Experts' advice 丨 If there is a decrease in orders from foreign trade companies, what should I do? Is it feasible to walk on both domestic and international legs?

Starting from March 12, CCTV New Media launched a live streaming series of live streaming of financial cloud. March was the "golden month" of the foreign trade industry. However, with the outbreak of the global epidemic, many countries have adopted measures to seal and seal borders. A large number of cross-border transportation has stalled, and some domestic manufacturers' foreign trade orders have suddenly dropped or even canceled.

What is the current status of foreign trade enterprises? Where is the way out for foreign trade enterprises? How to solve the dilemma of the global supply chain? CCTV Finance Cloud Live Broadcasting, host Zhang Lin connects the financial media person and Qin Shuo, the promoter of Qinshuo Circle of Friends, to share the latest industry research observations →

What are the foreign trade industries most affected by the epidemic?

Qin Shuo: Almost 60% of the total value of China ’s exports now is highly related to the electronic machinery category. This category is now being hit hard because many of its components are globally configured. Many parts can't come in now and can't be produced.

In addition, the second category is China's export of clothing, textiles, toys, shoes and clothing, etc. For example, there were the European Cup and the Tokyo Olympics. A large number of mascot toys and matching gifts are China's strengths, including accessories, and now they have stopped.

But on the other hand, there are also very hot industries, such as those related to medical supplies, such as masks, hand sanitizer, disinfectant, goggles, protective clothing and other medical protective materials. In addition, some started earlier in cross-border e-commerce, with overseas warehouses overseas, and goods already overseas, which are relatively good.

Can foreign trade enterprises properly transform and turn to the domestic market, walking on both domestic and international legs?

Qin Shuo said that how export companies develop domestic demand markets and walk on two legs, he thinks this is a big direction, but it is also very difficult. Because the competition in the Chinese market is fiercer than exports, the internal market price wars, channel wars, billing issues, and the domestic market are changing very fast. Can you enter a market where the price war is brutal and rapidly changing? For example, to establish channels, advertise, and social media. In addition, can domestic consumption levels and acceptable prices match?

The e-commerce economy is booming in the domestic market. Can foreign trade companies take advantage of e-commerce economic transformation?

Qin Shuo: In the past, many foreign trade export-oriented enterprises were foundry enterprises, without their own brands. In recent years, creating a brand of its own and using an international e-commerce platform to build its own brand is a highlight of China's foreign trade export companies.

China's e-commerce now accounts for a higher and higher economy, and the digital economy accounts for almost one-third of the economy. Using domestic e-commerce platforms is actually a good direction, and many people are accustomed to this outbreak. Local governments are now acting to help, seeing local government subsidies and profit-making in Ningbo to help companies connect with e-commerce.

Is it too late for foreign trade enterprises that have been doing foundries to start building their own brands?

Qin Shuo: Judging from the characteristics of China's consumer groups, China's population born after 1990 is now over 400 million. The younger generation, the post-80s, the post-90s, especially the post-90s, have a high degree of acceptance of new things and new brands. Due to the new consumer class, their consumption preferences are constantly changing, which brings great opportunities to new products with attractive values, low prices, and Internet features. I used to think that the status of old brands is unshakable, but now there is a brand called "Original Original", which may be a concept at the beginning, which has an impact on the Internet and opens stores offline. This trend is very powerful. It used to be a foundry, but it is not too late to start building your own brand.

Why have you always been so confident in China's supply chain?

Qin Shuo: China's supply chain is actually not an enterprise concept, but a network concept. There are many towns and even a place in China, which may be world-class in a certain product. It may supply 30% or 50% of the world. Why can it supply so much in the world? Developed countries, underdeveloped countries, emerging markets, and ethnic groups have different preferences, and they can all be satisfied. What does this mean? It shows that its flexibility and flexibility are very strong.

Why is there such a large production capacity, and at the same time so flexible and flexible? It is because there are too many small and medium-sized enterprises with various local parts and accessories. Therefore, under the current situation, it may be a better solution to use leading enterprises to help various SMEs in the supply chain to survive and overcome difficulties.

Reporters: Zhang Lin, Wang Yu, Gan Lu, Wang Xueqing, Li Yuan