Why Do Textile Exporting Enterprises Turn To Domestic Sales?

Here world Clothing and shoes Xiaobian of the network to introduce to you is textile export enterprises to sell domestic experience "high or low" dilemma.

The rise of comprehensive cost has seriously squeezed profits of textile export enterprises. The profit from domestic sales is much higher than that of export. This makes the textile exporting enterprises suffering from the drop of profits become a strong desire to sell domestically.

Recently, at the twentieth China international textile fabrics and accessories fair, held at the Shanghai New International Expo Center, Cao Bing, deputy general manager of Jiangyin Huafu Textile Co., Ltd. told reporters that the next development goal is to expand into the field of consumer goods through cooperation with Taobao and become an enterprise like Hai Lan's home. However, some textile exporters who have been sold domestically have complained: the domestic market looks very beautiful, but it is not easy to divide the cake into domestic market, and foreign trade enterprises often encounter difficulties in converting to domestic sales.

Speed down in domestic market

The domestic market, which fascinated foreign trade enterprises, has changed in recent years. With the slowdown of China's economic development, the growth rate of household consumption has also declined. According to the latest statistics released by the National Bureau of statistics, in September 2014, the total retail sales of consumer goods totaled 23042 billion yuan, up by 11.6% over the same period. In 1~9, retail sales of consumer goods totaled 189151 billion yuan, an increase of 12% over the same period last year. In the first three quarters, the total retail sales of consumer goods grew by 11.6% year-on-year, 4 months in a row.

In the context of the decline in consumption growth, clothing consumption is hard to get rid of and it is also showing a downward trend of growth. According to the whole nation of China business According to the information center, in the 1~9 month of this year, the retail sales of clothing commodities of 50 key large retail enterprises increased by 1.5% over the same period last year, 4.2 percentage points lower than the same period last year, and the retail sales in September increased by 0.1% over the same period last year, which is 5.7 percentage points lower than that in the same period last year. Clothing shop closing tide is still spreading throughout the country. In recent years, the trend of Customs shop, which started with sports brand, has swept all corners of the garment industry. Men's wear, leisure brands and even the most prosperous women's clothing are hard to escape. China's first half results released in August 11th showed that 140 stores were closed in the country as of June 30th this year. According to the latest report of Baleno's parent company, the number of outlets in the mainland market is as high as 388 at the end of March 2014, accounting for 10% of the total number of stores.

The sales performance of some brand clothing enterprises has declined. According to the 2014 China Daily released by Smith Barney fashion, 1~6 yuan in 2014 this year, the main business income of the company was 2 billion 962 million yuan, down 20.11% from the same period last year. The semi annual report released by Zhejiang Semir clothing Limited by Share Ltd showed that casual clothing in the first half of 2014 was affected by factors such as industry competition, rising channel costs and closing non-profit stores. The main revenue was 1 billion 724 million 254 thousand and 400 yuan, down 4.35% from the same period last year.

Domestic sales face various discomforts.

"The company started to do domestic sales in 2010, but after 3 years, we found that we could not play the domestic market." In an interview with the international business daily, Li Qiang, Zibo Lanyan Group Co Ltd, said: "although the quality of the jeans is very high and the brand awareness is high, the domestic market has remained at around 10% for several years, and it is hard to gain growth in the domestic market. We intend to maintain the domestic market at around 10% in the future.

Zhang Qinfen, Minister of R & D Department of Jinling Textile Co., Ltd., Zhangjiagang, also told reporters that Jinling's domestic sales business was also planned to stay at around 10%, and no longer had to expand.

Foreign trade enterprises face various discomforts to sell domestically. Many foreign trade enterprises are still in a state of "two eyes and a black" for how to do the domestic market. They do not know how to enter the shopping mall, do not know how to open stores, and do not know how to expand the market through the electronic business platform.

Some foreign trade enterprises, which have developed e-commerce and set up a physical store to explore the domestic market, have found that the domestic market is not mature enough and is not standardized enough, which has greatly hindered the entry of foreign trade enterprises into the domestic market.

On the one hand, foreign trade enterprises do not adapt to the long period of payment and bad reputation in the domestic market; on the other hand, the different modes of operation between domestic and export enterprises do not suit foreign trade enterprises. Some enterprises say that the domestic market is rather scattered, and the supply of supermarkets is composed of the purchasing centers, suppliers and relatives. In foreign countries, for example, in the US, products can only be used in a WAL-MART supermarket to make use of the WAL-MART channel's unified market operation, so that the products can quickly cover all WAL-MART supermarkets. The fragmented purchasing mode in China makes it difficult for foreign trade enterprises to be accustomed to bulk orders.

Li Qiang told reporters that the concentration of foreign brands is high, and the concentration ratio of China's domestic market is low. The main brands in the Chinese market will not add up to 50% of the market. The market is flooded with small brands and products produced by small businesses. The market concentration degree is not high, so that foreign trade enterprises with customary lot orders can not find the way of docking. In addition, the number of domestic orders fluctuated, which makes foreign trade enterprises very uncomfortable. Li Qiang revealed that there were many domestic orders for LAN Yan in 2011 and 2012, and the domestic orders suddenly disappeared after the second half of 2012. Domestic brands are immature, and the number of orders is fluctuant. Foreign brand orders are generally relatively stable, because foreign brand purchases depend on data. And the important figure of the domestic brand planning is the boss. The amount of domestic brand purchases depends on the boss.

Shanghai family enterprise He has made great efforts to do the domestic market. At the fabric exhibition, the head of the company told reporters that he had opened a brand store in a dozen shopping malls in Shanghai, and sold the brand products that he built. However, many years of operation not only did not sell well in the domestic market, but also lost all the funds accumulated by the foreign trade for more than ten years. Now the company has been shrinking the front line and focusing on foreign trade. "The domestic market is far less popular than the media." Li Qiang told reporters that the atmosphere created now is very large in China's domestic market. In fact, the Chinese people have just stepped out of poverty, and the higher grade products can not afford to spend, while the rich do not consume at home. Nowadays, people who can go abroad are shopping abroad, many of which are clothing products, which sell at lower prices abroad than in China. China's related policies have pushed some of China's consumption power abroad. Li Qiang also believes that the domestic real estate consumption of ordinary people is too big, the ordinary people after buying a house to save their houses, spending on clothing consumption naturally reduced.

Foreign trade enterprises that have explored the market have already realized that the domestic market is not as big as they imagined. Nowadays, many foreign trade enterprises have to stop in the exploration stage.