Spin Clothing Industry: Exports To Domestic Sales &Nbsp; Looks Very Beautiful.

In the field of manufacturing, the mode of processing trade has supported China's rapid development over the years, but in recent years, how has it come from a low level?

During the financial crisis in 2008, the collapse of external demand led to the collapse of a number of small and medium-sized enterprises, which highlighted the importance of this proposition. At the government level, slogans for promoting exports to domestic demand were also put forward repeatedly. But as China's heavy economic restructuring, it was necessary to change the long-standing export, investment and consumption of the three carriages.

Choice of small businesses

In 2007, Fan Xiaomeng left his 5 year old Jiangsu textile industry group import and export company and established his own business with friends.

The financial crisis in 2008 was a blow to Fan Xiaomeng's clothing trade company. "Before 2008, the gross profit was about 20%, and the net profit was at least 10%. After 2008, it fell sharply. Now the gross profit is 10%~12%, and the net profit is 3%~4%."

Fan Xiaomeng told this reporter.

After 2008, the number of orders for clothing trade enterprises decreased, and orders from Europe and the United States also shifted to some Southeast Asian countries such as Vietnam and Bangladesh. On the other hand, for the clothing industry, the increase of raw materials and wages made Fan Xiaomeng feel the deepest. Cotton yarn was constantly rising, and it began to rise in April 2010. By the end of 2009, 29 thousand yuan / ton of cotton yarn had changed to 48 thousand yuan by the end of 2010.

In addition, in the past few years, the state has liberalized the import and export quota of clothing industry and the control of the import and export operation rights of enterprises. After the threshold has been lowered, the competition among foreign trade enterprises has become more intense, which makes many enterprises have the idea of exporting to domestic market.

But in the eyes of fan, foreign trade and domestic sales are two completely different systems.

"As far as I know, there has been little success in pformation."

He said.

Fan analysis, although the gross margin of clothing sales can even reach 100%~200% on the surface, but if we want to create a brand inside the domestic market, we must first invest a lot of money and manpower.

To spend money to advertise for publicity and promotion, it is necessary to spend money on research and design, and to pay a lot of human fees and entry fees to enter shopping malls or supermarkets.

Second, it takes a long time for a consumer to recognize a brand.

Therefore, the investment of an enterprise will take a year or even longer to get a return, or it will lose all its blood.

After all, the threshold of garment enterprises is low, and domestic competition is becoming more and more intense.

"All kinds of expenses, as well as the pressure of inventory, bear high interest rates at the same time, because the demanding payment conditions in shopping malls and supermarkets can only be paid in 3~6 months."

He said.

While making foreign trade, although the profit is small, the procedure is much simpler. Orders are received from customers to confirm the production of auxiliary materials, production, inspection and delivery.

The whole cycle is usually 3~4 months.

"For me, foreign trade is mainly for service, while domestic sales is mainly for marketing.

There are two completely different procedures.

Therefore, despite the worsening environment of clothing trade and the increasingly thin profits, I still insist on doing foreign trade.

Fan said.

Fan has several foreign trade friends who want to switch to domestic sales, but the current practice is limited to selling on Taobao. The channel to take e-commerce B2C costs a lot of money than traditional channels, but there is hardly any brand and consumer loyalty.

Difficult pformation of medium-sized enterprises

Compared with Fan Xiaomeng's fear of small business pformation, the medium-sized and export-oriented enterprises, whose main business is processing and manufacturing, are turning to domestic sales.

In 1990, Wu Zhenchang moved all the shoe production lines in Taiwan to Guangzhou, and founded the Chuangxin shoe company, which used his former overseas network and Guangdong's cheap labor force to build up a large number of large customers such as Nike.

However, after the outbreak of the financial crisis, his business orders dropped by three or four, and the number of workers from 1.3 to six thousand or seven thousand.

Although faced with difficulties, Wu Zhenchang still hesitated because he moved to brand management or moved to Southeast Asia, because both of them had risks. He needed to consider carefully. After all, this is related to the future development direction of enterprises.

Although the human capital in Southeast Asian markets such as Indonesia and Vietnam is cheaper than China, the production facilities are far from mature.

If it moves inland, it will also face some problems in pportation and production matching, especially for the 90% products exporting enterprises.

A few years ago, Wu Zhenchang also began to represent some brands to expand domestic sales, but the progress was not smooth. At present, it still accounts for less than 10% of the company's sales. Wu Zhenchang admitted to reporters that he and he would focus more on export orders, but he was very optimistic about the prospect of the domestic market. It was only from manufacturing to commerce that there were great risks, which were two very different areas, and the preparatory market research should be well prepared.

In the process of turning to domestic sales, tuition fees are always hard to avoid.

In Foshan, a medium-sized enterprise mainly producing and exporting small household electrical appliances has started domestic sales since 2008, but the proportion of domestic sales is less than 5%.

"One is the lack of motivation, the OEM profits still exist, and the new products have greatly boosted the export growth this year; two, compared with the competition in the domestic market, the competition is more intense and obstacles."

An outgoing person from the company said in an interview with reporters.

As long as the OEM is profitable, the small and medium enterprises that are used to the OEM are unwilling to change the route easily.

By the end of 2008, when the financial turmoil was the most serious, the coffee maker and electric kettle were the main producers, and sales fell to 60% when they were the most difficult.

For this reason, enterprises have put forward the strategy of walking on two legs, using funds accumulated for many years to export, on the one hand, they devote themselves to R & D, waiting for the recovery of European and American markets; on the other hand, they have begun to try to open up domestic sales.

But the first round of development ended in failure, and when it opened up the domestic market, "no team, loose and loose management, aimless combat plan, throwing coffee machines closely linked to coffee culture in the hypermarket, casually placing it in the three or four tier market, completely finding the wrong target market is a series of reasons leading to input-output."

This personage introduces, they have implemented many kinds of modes to open up the domestic market.

Such as self built stores, shelf replacement, participate in domestic related products fairs, but the effect is not very good.

"The development of domestic sales will be a very long process for small and medium-sized enterprises, not every small and medium-sized enterprise can survive."

He said.

The high cost of channel construction is a "fear" in the process of small and medium-sized enterprises' export to domestic sales.

Guangdong silk textile group also has domestic sales at the same time while exporting, including Zhuang Zini, one of the women's clothing brands in China. But after more than 10 years of operation, it still has no way out of its losses.

It is understood that due to the cost of admission, design and labor costs of department stores, Zhuang Zini's sales need to reach 30 million yuan to maintain the scale.

The department stores in Guangzhou are mainly located in gold lots. The average floor price of shopping malls is 500~600 yuan per square meter per day, some even up to 1000 yuan / square meter.

Shops rents continue to swallow up profits from domestic enterprises.

In the domestic market sales, often will encounter "Li Gui".

Wang Yongli, deputy general manager of Guangdong silk spinning, told reporters: "a few years ago, a new item was launched at the Guangzhou store. After a few days, it was found that the clothing store around the world also introduced similar styles, but the price was much cheaper.

The counterfeit impact has closed some stores. "