Due to the impact of the epidemic, a large number of foreign trade companies in China have fallen into the dilemma of blocked channels. The textile and apparel industry, as a pillar industry for my country’s export and foreign exchange earnings, has also become one of the industries that have been greatly affected by the epidemic.
In order to further release the potential of the domestic sales market, the state proposes to “accelerate the formation of a new development pattern with the domestic cycle as the main body and the domestic and foreign dual cycles reinforcing each other.” Allowing foreign trade products to serve the domestic market and promoting the accelerated transfer of foreign trade products to domestic sales may become an important means of relieving difficulties.
On the one hand, the domestic consumer market’s demand for high-quality products continues to increase. “Made in China”, which is accustomed to exporting, can assume the responsibility of providing domestic consumers with better products. on the other hand, because foreign trade companies have a strong sense of innovation, the ability to open up new markets and respond to changes, under the background of the epidemic, they may be able to use the production and management experience and brand maintenance accumulated in foreign trade. capabilities, etc., into strong support for the transformation to domestic sales business and better leverage its own advantages.
Recently, reporters visited a number of foreign trade companies and discussed with them their experiences in converting foreign trade to domestic sales. For many companies, switching to domestic sales has gradually become better and on the right track, but many companies have also talked about the various “acclimatization problems” encountered by foreign trade products after returning to China.
01 Switching to domestic sales, the rules of the game have changed
“What is SheIn?” “I don’t know much about it.” I believe this is still the answer of most Chinese people .
In fact, SheIn is a cross-border fast fashion company headquartered in Nanjing. In 2019, the company sold 30 billion yuan of clothing overseas, which is equivalent to about 1/7 of Zara or 2.5 H&M, it can be said that it has received great recognition in overseas markets. In the United States, SheIn’s largest market, its search volume on Google is more than three times that of Zara. But before this year, no one from China to the United States, from the media to research institutions, had reported the sudden rise of this Chinese company. Even to this day, most Chinese people still do not know the existence of this brand.
In fact, textiles that are booming in overseas markets are rarely known in China. There are many clothing companies.
For example, Shirushi, which made its debut at CHIC2020 China Clothing and Accessories Expo (Autumn), attracted the attention of reporters. The reporter observed that the brand is not only made of 100% Xinjiang long-staple cotton with high standards, but also rarely uses AAA antibacterial fabric treatment to build a health barrier for consumers. According to reports, the brand’s shirts come in as many as 61 sizes, covering most Asian male figures, and the details demonstrate the extraordinary strength of the company. After the interview, the reporter learned that the brand was founded in 2016 and is a foreign trade enterprise. However, the brand was founded mainly to serve the growing domestic market.
Although the company has quality strength that cannot be underestimated, it also encounters various difficulties in expanding the domestic market. The relevant person in charge of the company said that in terms of brand building and channel establishment, the domestic market is very different from that in foreign countries. The domestic market is not so quick to accept new brands. People still give priority to brands with stronger advertising. For young brands with high quality and high cost performance, there is a kind of confusion about “deep alleys” despite the aroma of wine. The group company behind the Shirushi brand has also made strategic adjustments in the context of this year’s epidemic. In the next few years, we will increase investment in the promotion of the Shirushi brand in the Chinese market, with a view to bringing high-quality men’s clothing “Made in China” to more Chinese consumers.
Indeed, it is not easy to convert foreign trade to domestic sales, because the “rules of the game” in domestic and foreign sales markets are very different.
For most foreign trade textile companies, foreign trade exports are mainly order-based sales. The company only needs to perform production in accordance with the requirements of the foreign contract. Domestic sales are much more complicated, including product line planning, channel development, sales team building, after-sales service… After switching to domestic sales, some companies lack market sales channels and are unfamiliar with market access, sales, settlement and other rules. This is due to the order-based production for foreign trade and the lack of relevant experience in brand building, which makes it difficult for companies to win domestic orders. It can be said that from a foundry to a brand owner, there is more than one hurdle to overcome.
At the same time, many foreign trade brands also encounter the problem of inconsistent domestic and foreign standards. Foreign trade products for domestic sales need to be adjusted and transformed in accordance with domestic standards, otherwise they cannot be sold domestically. The designs, technologies, and styles of some foreign trade products belong to foreign customers, and domestic sales require intellectual property authorization. At the same time, after foreign trade export companies switch to domestic sales, their own brands are not well-known in the market, and it is difficult to enter high-quality domestic retail channels.
<img data-preview-src=""data-preview-group="1"src="http://pic.168tex.com/Upload/News/image/2020/10/22/2020Customersize", changing the past thinking of only seeking bigger foreign trade orders, the better. The customer layout of domestic sales of products is more important than customer size. The process of developing customers is more important than obtaining orders immediately. It is more important to maintain smooth transactions with law-abiding and creditworthy customers.
Fourth, we must achieve “differentiated management”. Competition in the domestic sales market is fierce. The same product is better than the quality, the same quality is better than the features, and the same features are better than the brand. Only in this way can customers be stabilized and the consumer side of foreign trade orders be determined. The production model should be transferred to the domestic market to better stimulate domestic demand and satisfy domestic demand.
In short, export companies will undoubtedly face “pain” when switching to domestic sales. For this reason, it is recommended that companies make good use of it in the short term. Special funds for foreign economic and trade development, etc., to build a public platform for domestic sales with precise docking, give full play to the advantages of the domestic ultra-large-scale market, and promote marketable export products to open up the domestic market.
In the medium and long term, on the one hand, we need to After the market recovers, most foreign trade companies should still actively resume overseas orders, explore overseas markets, and integrate into the international cycle; on the other hand, some companies that have moved to the domestic market should work hard to practice their internal skills and fully learn from the brand building and talent accumulation of foreign partners. experience in other aspects, adapt to and guide the improvement and upgrading of domestic consumption, and cultivate dual-cycle competitive advantages.
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