Foreign Trade Enterprises: Orders Fell Nearly 30%

"Do not say new orders, now do is the old single, and part of the order can not be done, because customers can not sell, preferring to exist here, we do not want to sell bills of lading, previously all have to rush to work.

It is never happened before that there is a finished product out of stock. "

Xue Xiaowei, director of MATTEL OEM toy factory Guanlan Bao de toy factory, reluctantly indicated before the exhibition.

Reporter survey to understand the data, many factories

Order decline

According to the published data, as of October 25th, the total number of overseas buyers entering the library was 17.8 million.

Compared to the 109 Canton Fair, a total of 20.7 people, so far, there are nearly 30 thousand people in the procurement gap.

Autumn 2011

It is worth mentioning that, in order to maintain the popularity of this Canton Fair, the organizing committee provides travel and daily conveniences to purchasers from all aspects, such as offering free accommodation, pportation and other services to all overseas buyers, especially those from Europe and the United States, which makes many buyers willing to "enjoy" this journey.

The efforts of the organizing committee seem to have maintained a considerable number of buyers, but the real paction intention has declined significantly compared with the previous ones.

In an interview, reporters asked a number of exhibitors, more than half of the responsible persons said, "not as good as the previous session".

Data from the couriers in the conference show that the number of courier bills this year has been reduced by about 30%.

According to TNT logistics staff, many people express foreign samples at present, most of them are picture books. Many purchasers reveal that their business decisions are much more cautious than they used to be.

Buyer's structural change

Reporters learned in the interview that the data of the Canton Fair reflect the current global economic situation: the decline in the European and American markets and the increase in the Asian African market led to the number and structural changes of the purchasers of the Canton Fair.

Since the opening of the 110 Canton Fair, the organizers have not yet disclosed the effectiveness data of the traditional main markets such as Europe and the United States. The first news conference on the 23~24 October was cancelled.

However, according to official publications, "the turnover in the US and Europe, especially in North America, is very clear."

However, this Canton Fair has revealed an obvious market information, that is, the Asian African market has increased the volume of pactions.

According to statistics, during the first phase of Canton Fair, the turnover of mechanical and electrical products in the first three days amounted to more than 88 billion US dollars, up 15% over the same period last year.

Among them, household appliances, hand tools and auto parts become the main products.

Ningbo Han zhe import and Export Co., Ltd., the main household switchgear, exhibited in the first three days, and more than half of its new customers came from emerging markets.

Lu Jiebo, manager of the company's integrated management department, told reporters that they are currently participating in the Canton Fair, "on the one hand, they are communicating with old customers, and on the other hand they are opening up markets in Asia, Latin America and other regions."

Few new customers have been seen in the European and US markets, and buyers from Asia, Africa and Latin America are visiting from time to time.

Reporters learned that the Asian market has been stimulated by the Middle East, India and Vietnam markets, and the turnover has reached more than 30 billion US dollars, an increase of 9% over the same period last year.

India's growth is particularly obvious, an increase of 79%.

Iran, Vietnam, Saudi Arabia and other places grew by more than 40%.

Africa's market volume grew by 24% over the same period.

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Letter of credit paction?

"China's foreign trade payment mode is completely derailed with the international market and risks are all pferred to foreign buyers. This is the real reason why buyers have been holding down prices.

This is the real mystery of the extremely low export profits of China's manufacturing industry.

Wei Qiang, President of Shenzhen one Datong Enterprise Service Co., Ltd. (hereinafter referred to as "one Datong") has been doing customs declaration for more than 20 years.

One Datong is an enterprise under the Alibaba. The largest import and export declaration agency in China has 3000 manufacturing enterprises.

In recent years, the company has found an interesting phenomenon: when the Chinese import products, 80% will be paid by letter of credit, while when exporting products, 90% of the enterprises will only accept cash payment and delivery.

Wei Qiang told reporters that under the premise of accepting credit payment, buyers are willing to give up 10%~15%.

Over 80% of the imports made by Datong are credit payments, all of which are small and medium-sized enterprises, mainly importing industrial products, including liquor, clothing, food and so on.

A factory that produces U discs in Longgang, Shenzhen, has been supplying foundry products to a company in Holland for nearly three years. Since its cooperation, it has been paying cash in cash and sending it to shipping.

This year, however, the situation has changed. Due to the deterioration of the financial environment in Europe, the pressure of Holland customers is relatively large. As an old customer, the other side hopes to change the payment method and open a letter of credit instead of cash.

But the OEM company is unwilling to accept the letter of credit, and this business is "blowing".

However, after a while, the boss of the factory received a Taiwanese. The orders placed in the factory were almost the same as the products, models and even prices of the buyers in Holland. After asking, it was discovered that the buyers in Holland had given the order to the Taiwanese businessman.

Taiwanese only paid 15% of the price because they accepted the letter of credit, but the price changed to Wang's boss was still maintained at the original price, and the Taiwanese merchants used the cash payment method, which resulted in a 15% price difference.

Now, after asking about the payment of credit, Wang claimed it was a painful lesson.

However, for Chinese manufacturers, there is nothing he can do about the loss of the customer and the loss of orders.

Because he can't make any mistakes, he can't organize production if he doesn't use the cash payment method, because huge amount of raw material purchase also needs cash payment.

Coincidentally, Xiao Runming, owner of Ming Sheng furniture factory in Shunde District, Foshan, Guangdong, met with a Japanese buyer in July.

The order is 20 million yuan. The only requirement is to open a letter of credit without paying cash.

Xiao Runming didn't dare to use the letter of credit, because he didn't understand his business process, and he refused.

However, he felt wronged and spent tens of thousands of dollars on entertainment expenses. The result was not an order.

A few days later, Xiao Runming helped to solve the problem of letter of credit through the assistance of the bank business consultant, and finally concluded the paction.

By the time of the press release, the company had issued third shipments.

Xiao Runming's letter of credit 45 days before and after the cycle, the use of letters of credit from the order to take money, there will be 45 days will face shortage of production funds.

However, as a customs broker, Datong paid the cash for raw material purchase in advance on the basis of its letter of credit.

Xiao Runming solved the risk and capital pressure with less than 2% of the order amount.