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How to "transfer" exports to domestic sales

Release time: 2020-11-04

Number of visits: 75

How to `transfer` exports to domestic sales

  Exporting to domestic sales can not only help foreign trade companies overcome the current difficulties, but also enrich the domestic market supply, which is conducive to promoting the effective integration of domestic and foreign trade, and gradually forming a new development pattern with the domestic cycle as the main body and the domestic and international double cycles mutually promoting each other.

  The domestic market is large

  The entry of export products into the domestic market can enrich product categories, promote market competition, and improve consumer welfare

  On July 2, the special edition of Taobao was officially launched on the foreign trade channel. Consumers only need to open the Taobao special edition APP on their mobile phones and search for "Foreign Trade Channel" to enter the special trade fair.

  "I like a ukulele. This is a four-string plucked stringed instrument. I have only seen it abroad before. I didn't expect it to be available in China now. I am planning to buy it with my friends!" In Li Xiao's opinion, most of the foreign trade products that are sold domestically are of good quality, affordable, and more attractive.

  The relevant person in charge of the Foreign Trade Department of the Ministry of Commerce said that since the beginning of this year, my country’s foreign trade development has faced challenges and the demand in the international market has declined. Under such a background, foreign trade companies have turned their attention to the domestic market and actively explored the domestic market. The domestic consumption choices.

  Recently, the General Office of the State Council issued the "Implementation Opinions on Supporting the Transfer of Export Products to Domestic Sales" to support marketable export products to open up the domestic market, and strive to help foreign trade companies tide over difficulties and promote the basic stability of foreign trade.

  As the world’s second largest consumer market, my country’s super-large-scale market advantage provides a broad space for foreign trade companies to export to domestic sales.

  Recently, some places have successively held domestic exhibitions for export commodities. Many e-commerce platforms have also set up special areas for foreign trade products. Consumers can buy many high-quality foreign trade products without leaving home.

  A month ago, Li Xiao found an export-to-domestic LCD children's drawing board on an e-commerce platform. It looks similar in appearance to the drawing board she bought from abroad, with similar functions, but the price is much lower. She quickly placed an order and paid, and the goods were delivered three days later. “It feels similar to the drawing board bought abroad, and it is fully functional and easy to use.”

  "For domestic consumers, the entry of export products into the domestic market increases the number and types of market supplies, which can enrich product categories, promote market competition, and improve consumer welfare." said Tao Jin, a senior researcher at the Suning Institute of Finance. At present, the domestic market demand is accelerating the release, and the demand for commodities such as electronics, home appliances, light industry, textiles and clothing is strong. Some export commodities are highly personalized and have guaranteed quality, which can better meet the needs of domestic consumption upgrades. In addition, my country is accelerating the promotion of new infrastructure, new urbanization and major project construction, and there is a greater demand for mechanical equipment, electrical equipment, precision instruments and other commodities. This also brings opportunities for related foreign trade companies.

  Zhejiang Shuangma Plastic Industry Co., Ltd. is a kitchen plastic products manufacturer that has been deeply involved in the foreign trade market for more than ten years. It specializes in the production of vegetable processors, onions, shredders and vegetable dehydrators for export. During the epidemic prevention and control period, Shuangma Plastics adjusted its business strategy and focused its marketing on expanding the domestic market.

  "We are now online and offline together. Online, we opened a Taobao store, and also invited people to act as anchors on various APPs to promote our newly developed products. Offline, we encourage salesmen to directly report to customers Promote products." Chen Cuihong, general manager of Shuangma Plastic Industry, said, "After several months of hard work, the company's monthly domestic sales has exceeded 10 million yuan."

  Transformation must cross multiple barriers

  When foreign trade companies switch to domestic sales, they must solve the problems of inconsistent standards, unfamiliar channels, and unremarkable brands.

  "Some goods are stranded in ports and docks, and some orders in the negotiation are directly stopped." At the beginning of this year, export difficulties made Yang Hua, chairman of Jiangsu Xinyuan Home Textiles (Nantong) Co., Ltd. very anxious. Self-help is imminent, and the main approach is to turn to the domestic market.

  The key is how to “transfer” the export to domestic sales. In the beginning, I wished that home textiles found Suning and planned to apply the export model directly to the domestic trade business-Suning placed orders, and wished that home textiles would be produced and shipped as-ordered. However, this approach does not work.

  After some communication, Wish Home Textiles finally decided to try the C2M (User Direct Manufacturing) model. Suning provided big data analysis to predict consumption trends and product needs. Wish Home Textiles did research and development, and both parties completed production, sales, and data feedback. Wait for the whole process. Recently, according to market demand, an antibacterial quilt jointly developed and produced by both parties has sold more than 1,000 sets within 5 days of launch.

  Experts said that in order for foreign trade companies to successfully open the domestic market, there are these blocking points that need to be opened up:

  Standards are inconsistent-For some foreign trade companies, some products have different quality standards in domestic and foreign markets. In my country, the compulsory product certification (also known as CCC certification) catalog includes 103 products in 17 categories such as household electronic and electrical products, automobiles, toys, etc. Products listed in the catalog must be evaluated to meet the requirements of relevant safety standards and be marked with the CCC mark After that, it can be used in factory, sale, import or other business activities.

  Channels are unfamiliar-Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade, reminded that some foreign trade companies that are accustomed to only responsible for production and processing but not for merchandise sales should consider sales channels after turning to the domestic market. Distribution channels are divided into online and offline. There are online e-commerce platforms such as Tmall, JD.com, and Suning; offline retail channels involve first- and second-level agents. "Foreign trade companies who want to switch to domestic sales must study more the circulation channels in the domestic market and better integrate distribution resources." Zhao Ping said.

  The brand is not loud—"Many foreign trade companies mainly adopt the foundry model when exporting. The products lack brand names and are not well-known in the domestic market. They may be at a competitive disadvantage." Tao Jin said that the domestic market has huge potential and new markets. Demand continues to emerge. Foreign trade companies must seize the opportunity to adapt to domestic market demand and consumption characteristics, iteratively upgrade product appearance, function, packaging, service, etc., continuously improve core competitiveness, and gradually build product brand and reputation.

  In the second half of this year, the Ministry of Commerce will hold nationwide consumption promotion activities, taking advantage of pedestrian streets and key business districts in terms of brand agglomeration, channel integration, and market popularity to expand domestic sales channels for marketable export products. Guide and support local governments to build consumption promotion platforms, help foreign trade companies to further connect with domestic large-scale commercial circulation companies and e-commerce platform companies, and promote the connection between supply and demand.

  Local market supervision departments will urge and guide certification agencies to actively serve enterprises, further optimize certification procedures and shorten certification processing time.

  Promote internal and external circulation

  Increase fiscal, taxation and financial support, and develop products with the same line, same standard and same quality

  Encouraging export to domestic sales is not to allow foreign trade companies to abandon overseas markets, but to base themselves on two markets, make good use of two resources, and strengthen corporate competitiveness through diversified operations. In other words, foreign trade companies must actively explore the domestic market on the basis of consolidating overseas markets.

  "Even if overseas demand recovers in the future, we will have to open up the domestic market." Ji Bin, deputy general manager of Guangzhou Yaqite Industrial Co., Ltd., said that "export + domestic sales" can walk on two legs to achieve stability and long-term development.

  At this time in previous years, Ji Bin should have been busy participating in large-scale shoe exhibitions abroad, but this year is different. He has been busy expanding the domestic market for several months. He said: "Domestic and international dual cycles, striving to cultivate new advantages for enterprises is the long-term way."

  In June of this year, Yaqite joined forces with Guangzhou shoe industry merchants to participate in the first Guangzhou live broadcast festival, live online live streaming of self-produced slippers, and finally sold more than 150 transactions. Ji Bin said, "Although the number of live broadcast transactions is not large, we have explored a new sales channel and accumulated experience for us to do a good job in the domestic market."

  Foreign trade companies exporting to domestic sales may face problems such as long billing periods and excessive capital occupation, and require financial, taxation, and financial support.

  The "Implementation Opinions on Supporting the Conversion of Exported Products to Domestic Sales" proposes to improve the level of facilitation of the conversion to domestic sales. Processing trade enterprises that meet the conditions and centrally handle domestic sales taxation procedures can declare within 15 days after the end of the quarter; provide financing services and Support and encourage various financial institutions to strengthen supply chain financial services and increase credit support; increase insurance support to support insurance companies to provide diversified insurance value-added services; strengthen financial support and make full use of special funds for foreign economic and trade development.

  This year, China Export & Credit Insurance Corporation has innovated its underwriting model, expanded the coverage of short-term export credit insurance, and helped foreign trade companies open up international and domestic markets. In the first half of the year, CITIC Insurance’s short-term export credit insurance achieved an underwriting amount of US$266.88 billion, a year-on-year increase of 5.2%; supporting domestic trade was 176.47 billion yuan, a year-on-year increase of 20.1%.

  During the epidemic prevention and control period, Guangdong Ouya Home Furnishing Co., Ltd., which specializes in the production of stainless steel export products, actively turned to the domestic market. "Since this year, we have enjoyed export tax rebates of 6.59 million yuan and social insurance premiums of 1.467 million yuan, which provides strong support for us to shift to the domestic market." said Lian Yushan, the company's deputy general manager.

  Foreign trade companies must also practice their internal skills. Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, believes that if foreign trade companies want to make a difference in the domestic market, they must make long-term strategic planning, especially to accelerate the development of "same line, same standard, same quality" products.

  The so-called "same line, same standard and same quality" refers to the production of products that can be exported and sold domestically on the same production line in accordance with the same standards and quality requirements. In 2016, my country has promoted the implementation of "same line, same standard and same quality" for domestic and foreign sales of exported food and agricultural products. The "Implementation Opinions on Supporting the Conversion of Exported Products to Domestic Sales" clearly stated that enterprises should support the development of "same line, same standard and same quality" products, and expand the scope of application of "same line, same standard and same quality" to general consumer goods and industrial products. The promotion of the "Three Same" product range will help promote the unification of domestic and foreign product standards and open up both domestic and international markets.

  Zhao Ping believes that it is necessary to promote the integration of domestic and foreign standards, establish a domestic and foreign standard comparison and reporting system, promote Chinese standards to "go global", actively participate in the formulation and revision of international standards, and support the technical standards of my country's superior industries to become international standards and fundamentally eliminate Differences between domestic and foreign standards.