trading company.


    Secondly, we need to know about international trade, logistics, e-commerce and so on. The most important thing is the analysis of product line. Foreign trade e-commerce is mainly aimed at the mature countries of e-commerce in the United States, Canada, Australia, Britain, France, etc., and what products are suitable for sale through foreign trade e-commerce needs careful analysis. "Enterprises set up their own e-commerce platforms or choose the well-known e-commerce platforms. Brand is the soul. In addition, the trend of your industry in overseas, the flow of products overseas, the main competitors and their performance on the Internet also need to be clearly understood. Richard Lee said.

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