Since the beginning of this year, "export to domestic sales" has become a hot word in the field of foreign trade. Many companies that have been hindered in foreign trade have sensed the opportunity at their doorstep, and they have to set sail.

　　 In order to stabilize foreign trade, the policy package is also on schedule. On June 22, the General Office of the State Council issued the "Implementation Opinions on Supporting the Conversion of Exported Products to Domestic Sales", which mentioned that "while encouraging companies to expand into the international market, support marketable export products to open up the domestic market, and strive to help foreign trade companies. Overcome difficulties and promote the basic stability of foreign trade."

However, for foreign trade companies that are accustomed to foreign markets, they do not want to switch to domestic sales. The domestic market is a completely unfamiliar world for these companies, with difficulties in market demand, sales channels, customer preferences, brand awareness, etc. Heavy.

　　01. The overseas market continues to be sluggish, and the winter of clothing exports remains severe

　　 In the past two quarters, there was a surge in domestic exports, which caused widespread concern. At that time, the main force of the sharp rebound in exports was electronics and home appliances, and clothing foreign trade was not among them. Clothing sales are highly dependent on the recovery of offline social interaction and consumer impulse purchases. At present, epidemic prevention in Europe and the United States is still impacting the real economy, and consumers are still rational.

　　 The US market is one of the most important markets for Chinese foreign trade companies. According to a survey conducted by CB Richard Ellis, a commercial real estate service investment agency, US retail growth has recently surpassed that before the epidemic. Consumption has led the recovery of the US economy, but clothing retail has been bleak, except for sportswear, fast fashion, professional wear, and customized clothing. , Dresses and other categories are still in a downward trend.

In previous years, companies would bet on traditional "consumption seasons" such as Thanksgiving and Christmas at the end of the year. Yang Jinchun, executive vice president of the China Garment Association, told Caijing reporters that this year the factory received the most "Christmas" orders that were the same as the previous year. The general situation is to continue the year-on-year decline throughout the year.

　　02. Sino-US trade friction accelerates "export to domestic sales"

　　 The impact of the epidemic on foreign trade may only be temporary, but what worries foreign trade bosses is that the Sino-US trade friction in recent years may have a long-term impact on clothing exports.

　　 After the United States imposed tariffs on clothing and textile products imported from China, the price advantage of China’s clothing exports to the United States was reduced. Since February 2020, the United States has implemented an adjusted tariff increase: clothing products imported from China are levied an additional tariff of 7.5%, compared to an additional tariff of 15%.

　　 In July this year, Esquel's spinning mill in Changji, Xinjiang was included in the "Entity List" by the US Department of Commerce. According to the export control regulations established by the United States, foreign companies included in the "Entity List" will have many restrictions on the export and transfer of American products.

　　 Such incidents directly prompted Esquel to shift its business focus to the Chinese market, with the goal of reducing the proportion of orders in the European and American markets and increasing its domestic market share. Esquel has formulated a clear goal: to increase its domestic market share from 15% to 45%, while also expanding sales in emerging markets such as Southeast Asia.

　　 Affected by the trade environment, in the long run, foreign trade companies have the motivation to increase domestic sales. In the short term, companies hope to make up for some of the decline in foreign trade this year through domestic sales.

　　03. Transformation must cross multiple hurdles

　　 The reporter's survey found that the current foreign trade companies that have successfully turned to domestic sales mainly present two characteristics. From the perspective of the types of enterprises, most of the companies that have started are leading enterprises. Such enterprises often start to "walk on two legs" in the international and domestic markets earlier, and can make up for the current decline in exports through more mature domestic sales channels. From an industry perspective, it is more feasible for textile and apparel, light industry, and agricultural products companies to switch to domestic sales. These three types of companies are close to the terminal market and have lower costs for entering domestic sales channels.

　　 At the same time, there are still some companies that "want to transfer but dare not transfer" or "want to transfer", and the reasons behind it come from many sources.

　　 The market is not familiar enough. Many business people told reporters that because the domestic market environment is different from that in foreign countries, many international best-selling products are not satisfied after being sold domestically, and there is a lack of sales market, making it difficult to obtain orders. For example, Hubei Xiangyang Hengde Auto Parts Co., Ltd. mainly exports modified wheel hubs, but due to the small scale of the domestic modified car market, it is difficult for companies to adjust their market strategies in the short term.

　　 The brand is not loud enough. Turning to domestic sales can open up the domestic market with the help of e-commerce platforms in the short-term, and in the long-term need to take the path of branding to gain a firm foothold. After years of hard work, some export companies have established brand images overseas, but domestic users are not familiar with their products, and the domestic market is not well known. It takes time to cultivate customers.

　　The experience is still lacking. Some companies said that there are differences in the business operation models of domestic and foreign trade. Most foreign trade products are large-volume, small-batch, simple business models and relatively short processes. The domestic market is generally in small batches and multiple batches, with many links such as R&D and design, advertising and marketing, and channel expansion. Foreign trade companies often lack experience in exporting to domestic sales.

　　Experts said that the situation of the international market is ever-changing. Exports and domestic sales face very different environments. Foreign trade companies should make rational choices based on actual conditions. For companies that want to "walk on two legs" in the international and domestic markets, in addition to relying on government assistance, they must also practice their own "internal strength", strengthen domestic market research, actively adapt to the new environment, and create a reputation. The brand truly realizes the endogenous "hematopoiesis".

　　04. Learn to "walk on two legs"

　　 For foreign trade apparel companies that switch to domestic sales, a better strategy is to take both foreign trade and domestic sales into consideration. In the short term, it will take time for orders and sales to pick up significantly.

The domestic market still needs time to recover. People generally have reduced spending power. Many garment factories have not sold the clothes produced last year. Until recently, they are still digesting inventory. The inventory situation in various regions is uneven. Brands are busy dumping goods at low prices. The chain is very messy. This effect is very subtle, resulting in not many new orders in the entire apparel market, and further affecting everyone's production expectations.

　　 The mentality of the bosses of many apparel foreign trade companies has turned from early anxiety to calm. They said that the market will not always be smooth sailing. They must adapt to the environment, study the rules of the domestic market, and learn the practices of successful companies.

　　 Many business owners are still optimistic about the long-term opportunities in the foreign trade field, but the premise is that the epidemic problem is resolved and social interaction resumes as usual. Regarding the uncertainty in the trade prospects, international trade will still be the mainstream. The general trend of the global division of labor will not be completely dismantled by the noise of the leaders of a certain country or region. It is normal for geopolitical relations to fluctuate in a specific historical period.

　　 Many foreign trade professionals believe that the encounter in 2020 may objectively be an opportunity for the transformation of China's apparel industry, encouraging more OEM companies to develop brand, design, and smart production capabilities.

　　 Although in the long run, Chinese garment foreign trade companies have the opportunity to transform in a more technical direction, but in the short term, for most garment foreign trade companies, the goal this year is only to maintain the basic market and retain employment.

Hai'an Qinfeng Chemical Fiber Co., Ltd., with its single-stream professional technical force, front-end quality inspection system and perfect quality inspection system, ranks among the top quality enterprises in the industry. It specializes in the production of pp staple fiber, polypropylene staple fiber, polyester staple fiber, and functional polypropylene staple fiber. Fiber, functional polyester staple fiber, etc.

If you want to know more product information, please contact: Mr. Qian 13962787918, 13813743991 Website: http://www.haqfhx.com/