The European debt crisis has added to the already grim situation in foreign trade.
“Now can be considered a harsher winter than in 2008.†Yesterday (November 30th) reporters at a procurement fair in Shanghai found that SMEs have felt the impact of the European debt crisis. A clothing manufacturer from Ningbo, Mr. Li told reporters that "the orders for Europe and the United States began to decrease a lot in the second half of the year, and the number of orders placed by customers is also significantly reduced."
Affected by this, many small and medium-sized enterprises began to transform their domestic trade. "This is determined by the market." Ren Lifeng, vice president of the Global Resources Development Department of the Ministry of Internal Trade, told reporters that the overall profit of foreign trade is gradually declining, and domestic trade has become a small and medium-sized business. Business development trends.
Europe and the United States have a serious loss of customers It is reported that Europe is an important export destination for foreign trade companies in China. As one of the important export industries of textiles and garments, from January to September 2011, the growth rate of China's export of textile and clothing products to Europe dropped significantly.
The data shows that the growth rate in 2010 was 28.95%, and the growth rate from January to September 2011 was 5.38%. In this regard, China Investment Advisor Zhu Qingyun light industry researcher said that this shows that some of China's textile companies have contracted orders, the capital chain will be in trouble.
In the shadow of the debt crisis in Europe, the official statistics of the Canton Fair on the last night of November 4 showed that the turnover of spring and autumn trade fairs was US$74.76 billion, and the export volume of textile and apparel exports reached US$3.42 billion, basically returning to 2007 levels. The difference is that short-term orders accounted for 88%, showing upward trend.
Zhu Qingtao told the reporter of the “Daily Economic News†that on the one hand, due to the unfavorable international economic environment, it slowed down the pace of development of the international economy, and the lack of demand for apparel foreign trade caused a direct impact on China’s foreign trade sales. At the same time,* **The appreciation of the exchange rate is expected to be strong. Major apparel companies are afraid to take over the long list, so as to avoid exchange rate fluctuations and losses.
“The dollar has been falling, and the euro is volatile. It is also a downward trend.†Cai Xiaoqiu, the head of Jun Ai Import and Export Co., Ltd. from Yiwu, told reporters that profits are constantly being lost in the changes of the euro and the US dollar.
Not only that, "the loss of customers in Europe and the United States is more severe, and orders have begun to decrease." Cai Xiaoqiu pointed out that customers in Europe and America have begun to feel conservative.
For foreign trade companies, the foreign trade business is always large and stable. "We can make some of the benefits in the case of big orders," explains Cai Xiaoqiu, but the amount of orders has started to decline, leaving foreign trade companies to fall into "defects."
Mr. Li from Ningbo pointed out that small businesses do foreign trade orders merely to maintain the operation of the factory and “do not seek to make moneyâ€, but the current market conditions make foreign trade companies at a loss.
The foreign trade companies changed their domestic trade routes: “Foreign trade orders allow factories to operate, and domestic trade orders guarantee corporate profits.†Cai Jinbiao, Managing Director of Hong Kong Hongda Yangmei Industrial Co., Ltd., has established a complete dealership channel in the Mainland to the reporter of “Daily Economic News†Indicated. Cai Jinbiao revealed that after having its own well-known brand and perfect channels, the profits of its domestic companies doing domestic trade can be 30% higher than those of foreign trade orders. At present, the proportion of its business is 70% for foreign trade and 30% for domestic trade. Cai Jinbiao said that the proportion of domestic trade will continue to rise to 50%.
“The prospects for foreign trade are not good. In order to survive and develop, garment companies have begun to shift to the domestic market on a large scale, with dual online and offline layouts, broadening domestic sales channels within the largest scope, tapping the potential of the domestic consumer market, and seeking for interest growth points.†CIC Consulting Research Director Zhang Xiaolin pointed out that the domestic consumer market has great potential. The transformation of garment enterprises from foreign trade to domestic sales is an important turning point for their survival and development. If they can complete the "seamless connection" between the two, the outward-oriented garment enterprises will not be trapped by the "difficulties". .
Ren Lifeng also said in an interview with reporters that “regardless of whether it is a macro orientation or a market factor, domestic trade will gradually increase.†According to its introduction, there are mainly three ways for domestic foreign trade companies to do domestic trade. “The first one is to go Large supermarket routes, such as Carrefour and Wal-Mart, are used; the second is to take the wholesaler route and distribute goods to distributors and agents; the third is to open a store on their own. Large supermarkets have a higher threshold for SMEs and open their own doors. Stores have higher requirements for financial strength, so SMEs should adopt a wholesaler route. "But no matter which kind of approach, these companies need to have their own brands first," Ren Lifeng pointed out that involving LOGO and registered trademarks are not difficult, but the construction of brands requires the quality and quality of products to support.
Arrears become the biggest obstacle to transforming domestic trade However, the start of foreign trade transformation is extremely difficult for SMEs.
"The advantage of doing foreign trade is to follow the fixed process and place orders, deliver goods, and collect payments." Cai Xiaoqiu told the "Daily Economic News" reporter that once it was changed to domestic trade, it would be much more complicated. “The domestic trade distributors require a wide range of goods and categories, so they are all produced in small batches,†she said. However, in order to control costs, all of them were mass-produced. At present, in order to develop domestic trade, the initial cost will be greater. "Not only that, dealer channels are not easy to open at the beginning and it takes a long time to develop."
"Daily Economic News" reporter at the Shanghai Sourcing Fair of Global Sources surveyed a number of enterprises that have transformed themselves from foreign trade into domestic trade and found that the real reason why SMEs are discouraged by foreign trade is because the payment period after domestic distribution channels has passed. long.
"Cash collection is difficult." Cai Jinbiao said that although it has been engaged in domestic trade for 15 years, the problem of money collection has been difficult to solve. Compared with foreign trade, bad debts are more.
"It usually takes 2 months for the payment period." Cai Xiaoqiu told reporters that due to distribution to distributors, dealers encountered a bad sales situation and would be tempted by various methods. Therefore, the tension in the capital chain has become the biggest dilemma for the transformation of SMEs.
The “2011-2015 China Garment Industry Investment Analysis and Prospect Forecast Report†issued by China Investment Advisors pointed out that garment companies have high requirements on the capital turnover rate, and shortening the recycling cycle as much as possible will invigorate the operating rate of enterprises and increase their revenue levels. In order to ensure the good operation of the company.
From the perspective of capital, the development of new markets requires textile and apparel companies to conduct a large number of capital operations.
Qi Qinchuan, an IPO consulting analyst with China Investment Advisors, pointed out that from the corporate level, due to the impact of the credit crunch, the intensity of credit support for light industry continued to decline, resulting in a tighter capital chain for some companies. "The most effective way to ease financial pressure has also become an essential measure for expanding new markets," said Qin Qinchuan.
“Now can be considered a harsher winter than in 2008.†Yesterday (November 30th) reporters at a procurement fair in Shanghai found that SMEs have felt the impact of the European debt crisis. A clothing manufacturer from Ningbo, Mr. Li told reporters that "the orders for Europe and the United States began to decrease a lot in the second half of the year, and the number of orders placed by customers is also significantly reduced."
Affected by this, many small and medium-sized enterprises began to transform their domestic trade. "This is determined by the market." Ren Lifeng, vice president of the Global Resources Development Department of the Ministry of Internal Trade, told reporters that the overall profit of foreign trade is gradually declining, and domestic trade has become a small and medium-sized business. Business development trends.
Europe and the United States have a serious loss of customers It is reported that Europe is an important export destination for foreign trade companies in China. As one of the important export industries of textiles and garments, from January to September 2011, the growth rate of China's export of textile and clothing products to Europe dropped significantly.
The data shows that the growth rate in 2010 was 28.95%, and the growth rate from January to September 2011 was 5.38%. In this regard, China Investment Advisor Zhu Qingyun light industry researcher said that this shows that some of China's textile companies have contracted orders, the capital chain will be in trouble.
In the shadow of the debt crisis in Europe, the official statistics of the Canton Fair on the last night of November 4 showed that the turnover of spring and autumn trade fairs was US$74.76 billion, and the export volume of textile and apparel exports reached US$3.42 billion, basically returning to 2007 levels. The difference is that short-term orders accounted for 88%, showing upward trend.
Zhu Qingtao told the reporter of the “Daily Economic News†that on the one hand, due to the unfavorable international economic environment, it slowed down the pace of development of the international economy, and the lack of demand for apparel foreign trade caused a direct impact on China’s foreign trade sales. At the same time,* **The appreciation of the exchange rate is expected to be strong. Major apparel companies are afraid to take over the long list, so as to avoid exchange rate fluctuations and losses.
“The dollar has been falling, and the euro is volatile. It is also a downward trend.†Cai Xiaoqiu, the head of Jun Ai Import and Export Co., Ltd. from Yiwu, told reporters that profits are constantly being lost in the changes of the euro and the US dollar.
Not only that, "the loss of customers in Europe and the United States is more severe, and orders have begun to decrease." Cai Xiaoqiu pointed out that customers in Europe and America have begun to feel conservative.
For foreign trade companies, the foreign trade business is always large and stable. "We can make some of the benefits in the case of big orders," explains Cai Xiaoqiu, but the amount of orders has started to decline, leaving foreign trade companies to fall into "defects."
Mr. Li from Ningbo pointed out that small businesses do foreign trade orders merely to maintain the operation of the factory and “do not seek to make moneyâ€, but the current market conditions make foreign trade companies at a loss.
The foreign trade companies changed their domestic trade routes: “Foreign trade orders allow factories to operate, and domestic trade orders guarantee corporate profits.†Cai Jinbiao, Managing Director of Hong Kong Hongda Yangmei Industrial Co., Ltd., has established a complete dealership channel in the Mainland to the reporter of “Daily Economic News†Indicated. Cai Jinbiao revealed that after having its own well-known brand and perfect channels, the profits of its domestic companies doing domestic trade can be 30% higher than those of foreign trade orders. At present, the proportion of its business is 70% for foreign trade and 30% for domestic trade. Cai Jinbiao said that the proportion of domestic trade will continue to rise to 50%.
“The prospects for foreign trade are not good. In order to survive and develop, garment companies have begun to shift to the domestic market on a large scale, with dual online and offline layouts, broadening domestic sales channels within the largest scope, tapping the potential of the domestic consumer market, and seeking for interest growth points.†CIC Consulting Research Director Zhang Xiaolin pointed out that the domestic consumer market has great potential. The transformation of garment enterprises from foreign trade to domestic sales is an important turning point for their survival and development. If they can complete the "seamless connection" between the two, the outward-oriented garment enterprises will not be trapped by the "difficulties". .
Ren Lifeng also said in an interview with reporters that “regardless of whether it is a macro orientation or a market factor, domestic trade will gradually increase.†According to its introduction, there are mainly three ways for domestic foreign trade companies to do domestic trade. “The first one is to go Large supermarket routes, such as Carrefour and Wal-Mart, are used; the second is to take the wholesaler route and distribute goods to distributors and agents; the third is to open a store on their own. Large supermarkets have a higher threshold for SMEs and open their own doors. Stores have higher requirements for financial strength, so SMEs should adopt a wholesaler route. "But no matter which kind of approach, these companies need to have their own brands first," Ren Lifeng pointed out that involving LOGO and registered trademarks are not difficult, but the construction of brands requires the quality and quality of products to support.
Arrears become the biggest obstacle to transforming domestic trade However, the start of foreign trade transformation is extremely difficult for SMEs.
"The advantage of doing foreign trade is to follow the fixed process and place orders, deliver goods, and collect payments." Cai Xiaoqiu told the "Daily Economic News" reporter that once it was changed to domestic trade, it would be much more complicated. “The domestic trade distributors require a wide range of goods and categories, so they are all produced in small batches,†she said. However, in order to control costs, all of them were mass-produced. At present, in order to develop domestic trade, the initial cost will be greater. "Not only that, dealer channels are not easy to open at the beginning and it takes a long time to develop."
"Daily Economic News" reporter at the Shanghai Sourcing Fair of Global Sources surveyed a number of enterprises that have transformed themselves from foreign trade into domestic trade and found that the real reason why SMEs are discouraged by foreign trade is because the payment period after domestic distribution channels has passed. long.
"Cash collection is difficult." Cai Jinbiao said that although it has been engaged in domestic trade for 15 years, the problem of money collection has been difficult to solve. Compared with foreign trade, bad debts are more.
"It usually takes 2 months for the payment period." Cai Xiaoqiu told reporters that due to distribution to distributors, dealers encountered a bad sales situation and would be tempted by various methods. Therefore, the tension in the capital chain has become the biggest dilemma for the transformation of SMEs.
The “2011-2015 China Garment Industry Investment Analysis and Prospect Forecast Report†issued by China Investment Advisors pointed out that garment companies have high requirements on the capital turnover rate, and shortening the recycling cycle as much as possible will invigorate the operating rate of enterprises and increase their revenue levels. In order to ensure the good operation of the company.
From the perspective of capital, the development of new markets requires textile and apparel companies to conduct a large number of capital operations.
Qi Qinchuan, an IPO consulting analyst with China Investment Advisors, pointed out that from the corporate level, due to the impact of the credit crunch, the intensity of credit support for light industry continued to decline, resulting in a tighter capital chain for some companies. "The most effective way to ease financial pressure has also become an essential measure for expanding new markets," said Qin Qinchuan.
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