On March 18, IKEA announced the closure of stores in nine countries, including Spain, Italy, Germany, the United States and Canada.
On March 21, Zara parent company and Spanish fast fashion brand Inditex closed 39 stores worldwide 3785 stores in countries and regions. Among them, all stores of Inditex’s brands in Spain have been closed.
On March 23, US consumer electronics retailer Best Buy announced that it would close all stores.
11 suggestions for foreign traders (may be useful)
01 No deposit, no negotiation
No negotiation even if you don’t place the order, otherwise the customer can easily cancel or postpone it, and there will be a pile of raw materials, a pile of semi-finished products, and a pile of finished products, resulting in a passive situation. .
Of course, except for the rich.
02 If you have a deposit, increase the proportion of the deposit, of course the full amount is best
A little more protection is still needed. The most terrifying thing is that I feel that I am short of orders. I dare to accept any order, and the ending is like the first one.
03 No need to discuss letter of credit payment
Article 36 of UCP600, Force Majeure, the Bank will not be responsible for the consequences of business interruption due to acts of God, riots, riots, rebellions, wars, acts of terrorism or any strikes, lockouts or any other causes beyond its control.
When banks resume business, letters of credit that have expired during the business interruption period will no longer be honored or negotiated.
Of course, this is an extreme situation. There may have never been a country closure or shutdown due to the impact of the epidemic before. No one dares to say how serious it will be this time. , so be cautious.
You must know that the China Council for the Promotion of International Trade and the China Chamber of International Commerce have stated that the new coronavirus pneumonia is a force majeure and can issue a factual certificate of force majeure. Foreign countries are not stupid, so why can’t they copy them? If you don’t agree, then go to arbitration. How many people can bear the delay?
Please see the operating procedures:
If the international trade contract cannot be performed due to the epidemic, the China Council for the Promotion of International Trade will help you with this certificate!
Good news! The Council for the Promotion of International Trade’s factual proof of force majeure related to the new crown epidemic will be processed free of charge from now on
04 Factory procurement of raw materials should be as small as possible and frequent as possible
If there is an order that must be made, follow the above pattern.
Even if the price is a little higher.
Of course, if you have money on hand and the opportunity arises to buy at the bottom, you might as well take action, because orders will always be restored.
After recovery, it may be the time when low-priced raw materials come into play: rush for orders!
05 Conduct a comprehensive evaluation of your old customers
Old customers The ability to perform contracts, willingness to perform contracts, and ability to resist risks must be clearly understood.
Because at this time you may have an opportunity to buck the trend: some old customers have deep foundations, and while other small and medium-sized competitors are waiting and watching, they may be occupying the market. Because it is impossible to have no demand at all.
If you know the old customers very well and are trustworthy, you can exclude 1234 points.
Some customers have already received such orders.
06 The two contracts must be formal
One is an export contract , one is a purchase contract.
For procurement contracts, please find a Chinese lawyer to draft and optimize them. For export contracts, please try to find a lawyer in the country where the customer is located to optimize them.
You can find these people on freelance platforms such as upwork.
07 Maintain good communication with customers
Don’t worry about short time If you don’t have an order, don’t do the necessary tracking work. This is definitely not the time to always ask for an order.
It’s a good time to give up on the original way of only asking about the status of the order and samples. What’s going on, why there’s no news about the order, etc. Low-level follow-up behavior.
How to track? Transfer value!
08 The supply chain is still very critical
When a customer suddenly When canceling or postponing an order, support from the supply chain is very critical, otherwise it will become a sandwich cookie:
Customers don’t want the goods, which means they don’t pay. Suppliers spend every day Following behind to collect debts, at that time, it was really crazy.
Some companies have already done some work in these areas, and at least suppliers can survive the most difficult months with them.
Therefore, companies with poor supply chain management capabilities will also show their true colors in this wave.
09 If you want to accept it, try to accept standardized orders
Some industries It can be done, but of course it cannot be done in some industries.
If full payment is not possible, try to accept as many standardized orders as possible, so that if the customer wants to cancel or postpone, the company can still find a way to deal with it.
For example, open a 1688 account and sell slowly. Although Amazon has freed up FBA space for daily necessities and medical supplies, there are still some who use their own warehouses or third-party stores. Three-party overseas warehouses serve as B2C merchants.
10 Do a good job in team stability maintenance
If the order is canceled or postponed The climax is slowly coming, the fluctuations within the company must be great, and the boss must be very worried.
The double squeeze of the market and supply chain will amplify many things within the company, especially someLong-term accumulation of negative emotions.
The factory is in a bit of trouble. If there are really no orders, the workers will have to be raised. If not, they will leave. If they leave, they will need to recruit again to restart production. Plan it yourself to avoid it. Panic.
11 You can try overseas warehouses in small quantities (recommended)
Standard If there is any product in stock, you can try the overseas warehouse.
If the epidemic worsens, international logistics may stagnate. This will be a chain reaction. The volume of cargo will decrease, and the shipping companies’ ships will stop sailing. Perhaps this can create some new ones. Chance.
Just like the above analysis, this wave of cancellations or postponements of orders are all middlemen. Their prediction of the market is downward, but a downward trend does not mean that there is no such thing. There is always a need Consumption…
Maybe this is an opportunity. </p
