Online Shopping -- An Effective Way For Foreign Trade Enterprises To Pform Domestic Sales

The cold export situation makes foreign trade accustomed to OEM.

Online shopping helps foreign trade enterprises to pform into domestic sales.

In Jiading District, Shanghai, Hongcun, Ma Lu Town, big Hongcun, Shang Hong shoe factory full of rubber smell, 500 workers on the 2 lines are busy sealing, polishing and shaping.

4000 pairs of canvas shoes are produced here every day, and most of them are packed in brown cartons, which are written in "VANCL", and are sold all over the Internet.

This is a typical foundry enterprise with a history of 16 years. It has produced back shoes, and has been relying on foreign trade orders to make bigger products than other shoe manufacturers of more than 40 other vulcanized shoes and canvas shoes in Shanghai.

But after 2008, the international financial crisis, the rising cost of raw materials and labor and other factors forced them into a dilemma.

"At present, there are only 5 enterprises in Shanghai which are similar to ours."

Hu Qilong, chairman of Shang Hong shoe industry, has no regrets.

"We must turn to domestic sales!" Hu Qilong once tried to launch his own brand, but he never found contact with domestic sales channels. He soon found that he could not solve the problem of dealer's pressure payment, nor could he get the advertising cost of promoting products.

"It is the most difficult time for an enterprise to operate."

In March 2010, an order from the Internet brand appeared.

Online shopping brand Hu Qilong found 50 thousand pairs.

"I don't believe that making a large list of foreign trade is only 20 thousand pairs, not to mention domestic brands."

Hu Qilong never thought that these shoes would be taken away from the website of the van guest website in less than 48 hours.

Since then, orders have followed, 100 thousand pairs, 200 thousand pairs, 300 thousand pairs. In 2011, the shoe industry made 2 million 300 thousand pairs of canvas shoes for the customers, accounting for 80% of the factory output.

"Online shopping brand orders are large, can pull low cost, and the rate of return is faster than traditional brands, account period is only 60 days, and we do foreign trade."

The foundry industry is going to depend on cash flow, so these two points are very important.

Hu Qilong told reporters.

However, the money is not easy to earn. The Internet brand relies on word of mouth marketing, and its quality requirements are close to harsh.

"For the pull of the girth, the national standard is 1.8 kilograms, and the guest requests 3.5 kilograms."

Relying on the big orders from the Internet brand to successfully pform the domestic market, the foundry enterprises are no longer on the macro shoe industry.

Van gentry, dream bazaar, seven grid, wheat bag...

These fast-growing internet brands usually use the design to find the appropriate foundry factories, and they are only responsible for the design.

Li Yonghua, general manager of Shanghai ODO home decoration Co., Ltd., who is known as the "Internet first lighting brand", said, "which countries have been exported, and which brands have been subcontracted, is an important criterion when looking for foundry factories.

"For the OEM enterprises, the profit margins for us should be higher, and the" delivery by hand "is more in line with the traditional production habits of foreign trade.

Low cost pull up "smile curve"

If online shopping has brought considerable incremental business to some OEM enterprises, the problem of survival has been solved.

For other large scale foundry enterprises, ambition is not only there.

They are trying to build their own brand by shopping online, and pull the two ends of the "smile curve" at an unprecedented low level.

These online brands have attracted considerable attention.

The clothing electricity supplier brand olino has achieved a sales volume of over 100 billion yuan in the past 3 years, while Wu Shihui, chairman of the same brand from the OEM production to the self built brand, revealed that compared with the gross profit margin of the foreign trade from 10% to 20%, now the company has gained more than 30% gross profit margin.

Such a concentrated outbreak, in addition to the rapid expansion of the scale of online shopping, also shows that traditional OEM enterprises have gradually touched the "doorway" of this industrial chain.