Home> Industry Information> Where will the trend of foreign trade go in the future?

Where will the trend of foreign trade go in the future?

March 06, 2021

With the deterioration of foreign trade environment, more and more export-oriented enterprises have encountered winter, which has even threatened the survival of enterprises. Some old factories, which have been operating hard for more than ten years, are facing the doom of closing. Many export-oriented enterprises have found joint venture at this time, and hope we can create a second take-off for it. After the systematic analysis of the export environment of CO creation, it is found that the deterioration of the overall environment far exceeds the expectations of some foreign trade enterprises, especially in the economic downturn, the situation is "hunger and cold" severe!



The national local protectionism caused by the economic downturn has become the direct reason for the "hunger and cold" of foreign trade enterprises. With the impact of the subprime crisis, especially the global economic downturn, the global trade protection prevails, and the negative impact has affected Chinese export-oriented enterprises in an all-round way. Some enterprises mainly focus on overseas market have been in tight trade volume, and even some have reached the difficult situation of closing down. In the process of trade protection, foreign governments and relevant organizations have used various means, from food safety, industry subsidies, trade barriers to intellectual property rights, so many patterns and complicated circumstances make foreign trade enterprises carry out winter ahead of time. The prevalence of international local protection directly leads to the most direct reason for the decline of sales of Chinese export-oriented enterprises.



The development of global competitors has brought a cold wave to Chinese export-oriented enterprises. With the development of a number of developing countries, especially in some labor-intensive industries, India, Vietnam and other countries have formed strong competitiveness due to the low human cost and preferential tax policies. In many industries, the market, which was originally played the leading role by Chinese enterprises, is being eaten by competitors. The same products, lower prices, have left the original advantages of Chinese enterprises gone. The pressure of this kind of competitor makes the Chinese export-oriented enterprises colder in the severe foreign trade environment.



The policy influence of domestic and international makes the profit of Chinese export-oriented enterprises lower. First, the RMB continues to appreciate, which is a huge blow to the export-oriented enterprises with extremely low profits. Because a large part of the export-oriented industry has low entry threshold and low technology content, many enterprises enter before the appreciation of RMB, which makes the original profit margin very low. After the appreciation of RMB, the settlement currency with us dollar has caused the embarrassing situation that more and more losses are caused by export. With the appreciation of RMB, the profit rate of export-oriented enterprises will be lower and lower, and the loss situation will be bigger and bigger. At the same time, the adjustment of export tax rebate policy is also a huge blow to the export-oriented enterprises. For many export-oriented enterprises, although the profit of the current year is still very thin, due to the existence of export tax rebate policy, enterprises can still get a considerable tax as compensation for profits, and after the export tax rebate policy adjustment, the profits of the export-oriented enterprises are even thinner.



The increase of production cost directly leads to the reduction of profit tax of export-oriented enterprises. First, the cost of raw materials increases. Because of the impact of inflation in China, the price level rises rapidly, which leads to the increase of raw material cost. Secondly, the increase of labor cost, with the continuous increase of wages of Chinese production workers, especially the implementation of new labor law, makes the labor cost of enterprises increase greatly, which makes the production enterprises that originally lead the global market with low labor cost have encountered great changes in the support of human resources cost. Thirdly, the impact of export quotas in some industries has also led to the increase of export costs. In order to ensure the export volume, many enterprises without enough quota have to buy quota to export, which increases the export cost, especially in the low profit rate recession environment, the increase of quota cost undoubtedly makes the export-oriented enterprises worse.



The lack of core competitiveness of Chinese export-oriented enterprises is the core reason for "hunger and cold". In the construction of China's export-oriented enterprises, they have positioned themselves as OEM as a substitute. Foreign dealers have mastered the three main elements of customers, channels and brands that can establish the competitive advantage and bargaining power most from the beginning. It is because of the lack of brand, channel and customers that makes the bargaining power of Chinese export-oriented enterprises extremely poor, especially with the deterioration of the environment, especially when the main dealers do not want goods, and when they meet competitors with lower prices, the most serious injuries are Chinese export-oriented enterprises. Because of the lack of brand, channel and customer resources, the anti Strike ability of Chinese export-oriented enterprises is very poor, which is also the most important reason for the survival of Chinese export-oriented enterprises.



It is because of these reasons that the large-scale loss of Chinese export-oriented enterprises has been caused, which makes these enterprises more and more cold in the "winter" of the global economy. However, in order to maintain the operation of the enterprise and stabilize the employees of the enterprise, the list with extremely low profit or even loss should be taken. If it is not accepted, the enterprise will close the door and the employees will lose. This blow is more devastating for the enterprise. Domestic export-oriented enterprises are facing unprecedented difficulties. Whether it is a loss-making enterprise or a steady export-oriented enterprise, it is facing a common problem, namely, how to establish the core competitive advantage that truly belongs to the enterprise itself.



When the presidents from stationery industry, clothing industry, small household appliances industry, food industry, parts industry and other export-oriented enterprises communicate with the co creation, they are puzzled about how to get rid of the predicament of the export market. Facing the domestic market, although the export market is simple, as long as the production of good products can be achieved, the prospect of export marketing is bleak. However, due to the development of domestic market, there is still a considerable profit space to be dug up. It is also because of this, many bosses think of the transfer to domestic sales, and the transfer of foreign marketing to domestic sales has become a hot topic. For Chinese export-oriented enterprises, the Chinese market is its home market, and the market in China is in the development period. The wide range of Chinese market and huge profit space make the market potential huge. At the same time, many enterprises in the domestic market are in the initial stage of development. As long as the market operation of the export-oriented enterprises is proper and depends on their control over the product quality, it is possible to become the leader of the industry.



However, it is important for enterprises to be clear that there is only one purpose, whether it is for export or domestic sales: to obtain profits. In the case of rising cost and deteriorating foreign trade environment, the role of export-oriented enterprises is the most passive and the most profit-making producer image. Domestic marketing has become a strategic means for export-oriented enterprises to strengthen their own competitiveness and enhance the added value of products. This is also the development process that Chinese export-oriented enterprises must experience. Whether it is domestic or foreign marketing, only with and with marketing management ability, brand operation ability, channel control ability, fund chain management ability and customer influence ability can the basic industry be evergreen, while the marketing management ability, brand operation ability, channel control ability, fund chain management ability and customer influence ability have, the operation of domestic marketing market is the best way.



Therefore, in the whole environment of export to domestic sales, enterprises must be very clear, and combine their own advantages to choose the path to improve their core competitiveness. To establish core competitiveness and stability are the first factors. The transfer of domestic marketing of export-oriented enterprises needs to be carried out in combination with enterprise resources. With the strategy of "two hands", both the export and domestic sales are stabilized. The operation costs of the domestic market are obtained by using the export, the brand and added value of the enterprises are built by using the domestic sales, the capacity advantage of the enterprise is maximized, the operating cost is reduced, and the competitive advantage is finally obtained through the combination of length and length .



Another fact is, why are the same products made by Chinese enterprises, and only a few yuan can be sold by themselves. Once they stick to foreign brands, they can sell tens or hundreds of yuan? That's the power of the brand. When the export-oriented enterprises are not in front of the increasingly thin profits, the enterprises with brand advantages make a large margin difference, and rely on their own channels and customer advantages, creating one after another miracle, firmly controlling the market. The ultimate goal of the transfer of export to domestic marketing is to build its own brand and master the channel. It has certain brand advantages and channel network advantages in the industry it operates. Through the construction of brand, the consumer's adhesion will be improved, and the additional profits of products and services will be improved. Through the construction of channels, the sales power of the internal sales of the export-oriented enterprises will be improved and the competitiveness of the enterprises can be promoted Establish, and finally obtain the industry profit with great advantage.



Facing the severe situation of foreign trade environment, the export-oriented enterprises must improve their competitive advantages and gain control over brands, channels and customers. Only by building a certain way in marketing management ability, brand operation ability, channel control ability and customer influence ability, can the export-oriented enterprises win the market and get a rapid breakthrough. The export-oriented enterprises rely on the advantages of product development and cost control, and change from producers to brand operators. Only by effectively integrating upstream raw material suppliers and downstream channel providers, can the enterprises establish an effective internal marketing market operation system, so as to improve the core competitiveness of enterprises and gain the right of discourse, and finally become an advantage enterprise of industry development.

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