European And American Orders Fell Sharply, Some Garment Foreign Trade Enterprises Were Transforming Domestic Trade.

The European debt crisis has made foreign trade very tough. situation One disaster after another.

"It is now a more severe winter than 2008." November 30th global sourcing in Shanghai transaction It was found that SMEs had felt the impact of the European debt crisis. A clothing manufacturer from Ningbo, Mr. Li said, "the number of orders in Europe and the United States has decreased a lot since the second half of last year. Order The volume is also significantly reduced. "

Affected by this, many small and medium-sized enterprises began to transform domestic trade, "this is determined by the market." Ren Lifeng, vice president of China Development Department of global resources, told reporters that the overall profit of foreign trade is declining gradually, and domestic trade has become the trend of the development of small and medium-sized enterprises.

Serious loss of customers in Europe and America

Europe is an important export destination for China's foreign trade enterprises. As one of the important export industries, the export growth rate of textile and clothing products in Europe decreased significantly in 2011 1~9 months.

Data show that the growth rate in 2010 was 28.95%, and the 1~9 growth rate in 2011 was 5.38%. It shows that the order volume of some textile enterprises has shrunk and the capital chain will be in trouble.

In the shadow of the European debt crisis, the official statistics of the Canton Fair, which ended in November 4th, showed that the turnover in the two quarter of spring and autumn was 74 billion 760 million US dollars, and the export volume of textile and clothing reached 3 billion 420 million US dollars, basically returning to 2007 level. The difference was that short-term orders accounted for 88%, showing a trend of rising.

On the one hand, due to the poor international economic environment, the pace of international economic development has slowed down, and the demand for foreign trade in clothing has been insufficient. This has caused a direct impact on China's foreign trade volume. At the same time, the appreciation of the RMB exchange rate is strong, and the major garment enterprises are afraid to make a long list to avoid the loss of exchange rate fluctuations.

"The US dollar has been falling, and the euro has fluctuated seriously, and it is also on the decline." Cai Xiaoqiu, the head of Yiwu Jun AI import and Export Co. Ltd., told reporters that profits were constantly being depleted in the euro and US dollar movements.

Not only that, "the loss of customers in Europe and America is more severe, but the order volume is also decreasing." Cai Xiaoqiu pointed out that European and American customers have become conservative.

For foreign trade enterprises, the business of foreign trade is originally large and stable. "In big cases, we can make some of the benefits." Cai Xiaoqiu explained, but the volume of orders began to decline, allowing foreign trade enterprises to fall into "embarrassment".

Mr. Li from Ningbo pointed out that small businesses make foreign trade orders only to maintain the operation of factories and "do not seek money", but the current market situation makes foreign trade enterprises at a loss.

Foreign trade enterprises change their domestic trade routes

"Foreign trade orders will allow factories to operate and domestic trade orders to ensure profits." Cai Jinbiao, managing director of Hongda umbrella industry Co., Ltd., which has already established a perfect dealer channel in the mainland, said Mr. Cai Jinbiao. Cai Jinbiao revealed that after having more well-known brands and perfect channels, the profit of its domestic trade can be 30% higher than that of foreign trade orders. At present, the proportion of its business is 70% of foreign trade and 30% of domestic trade. Cai Jinbiao said that the proportion of domestic trade will continue to rise to 50%.

"The prospect of foreign trade is not good enough. In order to survive and develop, garment enterprises begin to turn to the domestic market on a large scale. Under the dual layout of online and offline, the domestic sales channels can be broadened to the maximum extent, and the potential of domestic consumer market can be excavated to seek the growth point of interests." Zhang Yanlin, research director of CIC, pointed out that the potential of domestic consumer market is large. The transformation of garment enterprises from foreign trade to domestic sales is an important turning point for their survival and development. If we can complete the seamless connection between them, the export oriented clothing enterprises will not be trapped by "predicament".

In an interview with reporters, Ren Lifeng also said, "whether macroscopically oriented or market driven, domestic trade will gradually increase." According to its introduction, there are mainly three ways for domestic and foreign trade enterprises to do domestic trade. The first is to take a big supermarket route, such as Carrefour and WAL-MART. The second is to take wholesaler routes, distribute goods to distributors and agents, and the third is to open stores. Large supermarket routes have a higher threshold for small and medium enterprises, and their own stores have higher requirements for financial strength. Therefore, the form of SMEs should be the wholesaler route. "But no matter which way, these enterprises need to have their own brands first." Ren Li Feng pointed out that involving LOGO and registered trademarks is not difficult, but building brands requires product quality and quality support.

Debt into the biggest obstacle to domestic trade transformation

However, the start of foreign trade transformation is extremely difficult for small and medium-sized enterprises.

"The advantage of doing foreign trade is to follow the fixed process, place orders, deliver goods, and collect money." Cai Xiaoqiu told the daily economic news reporter that once domestic trade is changed, it will be much more complicated. "The distributor of domestic trade requires a wide variety of products, so they are all small batch production." She said that in order to control the cost, mass production was previously carried out. "Not only that, the dealer channel is not easy to open at the beginning, it takes a long time to train."

At the global sourcing Shanghai sourcing fair, a survey of a number of foreign trade to domestic trade enterprises found that the real reason why the small and medium-sized enterprises were deterred from foreign trade was that the payment time was too long after the distribution of domestic trade channels.

"Collecting money is difficult." Cai Jinbiao said that although it has been engaged in domestic trade for 15 years, the problem of money collection has always been difficult to solve, and compared with foreign trade, there are more bad debts.

"It usually takes 2 months to collect money." Cai Xiaoqiu told reporters that dealers would be dragging their money in a variety of ways because they were selling goods to distributors. Therefore, capital chain tension has become the biggest predicament of SMEs' foreign trade transformation.

Clothing enterprises require higher capital turnover rate. Shortening the recovery cycle as much as possible will revitalize the operation speed of enterprises and raise the level of enterprise revenue so as to ensure the good operation of enterprises.

From the perspective of capital, it is necessary for textile and garment enterprises to carry out a large amount of capital operation to develop new markets.

From the enterprise level, due to the credit crunch, the credit support of light industry continues to decline, resulting in some enterprises' capital chain more intense. The most effective way to relieve financial pressure has also become a necessary measure to expand new markets.