Brand Inventory Sales Of Foreign Trade Enterprises

On the one hand, it is to quickly destock to win the temptation of cash flow; on the other hand, it is to worry about the impact of cross shipment and brand popularity. At the time of company J's entanglement, a "fantasy foreign trade trip" of inventory products was staged with tacit consent.

　　 Saturated domestic channels, third and fourth tier brands seek inventory and export

Compared with last year, Jinjiang Jinzhu, a foreign trade enterprise shoes The order structure of Service Trade Co., Ltd. has changed significantly since this year. Among them, the business item of "inventory orders of domestic shoes and clothing brands" grew fastest. Take children's shoes as an example. This year, the company undertook inventory orders for more than 10 brands, including Robot Cat, Babu, Wantaisheng, Kuqi, Knight, Transformers, etc.

"For foreign trade enterprises, brand inventory is a marketable product. A few years ago, our foreign trade company has been looking for inventory. Now it is brand enterprises who actively call us to deal with inventory. Even this year, we do not have to go to the enterprise to receive goods. Many third and fourth tier brand enterprises send their own goods, many of which are still brands that have not cooperated in the past." Zeng Jinzhu, head of Jinzhu shoes and clothing trade, and Mr. Lai, head of Taiyue Company, told reporters.

Many foreign trade enterprises feel the same way. The reporter learned from the visit that "selling brand inventory" has become the key business of many export enterprises in Jinjiang this year.

"Brand inventory has always been exported to foreign countries, and its performance has been more prominent in the past two years." Hou Fengqi, general manager of Jinjiang Sentai Sports Goods Co., Ltd., introduced that many local shoes and clothing have sold inventory products abroad, including some first and second tier brand enterprises. "There are many enterprises that deal with inventory in this way. First and second tier brands have their own channels for export. Foreign trade companies, more often than not, take orders from third and fourth tier shoe and clothing brands."

Company J is one of these three or four line shoes and clothing brands. This year, the company strengthened contact and cooperation with several foreign trade companies, and digested inventory through foreign trade channels.

　　 "Now in the sporting goods industry, the first and second tier brands have opened factory stores and discount stores to sell inventory, and the international giants have sunk their channels. The load of the existing domestic sales channels has been particularly large. To put it another way, the domestic de stocking channels are close to saturation, and the competition is also fierce. It is difficult to resist the third and fourth tier brands, and the foreign trade of inventory is an inevitable trend." Mr. Chen, the relevant person in charge of J Company, said that many three or four lines are on the same road.

Compared with the first and second tier shoes and clothing brands that sell some of their stocks abroad, the third and fourth tier brands are more passive in seeking foreign trade channels to digest their stocks and can only rely on external forces.

"The first and second tier brands of Jinjiang have rich marketing experience, can grasp the information of the foreign trade market, and have strong overall sales ability, so they usually set up their own foreign trade department to deal with inventory; while the third and fourth tier brands are weak, and do not understand the tedious foreign trade process, so they can only choose to cooperate with foreign trade companies." Mr. He, an industry insider, told reporters.

A number of foreign trade businesses in Jinzhu Shoes and Clothing Trade and Jinjiang Qinghua Shoes and Clothing Market further confirmed Mr. He's analysis.

　　 "Exported products" reappear in the domestic market

According to foreign trade companies, the inventory products of these third and fourth tier brands are popular with foreign investors because of their low prices and guaranteed quality, and are mainly sold to emerging markets, including India, Russia, South America and other regions.

　　 "The emerging market is rising, and the demand is soaring, so the market for brand inventory export will naturally follow. At the same time, compared with European and American countries, the emerging market also has relatively low requirements for style, quality, and so on. As long as the price is reasonable, it is very easy to clinch a deal. Because the price of shoes in stock is low, the purchase rate of customers will naturally be high, which is also a profit for foreign customers who purchase shoes in stock It's quite impressive. " The foreign trade enterprise cooperating with Company J told Mr. Chen like this.

As a result, Mr. Chen envisioned that their inventory products were selling well in India, Russia, South America and other parts of the world. In this way, the inventory is quickly digested, the cash flow is increased, and the brand image can be maintained to the greatest extent.

Just when Mr. Chen confidently planned to clear the inventory and upgrade the brand, a dealer's complaint brought it back to reality.

The dealer complained that the products of J Company were sold at low prices in the market where he was the sole agent, which completely disrupted the market rules and pointed out that the source of goods came from the head office. With the assistance of this dealer, Mr. Chen found that these low price products that disrupt the market are exactly the inventory products that should have been "sold in foreign markets" through foreign trade companies. However, the direct seller of these inventory products is the goods obtained through several transfers.

"Although I thought that the products might not be exported, I didn't expect such a large number of goods," Mr. Chen sighed.

Zheng Youmin, the Marketing Director of Robot Cat (Fujian) Sporting Goods Co., Ltd., who had the same experience, further explained in detail the reason why J Company's "exported products reappeared in the domestic market": many third and fourth tier brand enterprises that were pressed by inventory directly represented their inventory to foreign trade companies. Although they signed relevant contracts and submitted deposits, most of them acquiesced in the disposal by foreign trade companies. And foreign trade companies can choose to export their agent's inventory or continue to sell at low prices in the domestic retail market. "All the stocks will be handed over to a foreign trade company, which will transfer some of the stocks to other foreign trade companies to digest together. Each foreign trade company may change hands again. In this way, no one can tell where the final sales will be."

In this regard, He Yaowu, the marketing director of Jinjiang Huakun Shoes Co., Ltd., also confirmed that, in fact, the number of third and fourth tier brand enterprises that can really sell to foreign markets after transferring their inventory to foreign trade is not large. "Foreign trade companies are trying to find a way to sell to foreign markets, but in fact most of their products are still consumed in the domestic market."

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Even with the "help" of these foreign trade companies, the market of brand inventory stalls in many cities in the central and western regions has become larger and larger. According to He Yaowu, the original inventory sales market in Hebei has only a dozen stalls in operation, and the monthly rent is only 1000 or 2000 yuan. In the past two years, the rapid development of these stores has formed a mature professional market, and the monthly rent has also risen to 6000 or 7000 yuan with the tide. "In addition to the inventory of some agents, most of these inventory products are those directly purchased from brand enterprises by foreign trade companies."

In order to further verify whether the inventory products are exported, the reporter visited several foreign trade companies. Among them, many foreign trade companies frankly said, "Although they have taken the brand list, not all of them are exported. The lower the price of foreign trade orders, and then sell them in the domestic market, the foreign trade price is more advantageous than the factory discount price."

A foreign trade agent of brand inventory who did not want to be named said that although the profit margin of shoes and clothing inventory products was relatively large, they had to be eaten in batches. For foreign trade enterprises, the financial pressure was relatively large. "What's more, foreigners are also shrewd now, and they will choose some beautiful styles and complete yardage. We will dispose of the remaining inventory through online channels or in the form of retail promotions, most of which are sold at wholesale outlets in township markets or Taobao. Compared with the tedious process of export, it is easier to dispose of products in this way."

　　 The helplessness of "fishing with all one's heart"

Just like the real ending of "The Fantastic Drift of the Teenagers", the inventory products planned to be exported are not really exported, and the inventory products of the third and fourth tier brands just went on a "fantasy foreign trade trip". As far as J Company is concerned, this fantastic journey is having a negative impact on the brand.

"Stockpiling products at low prices will lead to price chaos in the brand market, damage their agents' profits, lead them to distrust and lose confidence in the brand, and even more seriously, cause legal disputes. None of these is a fatal blow to the brand image." He Yaowu pointed out sharply.

But what is surprising is that most of the three or four line shoe and clothing brand enterprises are not unaware of this fact, but they are trying to catch fish.

"Even if we knew it, we still chose to hand over the inventory to foreign trade companies for processing. In fact, people in the industry know that even if we do it well, some of the export inventory will flow into the domestic market, but as long as there is no problem of large-scale collusion, we will acquiesce. In order to withdraw cash as soon as possible, this is also a helpless thing," Zheng Youmin said frankly, The enterprise terminal channels of the third and fourth tier brands are limited, and the general environment is not good, so they have to quickly withdraw cash flow.

Many third and fourth tier brand enterprises, including J Company, frankly said that even if they do not sell to foreign markets, as long as they can digest inventory and revitalize capital. The return of funds is the fundamental reason why the third and fourth tier brands are trying their best to catch fish.

But at the same time, the experience of J Company also sounded an alarm bell for its peers.

It is reported that even if Jinjiang first and second tier brand shoe enterprises entrust foreign trade companies to export products, they will also require foreign trade companies to remove product tags and submit a corresponding export certificate to prevent products from entering the domestic market and affecting brand value. But most of the third and fourth tier brands, like J Company, did not require these special treatments when delivering inventory products to foreign trade companies.

"In order to recover funds, we ignored the potential brand damage. This is the mistake made by J Company, which should not be done," said Mr. Lai, an industry insider.

In Zheng Youmin's opinion, as long as enterprises pay attention, large-scale cross shipment can be avoided. "For example, we divide our inventory products into small orders and place them in many small foreign trade companies in different regions. In this way, even if these orders flow into the domestic market, they are only small orders and will not affect the large market."

Mr. Lin, a second tier brand, also introduced the export mode of its inventory products. "If it is a long-term cooperative foreign trade company, it generally pays all the payment for goods in a lump sum after the goods are valued, and it is good to give us the export certificate after the goods are exported. If it is a first cooperation company or a relatively small foreign trade company, it adopts the mode of 'deposit on the bill of lading'. After obtaining the export certificate of the national commodity inspection, it is determined that the goods will be exported according to the quantity The deposit shall be returned to the foreign trade enterprise, otherwise the deposit shall be confiscated. "

Zheng Youmin is more optimistic. He even expects that foreign trade companies can sell the inventory of robot cats to some villages and towns to fill the market gap of brand enterprises. "Of course, the transfer of brand inventory to export is just a short-term behavior, and enterprises still need to do a good job in the terminal bureau, so that the brand can develop healthily. After the funds are withdrawn, we also immediately carried out the terminal layout planning. In September this year, the first domestic direct store of Robot Cat will be opened in the form of factory discount store. After all, only as a first-line brand, with its own controllable channels, can Ensure brand value. "