Affected By The Weakening Export Market, Guan Enterprises Stall Up Inventory.

Yesterday evening, Hongyuan bridge near Nancheng, the foreign trade bag booth attracted the attention of passers-by.

Four years ago, when the financial crisis broke out, we were still discussing whether to sell domestically or not.

Four years later, either the forced inventory of inventory, or the reality of the sharp decline in exports, or the pursuit of additional value options, in any case, many enterprises in Dongguan have begun to set foot in the domestic market.

In the process,

It is a key link and a gateway to the domestic market.

E - commerce, store, wholesale market...

The export of Dongguan's enterprises is going through a campaign of channel.

Ferocious inventory of inventory

At night, the lantern street in Houjie town of Dongguan was noisy.

From the street to the end, the two kilometer streets are crowded with peddlers peddling loudly.

"The quality of international brands, the price of turnip cabbage."

"Foreign trade order, clean up stock!"

There is a price tag of 30 yuan everywhere.

Son,

And handbags...

But many people do not know that behind the busy stalls is a pile of factories.

Liu Zhijun, chairman of Jinniu leather group, who has lived in Houjie for more than 10 years, has never seen such a scene before.

"If it's not for the last resort, which boss will be willing to let his employees do the stall?" Liu Zhijun regrets that when the inventory pressure is placed there, it can only handle how much.

Stall is also a kind of living law, which is the most primitive channel for domestic sales.

Liu Zhijun in Dongguan

The industry has been working for 15 years, and it has already developed a sophisticated sense of smell for the industry.

He sniffed out the serious excess manufacturing capacity and the inventory burden of enterprises.

Liu Zhijun explained that enterprises, even without orders, had to maintain production and feed workers. They could not dismiss workers when they had no orders.

"Therefore, the production capacity is there, accumulating year after year, and it is piled up like a mountain."

Referring to the huge inventory, he even said that the existing leather stocks in Dongguan, even if they did not produce or import for 3 years, could not be used by Dongguan enterprises.

Humen family

Factory owners revealed that their enterprises would generally expand their demand when making inventory turnover plans.

For example, retailers think that 150 pieces are needed, and agents think they need 200 units, and 250 items are extended to the manufacturers. That is to say, every time they sell 1 items, manufacturers should prepare at least 2.5 items for inventory turnover, sometimes exceeding this proportion, thus forming a large quantity of stock.

Coupled with this year's market downturn, sales are affected and inventory is even more severe. Insiders estimate that most of the small and medium garment enterprises in Humen exceed 20% of the stock warning line.

Weak export to domestic sales

15 years ago, Liu Zhijun, a 21 year old man from Hunan, went to Dongguan Yuyuan shoes factory, a leading enterprise in shoe making, Taiwan funded enterprise, and became an environmental safety and health commissioner.

11 months later, Liu Zhijun established himself as a registered trading company in Hongkong and engaged in leather trading.

From the staff turned supplier, Liu Zhijun used his contacts in Yu Yuan to provide plenty of leather for Yu Yuan.

In the past 15 years, Liu Zhijun has felt "very, very tired" in two periods. One is the company's pioneering stage, and the other is the present.

This year, Liu Zhijun receives more than 50 customer calls every day, 10 times a day, and they complain that the raw materials supplied by Liu Zhijun are too expensive.

Liu Zhijun has to deal with the pressure of customer pressure every day.

On the other hand, it comes from orders. In the export market, Taurus suppliers are the manufacturers of world-famous brands such as Adidas and Nike. In the domestic market, they are mainly supplied to famous brands such as Bailey, AOKANG, Daphne, red dragonfly, etc., and orders increased in the first half of this year, but in the second half of the year, the situation was in sharp decline, resulting in a decline of 15%-20% in Jinniu's annual orders.

Orders are slipped and inventories are increasing.

Liu Zhijun racked his brains every day trying to figure out a solution. "Brain is afraid to stop."

Liu Zhijun came up with a "third legged" walk and made his own supplier.

Last year, Liu Zhijun invested in Houjie to set up a handbag factory, and developed and manufactured leather goods, handbags and other finished products, so as to establish a brand to attack the domestic market.

His idea is, on the one hand, digesting the raw material stock of the original factory, and on the other hand, looking for a new way out.

Water test providers taste the sweetness

To enter the domestic market, Liu Zhijun first faced the problem of channel.

According to the polls in Nandu, 66.3% of enterprises in Dongguan choose e-commerce as the channel for domestic sales, which accounts for the highest proportion.

E-commerce is also Liu Zhijun's preferred domestic marketing channel.

Last year, Liu Zhijun set up an electricity supplier operation Department. At present, there are 5 people in the operation team. Last year, they invested 300 thousand yuan. Because of the good sales effect, this year, we invested 500 thousand yuan.

Similar to Liu Zhijun, Lao Fu Wen was forced to sell domestically, but he went a step earlier.

After making many years of work for foreign famous brands such as D isney, G erber and so on, the mother and baby products manufacturer in Changan, Dongguan, had a huge impact on the financial crisis in 2008. The traditional foreign trade company was forced to start from "zero", set up its own brand and open up the domestic market.

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Lao Fuwen, the managing director of the company, has set his sights on e-commerce.

In March 2010, the company set up a network brand project team. All the people who were recruited into the group were familiar with internet marketing. After 80 and 90, they completely separated from the offline stores and operated independently.

Only in this piece of human resources input, a year will be as high as 2 million 200 thousand yuan.

Transformation is to change its own destiny. Lao Fu Wen said frankly that this adjustment, the whole company's structural arrangement, and operation management are facing various tests.

But he soon realized the advantages of e-commerce.

It is much easier to actively develop online agents in the online shopping mall when the sale is needed under the contrast line.

At present, more than 100 online agents have been contacted by e-mail, Q Q and so on, and there are not more than 8 actually met.

In addition to the cost of manpower, the promotion cost is another big burning money item in e-commerce. To extend the brand awareness, I want to pay one or two million online fee for promotion each year.

After two years of market cultivation, the effect is more and more obvious.

"Nearly 4 years after the financial crisis, foreign trade orders have almost stagnated, but the domestic market is growing rapidly, and online sales are growing at a rate of 200% per year."

Lao Fu Wen said.

Outsourcing mode quietly rising

E-commerce is a big market, but it's not easy to play well.

Han Changwei, chairman of the Dongguan novelty handbags company, has been working for many years in Europe and other brand handbags factory. After years of pformation, he also created his own brand. When he aimed at the e-commerce market, the problem followed.

For example, before receiving the list, all products have design drawings.

Now, we have to increase the strength of designers and start designing products for domestic consumers.

The foreign trade personnel who run the list may speak English fluently, but they are not familiar with sales. The company also needs to hire another talented person to open up the domestic market.

Only with the increase in the number of workers, the investment increased by nearly 720 thousand yuan a year.

In the physical shopping malls to set up stores, direct competitors are mainly in the business circle, but e-commerce competitors are a large number of manufacturers and traders across the country. How to promote products through e-commerce is also a highly demanding technological activity.

Instead of building an online sales platform, Han Changwei chose to outsource e-commerce to the local business tycoons of Dongguan, which is solely responsible for the sale of products on the network, giving the royalty to each other according to the sales volume of the products, and paying the promotional expenses on the network.

Over the past six months, most of the cost of Han Changwei's e-commerce sales has been put into the publicity and design of products, and the market has not been fully opened yet, but there has been a slight profit.

Last month, Han Changwei sold 2000 handbags on the Internet.

This mode of e-business outsourcing has also been recognized by more and more enterprises. A large number of Dongguan manufacturing enterprises are facing a decline in foreign trade orders, and need to open up the domestic market, but they are ignorant of e-commerce. This outsourcing mode just solves this problem.

According to insiders, 2012 will become the year of the outsourcing of e-commerce in Dongguan's manufacturing industry.

China's online shopping market data released by AI consulting in the third quarter of 2012 showed that the scale of China's online shopping market in the third quarter of this year was 284 billion 220 million yuan, an increase of 43.9% over the same period last year, and there were many achievements made by Dongguan manufacturing enterprises in the pformation of e-commerce.

How to choose direct agents?

In addition to e-commerce, Liu Zhijun has another domestic marketing channel.

Originally, in order to promote leather materials, he set up two direct outlets in the wholesale market of leather goods. After producing leather handbags, he put the handbags directly into the outlets and sold them wholesale.

This pattern is not new. In fact, it is the first step for Humen's many garment enterprises to establish their own market. They set up stores in the clothing wholesale market such as Humen Fumin fashion city and wait for businessmen from all over the country to wholesale. Now the famous YISHION and pine Hawks have started their business.

Due to the recession of the economic environment this year, the number of customers at Liu Zhijun's direct outlets has been sharply reduced, and the pressure on them is relatively large.

In general, investment and profitability are basically flat.

In Liu Zhijun's view, the advantage of agents is that the cost of investment is relatively small.

Originally, Liu Zhijun intends to set up a direct selling operation center in Chongqing this year, but the economic situation is not optimistic. Because of the cost control of the capital, considering that the agent store is about 70% more than the direct selling Province, Liu Zhijun has changed the direct selling center to the agent store.

In all kinds of channels, the traditional wholesale market can not be underestimated.

Another way to kiss me is the wholesale market in China.

"The advantage is that wholesalers can quickly spread the market, and products directly enter the domestic stores.

But the bad thing is that they have too many product agents and will not take the initiative to help you promote the new brand.

The person in charge of the company describes whether the product is good or not, and often looks at the acceptability of the owner of the department store to the terminal dealers. They know that they sell much more than they do.

Lao Fuwen, our managing director, arranged for the staff to move around to maintain the market, to promote wholesalers and distributors in various provinces and cities, and even to the terminal stores, communicating with the store owners and salesmen.

Now, kiss my products in the 30 wholesale markets in the country, and in the more difficult to develop in Shandong and Henan provinces, a province needs 3-4 salesmen.

Only by opening the domestic market of wholesale market, the company arranged more than 40 people.

Gu Guojian, Secretary General of the joint conference of China supermarket joint purchasing and trading, believes that enterprises develop their own brands and enter the domestic wholesale market, that is, placing the domestic orders center in the wholesale market.

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Opening a store is not a small investment.

I also spread out direct selling channels across the country, and selected some provinces in China to cooperate directly with the terminal stores.

Products do not go through wholesalers, directly into the department stores, small supermarkets.

They have developed more than 200 partners across the country, covering thousands of stores.

Company personnel revealed that the investment spent on this is also between 4 million -500 yuan a year.

However, when I was stationed in a large business super department, I was quite conservative in my kiss.

The product only has counters in sporadic supermarkets.

The reason is, "it's too much to collect."

If you want to enter the brand supermarket at home and abroad, enter a branch store, you have to pay 2000-3000 yuan / year's entry fee, then how many single products on the shelves, a single item to pay 1000-2000 yuan / year bar code fees, the product shelves and then choose the location, but also to pay the upper shelf fee......

According to this calculation, after deducting the fees, the profit of large business super products is not as good as that of entering the wholesale market.

Han Changwei, chairman of Dongguan novelty handbags company, originally planned to open stores in domestic cities to open up sales.

Careful calculation shows that this investment is frightening: if you want to spread out in several central cities in the country, the investment will be at least about 10000000 a year.

"The growth period of a brand will take 5 years. If we can't keep up with the investment or any other problems, we will lose about 50000000 of our investment."

Now, Zheng Yaonan, chairman and President of Dongguan city beauty, no longer needs to worry about the store's investment too much like Han Changwei.

14 years ago, the city beauty, like many other Dongguan enterprises, only made processing and manufacturing. 10 years ago, it chose to embark on the road of brand. After 5 years of hard pformation, it now has 4300 stores nationwide.

The strategy adopted by Zheng Yaonan is to take the rural encircling the urban line. The initial channel construction is to take a firm foothold in the market of the two or three tier city pedestrian street and women street, and the cost is relatively low, and then continue to occupy the market share of the first tier cities.

Paving the way carefully, exploring the way forward.

For Liu Zhijun, the establishment of exclusive stores is still a bit far away.

Although he has already set foot in the domestic market, he is careful to walk directly to the domestic consumers.

"The booth is spreading, the environment is not good enough, and there is no difference."

Liu Zhijun said.

There are a lot of people like Liu Zhijun tentatively laying domestic sales channels.

The predecessor of Dongguan Nan Fu leather Co., Ltd., located in Huang Jiang Town, moved from Hongkong to Dongguan 20 years ago. The company produces all kinds of silver bags, briefcases, handbags and so on. Like many Dongguan enterprises, it also started mainly for overseas famous brand foundry. In the 1997 economic crisis, it bought a brand of Italy. The focus of the company has also been on the export market. In the past few years, the proportion of workers and independent brands accounted for 5. This year, the main brand has accounted for 7.

Products have been selling well in Europe and the United States, but they were shrunk by the impact of the European debt crisis in the past two years. This year, sales fell by 4.

Xu Mingming, deputy general manager of the company, said that there was no strong sense of domestic sales, but the external demand was weak, and the company accelerated the pace of domestic sales.

Xu Mingming, who has never been in the domestic market, faces a lot of problems.

"We find that the consumption habits of every city in China are quite different. A city is equivalent to a foreign country."

Xu Mingming lamented that it was not easy, which brought a lot of obstacles to product positioning. Many OEM enterprises in Dongguan were OEM for international famous brands, and R & D design ability was absolutely excellent.

"But it's really not easy to build a brand on the basis of OEM pformation. OEM is internal. I just have to deal with the internal affairs of our company, and the brand is faced with countless consumers."

This made them feel at a loss. Two years ago, they were groping for the doorway of domestic sales, but so far there was not much practical action. They are still preparing for it. At most, they attend the Gabon meeting organized by the government and set up a booth to wait for the buyers.

Xu Mingming said, for the strange domestic sales channels, the company is very cautious, dare not blindly, afraid of accidentally stepping on the mine.

At present, the company is preparing to set up the first entity store in Shenzhen, facing a lot of meticulous problems such as site selection, design and so on.

Solid channel costs high

Taiwanese Tan Xiang is preparing for a longer process than Xu Ming.

He is the chairman of Dongguan Jiajia Electrical Appliance Co., Ltd., a member of many Taiwanese businessmen in Dongguan. The company mainly produces power lines and sockets for digital and electronic products, and customers have international brands such as apple, Acer, Samsung and HP.

Because of the low added value of the OEM products, 5 years ago, they began to plan their own brands to enter the domestic market. However, as the previous products were produced in accordance with the specifications of foreign countries, in order to meet the domestic 3C standards, all these products were redeveloped over the years, until the end of last year, they launched their own domestic brands.

This year's test water, let Tan Xiang sigh domestic marketing channel construction and product promotion is not easy.

He is also selling with some large supermarkets and professional digital cities, but the feeling is that the physical channels, layers of cost increase, and finally lead to the high retail price of products, which is not conducive to the sale of new brands.

So he also tried online channels, such as Amazon, Taobao, suning.com and so on, but the effect is not ideal at present.

Tan Xiang explained that the company's main products are safety, material selection and design are relatively strict, the price is very high, some are higher than the domestic first-line brand 10%-15%, while domestic consumers lack safety awareness. "They think the price is too expensive."

Wu Kai, general manager of Dongguan Kai Bang Chemical Co., Ltd., has begun to turn to some domestic customers. But he finds that domestic customers are not enough to speak credibility of European and American people, they need to pay more funds for their slow returns, and they are very simple in exporting, and the production is fine. However, there are many hidden rules in domestic sales.

Liu Zhijun is somewhat different from them. In his view, domestic sales are gold mines, but they should be cautious.

His factory is located in a very remote location of houbian community in Houjie town. After a series of curves, it has to go through a 800 metre sand gravel road. When there is hardly any way to go, his factory is in front of him. This is a factory that provides raw materials for many famous brands.

Perhaps for many enterprises, domestic sales are like twists and turns before entering the factory, but the front is a treasure.

How much does it cost per year to build different channels?

Wholesale market: total investment is about 4 million 800 thousand / year.

Case: kiss my product in the 30 wholesale markets in the country, only open the wholesale market, the domestic marketing channel, arranged more than 40 people.

The most important expenses are reimbursement for travel and PR expenses.

The company's sales are "walking around" once, and the fare, gift giving and so on also spend one thousand or two thousand.

"Plus wages, the company's monthly sales to each salesperson's investment is about 10 thousand yuan.

That is to say, the total investment in the wholesale market every year is 40 persons, 12 months, 10 thousand / month =480 million yuan.

Direct battalion and agent: agent is 70%

Case: kiss, I spread the direct selling channel in the whole country, and directly cooperate with the terminal stores in some domestic provinces.

Products do not go through wholesalers and directly enter department stores and small supermarkets in the neighborhood.

More than 200 partners have been developed throughout the country, involving thousands of stores.

The investment spent on this is between 4 million -500 yuan a year.

Case: Liu Zhijun's Jinniu leather, a direct store, including stores rent, tax, manpower and other inputs cost about 300 thousand -40 a year.

Liu Zhijun originally planned to set up a direct selling operation center in Chongqing in 2012 to be an agent store.

It is also mainly for the control of the cost of capital, the agent store is about 70% of the total cost than the direct store.

Department store: profit is less than half of wholesale market.

Case: to estimate my product, I would like to enter the brand supermarket at home and abroad, enter a branch store, and have to pay 2000-3000 yuan / year entry fee, then how many single products on the shelves, a single product to pay 1000-2000 yuan / year bar code fee, the product is picked up again, and it will be paid again.

The profit is not half as high as that in the wholesale market.

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Store: invest at least about 10000000 a year.

Case: Han Changwei, chairman of the Dongguan novelty handbags company, originally planned to build a handbag brand in the city of China to sell through fox stores.

After careful calculation, it is found that if we want to spread out in several central cities in China, the investment for a year should be at least about 10000000.

The growth period of a brand takes 5 years, and a conservative estimate of about 50000000.

A year's investment of 3 million 700 thousand

Case: in March 2010, our company set up a network brand project group. Only 2 million 200 thousand yuan invested in this human resource per year. In addition, Internet payment promotion has invested nearly 1 million 500 thousand yuan per year.

That is, a whole year's investment needs 3 million 700 thousand yuan.

Case: on line promotion, according to Fox's choice of outsourcing e-commerce to Dongguan's local business tycoons prosperous business tide, from which it is solely responsible for selling fox online.

According to the sales volume of the product, the royalty is deduct and the promotion cost is paid.

Han Changwei estimated that this piece invested nearly 1 million yuan a year.

Plus labor costs, about 1 million 720 thousand yuan a year.