Export Enterprises Urgently Turn Around And Easy To Sell Domestically.

If time can be reversed, Ye Weitian hopes to make efforts to sell the domestic market two or three years ago.

He said early development of the domestic market would probably not cause us no pain every day because of the weakness of European and American consumption.

However, no if, as the head of a Guangdong owned toy factory, ye Wei Tian is busy turning the enterprise into a wholly foreign-owned enterprise in order to obtain the right to sell the domestic market.

Like other processing enterprises, this kind of pformation is more or less with helplessness.

In order to pfer to the domestic market, the recent three to one fill enterprises have demanded a sharp increase in the application of the pformation of foreign-funded enterprises.

But is it easy for export enterprises to turn around urgently?

The marketing battle of a massive export enterprise attacking the domestic market is beginning.

One obvious sign is the sudden increase in the situation of processing enterprises' conversion to sole proprietorship.

Material processing is a special economic form in processing trade. "Enterprise" is not a legal person but a processing plant.

This makes the processing of raw materials not domestic financing, developing domestic sales and enjoying many supportive policies issued by the local government.

In order to gain the right of domestic sale, pformation is the inevitable way.

Wu Jie, an enterprise management consultancy company, is responsible for helping the processing enterprises to pform the foreign-funded enterprises.

She told the Information Times reporter that most of the customers were raw materials processing enterprises in Shenzhen and Dongguan.

Recently, there are more than 30 enterprises that have come to consult how to pform, about more than 10 in the past, and 30% to 40% in the pformation business.

Another group of figures is that the Dongguan Municipal Foreign Trade and Economic Cooperation Bureau has accepted the application of 84 processing enterprises to become foreign-funded enterprises, and the pformation of processing enterprises has increased the domestic sales volume of foreign enterprises in the whole city.

According to statistics of Dongguan foreign trade and Economic Cooperation Bureau, the total sales volume of foreign invested enterprises reached 141 billion 443 million yuan in 1~10 months this year, an increase of 23.9% over the same period last year.

Miss Wu said that the recent growth of this trend is based on two reasons: "the export recession has led many enterprises to take a broad view of the domestic market, plus the preferential policies of Guangdong's recent production and pformation of foreign-funded enterprises."

According to Guangdong province's "operation guidelines for the pformation of raw materials processing enterprises in situ", more than 3.5 Hong Kong funded processing trade enterprises in the Pearl River Delta region can pform themselves into three foreign-invested enterprises, thus gaining the right of domestic sale.

Prior to that, the issue of state law in the processing of "incoming processing" to three foreign-funded enterprises is very complicated.

Miss Wu told reporters: "if the economy deteriorates further next year, we believe that the number of enterprises in pition will be blowout."

Enterprises have increased the proportion of domestic sales. He Jianrong, chief representative of Hongkong TDC's Southern District, also said that more and more Hong Kong enterprises have started a "domestic sale" business.

He told reporters that if 5 years ago, many Hong Kong businessmen were dissatisfied with domestic sales, they said, "I am so busy that I can't finish my work alone."

After two or three years, seven or eight of the people will think about it.

But now, they all say, what can we do without domestic sales?

Reporter learned that, in addition to the processing enterprises to switch to foreign-funded enterprises, other export enterprises already have the right to domestic sales, have also increased the proportion of domestic sales.

Another attraction of the domestic market is greater profit margins.

An Lang fairy tale world is an old shoe manufacturer in Hongkong, and has been doing the mainland market since 1993.

"Compared to the export market, the domestic market has larger profit margins, which can be 10% to 15% higher than the export market," said the head of the company.

The official said, especially in the current trade friction frequent, RMB appreciation and other uncertain factors, the domestic market is more attractive.

"The same kind of goods, the domestic sales price is much higher than the export price.

Our price for domestic agents is 10% higher than that of foreign countries.

Pan Jingtian, general manager of Guangzhou Bao He Tian daily necessities Co., Ltd., told reporters that since this year, he has participated in the domestic exhibitions many times and paved the way for expanding the domestic market.

Bao and Tian Tian goods company is an export oriented enterprise which mainly produces ironing board. However, in the case of declining demand in Europe and the United States, the export orders have been reduced.

Mr Pan said that in the past, the market potential in China was huge, and the consumption concept of the Chinese people had changed a lot than before. "Before people used ironing clothes to take a table as ironing board, they not only accepted the ironing board, but also had this spending power."

Mr. Yip, director of the fairyland fairytale world, said that domestic consumers' acceptance of design and color was much stronger than that of foreign consumers, and then further expanded the mainland's sales network.

Qin Gang, director of Beibei Jiang Textile Co. Ltd., is very glad that his company started to enter the domestic market 4 years ago, and the proportion of domestic sales in 2008 has reached 30%.

Qin Gang told reporters that the proportion of domestic sales increased to 40% in 2009.

"In fact, it is not very difficult for an enterprise that has many years of export experience to sell domestically, because domestic retailers often think that the quality of exported goods is high, and the quality of export will be guaranteed after so many years."

Qin Gang said that as far as his company is concerned, he has many years of cooperation experience with international customers, so information update is fast enough to keep up with the international fashion trend and become an advantage of the company.

Pan Jingtian said that the export capital flow is relatively stable, because the credit of international trade customers is better, the payment period is generally 30 days is 30 days, and the 60 day is 60 days, which is rarely postponed to the money.

He did not encounter the so-called "international Lai" for the time being, but there were frequent delays in China.

Qin Gang shared the same feeling.

He told reporters that the integrity of the domestic system is not perfect, especially with smaller enterprises, the risk of collection will be greater.

In addition, Pan Jingtian believes that unlike foreign countries, domestic sales practices are not standardized.

"Foreign countries are relatively mature, divided into three parts, importers, wholesalers and retailers, and the three parties have a very good division of labor.

For example, wholesalers go to importers to get goods, so that orders can be concentrated. Orders for manufacturers will be large, and payment in general will be on time.

In the absence of domestic sales network, for the vigorous export enterprises to turn to domestic market, Mr. Xue, deputy director of a toy factory in Shenzhen, is still at a loss.

"Customary export enterprises are not familiar with the domestic market, there is no domestic market, and they need to re organize the marketing of the mainland market. Besides, without publicity, even if your product is not good enough, you still have to spend a lot of money on advertising.

All these require enterprises to increase investment, which is very difficult for enterprises with tight capital chain. "

Mr. Xue believes that an ideal mode is to supply the brand to the manufacturer, and the brand manufacturer is responsible for creating ideas, sales network, publicity and promotion. The manufacturer is responsible for manufacturing and cost control.

"However, there are no brands like MATTEL in the domestic toy industry."

Mr. Xue's view is similar to that of Lang Xianping, a famous economist.

Lang Xianping recently said in Guangzhou that leading enterprises should lead the efficient integration of the "6%2B1" industrial chain.

The "6%2B1" manufacturing industry chain includes 7 parts, namely, product manufacturing, product design, raw material procurement, warehousing and pportation, order processing, wholesale operation and terminal retail. The product is made as "1" and the rest is "6".

All links are integrated to form an industrial chain advantage.

However, the lack of domestic network does not mean that the way to enter the mainland market is sealed.

Also because there is no domestic sales network, Pan Jingtian and Qin Gang's companies have chosen to supply to agents or wholesalers.

"The admission fee of domestic stores is too high, and it often keeps prices down."

Pan Jingtian said, a store and another supermarket on the same product fighting price, will enter a lot of goods with you, but the price is very strong.

Pan Jingtian said, Chinese people have such shopping habits, shopping at stores like to open the packaging of goods to check the goods, "disassembled goods, supermarkets can not sell back to the factory to rework, increase the cost of many unnecessary businesses, loss is difficult to estimate.

Exports do not have such a concept.

As far as exports are concerned, the rights of consumers in Europe and America are very large. They can ask for returns if they feel bad after buying them.

Pan said, Canada's supermarket, your product customer return rate of not more than 2%, suppliers do not need to lose money, if more than 2% automatically deducted from the payment.

However, there is no concept of return rate in domestic supermarkets. One product has been dismantled by customers, and the package has been returned to you. In addition, the sales volume is not enough to deduct the money from your payment.

Ye Shuangpeng, general manager of Guangdong silk International Group Clothing Co., Ltd. also said that textile enterprises often open counters in large stores and often encounter difficulties in collecting money.

This is because shopping malls often have to wait for products to be sold before payment is made to the factory; however, if the products are not sold regularly, they will be returned completely, and the factory will be very passive.

Yang Jing: editor in charge