In recent years, influenced by the downward adjustment of export tax rebate exchange rate, the appreciation of RMB and the increase of anti-dumping countries, the pressure on export-oriented enterprises in China has increased, and some enterprises are optimistic about the domestic market and begin to turn to domestic sales. However, it is not easy for enterprises that export to domestic market to open up the domestic market.
Tort puzzle
China Xiaxia Holding Co., Ltd. is an enterprise engaged in sprayer export business. Wang Jianjun, the company’s sales vice president, told reporters that at present, 37% of Xiaxia sprayers are sold to Europe, 28% to the United States, 25% to the Middle East, Africa and other places, and only 10% of the products are sold to the domestic market.
Wang Jianjun admits that enterprises have always been export-oriented, mainly considering the lack of domestic intellectual property protection. "As far as the sprayer market is concerned, there are all kinds of sprayers with different materials and different prices in China, and most of them are imitations, because some enterprises have no awareness of intellectual property rights." Wang Jianjun said.
Since its establishment in 1978, Shixia has continuously carried out product research and development, and currently has more than 100 national patents. Wang Jianjun said: "The infringement of product design and technology research and development in the domestic market is serious, and there is no effective solution. The result of the dispute can only be a lawsuit, which is too time-consuming and laborious, and it is also a big burden for the company." "For enterprises with independent research and development capabilities, a level playing field is extremely important." Wang Jianjun said that the current situation of the domestic market makes foreign trade enterprises afraid to invest more in the domestic market.
Standard dilemma
Due to the differences between domestic and foreign standard systems, there is a certain degree of quality standard gap between domestic products and export products. In the eyes of many manufacturers, it is actually not easy to transfer export products to the domestic market, and it is not that good product quality can naturally occupy the domestic market.
This is because in order to meet the needs of quality and safety standards in developed countries, enterprises that mainly export foreign trade usually invest a lot in facilities, equipment, talents and management, so the production cost is higher and the product pricing is relatively high. When enterprises switch to domestic sales, high-quality and high-priced products can’t compete with low-quality and low-priced products under the circumstances of low brand awareness and relatively low national quality awareness, which makes enterprises feel confused and helpless.
To break this obstacle, on the one hand, enterprises need to make great efforts to promote brands and products, on the other hand, regulatory authorities need to improve quality standards and integrate with the international community.
Dilemma of advance payment
Whether it is a trading company or an enterprise with its own factory, it will be difficult to export to domestic sales. In the past, the transaction flow of foreign trade enterprises was very simple, that is, receiving the order-proofing and confirming the customer-putting into production the accessories-producing the bulk goods-inspecting and shipping-receiving the payment. However, in the domestic market, when the brand cooperates with the supplier, it adopts the "361" payment method, that is, it is paid in stages according to 30% advance payment, 60% withdrawal payment and 10% quality guarantee. When the brand pays the remaining 10% of the mortgage, it will not only pay interest, but also often deduct the factory money, which will make the enterprises interested in domestic sales bear huge financial risks.
Zhu Xiaoying, business manager of Meizhou Oumai Technology Co., Ltd. said that apart from the differences in national policies, foreign trade and domestic sales are mainly reflected in the sales model. Specifically, foreign trade export is order-based sales, and enterprises can contact them after they get the order and advance payment, so that production can be guaranteed. However, domestic sales mostly require enterprises to pay a large amount of money in advance to produce first, which not only creates high production costs and inventory pressure, but also brings certain risks.
Ouyang Hanlong, the person in charge of Guangdong Hangyang Floriculture Co., Ltd., told the reporter that in the current situation of high manpower and rental costs, Mr. Wang’s postpartum sales model is too risky. On the contrary, the export trade is to sell first and then produce. Only a few samples need to be produced to sign the order and get part of the advance payment, and then mass production is carried out, which not only eliminates the inventory pressure, but also reduces the trade risk. (Zhang Nanyan)
Transfer from: International Business Daily
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