Industry trends
The decline in orders from foreign trade enterprises has shifted to epidemic prevention supplies
The decline in orders from foreign trade enterprises has shifted to epidemic prevention supplies
Date:2020-05-26    View:22
Recently, the epidemic has been severe overseas, and domestic foreign trade enterprises have also been impacted to some extent. Reporters learned that foreign trade enterprises orders fell significantly, and some even fell by 90%. However, by changing the main business, personnel optimization and other ways, the scope of revenue loss has been narrowed. Some experts say there are two ways to do this: one is to switch to the production of masks, goggles, protective clothing and other supplies, but not all enterprises have the ability to do so; Second, export to domestic sales, and actively cooperate with e-commerce, such as through live streaming of goods to drive sales.
Some orders were reduced by 90%
With the spread of the epidemic overseas, domestic trading companies also face big challenges. China's foreign trade totaled 4.12 trillion yuan in the first two months of this year, down 9.6 percent from the same period last year, according to the ministry of commerce. Of this, exports totaled 2.04 trillion yuan, a double-digit decline. The spread of the epidemic overseas has prompted many countries to take strict prevention and control measures and put domestic foreign trade enterprises under great pressure.
Reporters learned that under the impact of the epidemic, the number of orders of some enterprises decreased by 90%. The founder of dongguan ai qi badge gift co., LTD. Ai qi told reporters that the company is mainly engaged in badge gifts, can be used for events and events of gifts, gifts, mainly exported to Europe and the United States. "Badges are mainly associated with events, and the number of orders has been affected since the emergence of covid-19 in Japan."
Badges. Respondents provide
He said there had been a big order for the European championship this year, but it was cancelled after the tournament was postponed. It is understood that they have already made samples of some products, but they can only cancel them. Another order of $50,000 has been shipped, but the payment has not been received. In addition, this year's other events such as the Olympic Games, marathon and so on have been postponed or cancelled. "If the competition is cancelled, our products will no longer exist and the order will be zero." She told reporters that its main business has been reduced by at least 90 per cent, with occasional sporadic inquiries.
Cherry, who is in charge of the foreign trade business of guangzhou haifei clothing co., LTD., told the reporter that their clothing is mainly exported to Africa. Since the outbreak of the epidemic, the number of inquiries has declined significantly. According to Cherry, there were more than 120 inquiries in March, 199 in February and 243 in January. Compared with January, enquiries in March were down nearly 50%.
Dongguan shangchun sports clothing co., LTD. Is engaged in sports clothing, yoga clothing, riding clothing and other apparel exports of industry and trade enterprises. Its founder, Mr. Tang, told reporters that the clothes, which are mainly exported to the United States and Australia, were all affected, down 60 percent from the same period last year.
Take active measures to drive up revenue
March was originally a golden month for foreign trade, but now encountered a "black swan." Under the impact of the epidemic, many foreign trade enterprises have also taken active measures such as staff optimization, shift work and new products to increase revenue and reduce expenditure.
Mr. Tang told reporters that their company originally had more than 200 people, but due to a reduction in orders and other factors, personnel have been optimized. The company now employs nearly half as many people, and the rest are on shift. Xiaoling, who works at a cross-border e-commerce company in shenzhen, also told reporters that they started taking 15-day shifts in April, which is equivalent to only 50 percent of their salary.
"The biggest impact of the outbreak is the loss of orders." Ezi told reporters that they have started to sell products that are currently in demand, such as anti-epidemic products. In her opinion, the trading company's transformation is relatively fast, the main products are difficult to sell, can be immediately on the shelves to sell other products. "At the moment, the main business revenue is down by 90%, but by putting new products on the shelves, the monthly sales are probably only down by 20-30% compared to last year."
In Mr Azzen's view, this part of the supply chain will be harder to shift to the main business. "Manufacturers who have cooperated in the supply chain for more than ten years are just like their own factories. Now new products need to contact new manufacturers, and they need to keep running in and out, so the time cost will be large."
Mr. Tang's company also sells masks and other supplies. He said the company had applied for the qualification earlier and it would take more than half a month. Although the current revenue is not as good as the original, but also can pull up 20%-30%. "Because it is a temporary entry, the customer resources are not enough." According to tang, it has exported millions of yuan of epidemic prevention supplies.
Online interaction helps export trade
Due to the epidemic, all industries are facing many challenges from production, procurement to sales. It is understood that some foreign trade professional platforms also help foreign trade to resume growth through online publishing, online interaction, online product display and other diversified forms of expression.
The reporter learned from made-to-china website that it will guarantee the planned 40 exhibitions covering 15 countries and regions to be held as scheduled. By the end of June, it will launch 15 "SMART EXPO virtual exhibitions" to present Chinese products on the platform to overseas buyers.
For foreign trade enterprises, they are also looking for various ways to reduce the impact of the epidemic. Cui changbin, director of the financial inclusion research center of the China association of small and medium-sized enterprises, told reporters that there are two ways to do this: one is to switch to the production of anti-epidemic supplies such as masks, goggles and protective clothing, but not all enterprises have the ability to do so. Second, export to domestic sales, and actively cooperate with e-commerce, such as the recent emergence of live streaming in the form of goods to drive sales.
Peng gang, a professor at renmin university of China's school of economics, said: "if the production technology allows, we can quickly switch to the production of urgently needed supplies for epidemic prevention and control. The epidemic has suddenly spread rapidly overseas, and the demand for daily necessities, protective equipment and medical treatment equipment is urgent and large. If we can change the production of these products, to make up for the emergency, to help people in need, it can be regarded as a positive self-help strategy."
Peng gang told reporters that the other is to develop the domestic market, to meet domestic demand. In the troika of export, consumption and investment, exports are in trouble, so we must do a good job in expanding domestic demand. "In particular, given the initial success in the prevention and control of the epidemic in China and the new situation in which the resumption of work and production has become a major task, the products we provide should be more creative in terms of safety and convenience, and the marketing model should combine online and offline as much as possible, with no contact or contact. We will take into full consideration consumers' new needs for home quarantine, home office work and return to work and production under the covid-19 prevention and control environment to innovate and provide new products and new marketing models and find ways to overcome the difficulties."
Zhang zhouping, a senior analyst and director of B2B and cross-border e-commerce at the research center, also told the reporter: "first, export to domestic sales. Faced with such factors as the difficulty in delivering goods affected by the epidemic in overseas markets, cross-border e-commerce enterprises can expand the proportion of domestic sales according to the characteristics of their own products and reduce losses. Second, commercial charter flights. Logistics obstruction is an important factor affecting cross-border e-commerce operations. The organization of commercial charter flights can alleviate logistics problems to a certain extent. The third is to adjust the operation strategy, such as: reduce the advertising budget, reduce the amount of coupons, gradually increase the sales price.

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