Dongguan Shoes And Clothing Enterprises Worry About Export To Domestic Market

"Almost no consideration was given to OEM before.

"The problem is different now!" 16 days ago, before a prominent booth in the China processing trade products Fair (the "Gabon fair"), Guo Junhong held a brochure of well-developed products and smiled and sighed at the reporter.

Guo Junhong is executive director of Dongguan Qiao hung shoe industry limited. Qiao Hong shoes is a company whose father has been in business for more than 40 years. He has been a large number of European and American brand foundry beach shoes and snow boots, such as hush puppet, A&F and so on, this time to promote their own brand.

Reporters at the scene found that such enterprises in the first session of the Gabon fair, and even many sales managers' business cards are labeled "trade manager" title.

Pearl River Delta manufacturing enterprises are gradually moving from the bottom of the smile curve to the two ends.

Yesterday, the organizers of the Gabon group released a set of data. Dongguan's domestic sales value increased from 133 billion 900 million yuan in 2007 to 247 billion 920 million yuan, an increase of 85.1%, and added value added tax to 890 million yuan in domestic sales.

But it is not easy to sell abroad for a long time.

From outside orders to the creation of domestic brands, the former manufacturing enterprises, like toddlers, are cautious and step-by-step.

He Yu, vice mayor of Dongguan, said at the results conference that some difficulties faced by enterprises after turning into domestic sales include customs supervision, market credit environment and domestic market.

Increasing the number of other issues requires support from relevant government policies.

"It's difficult to brand promotion".

Compared with the previous orders, production and delivery mode, the creation of its own brand makes enterprises face difficulties in many aspects.

In 2008, the financial tsunami hit, the sharp decline in foreign orders, the loss of staff, become a forced pformation and upgrading of enterprises, the opportunity to create its own brand.

"At this time it was discovered that foreigners could not rely on themselves."

Guo Zhengjin, chairman of Qiao Hong footwear industry, said, "I have done more than three hundred million pairs of shoes up to now, but none of them is my own brand."

So, after more than 40 years of shoes making, Guo Zhengjin, nearly 70 years old, began to build his own brand. His snow boots were named "Rock bears" and the beach shoes were called "little Mao houses".

In order to publicize his brand at Gabon, Guo Junhong specially asked an advertising agency in Taiwan to produce a product album. In order to highlight the international sense, he specially invited the Brazil model to take the picture album, and the two-dimensional code recognition system was printed on the album cover, and then directly connected to the company's official website by scanning the smart phone. In addition to these, he also asked the Taiwan painter to paint a colorful polar bear advertisement and decorate it in the company's booth.

"Product"

We have no problem packing, so it's hard to brand promotion. "

Guo Junhong said, to make the national consumers know this brand and get the favor of buyers with vision, it will also cost a lot, such as "video website advertising costs are a lot of expenses, and Taobao entrance promotion fee is ten thousand or twenty thousand yuan a day".

In addition to Gabon and internet promotion, as long as there are footwear professional exhibitions, Qiao Hong shoes industry will not let go. Last year, they went to Beijing and Shanghai to participate in the exhibition.

Last month, Qiao Hong shoes opened its first store in Houjing street shoe city, Dongguan.

Guo Junhong confessed that at present, its own brand is still in the "export and domestic marketing" stage, and has not yet realized profit.

"In the period of brand building, we dare not invest too much at once. We need to participate in exhibitions this year to expand brand awareness."

Guo Junhong said that in the long run, some of the clients who came to Shanghai during the exhibition last year have only recently contacted them.

Inventory pressure unprecedented

Selling self owned brands has also made the pition enterprises taste the stock pressure that they never had before.

Similar to Qiao Hong shoe industry, Tai Chang Electronics Co., Ltd., located in Daling mountain, Dongguan, has established its own brand since 2010.

The company, which specializes in electronic products and accessories, has been processing for international brands such as apple, Tai Ling, SONY and so on.

In 2008, the selling of Apple mobile phones made the demand for Tai Chang also in short supply. But by 2010, the pressure of the international economic downturn began to highlight. After a long inspection, Taiwan Electronics decided to turn to domestic sales, but the proportion of domestic sales and foreign orders is 1: 10, and the gap is still large.

"Domestic sales are difficult, although our products are of good quality, but the price is high, consumers do not agree."

Xian Haifei, manager of the Electronic Commerce Department of Tai Chang, told reporters, "we have 90 yuan for a mobile phone wiring, but there are a lot of wiring for 10 yuan in computer city.

Dongguan Dongsheng Cashmere Products Co., Ltd. also encountered a similar predicament.

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"Creating brands has brought us many setbacks and has undergone many tests."

The company official said.

Dongsheng was a state-owned processing factory of the Ordos Cashmere Group. After its restructuring, it moved from Shenzhen to Dalang town of Dongguan, and the brand was established in 2008.

At present, Dongsheng has set up more than 200 chain stores in the whole country, because cashmere products can only be sold in winter. In order to meet the sales demand throughout the year, Dongsheng has invested some energy in making summer wear. However, because of the different process and material, and no experience of market operation, there are 2 million summer wear stocks in the year and the year before last.

"It's really hard to cultivate the brand. Our boss basically put all his energy into domestic sales. In the four years, he finally worked out a customized sales model."

The above responsible persons explained that the store counters must be laid out for a long time, but the value of cashmere is very high, and they can not be sold out as stock.

Capital chain stretched

Although domestic orders can make manufacturing enterprises resist the risks brought by the international economic downturn, they bring a new problem: capital flow is slow.

Compared with the above enterprises, Dongguan Zhongyu Garments Co., Ltd. has been more cautious in its pformation. Before 2006, it made the international garment brand processing, and began processing the domestic brands after 2006. At present, the domestic and international orders have been flat. Recently, the company intends to officially register its own clothing brand.

"Doing the outward processing can open letters of credit with the other party, but domestic companies must use cash pactions, which makes our cash pressure bigger."

Mou Guangling, the sales manager of the company, told reporters.

Mou Guangling explained: "wool products will be shipped in 6 and July after August. Orders were received by the end of last year, and they needed to purchase their wool with their own funds. Most of the pactions in domestic companies must be cash, making the capital chain stretched and the pressure increased."

In particular, the price of raw materials fluctuates greatly, and enterprises dare not place orders at once.

In view of the problems encountered in the domestic sale of enterprises, He Yu said that as one of the two pilot cities of processing trade enterprises in Dongguan, many measures were taken to support enterprises.

For example, last year, the government produced 30 million yuan to provide domestic guarantee for processing trade enterprises, and 100 million yuan of funds to support 5500 enterprises to sell through electronic business platform. At the same time, some famous cities in Dongguan also held exhibitions and exhibitions of famous foreign trade products.

He Yu said that the next step is that Dongguan will further optimize its domestic sales procedures, force the establishment of product certification docking, and promote the centralized declaration of domestic sales of Dongguan processing trade enterprises, with centralized guarantee, so that processing trade products will be more convenient to enter domestic circulation channels.