"New Domestic Products" Brand Accelerates Rise in Epidemic Era after Economic Survey
After the epidemic is over, many foreign trade companies will adopt the two-legged approach of foreign trade and domestic sales. At the same time of self-rescue, they are intensifying the construction of their own brands and joining the "Express" of the e-commerce platform to speed up the rise of the "New Domestic Products" brand and promote the upgrading of domestic consumption.
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After returning to work for a month, the difficulty has changed from "lack of people" to "lack of jobs". Like many foreign trade companies, Ningbo Ruifu Industrial Group first rushed to rush foreign trade orders, but encountered difficulties in resuming work; when the rate of resumption of work rose, the export order disappeared with the global outbreak of the new crown pneumonia ...
Faced with this situation, many governments have introduced measures to stabilize foreign trade and boost business confidence. In addition to grasping the policy dividends, enterprises are also actively "self-help". While stabilizing foreign markets, they are using the e-commerce platform to actively carry out digital transformation, and export to domestic sales has become an important player.
Orders affected in the first two quarters actively launched "self-help"
The products of Ningbo Ruifu Industrial Group cover many fields such as hairdressing tools and baby products, and the company's foreign trade business accounts for 95%. According to Sun Gongle, deputy general manager of Huafu Import and Export Co., Ltd., on February 10th, when the work resumed, the employee arrival rate was less than 20%, and there was no work to do; in mid-March, almost all the staff arrived. The international epidemic situation has changed, and foreign trade orders have been delayed or cancelled. "Someone is dead."
"Equivalent to the first two quarters of orders are almost gone." Sun Gongle said that the company from order to delivery, the interval is about 2 months, orders received during the Spring Festival will be delivered in March-April. With the exception of baby products, almost all orders have been cancelled. According to the original plan, orders for May to June should be taken in March, and currently there are very few new orders. At this stage, the company's production capacity is only about one third of the same period last year. In fact, the experience of Ruifu is just a microcosm of many foreign trade companies.
In the face of this situation, many governments have issued a number of policies to stabilize foreign trade, not only to reduce tax and burden for enterprises, but also provide financial support, and continue to optimize the business environment and reduce business risks. Among them, Zhejiang has introduced a number of “hard core” measures to stabilize foreign trade. For example, Ningbo has released a foreign trade version of “12 Benefiting Enterprises” to implement government, financial, and foreign trade enterprise linkages; Guangdong has also launched a “combination punch” to stabilize foreign trade; Fujian has introduced Measures to stabilize foreign trade and foreign investment to promote consumption.
At the same time, foreign trade companies are also actively carrying out "self-help". On the one hand, while maintaining the original customers, continue to expand the international market with less epidemic situation and spread the pressure. According to the statistics of the General Administration of Customs, from January to February, the total value of imports and exports of China's goods trade was 4.12 trillion yuan, a year-on-year decrease of 9.6%. The trade deficit was 42.59 billion yuan, compared with a surplus of 293.48 billion yuan in the same period last year. Among them, imports and exports to the European Union, the United States, and Japan declined, but imports and exports to ASEAN and the countries along the “Belt and Road” increased against the trend. On the other hand, under the epidemic situation, some cross-border e-commerce businesses have not declined but have risen. Enterprises can use the cross-border e-commerce platform to go out.
Many companies see the potential of the domestic market and begin to export to domestic sales. The first is to adjust the product structure or to develop new products suitable for domestic sales; the second is to readjust the product pricing; the third is to accelerate offline promotion and layout; the fourth is to expand online promotion and sales channels, and to fight with Duoduo, Taobao, Jingdong and other power companies Business platform for in-depth cooperation.
Focus on the domestic market to promote the rise of new domestic brands
The expansion of offline channels is blocked, the brand establishment process is long, the online channels are developed, and digital transformation has become an important driver for some foreign trade companies to export to domestic sales. However, for some foreign trade companies, opportunities and challenges coexist.
However, some foreign trade companies, as "newbies" in the domestic market, inevitably "run into the wall" in the process of transferring domestic sales. For example, the products do not meet the aesthetics or over-priced of domestic consumers; lack of domestic brands or lack of awareness of domestic brands; insufficient understanding of the domestic consumer market, lack of talent teams dedicated to the domestic market, etc.
In response to these problems, some regional governments have taken the lead in strengthening in-depth cooperation between enterprises and e-commerce platforms. "How to realize the transformation from foreign sales to domestic sales through the new online model is the key for enterprises to seek opportunities in crisis and turn crisis into opportunities." Li Guanding, deputy mayor of Ningbo, said that as a large foreign trade city, Ningbo has more than 33,000 foreign trade enterprises. . At present, foreign trade companies have an urgent need to speed up the export to domestic sales and deepen the sinking of the market, and e-commerce platforms such as Pinduoduo and Taobao have a wide range of users, which can not only help foreign trade companies expand their sales, but also help cultivate the "new domestic products" brand .
On March 25, Ningbo and Pinduoduo signed a strategic cooperation agreement to help companies expand orders, stabilize production capacity, and promote export-oriented capacity to domestic demand. It is estimated that in the next year, more than 15,000 Ningbo enterprises will participate in the activity, which is expected to drive local enterprises to achieve over 20 billion yuan in orders from foreign trade to domestic demand.
Yongduo, vice president of Pinduoduo, said that the cooperation with Ningbo on the one hand will start the "Ningbo Goods Museum", introduce more Ningbo brands and industrial belt companies, and accelerate consumption recovery. On the other hand, the "New Brand Plan" will be accelerated to help physical enterprises cultivate brands at the lowest cost, and jointly develop and manufacture products for consumers that best meet market needs.
"Sanhe's kitchenware is sold to more than 100 countries and has 93 invention patents for cooking utensils. However, it has always been difficult to create its own brand and develop the domestic demand market." Chairman Fang Cheng of Sanhe said that when he turned to domestic sales, he faced opening Offline channel costs are high, international brands in the main field of products dominate, and brand training is difficult.
At the end of 2018, Sanhe joined Pinduoduo's "New Brand Plan". With the support of big data from e-commerce, with the C2M (Customer Direct Connected Manufacturing) model, the production, R & D, and market development models of enterprise products have changed. The factory can conduct R & D and production in accordance with online demand in a timely manner, shortening the product development cycle. In half, operating and marketing costs have also been significantly reduced.
Foreign trade companies have leveraged e-commerce platforms to release new momentum and find new growth points. Fang Cheng said that the daily sales of the flagship store of Sanhe Pinduoduo has reached a growth rate of more than 100% from mid to late February. It is expected that the sales in 2020 will exceed 40 million yuan. Relying on high-quality and good-priced products, Sanhe has also rapidly developed into a representative brand of domestic "new domestic products".
High-quality foreign trade products have also reached the sinking market through e-commerce platforms to promote consumption upgrades. Among them, Sanhe specially developed a pot for the e-commerce platform with a price of 99 yuan, and products of the same quality in Europe and the United States cost 99 dollars, and consumers can buy good products at low prices.
Li Guanding believes that this time, the closer strategic cooperation with the e-commerce platform is to make full use of Ningbo's manufacturing advantages and e-commerce platform advantages to promote the rise of new domestic products. In the future, it will further strengthen cooperation with other e-commerce platforms to promote the revitalization of manufacturing through consumption.
On March 26, the Zhejiang Provincial Department of Commerce held a cloud docking event in Hangzhou, focusing on domestic market development and promoting the upgrading of foreign trade companies, to help foreign trade companies understand the way e-commerce operates. At the same time, online, more than 800 foreign trade companies have connected online with e-commerce platform companies such as Tmall, 1688, Koala Purchasing, and Netease Yanxuan.
Alibaba's purchasing and wholesale platform 1688 factory Cargo Direct factory head of the factory said that the e-commerce platform will support foreign trade companies from basic commodity operations to marketing planning, and use the live air outlet to help companies "breakthrough online ". At present, live broadcasts have been held in Quanzhou and Dongguan, and some companies have achieved a shift from being cancelled orders to increasing sales.
Every minute must be laid out in the "post-epidemic era"
At present, due to the uncertainty of the duration of the international epidemic, some enterprises have been focusing on the post-epidemic era while actively carrying out "self-rescue" in the second half of the epidemic.
In terms of short-term impact, compared with 2008, the impact on enterprises this year has been much more severe. Sun Gongle said that in the global financial crisis in 2008, the foreign trade industry "shuffled" to a certain extent, and a number of foreign trade companies fell. One year later, a number of foreign trade companies also ushered in rapid growth. Ruifu is one of them. In 2009, the fastest growth year since its establishment.
"Under the epidemic, foreign trade companies have been impacted. In the short term, it is 'negative', but in the long term, it is 'good'." Sun Gongle believes that due to the impact of the epidemic, some companies may fall. It is a relatively competitive company. After the epidemic, some enterprises will usher in new development opportunities.
Enterprises have begun to post-epidemic era. At present, although some foreign customers delay delivery or cancel orders, foreign trade companies still need to maintain frequent communication with foreign companies to keep abreast of foreign conditions. Once the international market recovers, make advance preparations and respond in a timely manner.
At present, the impact of enterprises is temporary and phased. Fang Cheng said that as an enterprise with both foreign trade and domestic sales, the most important thing is how to safely and orderly resume work and resume production, and fully restore production capacity; at the same time, grasp the latest market trends and the fission of customers and consumer groups after the epidemic Dynamic, cut into the market supply and demand model in the "post-epidemic period", grasp the acquisition rate and completion rate of export orders in one hand, and quickly and effectively pull the domestic demand market in one hand.
"Our brand awareness is stronger." A number of companies said in an interview with reporters from China Youth Daily and China Youth Daily that the epidemic made them aware of the importance of cultivating independent brands, whether it is Ruifu or Sanhe, Will increase the intensity of independent brand building, and join the "express train" of the e-commerce platform to accelerate the rise of the "new domestic products" brand and promote domestic consumption upgrades.
After the epidemic is over, many foreign trade companies will adopt the two-legged approach of foreign trade and domestic sales. In order to enhance the competitiveness of enterprises, especially to avoid the risks caused by international instability factors to foreign trade, we will pay more attention to domestic sales and put in-depth expansion of domestic business on the agenda.
China Youth Daily · China Youth Daily trainee reporter Zhao Limei Source: China Youth Daily