Shoe Enterprises Should Deal With Five Points Of Foreign Trade Variables

The increase in foreign trade has made many enterprises in Quanzhou feel confused.

Recently, the morning paper invited the parties concerned to hold a "morning newspaper elite meeting" in the ideal tea industry, and discussed the theme of "the rise of emerging markets in foreign trade", and put forward the idea that Fujian enterprises should set up joint points overseas.

Chen Danfeng, director of Fujian foreign trade and economic and trade medium and small enterprise service center, Chen Changxi, Secretary General of Jinjiang Food Industry Association, general manager Ding Shishui of Fu time (China) Co., Ltd., and Fujian Vera International Exhibition Co., Ltd., three manager Zhang Shengtao, etc, participated in the elite meeting, and the on-site discussion was chaired by Zhou Shiwei, director of Quanzhou Office of small and medium business service center of Fujian province and foreign economy and trade.

The participants introduced and analyzed the price of the products in the current international trade through their respective industry angles, especially in the context of the changing exchange rate, so how to better exploit the new market in foreign trade has become the focus of our hot discussion.

This magazine collate and print the opinions of all parties for reference of related enterprises.

Viewpoint 1: what is the impact of international competition on the export of traditional products such as shoes and clothing in Quanzhou?

Ding Shishui, general manager of Fu Shi Lai (China) Limited, said that the impact on this company is not large.

He said, "I started the shoe factory in 1985, when I was mainly in the domestic market, and I didn't start exporting until 1995.

The previous products were mainly low-grade shoes. From 2001, we decided to produce high-grade products after studying the international market.

At present, the main products are mountaineering shoes, basketball shoes and so on.

Because most of our customers are regular customers, the exchange rate changes do not have much impact on us.

We will update the price every quarter, and adjust the price with the fluctuation of the exchange rate. Sometimes the price increase may be larger than the exchange rate.

Buyers and sellers both have expectations on the appreciation rate, and each has their own views, mainly depending on who persuaded them.

Many times, customers can accept price increases! "

He believes that the international shoe market is indeed very large, but like many other industries, the market competition is fierce.

"Chinese shoes export to every country seems to be competing.

However, this competition is not competition with foreign counterparts, but competition among domestic enterprises.

For example, in Jinjiang, there are many local shoe companies in the same foreign market, especially big customers.

This is not bad. "No competition, no market". Competition makes many enterprises more mature, and also makes the market more mature.

However, competition is most afraid of low-priced vicious competition, which will have a very bad impact on the whole industry. "

Ding Shishui said.

According to the introduction, although some foreign businessmen are concerned about the price, they are more concerned about the quality, especially the brand enterprises abroad, which require high quality.

"For foreign consumers, the price difference of twenty or thirty yuan will not be felt, because some foreign shoe brands, a pair of shoes, the retail price of the synthetic renminbi will be more than 1000 yuan, and foreign importers to our processed shoes, we sell them the unit price of up to tens of dollars, that is, more than ten dollars.

This price is medium to high grade.

In contrast, for domestic factories, the price difference of a pair of shoes is 1 dollars.

Enterprises compete in price, and every drop is a painful compression of profits. Finally, they can only cut corners.

In this way, the quality will not go, and in the end, it will also lose customers.

Therefore, the price competition among domestic counterparts is actually giving up their profit margins to foreign merchants.

Therefore, I believe that quality is always the most important. Quality is good, and prices can be raised slowly. If customers agree with the quality of products, the price increase will not have much impact on them.

Ding Shishui said.

Viewpoint two: more and more enterprises are attending the emerging market. Chen Danfeng said that more and more enterprises in Fujian like to enter the emerging market development. This can be seen from the exhibitors, especially some exhibitors in the mature industries such as shoes and clothing, hoping to go to exhibitions that others have not attended.

"At present, some exhibitions in Germany and the United States are more competitive because Fujian has more exhibitors, especially in terms of price competition.

Therefore, more and more enterprises do not like to take part in these mature exhibitions.

The exhibition may have only two or three enterprises in Fujian Province, and the export prices of the enterprises are pretty good, but later, as more enterprises go to the exhibition, the competition will become larger and the price will be lower and lower.

He said.

He said that it is not entirely bad for many companies to go to the exhibition together.

For example, there are many Jinjiang shoe companies exhibiting in Dusseldorf every year, so that local buyers feel that Jinjiang is a big shoe production base. In the future, they may come to China to buy shoes, perhaps the first choice is Jinjiang, which has promoted the brand influence and competitiveness of the whole region.

"In addition, although the export profits of some industries are affected, overall, the export prices of many industries are rising, whether they are shoes, clothing or food, mainly depending on whether the profits have increased."

Chen Danfeng said.

View three: the same industry can coordinate export prices "relative to the footwear industry, the Jinjiang food industry started late in the export industry, and there is great room for development."

At present, the practice of the industry is to summarize the export experience of the shoe and clothing industry, and try to take some detours as far as possible so as to avoid price competition.

In the past, the profits of shoes export were also very high. Later, after the price competition among enterprises, the profits of enterprises now became less and less.

Therefore, our food industry attaches great importance to this.

For the time being, the export volume of Jinjiang's food is much larger than that of shoes and garments, but the momentum is very good. We hope to keep this momentum going. "

Chen Changxi said.

According to the introduction, in terms of export prices, Jinjiang food enterprises have been unified and coordinated under the organization of the association.

Chen Changxi said: "through the Food Association, we will let member enterprises negotiate the export price."

After reaching a consensus, enterprises should set a similar price according to similar products.

For example, if we go abroad to participate in the exhibition, we will organize a preparatory meeting before we start. We will discuss the price issue at the meeting. All the similar products of the enterprises will be controlled to fluctuate in the range of 10%% 15%%.

The main purpose of this operation is to let Jinjiang food enterprises jointly safeguard the export price level of the whole industry.

Because they are just beginning to export, these jobs are of great significance.

He also said that the profit margins of snack foods in overseas markets are large, especially in the European and American markets.

The domestic sale of 1 yuan products can sell more than 1 euros in the European market, and the retail price difference between the two places is quite large.

"Let me give you an example. A food company in Jinjiang has exported to Japan. After the market access threshold has been raised in Japan, the cost of inspection has increased a lot, so the company has demanded a double increase in price to Japanese customers, but it has not been rejected by customers, and the order is still a lot.

This shows that the export of snack foods to the developed countries should not be too low, and prices should be raised at a draught. Then the market will be appropriately reduced according to market conditions, so that the whole industry will develop towards a healthy direction.

Chen Changxi said.

Zhang Shengtao also talked about the difference between food and shoes exports.

Food exports require much higher technical indicators than shoes.

"From the point of view of foreign exhibitors, most of the products that the food began to exhibit at the beginning were canned food, frozen food, ice lolly and other products. When they first went out, they mainly took the emerging market, such as South America and Southeast Asia, because the market threshold of these places was relatively low, and the market of the western developed countries was relatively difficult to enter, so the export to these areas was relatively small.

At present, Quanzhou food enterprises are mainly exported to Southeast Asia, South America and other emerging markets.

Food companies who can go out to participate in exhibitions are often the enterprises that have done well in the domestic market.

Only when the products reach a certain technical content will they be more easily accepted in the European and American markets.

Zhang Shengtao said.

Viewpoint four: export is conducive to the operation of capital circulation. In view of the increasing number of enterprises appearing "export to domestic sales" phenomenon, Chen Danfeng believes that in the 80s of last century, enterprises did relatively little export, most of them were engaged in domestic sales through wholesale and other means.

At that time, traders all went to factories and other goods, and the products produced by enterprises were not at all anxious to sell, so it was also easy to collect money, basically, they were "delivering money hand in hand, delivering goods on one hand".

With the development of the market, more and more factories are becoming more competitive.

"As far as I know, by the late 90s of last century, many enterprises shifted their sight and began to engage in export, and with the encouragement of national policies, more and more enterprises joined in the export ranks.

There are two main advantages of export. First, it is easier to collect money, and there will be no problem of arrears of customers. No matter whether it is the payment method of TT (wire pfer) or the payment method of L and C (letter of credit), enterprises can basically recover the whole amount soon after shipment. Secondly, the volume is large, and the quantity of export orders is generally larger than that of the domestic market.

I think these two points should be the two reasons that attracted many enterprises to engage in export.

Chen Danfeng said.

He said that at present, the phenomenon of "export to domestic sales" is not understood by some people, that is to say, "enterprises do not export, they are completely pformed into the domestic market".

In fact, the "export to domestic sales" enterprise is the "two legged" walk for export and domestic sales.

On the other hand, enterprises should expand and continue to export on the one hand. On the other hand, they will invest a certain amount of money to expand the domestic market and even start brand management.

Part of the reason for making such a decision is that the export profits are decreasing, and the other reason is that the enterprises need to make brands.

Only making brand is the long-term solution for enterprise development.

According to Ding Shishui, in addition to collecting money easily, there are other benefits for enterprises to make exports relative to domestic sales.

He said that exports are basically calculated according to orders or containers. Every batch of goods can be purchased by the enterprise according to the size of the order.

So, in addition to the sample, there is hardly any stock in each shipment.

Besides, finance and sales can also be carried out according to plan.

In contrast, in the domestic market, if there is no stock, customers will be out of stock when replenishment is needed, and if customers do not need so much goods, they will cause waste and loss.

So making mouth, on the one hand, planning is stronger, on the other hand, it will not cause waste, and it is easier to control the cost.

But he believes that OEM export is not a long-term solution to the development of enterprises. On the other day, if foreign customers do not order, enterprises will have to stop production and their fate will be in the hands of others.

Therefore, brand management is a way that enterprises must take in the course of development.

Viewpoint five: the joint establishment of overseas enterprises by industries and enterprises has become an important way of international marketing for many Quanzhou enterprises.

In this regard, Ding Shi Shui believes that there are advantages and disadvantages in setting up points abroad.

"Vietnam, Kampuchea, India and other countries now have a large export volume of footwear industry. Its main advantages are low labor force, cheap land, preferential tax and so on, attracting many investors.

Most of the shoe factories in these countries are Chinese shoe makers in the past. Labor price advantage is their main competitiveness.

However, their labor efficiency is very low, production is relatively low, and domestic factories are much more efficient. "

He said.

Chen Danfeng said that the shoe and clothing industry has set up a lot of points overseas, but for those who have just started exporting, it is a more direct way to participate in overseas exhibitions.

"For example, the food industry, now the Jinjiang Food Industry Association often organizes enterprises to participate in exhibitions abroad.

Most of the local businesses are not familiar with the international market. Only when they go to some professional exhibitions to see what their foreign counterparts are doing and understand the consumption situation of the local market, can they develop products that are more suitable for the international market.

In addition, enterprises can participate in exhibitions abroad, and can also learn from the advanced level of foreign enterprises in terms of technology and sales. "

He said.

According to Chen Changxi, the main export markets of Jinjiang food are in Southeast Asia, and in South America, for example, jelly products are sold to these places.

As far as Jinjiang is concerned, the local food industry is compared with shoes and clothing industry in terms of export.