Foreign Trade Small Business Collective Electricity Supplier Can Not Survive Without Turning

"Profits are squeezed very seriously. If we do not pform, we simply can not survive."

Zhang Xinhai, the head of a household electrical appliance company in Hebei, told reporters recently that they have been increasing investment in research and development in recent years and squeezing the production lines of foundries. Last month, their export volume increased by 20%.

After twenty or thirty years of rapid growth, the "growth rate" is emerging as a new word under the new normal situation of foreign trade.

Many foreign trade enterprises face all kinds of difficulties, but there seems to be only one way before them: pformation.

Reporters interviewed found that almost all foreign trade enterprises are faced with the challenges of survival: external demand is not stable, and internal labor costs continue to rise.

Among them, SMEs are especially strong.

So where is the direction of pformation? Is it a way out to make electricity suppliers?

Difficult pformation

After bidding farewell to the golden age, China's foreign trade enterprises have to find new growth points in the small profits era, bid farewell to past pure price competition and win by volume.

According to Zhang Xinhai, the profit of foundry is getting lower and lower, and the cost of labor is higher and higher.

As early as 4 years ago, the company began to increase the cost of R & D, and after several years of exploration, it gradually allowed the operation of enterprises to go to the formal level.

"The replacement of electrical appliances is very fast, so we have to develop new products to get customers' favor."

Zhang Xinhai told reporters that every time the new product entered the market, it could bring more profits and orders to him.

"Innovation can optimize the use experience of products, and it can also become more attractive and enhance the market competitiveness and added value of products."

Zhang Xinhai said that once China made cheap labor force to become the "world factory", now it is hard to compete only by manufacturing in the international market, and innovation is the way to survive.

In fact, brand, innovation and internationalization are the short staple for Chinese foreign trade enterprises.

IPhone is assembled in China, but China accounts for less than 5% of its profits. Most of the profits are attributed to brands in the US, as well as hi-tech component manufacturers in Korea and Japan.

What is even more worrying is that meager profits are eroding by rising costs, and orders are decreasing and confidence is decreasing.

Reporters in the visit found that under multiple pressures, more and more foreign trade enterprises embarked on the road of pformation and upgrading.

Some enterprises choose to conform to the trend and promote industrial pfer.

A company in Cixi chose to set up factories in Vietnam, but put the core mold and parts manufacturing in Cixi, and Vietnam took the task of assembling.

This has become the path choice of many foreign manufacturing enterprises in Zhejiang.

"The days when we can easily do foreign trade have already passed, and we have to make efforts to pform it before we have a way out."

Xu Yuhong, the export manager of the company, told reporters that the company invested and built factories in Vietnam in 2013, and its annual sales volume exceeded 5 million yuan.

Tan Yaxian, President of Guangzhou textile industry and trade group, told reporters: "our plan is to consolidate the low profit margins of OEM (OEM), and strive to make ODM (original design and manufacture) and develop its own brand (OBM).

The three roads should be combined to give the old industry new vitality.

The effect of this initiative is obvious. In 2013, when the international economic situation was low, the export volume of the group exceeded 1 billion 500 million dollars, an increase of about 22% over the same period last year.

"Industry is hard to do."

Hong Ge is the head of a small garment enterprise. He has been making a living out of clothing exports and earned a lot of money 10 years ago. But in recent years, the economy has been in bad condition and all of them have been lost.

"We are a small garment factory. Transformation and upgrading is a dead end for me."

Hong Ge told reporters that he could only passively accept the rising cost of labor and raw materials in the foreign trade industry.

The emergence of cross-border electricity providers gave Hong Ge hope that Hong Kong's factories now have nearly 300 thousand yuan of export volume per month, of which 30% come from Internet channel sales, and this proportion is still rising.

Hong Ge told reporters that in eBay, speed sell and Dunhuang network and other platforms, his store sales were good.

Speaking of the competitiveness of cross-border electricity providers, Hong Ge thinks that the main advantage is the price advantage made in China: "for example, American clothing manufacturers, most of the products they sell are from China, and they have to go through several intermediaries, and we can directly send them to customers through eBay and other platforms, with appropriate profits, and save the cost of middlemen."

"After the opening of the Internet sales channel, it completely changed the order that the order was started and the order was stopped."

Wang Guodong is the head of a leather bag manufacturing company in Dongguan. The former order production mode made him face unprecedented pressure.

"External demand is unstable, and orders are sometimes absent."

Wang Guodong told reporters that in the context of shrinking profits, he still had dozens of workers, which made him "almost impossible to sustain."

"The sales of Internet channels are very stable, and the profits are more."

Talking about the benefits brought by the Internet to his own business, Wang Guodong told reporters happily that even some new market customers began to place orders from the Internet.

EBay group recently released "business 3.0: to enable Chinese enterprises to sail away". The "business 3 era" has opened up a new trend of online and offline pactions, local and global market penetration, integration and development, providing effective shortcuts for China's foreign trade SMEs to provide pformation and upgrading.

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The trading platform reduces the threshold of trade.

Lin Yizhang, vice president of global eBay and chief executive officer of Greater China, told reporters that traditional trade, especially export trade, is usually dominated by a few large companies and large enterprises.

However, e-commerce has made cross-border trade easier and the global trade is no longer so remote. It is not only large enterprises that can participate in this complex cross-border trade.

Today, every business, and even individuals, can engage in cross-border trade.

The biggest difference between cross-border pactions and local pactions is geographical distance.

The study found that the increase in geographical distance increased by 10%, and the average global traditional trade decreased by 18.4%.

Online trade only reduced by 3.1%, while online trade was less sensitive to geographical distance.

Lin Yizhang said that eBay commercial sellers in mainland China were exported to 63 countries on average, while the average export destination market of Chinese traditional export enterprises was only 7.

Shen Danyang, a spokesman for the Ministry of Commerce, said at a regular press conference in September that cross-border e-commerce is a new trend in international trade in recent years, and an effective way to expand overseas marketing channels, enhance the competitiveness of Chinese brands and achieve the pformation and upgrading of China's foreign trade.