Foreign Trade Stagnation, Domestic Sales! Originally, "Try" Now "Have To"...

Thanks to the continuous efforts of a series of steady foreign trade policies, China's export growth in April was better than market expectations. The data released by the General Administration of Customs in May 7th showed that in April, China's foreign trade import and export volume was 2 trillion and 500 billion yuan, a slight decrease of 0.7% over the same period last year, of which 1 trillion and 410 billion yuan was exported, an increase of 8.2%; imports of 1 trillion and 90 billion yuan, a decrease of 10.2%; a trade surplus of 318 billion 150 million yuan, an increase of 2.6 times.

In the first 4 months of this year, the total value of imports and exports of China's trade in goods was 9 trillion and 70 billion yuan, down 4.9% from the same period last year, a drop of 1.5 percentage points lower than that in the first quarter. Among them, exports were 4 trillion and 740 billion yuan, down 6.4%; imports 4 trillion and 330 billion yuan, down 3.2%; trade surplus 415 billion 700 million yuan, 30.4% reduction.

Among them, in the first 4 months of this year, China's textile and apparel exports totaled 66 billion 620 million US dollars, down 10% from the same period last year; textile exports were US $37 billion 310 million, an increase of 2.9%; clothing exports 29 billion 310 million US dollars, down 22.3%.

In April, China's textile and apparel exports increased by US $21 billion 360 million, an increase of 9.8%; textile exports amounted to US $14 billion 620 million, an increase of 49.3%; clothing exports stood at 6 billion 740 million US dollars, down 30.3%.

"From the monitoring data, since April, China's exports have resumed growth." Li Kuiwen, spokesman of the General Administration of customs, said that although the trend of China's foreign trade's toughness and long-term development has not changed, the current situation of China's foreign trade is still not optimistic. We must make preparations for dealing with all kinds of complicated and difficult situations.

In fact, due to the global spread of the new crown pneumonia epidemic, the export orders of many foreign trade enterprises in China have been sharply reduced, and foreign trade has been sold domestically, especially in online sales, which has become the first choice for foreign trade enterprises.

Foreign trade orders "chopped" to domestic sales, from "try" to "have to"

According to the latest data from the Ministry of Commerce, China's total import and export volume dropped by 6.4% in the first quarter of 2020, of which exports dropped by 11.4%. At present, China's domestic demand market is steadily recovering, but the risk of export downlink is still large. The global trade data and Outlook report released by WTO in April 8th predicts that the total volume of Global trade this year is likely to decline by 13%-32%.

These figures mean that domestic veterans of foreign trade are under unprecedented pressure. In the face of "foot chopping" foreign trade orders, domestic sales have changed from "trying" to "have to".

"Customer orders cancelled, cash flow problems and inventory pressure. More difficult is that without order, workers will not be able to stay. Our whole industry chain in Dongguan is made of knitted fabrics, and the market for one year mainly depends on the second half. However, judging from the current situation, the whole foreign trade industry is still not optimistic in the second half of the year. Li Jingfeng said.

Li Jingfeng told reporters that last year, influenced by the trade friction between China and the United States, the whole foreign trade situation was not very good. Many companies were declining in overall performance. So last year, Lang began to try to switch from foreign trade to domestic sales. Now, this attempt is too wise.

"We have been transferred to domestic trade earlier and more successful. Last year, our company's performance increased by 50% over the same period last year. But this year we may have greater transformation. Last year, the proportion of domestic sales and foreign trade increased to 5:5. This year, the proportion of domestic sales and foreign trade will be changed to 9:1 by the impact of the epidemic.

"By the impact of the epidemic, our foreign trade orders have now fallen by more than 30%, and now customs and ports in Europe and Japan are closed, and later orders are not confirmed." Zhejiang flying Sword Industry and Trade Co., Ltd., Ma Yongjian, director of e-commerce operations, told China Economic Weekly reporter.

Zhejiang flying sword is the foundry of Starbucks, Hydro Flask, SUPOR, famous brand superior products and other big brand insulation cups and kettle products. The annual turnover is over 1 billion yuan, and the annual export volume is 600 million yuan. The decline of new overseas orders resulted in problems such as idle capacity, overstock, and pressure of cash flow. Ma Yongjian said that turning more to the domestic market is the necessary way for flying sword.

Say goodbye to the traditional mode. The rules of foreign trade domestic sales are quite different.

But it is not easy to sell domestically, because the game rules in the domestic market are quite different from those in the foreign trade market. In the traditional mode of foreign trade, enterprises must fulfill production according to the requirements of foreign contracts. And domestic marketing is much more complex, product line planning, channel development, brand building, sales team building, after-sales service...... From a factory to a brand, the need to cross is not just a ridge.