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Five Foreign Trade Enterprises Face Difficulties In Transition

In recent years, China’s textile exports have hampered the United States and the European Union have come up with “anti-dumping” as a front to block the influx of cheaper products from China, a large number of their own, be regarded as “plague” is not. In fact, the dumping does exist, or else the Ministry of Commerce Bo Xilai, Minister Knight will say such a thing?? “China’s export 800 million shirts, but also not one for Airbus.” Can imagine that the so-called brand in China, lack of technical content and added value products in some countries abroad Sell Blocked, can really lead anywhere?

Particularly saddened that a few years ago a lot of foreign companies to do the rush around the occasion, and not considered “winter” will be coming. Hindered face of the export enterprises can not digest too much capacity, the only way is to develop the domestic market, business transformation, but our lovely foreign trade enterprises will be reported in addition to the declaration, other than tax return, do not really know what will do? In addition to the quality of their products other than perhaps a little plausible, from the technical research and development, to production, management, market Marketing , Brand value, tracking services, simply and domestic predators who were unable to form peer competition between large, very raspberry, but the key point is to adjust as business model simply can not adapt to the domestic market and consumer demand, the results lead to defeat can be imagined. Shanghai Jin Release Strategies for foreign trade based on years of research institutions, research and consulting company in transition, found that many foreign trade enterprises of the following questions:

1, the plight of the industry chain extension?

An operational headquarters in Shanghai Yanan Road Grade A office space for foreign trade companies, the boss is a Stanford economics background “sea turtles”, through relationships with overseas venture capital, and shift the beach in the imported ” Medical Devices “Profiteering. How much profit medical devices, went to hospital for a” magnetic resonance “will know. The last few years have accumulated enormous wealth, do not believe in the wealth rankings, the real money are the main general way: he to the huge amount of cash or transfer overseas, or through various name and means to invest in eight non-related industries. such as processing of agricultural products, real estate, logistics, warehousing, Print So that the money would dry, and she won several national underwriters the right to purchase fruit base, began to export to the United States Canned fruit And processed products. And several well-known U.S. food companies to do contract work, such as Pizza Hut pizza, which is entirely with the peach available to them. You know this business year just how much profit selling you peach? 60 million!

Why the business is doing so well is not a business happens to meet, make their own products into the domestic market, the profit of light for foreigners working or too thin to settle old scores. So the enterprises to export a Plastic cups The “canned fruit” used as competitive products, began aggressively on the market. Very funny is actually the product name to “really.” Thanks to the boss or the top students to stay over ocean, actually the name, the United States Kraft’s “Guozhen” instant Drinks 30 years has been marketing the world, in China ten years, in the absence of any market research, based on racking our brains Gaoge the same name, is destined to doom the fate of this product. If you’re in Shanghai, casual look to a convenience store, but also to find its traces. In 2004, the “sea turtles” put out huge amounts of money to market, channel terminals are doing well, also giving a pleasing and creative advertising films, that is, not sellers for the simple reason that it is positioning its products to another Gaode unintelligible the … …

“Really, is not a jelly,” which scared the consumer to the product as a jelly, they fear consumers recognize this is a real “jelly packaging” canned fruit, and finally, get out of a “really, not a jelly,” 4 not as geek to. Really regret, the top students at Stanford University that even the most basic market positioning also ended up this way really is to consumers as a pig’s brain. A nondescript, not in the minds of consumers the impression that the establishment of clear and focused, the consumer experience into the larger, the greater the loss, I have a special taste a bit, really not as good as usual canned fruit, 150 grams of packaging, and solid 50% do not matter, pricing turned out to be four five, and the stealing of money is really no different, and to consumers is simply the negative consumer experiences with devastating.

Analysis of the financial crisis, foreign trade enterprises shoes three dilemmas (Photo) – shoes, sh

2009, China’s foreign trade road shoes are destined to encounter a lot of broken off. At present, the sunset review of the final result has not come out the end of this month if the sunset review of the results for China, then China’s foreign trade will be more narrow road.

HC Shoe Net Foreign trade Shoe In the financial crisis, the world situation in the consumer market shrank, the situation increasingly difficult, and because the financial crisis caused by the original experience of other human let foreign shoe endured headaches. For example, credit issues, foreign unwarranted returns, trade barriers and other issues is broken head of foreign trade enterprises.

Export Shoe orders to guard against credit risk

With the financial crisis affecting the real economy to the penetration of international trade friction has entered a phase of high-fat, with the terms of trade tend to harsh, the overall increase in the export enterprise credit risk. Sinosure Chen, general manager of the Guangdong branch connected from the introduction, in order to return, withdrawals, money recovery difficult, and malicious bankruptcy to avoid debt in the form of a variety of export credit risks are increasing, the first quarter of this year, statistics show the number of cases companies reported losses and were up 3 times the amount.

Exported shoes (HC shoe net with graph)

Click here to view all news photos

This, HC Network reporter reminded footwear footwear export enterprises should be more complete in the trade terms of the contract signed, and strengthen management of accounts receivable, timely attention to bank credit risk, exercise caution and reduce unnecessary losses.

Foreign gratuitous return

The context of the financial crisis, many importers to exporters not explain the reasons for breach of contract, but also single-refundable, but not delivery. Many goods have been delivered to the port, but refused to pay the rest 70% of the purchase price, demands return of Chinese shoes enterprises. According to the survey, the other is not can not afford to accept the goods, but to use the crisis as an excuse to want larger producers, press section, the final decision to force the Chinese footwear enterprises, rather all back, nor can it be fraud, eventually returned all the goods. “Zhejiang customers of a company to export a group of Spanish shoes, loans have been received, the customer does not pick up. Unable to contact to the customer, the goods have been stored in the port, exporters, sea freight and port advance the charges can not be redeemed.

In fact, the “return” issue, foreign trade enterprises in China are no strangers, but mostly because of previous experience return encounter barriers, or because they do not know each other’s markets have violated some laws to regulate the procedure, or there is a certain product quality problems. However, in the context of the financial crisis, many importers there is no reason for breach of contract, breach of contract not to explain the reasons for exporters, but also single-refundable, but not delivery. View more Industry News>>>

Pressure of RMB appreciation as the biggest problem of foreign trade enterprises shoes

Tomb Sweeping Festival in Dongguan floating light rain for several days, the shadow of the shadow of RMB appreciation, just as the weather, makes it difficult to distinguish well-being.

    ”U.S. Treasury Secretary Timothy Geithner surprise visit to China today to RMB appreciation, right?” April 8, Bo Tau Industrial Area, Humen, “China Times” reporter has no openings, Jinn-Ming Wang on the first question.

    Daily online view the latest information on the RMB exchange rate has become Jinn-Ming Wang’s daily homework. This made a 10-year veterans of processing trade in the apparel business, and now every heart hanging on exchange rate movements. “To do foreign trade business, the exchange rate change is directly related to exports and orders.” Jinn-Ming Wang said.

    Humen God in processing children’s shoes footwear factory managers fully understand Jinn-Ming Wang Shen Road feelings. He said that the annual export Humen alone nearly 10 million pairs of shoes on the main orders for the production of workers engaged in foreign trade reached more than 30 million, once the RMB appreciation, influence how much goes without saying.

    As the Ministry of Commerce spokesman Yao Jian said, “appreciation of the RMB exchange rate against the so-called stress tests, every company has an account in mind.” Today, foreign trade enterprises in Dongguan is like dancing on the tip, they Wuxialihui U.S. I came among you back, you come to me to the wonderful “currency war”, they are busy with the rate race, how to get busy to avoid exchange rate risk.

    Been “abandoned” the children’s shoes

    20 dollars a pair in the U.S. export shoes, profits are up by a variety of cost “eating” was only a few cents, if more than 5% appreciation of the renminbi, its ultimate fate can only be abandoned.

    Processing trade enterprises in accordance with generally 5% profit margin, this pair of 20 dollar shoes converted into RMB earn about 6 yuan. But this year, cotton, cotton yarn and other raw material prices rising, fabric prices soar along, material costs only two dollars on eating out around the margins. The Spring Festival, the Pearl River Delta Region are facing problems of shortage of workers, wages generally rise 20% -30%, so that each pair of shoes would stage piece equal shares rose 1 dollar fee. In addition, zippers and other accessories as well as other costs are rising.

    Shen Road, picked up a pair of shoes, pointing to the top of the embroidery pattern on the upper reporter said that before such a pattern count the original price and labor cost, cost 2 yuan, and now the same is the design, cost increased to 2.8 yuan, But the sales price has not changed.

    ”If the appreciation of the renminbi by 2% discount for every pair of shoes into the cost of exports increased by about two cents, also acceptable, but once the appreciation of more than 5%, then only one of the abandoned.” Shen Lu said.

    Jinn-Ming Wang has also recently encountered the same problem. Plant years ago, a group of clothing just received orders, but do so now, all production costs, making only 5 cents a garment, once the yuan appreciated, when the factory to delivery has not profits, will lose money.

    Discovered by this reporter visited the pressure of RMB appreciation has become the biggest problem plagued foreign trade enterprises.

    Zhong Shan, vice minister of Ministry of Commerce has used this analogy to describe the living conditions of foreign trade enterprises in China: “If the water is heated to 99 ?, not boiling; but as long as continue to rise another 1 ?, the water will boil. RMB any further appreciation of the extent that exporters are likely to bankruptcy, and this is China can not afford. “

    Vice President of China Textile Industry Association, said Gao Yong, the current average net profit of the textile industry rate of 3% -4%, not more than 5%, if the yuan has risen more than 5 points, more than half of enterprises will be dead. If the future of cotton import quotas do not open properly, then the textile industry in the appreciation of the yuan may occur after the loss of a large number of orders, average profit will be zero.

    And exchange rate race

    ”Do not call me boss, someday maybe RMB appreciation, I do not like an ordinary worker.” Jinn-Ming Wang told reporters.

     Price and exchange rate race, Jinn-Ming Wang as if back in 2008. “Breakthrough year appreciation of the RMB 7 yuan mark, and even a new high since the foreign exchange reform, we are very big pressure every day. High prices, and customers can not afford, on the loss of orders; reported below, the company lost big. “

    Less for each order of foreign trade enterprises to go through this process a few: First of all negotiations with foreign customers, confirm pricing, delivery conditions, and then pay factory orders, the final delivery of products to collect the money. General this cycle at least 2 months, during which if the exchange rate fluctuations, the loss is very serious.

     A one million U.S. dollars of orders, for example, if the contract, the U.S. dollar against the RMB exchange rate 1:6.8,2 months after the exchange rate of 1:6.6, post 0.2 yuan, but suddenly reduced profit 200,000 yuan . And such an order, the total profit is about 100,000 yuan, but 34.

     In Dongguan, because Price did not run through the RMB exchange rate, eventually leading to bankruptcy of enterprises everywhere. General anti-risk ability of large plants even stronger in this, but for most small and medium enterprises in Dongguan, the exchange rate is like a sword hanging over his head, do not know when it will fall.

    One from the Wenzhou Shoe Industry Association, the analysis report is expected, due to various combination of factors, estimated at least squeeze the enterprises, especially foreign trade enterprises more than 15% of the profits. In particular, some only do foreign trade enterprises net exports, the impact of exchange rate changes it is first.

     Therefore, Jinn-Ming Wang has recently been tightly pegged to the exchange rate in the change until April that he hoped the upcoming Spring Fair orders can be as much as possible the peak of the exchange rate stable.

     Behind the mystery game

    While running the enterprise and the exchange rate, on the other side of Sino-US exchange rate also played abnormal exciting battle.

     April 5 to postpone the Obama administration, “to decide whether to China as a currency manipulator”, the United States to retreat, not work to hard to soft, in China, “dealt with gently,” the strategy, the U.S. must change its strategy to switch and take the road through friendly consultations.

    April 8 afternoon, Vice Premier Wang Qishan met in Beijing with a sudden visit of U.S. Treasury Secretary Timothy Geithner. Although the meeting did not spread between the RMB exchange rate on any express agreement, but in the outside world seems, the RMB exchange rate between the two countries has become a long-standing Sino-US game ??.

     U.S. media said the two sides met this encouraging. “This is Geithner ‘two-step’ in the second step. ‘First step’ that he postponed (Ministry of Finance’s exchange rate), now he took ‘olive branch’ meeting with China’s policy makers. It is worth noting he can get from the meeting what kind of return. “

     For Geithner and Wang Qishan on whether the meeting will bring positive results, the general view is that the two may soon be held for the Sino-US strategic economic dialogue and laying the groundwork, but not the question of what the exchange rate quickly decisions and breakthroughs.

    China’s State Information Center, Ministry of Economic Forecast chief economist, said Zhu Baoliang, April 7, China may be similar to Singapore’s exchange rate mechanism adopted to gradually increase the exchange rate flexibility, curb speculation. Zhu Baoliang said, no matter how much pressure the United States imposed on China, the Chinese do not allow the yuan to float freely, China can do is to de-link the yuan to the U.S. dollar.

    Another interesting recent news is that China’s central bank on Thursday restart the 3-year central bank issued tickets, which is from June 26, 2008 for the first time. This is a further tightening of liquidity in the signal. In addition, the tool can also hedge or occur after the revaluation of capital inflows.

    China to step up domestic monetary policy adjustment, the RMB appreciation seems to have started the risks ahead of fortification. reports Chongqing Foreign Trade Goods Fair 800 enterprises preparing for Airborne Castle

In two days, closely watched the fall 2009 exhibition and trade of goods brand clothing will be at the Chongqing Fair kicked off September 27, arrived in Chongqing Exhibitors 800 companies have been airborne in Chongqing, a large number of branded apparel and crafts have been transported arrived in the exhibition space. It is learned that, in response to the international financial crisis and the expansion of domestic market, a large number of domestic foreign trade enterprises will be at this show on the strike out, to seize the high ground south-west.

Brand Men’s Day appearance Castle

According to the organizing committee person in charge of the current General Assembly, Zhejiang, Jiangsu, Beijing, Guangdong, Fujian, Sichuan and other places a number of men’s brands has become the main force. By then, the hundred men’s enterprises will join forces at the Nanping International Convention and Exhibition Center, brand men’s section, “Shanshan, Ji North, Land Rover, Odysseus and other business men’s series will highlight solemn and atmospheric, Italy Zhou, Jin Cang Hui Jia , Jinli fox, ya love, war and other leisure record series is highlighted this year’s Men’s lightweight minimalist style. In addition, the United States Houston group also traveled in Asia for the first time the exhibition has brought unique qualities and high-tech rugged American West Fabric Men. “

Learned that the majority of enterprises are first-time exhibitors to enter the men’s market in Chongqing. During the National Day, these exhibitors will also conduct multi-site conferences and launched new business to discuss activities, while men’s shoes, holding exhibitions, fine shirt exhibition, men’s trousers exhibitions and other activities. Brand Men’s Sale At the meeting, thousands of new men will be super-low prices.

High-tech eye-catching new clothing

“The new styles and new fabrics garments will be the main features of this exhibition.” Organizing committee revealed that the current service Bo the meeting, the participating enterprises to seize the initiative have launched a new autumn and winter it competes. By then, the European version, Korean version, Hong Kong version of popular styles such as odd fighting show competition, sophisticated, and Han camp, Guangdong and other fashion schools to send a new meta-.

It is reported that this exhibition from Jiangsu bamboo fiber leisure suits, linen men from Beijing and from Hangzhou, the nano-fabric garments and other apparel will be exciting high-tech appearance, while the prices of these clothes is no different from ordinary clothing. According to statistics, the current exhibit at the Bo served up to 8000 new balance apparel, “Chongqing people can certainly Amoy to another phase because of a good and affordable clothing.”

Zero profit part of the business plan sales

To seize the opportunities the National Day, this came from Zhejiang, Shanghai, Beijing, Dalian, Guangdong and Fujian provinces and cities in 20 800 enterprises will be uncharacteristically, the opening will be launched at the Nanping International Convention and Exhibition Center, a substantial discount activities, the ones who enjoy a 30% rate up to 60%. The reason is due to the financial turmoil affecting many domestic foreign trade companies have an export, through the joining CHIC snatch the western commercial heights, it became a discount vanguard.

In addition, in order to make an inventory of resources part of the foreign men and women casual clothing, shoes, bedding, etc. even planned to sell zero profits.

How should Enterprises develop foreign trade online retail in the crisis?

At present, internet is hotter and hotter. And more and more enterprises tend to make full use of internet to get rid of crisis. But how should enterprises do to develop online retail, especially foreign trade.

As a professional online wholesale consumer electronics retailer, coming along the way of e-commerce, has its valuable experience. Here, likes to discuss several ways of enterprise developing foreign trade via internet. 

1. Search engine + enterprise website

If an enterprise wants to use this kind, the first thing it needs to do is to build its own website. After setting up the web, enterprise needs to promote the website to attract more attention from the public. Generally speaking, the common operating is taking advantage of search engine like,, etc. by SEO or purchasing relevant PPC to increase the flow of website and the better rank on the Alexa. Therefore, the orders of this model are large and medium.

2. Traditional B2B platform

It is a well-known model. As the largest B2B platform in the world, it is undoubted that many enterprises choose to cooperate with, enterprises can obtain the global resource and make use of the platform to sell products. For instance,,,, and etc. are famous and reputable B2B websites in domestic market. Unquestioned, the orders are universally big and medium.

3. Comprehensive foreign trade B2B platforms

Except for traditional B2B flatform, there are some other new foreign trade B2B platforms, such as,, etc. these kinds of websites do not supply the commodities themselves. They just allow other merchants register on the web, whose model is almost exactly same with

Furthermore, this mode has a strong potential. Nevertheless, traditional B2B websites is possible to step into the field and may post a serious impact to existing websites, if’s access. Usually, their orders are small, but small wholesale.

4. Vertical foreign trade B2B platform

For instance,,, etc. these vertical foreign trade B2B platforms’ differences from comprehensive B2B transaction platform are they don’t allow other merchants to register, but purchase products what the customers ordered voluntarily most time. They have only a little stock.

Compared to etc, these kind of websites’ prospect is relatively brighter. Of course, their orders are often small (small wholesale).

5. International retail platform

Undoubtedly, there are a great many excellent large international retail platforms like etc. these websites are very familiar to the public. They will not be introduced more here. Their orders are retail.

6. Foreign trade B2C websites

Enterprises can take advantages of,, etc. they are just pure B2C websites. For the development tendency, foreign trade B2C will surpass domestic trade B2C. They enjoy strong potential too. Their orders are retail.

To sum up, when enterprises develop foreign trade following the above ways, the later the higher profits, but the trading turnover will decrease correspondingly.