Zhejiang Textile Enterprises Export To Domestic Sales Easier Said Than Done

As a big manufacturing province, Zhejiang has suffered many difficulties since this year.

Last year, the average profit of Shaoxing textile industry was only 0.2 yuan per metre cloth, which was allocated to printing and dyeing, and the profit of every rice cloth was only a few cents.

In order to survive, they turn their eyes to the domestic market.

"The United States has only more than 300 million people, and China has more than 1 billion 300 million. If we open the domestic channels, how big the space is!"

A textile enterprise leader who is planning to push the domestic market, told reporters.

People who have done foreign trade know that after receiving one or two big bills, they will be able to deal with them in a year - - even the styles are provided by the ordering merchants. As time passes, people are kept lazy.

Nowadays, the pformation of domestic sales, sales, design, production, all have their own, naturally sweet and sour taste.

However, as a Zhejiang businessman said, it is better to rush out than sit at home waiting for death, or to be killed, maybe alive.

The reporter interviewed some Zhejiang businessmen who are making efforts in the pformation of different industries, and heard them talk about the experience and feelings of "export to domestic sales".

"Sweet" - "Caravan" aimed at the Midwest market. In the first half of this year, several large textile enterprises in the town of Jue Xi, Xiangshan, Zhejiang, set up textile bases in the Midwest and opened up domestic sales channels.

This can be regarded as a great change in the locals: you know, Jue brook has the reputation of "the first town of knitting export in Zhejiang" for twenty years, and more than 1000 enterprises in the town form a complete export industrial chain. Most of their customers are world-renowned companies such as Nike, Adidas and Puma.

"The stability of orders, relatively high profits, advantages of industrial agglomeration and other factors make the enterprises in the town live a comfortable life for many years."

Chen Zhao, chairman of the local Giant Eagle Group, told reporters, "a batch of knitted garments orders are coming. As long as a few days, the enterprises here can complete the whole process of weaving, dyeing and finishing, printing, garment processing and packaging, and foreign trade companies and foreign distributors will take the initiative to find them."

More than 80% of fabrics and garments exported to Jue town are exported to the US, Europe and Japan.

In the past few years, not only the textile industry has been unhappy, but also textile and derivatives industries such as sewing machines and garments have been in various difficulties.

After more than 20 years of textile Chen Zhao realized that the same thing is going on.

In June of this year, the textile and garment city project jointly invested by 1 billion 200 million yuan of Jue Xi knitting enterprises, such as giant eagle, Fuyong, and so on, started construction in Kaifeng Weishi County, Henan. It plans to produce 30 thousand tons of high-grade grey cloth, 10 thousand tons of printing and 60 million garments.

Why did you choose Henan?

Chen Zhao cited several reasons: the Central Plains region has a large population, well-developed pportation, low rigidity cost and wide commercial radiation.

Another important reason is human beings.

"In Zhejiang, many employees have been working for half a year, and they may go home or move to other manufacturers, leading to the lack of a stable and skilled workforce, which affects the overall quality of products.

The Central Plains region is rich in human resources, and we run the factory to the door of the people's home. The employees can take care of their families without any worries. "

Foreign trade and domestic trade are totally different two concepts.

Foreign trade basically depends on sample processing, delivery on time, and other matters.

But domestic trade, from design, production to sales, all channels have to lay their own, almost entirely new beginning.

Chen Zhao's understanding is: let the people most easily consume the products that are most suitable for them.

"We have positioned the domestically produced knitwear in the middle and low grade, and built a" Caravan "to go deep into the vast villages and towns. A caravan is a mobile clothing supermarket. Farmers can buy Knitted garments similar to the quality and price of export products at home.

Of course, do not rule out the opportunity to mature, will also set up stores, shopping malls. "

"Don't worry about orders, people will be lazy. When facing difficulties, enterprises will lose the courage and ability to deal with them.

Blindly relying on exports is a manifestation of the lack of crisis awareness and unwillingness of enterprising managers.

Chen Zhaoru said.

Several large enterprises in Xiangshan are also worried about Chen Zhao.

After consulting, they decided to take advantage of the present opportunity to build large textile bases, build their own sales channels, continue to do foreign trade, and revisit the world of domestic trade.

Acid acid - two years invested 80 million, so far no output has yet been seen.

His domestic toys will be listed in the Yangtze River Delta in mid December. At present, he is busy selling distribution channels, and also takes into account the production base of sea salt and the IT research and development base in Shanghai and Hangzhou.

Last year, Fang Guangming Zhejiang Haili group exported 100 million plush toys to the US market, and the toys sold for more than a dozen dollars were sold to $more than 100 for breaking stock.

Before the first half of this year, Haili's own more than 20 processing enterprises were too late to produce, even if only a single customer in the United States. Orders were also outsourced to dozens of toy factories nearby.

But in the second half of this year, the sudden change in the wind and the toy orders from the United States dropped sharply.

Despite Haili's efforts to develop the European market, total output is still about 30% lower than the same period last year.

Many Chinese toy manufacturers are at a loss in such a drastic change.

Fang Guangming did not change his mind.

After last year's recall of MATTEL toys, Fang Guangming sniffed the crisis and began to plan the domestic market.

"Specializing in foreign trade is like walking on one leg, even if there is no financial turmoil. Once encountering the problem of MATTEL incident last year, it is a dead end.

Opening the domestic market is the only way to walk on two legs. Although the risks are great, the opportunities are great.

It's better to rush out than wait for death, or you may break out of a way out.

Fang Guangming said.

"The toy market will never be absent, but only by continuous innovation can there be a way out.

In the past, when toys were sold, it meant the end of sales. I thought in turn, could we turn the terminal into a cycle?

After careful investigation, Fang Guangming decided to develop a plush toy in China, which is combined with cyberspace. The purchased toys are given life in the online games he developed, which is equal to a child's pet on the Internet, and this pet can also have family, friends, and a large group of children to communicate with.

The purpose of the game is to develop children's intelligence and knowledge without being excluded from their parents.

He decides to act.

Last year, Fang Guangming invested 50 million yuan in R & D online games.

From the most traditional toy manufacturing industry to the forefront of the IT industry, it is difficult to imagine.

At first, Fang Guangming wanted to locate the IT R & D center in Jiaxing near the factory, and soon found no mature IT talents.

After several considerations, he set up branches in Shanghai and Hangzhou: Shanghai is an international metropolis, and there are many high-end talents in online games. Hangzhou, as the capital of animation, has a large number of industrial and technical talents.

After a year, Haili group owns the trademark and network intellectual property of "net baby" series toys.

However, there is no toy monopoly market like home appliance chain stores in China. How can we sell our products?

Fang Guangming also invested 30 million yuan to establish sales channels in the Yangtze River Delta region.

"Although we have invested a lot, we haven't had any output this year, but in the first half of 2009, we will see benefits."

Colleagues are experiencing the impact of the financial turmoil, Haili's domestic and foreign toy orders have been discharged into April and May next year, Fang Guangxin confident.

With its own brand, its own technology and its own sales mode, Haili no longer relies on foreign technology to engage in OEM production, no longer simply produces stuffed toys, and has gained the initiative in the bold innovation of the consumption characteristics of the Internet era.

Fang Guangming said that if we want to rush ahead, we should pay attention to information all the year round.

For example, he will read "Reference News" every day. Last year, articles on the development of toy enterprises reached more than ten articles. He realized that the domestic toy industry has been at the cusp of the storm, and will not be able to adapt sooner rather than later.

Bitterness - the clothing brand dream is temporarily stranded. "I certainly know that foreign trade is" lazy people "to some extent. After discussing with our business partners in Hongkong, we still find it difficult to make domestic trade.

Chen Dezhong, general manager of Shenzhen Bao Zhi Long Clothing Co., Ltd., has been doing garment processing for over 10 years. He has seen a lot of wind and waves. Now he sees his peers turning to domestic trade one after another, or he closes the factory.

In fact, since he started a factory in 1996, he had a dream: to accumulate funds through foreign trade, and then build his own brand in the country to complete the "beautiful turn".

He thought so, and put it into action: in 2003, he rented a factory in Shenzhen, intended to serve as a domestic processing base, and registered three domestic trademarks.

He has made so many preparations in advance. Why did he give up so many foreign trade factories this year when he turned to domestic trade?

"I have a business friend who started to trade in the first half of this year, and now the factory has gone bankrupt.

I learned a lot from this lesson.

"For example, your design team has spent a lot of effort designing several series of costumes, which are not listed yet, and may have been sold on the market.

As a result, people sold out of their products, and your backlog was stored in the warehouse because of the high cost and high price - the phenomenon of clothing counterfeiting is very serious in the mainland.

If we are such small and medium-sized companies, if we are toss around for a few times, we won't be able to afford it. "

Chen Dezhong, who felt that the ecological environment of the domestic trade was not good enough, had to look for other opportunities while continuing to take orders for clothing trade.

"Manufacturing is not enough. I will do the service industry."

In May of this year, Chen Dezhong invested in Zhuji, Zhejiang, to build a local "edfort" car beauty salon.

"I have done market research. The local people have better economic conditions. Many families already have two cars, and the car services must be kept up.

Moreover, for the same large venues, the rent in Shenzhen may be three times that in Zhuji, and the service charge is almost the same.

Car beauty is still a new industry. I think there are more opportunities.

Chen Dezhong said.

It takes at least 3~5 years to build a clothing brand.

During this period, enterprises must have great strength and determination to establish sales channels throughout the country, and spend too much publicity in the media.

"Now is the tide of foreign trade companies going to domestic trade. The cost of establishing Brand Company will be even higher.

I decided after I talked to my business partner, or I didn't go. "

Chen Dezhong thinks so.

Spicy - - rush into the Red Sea to find business opportunities, Sha shark, a home textile brand that has just launched half a year in the domestic market, has opened more than 80 stores in the country, and there are 8 in Hangzhou.

And Fengyi group behind it is a private enterprise mainly in textile and dyeing industry in Keqiao, Shaoxing.

Although the textile industry is fierce competition and small profits, home textiles is also a competitive industry. Why should we turn from a "Red Sea" to another "Red Sea"?

Wang Jiancheng, general manager of Shah shark International Group Limited, said: "enterprise pformation can not blindly enter unfamiliar areas.

Fengyi group is doing textile printing and dyeing, downstream industries and sales are always controlled by people, so it is difficult for enterprises to have a big upward breakthrough.

The development of home textile brand is the integration of the industrial chain.

Moreover, the profit rate of home textiles is much higher than that of printing and dyeing industry, and the added value of commercial brand and the space of intangible assets are bigger. "

Shark positioned high-end consumer market, enter