Export Of Shoe Enterprises To Domestic Market May Encounter Many Difficulties.

A few dollars of a garment or pair of shoes can be doubled in international market after being put on the international brand.

However, in the process of trading, the profits left to Chinese manufacturers may be only tens of cents.

Despite the huge profits that have been handed over to others, many processing trade enterprises still enjoy it. They are willing to be the lowest value-added OEM in the industrial chain controlled by multinational companies for many years.

As for why not sprint to high value-added brands and market retail links, Wu Zhenchang, chairman of Taiwan funded enterprises, Guangzhou Chuangxin Shoes Co., Ltd., broke the line. This is actually a pformation from industrial mode to business mode, with potentially unlimited market risk. 100 enterprises can make factories, maybe 100 can succeed, but only 100 of the 100 enterprises are successful in brand and retail.

Wu Zhenchang moved all the small shoe factories inherited from his parents in the Taiwan area from 1990 to Guangzhou. Now it has developed to a scale enterprise of hundreds of millions of dollars in annual export volume and was successfully listed in Hongkong in 1996.

In Wu Zhenchang's view, in the more than 10 years of investment in the mainland, his enterprise has changed not only the scale of the factory, but also the quality of the product, the production process and the management of the enterprise.

To a certain extent, the company, which already has certain capital and technical strength, can turn to the domestic market with the huge consumption market of the mainland, and establish its own sales channel and its own brand to break the fate of others.

However, Wu Zhenchang still sticks to the link of processing trade. The product is 100% OEM export.

It is also understandable that different enterprises should formulate suitable strategies for their own development according to their own circumstances and take a professional and high-quality OEM route.

However, it can be reflected that export to domestic sales is not an easy task, and it takes a lot of courage for most processing enterprises.

作為服裝、鞋子以及玩具等多種商品產量都位居全球第一的中國，不少產品的低端市場已處于飽和或接近飽和的狀態，加工貿易企業要轉向內銷，必須沖刺高品質、高附加值的中高檔市場，往往至少要突破三道障礙：一是資金壓力，開發新產品、創建品牌以及開拓市場需要大量的資金投入；二是市場風險，長期只從事0EM的企業較少機會直接接觸市場，對市場潮流、發展趨勢等資訊比較缺乏，初次試水零售隱藏較大的風險，而且還有可能遭遇知識產權受侵犯或收貨款難等問題；三是政策門檻，不少從事加工貿易的企業仍然以來料加工的形式生產和出口，如果轉內銷必須要由來料加工轉為三資企業，而在這過程中審批程序和手續比較復雜，而且原先加工貿易免關稅進口的原材料還涉及補稅問題。

Although exports will turn to domestic sales or encounter many difficulties, China's trade surplus pressure is increasing day by day, and international trade frictions are increasing.

In addition, the continued appreciation of the renminbi, the reduction of export tax rebate rate and the adjustment of processing trade policy and other comprehensive factors have led to the increasingly thin export profits, which has virtually encouraged enterprises to learn to export and sell on domestic legs.

With the gradual improvement of China's living standards and the gradual improvement of domestic related supporting policies, the high quality Chinese products printed with "MadeinChina" will gradually appear in the eyes of domestic consumers.