it is difficult for some foreign trade enterprises to "return" without making money

出海易/ 2022-05-11

a reporter from the Economic Information Daily recently visited key coastal foreign trade areas such as Shanghai, Zhejiang, Jiangsu, Fujian and Guangdong. He learned that since the occurrence of the COVID-19, the export to domestic sales through e-commerce has been booming, becoming an important starting point for foreign trade enterprises to cope with the decline in overseas market demand. However, restricted by the short board of sales channels and talent teams, many foreign trade enterprises have difficulties in transformation, and the phenomenon of "only making fun but not making money" is prominent when some enterprises switch from export to domestic sales

the blowout of "domestic sales" in e-commerce channels

in the face of the continued weakness of consumption in overseas markets, many governments encourage and guide foreign trade enterprises to switch to domestic sales and stabilize the basic market of foreign trade

Jiangsu Provincial Department of Commerce recently held 22 online exhibitions, covering major industries of Jiangsu's foreign trade and export, two of which were export to domestic exhibitions. Zhao Jianjun, director of Jiangsu Provincial Department of Commerce, said that he hoped to guide and help foreign trade enterprises to expand channels, sell inventory and stabilize operation in the domestic market through relevant activities

in order to solve the problems of many batches of domestic goods, urgent shipment and high financial pressure, Guangzhou Customs implements centralized taxation for domestic sales, allows pilot enterprises to sell domestic processing trade goods first, and then handle the tax payment procedures intensively, and extends the taxation time limit to before the 15th of the next month. From the previous "tax before shipment" to "tax before shipment", which won time for processing trade enterprises to expand the domestic market

it is understood that e-commerce has become one of the main channels for foreign trade enterprises to switch to domestic sales

in Quanzhou Shishi, Jinjiang and other foreign trade clusters, many large live broadcasting bases have been established, and relying on local advantageous industries to cultivate "online Red economy". The reporter of economic information daily saw in Shishi QingChuang city that the live broadcasting room was full of shoes, clothing and other locally made products, and many network anchors kept selling to mobile phones, with a warm atmosphere. The city's Yuantong express company built an automatic sorting system in May, which can handle 1.1 million Express items in 24 hours. Chen Xianxiang, the person in charge of the company, said that the delivery volume in May increased by 40% over the same period last year, just like the "double 11" every day

Guangdong Province has formed an online popularity cultivation system of "government guidance, enterprise operation and leading role of online popularity", giving birth to a number of online popularity live broadcasting parks and bases. Guangzhou proposes to build a "capital of live broadcasting e-commerce". Wang Xianqing, President of the Guangdong Institute of business economics, said that with the strong promotion of the local government, associations and enterprises, the live webcast with goods has effectively promoted the transfer of export products to domestic sales

there are many barriers to switching to domestic demand, which raises doubts

foreign trade enterprises are generally optimistic about the domestic market potential under export pressure, but many enterprises are full of doubts about how to switch to domestic sales due to lack of domestic sales channels, talent team and market awareness

Zhejiang meizhiyuan Cosmetics Co., Ltd. mainly produces perfume, and 90% of its products are exported abroad. Chenzhenzhen, foreign trade manager of the company, said that meizhiyuan has been working hard to develop the domestic market in the past two years, but perfume is not a mainstream cosmetic product in line with the consumption habits of Chinese people, and the development effect is limited. It is seeking other ways to expand domestic sales

Jinjiang, Fujian is the main swimsuit production base in China, of which 80% of the products are exported overseas. Shi Fangfang, full-time Deputy Secretary General of Jinjiang swimsuit Industry Association, said that the transfer of foreign trade enterprises to domestic sales involves the switching of production standards and consumption habits at home and abroad, the integration of industrial chains and other issues, which is difficult to turn over in a short time. Taking swimsuit products as an example, it is necessary for Europeans and Americans to wear swimsuit and bask in the sun in their daily life, but there is no such demand in China

<span bdsfid="83"class="bjh-p> foreign trade enterprises are generally factories. In the past, they were only engaged in the intermediate link of production, which means that enterprises are very unfamiliar with the link from factory to consumer." Chen Zheng, general manager of Shanghai xinlianfang import and Export Co., Ltd., one of China's top 100 export enterprises, said that most foreign trade factories have little contact with brands, pricing and channels. It is very difficult to learn from scratch. Moreover, there are many soft thresholds in the domestic market. Enterprises need to pay "tuition fees" to switch to domestic sales, and the cost of trial and error is relatively high, which makes foreign trade enterprises full of doubts about switching to domestic sales

"Economic Information Daily" reporter's investigation also found that more foreign trade enterprises only temporarily dump inventory through domestic sales. Due to the lack of brand power and sales channels in China, they can only rely on the e-commerce platform to sell products at a low price by means of "the lowest price in the whole network". Chen Xianxiang said that one of their foreign trade enterprise customers recently sold 6 million clothes at the price of 2 million yuan through e-commerce, equivalent to one yuan for three clothes. Other customers had participated in the online promotion activities on Mother's day. A steel brush costs 5.28 yuan, and one loses 80 cents

the person in charge of a number of manufacturing enterprises interviewed said that the e-commerce platforms with obvious drainage effects are basically in the hands of "Alibaba system", "Tencent system" and "headline system". These e-commerce platforms have high intermediate costs and greatly squeeze the profit space of enterprises, resulting in many foreign trade enterprises "only making fun but not making money" after they are sold domestically

guide high-quality enterprises to "transfer outside to inside"

Wang Xinkui, chairman of Shanghai World Trade Organization affairs consulting center, suggested to improve the methods of "export to domestic sales" and "OEM to self support" to support high-quality enterprises to turn to the domestic market

<under the influence of the epidemic, consumption in overseas markets is weak, and there is a demand to turn to the domestic market in various fields of foreign trade, from manufacturing to services, mainly to disperse business risks."wang xianqing said

many respondents suggested to strengthen the "demand side" reform and strive to improve the consumption capacity of the domestic market. Wang Xinkui suggested that we should continue to promote the construction of rural e-commerce and rural logistics system, make up for the shortcomings of rural infrastructure, increase the consumption capacity and consumption convenience in rural areas, and accelerate the formation of a new development pattern dominated by the domestic cycle and mutually promoted by the domestic and international cycles

Ding Shizhong, chairman of the board of directors and CEO of Anta Group, suggested to gradually increase the disposable income of medium and long-term residents and families and promote consumption recovery by issuing cash consumption vouchers to low-income families. We can also further reduce the burden on small and medium-sized enterprises by allowing enterprises with phased production and operation difficulties caused by the epidemic to delay paying social insurance premiums and financial and industrial support, so as to enhance the income level and consumption capacity of low - and middle-income groups in the medium and long term

at the same time, further optimize the access threshold for domestic sales. Taking the medical device industry as an example, the person in charge of a large medical device OEM enterprise in Shanghai said that domestic medical devices are required to be produced by the brand side, which makes many foreign trade enterprises unable to transfer to the domestic market. Some regions are piloting the medical device registrant system, which solves this problem to a great extent. It is suggested to sort out and optimize the different access rules for domestic and foreign trade nationwide, so as to facilitate foreign trade enterprises to open the domestic market

in addition, a number of enterprises reported that the accounting period of foreign trade enterprises was generally extended for more than three months and faced large financing demand in the short term, but new loans still faced many "glass doors". For example, "stable post loan", banks generally require not only the flow of asset guarantee, but also the signatures of all shareholders of the enterprise to bear joint and several liability. Many respondents suggested that the "negative list" system for policy loans could be considered

(this article was written by reporters Tai Xiaoan, Qu Lingyan, Sun Fei, Ding Le, Zhou Rui and Liu Weiwei)

source: economic reference daily

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