Storm hits, Dongguan garment industry looks for new development land
Affected by the financial crisis, more and more garment companies are facing the crisis of reduced foreign trade orders and increased foreign trade collection risks.
On the 22nd, the reporter interviewed a number of people who originally specialized in foreign trade orders. They all said that due to the impact of the financial crisis, the company’s foreign trade orders have dropped a lot. In order to allow the company to continue to develop, they have begun to plan the future of the company. The market shifts to the domestic market. Today, more than 40 clothing companies in South Korea alone have purchased shops or office buildings in Humen Fumin Business Center to prepare for the Chinese domestic market.
Core Tips
As one of the eight pillar industries in Dongguan, the textile and garment industry has tens of thousands of garment companies in total. It has always occupied a large proportion in foreign trade exports and has its own special status and characteristics. According to customs data, exports of textiles (including clothing and textile yarn) in 2008 were US$4.66 billion, a year-on-year increase of 1.6%. However, under the impact of the financial crisis, Dongguan’s garment enterprises and garment exports are also facing severe challenges.
Faced with the severe impact of the international financial situation on Dongguan’s textile and garment industry in 2008, some experts bluntly said that expanding domestic sales is a good way. The garment industry must learn to find new cheese in the crisis.
Enterprise investigation
1. The storm is coming
Enterprises dare not take external orders easily
Jin Luling is the boss of Yulan Garment Factory, from She has been working in the American market in Korea for more than 5 years. Three years ago, due to the needs of enterprise development, she chose to open her own clothing factory in Humen.
Talking about the impact of the financial crisis on her company last year, she couldn’t help but sigh: “The financial crisis did have a certain economic impact on the company. Although the company is a regular customer in the United States, the orders they placed have There have been decreases to varying degrees, coupled with the instability of the U.S. dollar exchange rate and the greater risk of payment collection, so even if there are external orders now, I dare not take them easily.”
The domestic market attracts the attention of enterprises
Out of the need for the company’s future survival and development, she began to take a fancy to China’s domestic domestic market. A few days ago, she ordered a stall in Fumin Business Center and opened an office building, taking the first step for her company to enter the Chinese domestic market.
But Jin Luling also understands that it is not an easy task to win a place in China’s domestic sales market.
She said that there is a big difference between doing trade and doing market. “When doing foreign trade orders, the company only needs to be responsible for the production link, and does not need to think too much about product design, research and development, and market development. But if it does domestic sales, the company must not only pay attention to production, but also pay more attention to The R&D and design of products, the terminal market of the product, and even the after-sales service of the product. The main point is the R&D and design of the enterprise. The enterprise’s products must have their own characteristics and need to be constantly updated and new products are constantly launched, so that they can attract The eyeballs of consumers.”
Jin Luling believes that it is not easy to do well in the domestic market, but it is a choice she must make. Because the development of enterprises cannot stagnate, otherwise it will be more difficult to survive.
2. Looking for opportunities in crisis
Companies are increasing the proportion of domestic sales
There are many Korean bosses who think like Jin Luling, and Xu Bingxia is one of them. In 2005, he came to Humen to open his own clothing factory. He has always focused on doing foreign trade orders, and his products are mainly sold to South Korea and Japan. Since the financial turmoil last year, he realized the changing trend of foreign trade orders, so he set his sights on China’s domestic market. “This year, I have adjusted the company’s domestic and foreign sales business ratio to 50% each.”
Xu Bingxia said that to be in China’s domestic market, the company’s products must have its own brand, so he registered in China own brand. Today, he has his own brand stores in Shenzhen, Guangzhou and Shanghai. Now, he has spent a huge amount of money to purchase two stalls in Fumin Business Center, and plans to build the stall into a logo store, making it a window for brand external promotion.
Creating brands to compete for the domestic market
Liu Jianwen is the general manager of W&B Wenbang (Hong Kong) Industrial Co., Ltd. In 2001, he began to enter the clothing industry, mainly selling his clothing products to Japan, South Korea and some Southeast Asian countries. . After the financial crisis, his company’s foreign trade orders dropped by 25%, which made him feel the pressure of corporate development.
“Last year, the ratio of the company’s export sales to domestic sales was 8:2, but this year, due to the decrease in orders, the company plans to make major adjustments, and the ratio of export sales to domestic sales is adjusted to 5:5. At present, the company has officially gone to the industrial and commercial department Register your own clothing brand.” Liu Jianwen said with a smile.
When talking about the difference between doing export sales and making his own brand, Liu Jianwen seemed more confident, “In the past, more than 60% of the products for external orders were developed by our own company. Because of this, the company has considerable experience in product development. Confidence.”
Product adaptability determines the market
Liu Jianwen said that the biggest difference between doing domestic market and foreign market is the adaptability of products.
Originally engaged in export sales, company developmentThe product must be suitable for the needs of the consumers where the product is sold. Nowadays, companies must not only develop products that meet the needs of consumers in export markets, but also develop products that meet the needs of domestic consumers. To this end, the company hired two fashion designers with high salaries who have a good understanding of the domestic market to design and develop related products for domestic consumers.
There is one more thing to do well in the domestic market, and that is the development and occupation of the market. Liu Jianwen also has his own thoughts on this: “For the development of the mainland market, the company must develop it in stages, and it cannot be achieved overnight. The goal this year is to allow the clothing produced by the company to have a certain share in the mainland market. The next step is Produce related matching products and gradually transform the general agent system into a franchise chain.”
3. Consider both internal and external
Domestic sales while not losing sight of foreign markets
“Starting from 2008, export foreign trade It’s not easy to do, so starting from the second half of last year, I set my goal in the domestic market and sold both domestic and foreign markets. But judging from the current situation, domestic sales are much better than export sales. Although the profits earned from domestic sales are not as much as from export sales. It’s high, but it’s better than nothing.” Xia Jingzhi, who has been engaged in clothing foreign trade in Dongguan for ten years, said with a smile while sorting out the orders on his desk.
Xia Jingzhi said that he could earn two to three million yuan a year by taking orders from abroad and finding factories for processing, but now there are very few orders from abroad. Later, he tried to switch to the domestic market because a colleague came to him and said that there were also factories in China that placed orders and hoped that he could help contact the factories for processing. “I just placed an order for 100,000 pieces this month, and now I just have to find a factory.”
Xia Jingzhi said that switching to domestic sales is a good way. Many foreign trade companies have been transforming since last year, but companies are also Foreign markets will be lost. Because foreign markets are still the main battlefield, switching to domestic sales is only temporary from his point of view.
Domestic sales are being tested
Export clothing is priced but not branded in shopping malls and supermarkets are not very enthusiastic
Whether it is a foreign trade company or a clothing company, facing this financial crisis, they are all thinking about ways to deal with it. Especially for some companies with overstocked inventory, how they should digest the inventory is also a big problem.
Anyone who is engaged in foreign trade knows that foreign trade clothing is generally only exported and rarely sold in the mainland. However, times have changed and when the economy is not optimistic, domestic sales are also the only channel they can choose. The best choice is domestic large-scale comprehensive shopping malls and large supermarkets.
However, many large shopping malls and supermarkets have said that export clothing has a price but no brand, which makes it difficult to occupy the favorable domestic consumer market.
Shopping malls: Export clothing needs to establish a brand
Wang Ruifen, manager of the public relations department of a large supermarket in Dongguan, said that they have recently contacted some foreign trade companies for clothing, but many of them are OEM, and these foreign trade companies are not familiar with the supermarket’s business model. , due to their unfamiliarity with the mainland market, this is a problem they need to improve during their transformation.
Wang Wei, marketing director of Tianhe Department Store, also said that export-oriented clothing companies have recently contacted them for negotiations, but they also have their own concerns. First of all, export-oriented clothing has no advantage in branding, and what they want to enter the mall is brand effect. , if a garment enters a shopping mall and does not receive good results, all previous efforts will be wasted. Therefore, if export-oriented clothing wants to achieve good results in the mainland market, the first task is to build its own brand.
Regarding Wang Wei’s statement, Wu Qi, the planning director of the Rainbow Shopping Mall Planning Department, also agreed.
She said that they have not yet had foreign trade clothing companies come to negotiate. If there are companies that come to negotiate, they will consider it, but they will also make an evaluation from the perspective of brand awareness, market performance, etc., and will not introduce them at will. A brand with no visibility.
Wang Ruifen said that export-oriented companies do not understand the supply and demand situation in supermarkets and hypermarkets. The retail industry has to accept returns, which is different at home and abroad. This is something that some domestic sales-oriented companies need to improve. She also said that a large supermarket also welcomed such suppliers.
She believes that it is not a long-term business strategy for clothing companies to switch to domestic sales. During this time, suppliers are trying to transform and adjust their strategies. If they can successfully transform and survive this transition period, they can survive.
The lack of domestic sales network is the core problem
In fact, starting from the second half of 2008, the country has introduced a foreign trade response strategy of converting exports to domestic sales, and the General Administration of Customs has also issued corresponding support policies, which is Processing trade enterprises play a great role in supporting export products when they are converted into domestic sales.
Pan Rihui, secretary-general of the Dongguan Textile and Garment Industry Association, said that the implementation of this policy will greatly reduce the financial liquidity of enterprises, which will have practical and positive significance for enterprises to switch to domestic sales, especially for large numbers of small and medium-sized enterprises. .
However, he also pointed out that the lack of domestic sales network is the core problem for Hong Kong-funded processing trade enterprises due to their lack of understanding of the domestic market. This is also the threshold for processing trade enterprises to expand domestic sales. AAFSGRETEGSDFW
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