By exporting to domestic sales, many foreign trade enterprises can have a chance to survive in the current shrinking international market. In the "China Branch" of the global market, foreign trade enterprises also need to actively cultivate new competitive advantages in terms of quality, service, technology, brand, standards, marketing and talents.
Nearly 300 high-quality foreign trade enterprises sell thousands of high-quality foreign trade products, such as home appliances, home textiles, clothing, shoes and specialty agricultural products, and the planned three-day export products-to-domestic sales activity was extended to the activity week … This was the hot scene during the series of activities of "Dressing up the Pedestrian Street for Foreign Trade Products" sponsored by the Ministry of Commerce and Zhejiang, Shaanxi and Chongqing provinces, which opened on July 25th.
Since the beginning of this year, affected by the COVID-19 epidemic, the international demand has shrunk, the orders of foreign trade enterprises have declined, and the enthusiasm and voice of exporting to domestic sales have been rising. At the same time, there is also great growth potential for exporting products to domestic market. Zhong Shan, Minister of Commerce, said at the press conference of the State Council Office in May that most foreign trade enterprises used to export only. Now, after the export was blocked, the government supports them to export to domestic sales. This work has now achieved results. In April, the domestic sales of export enterprises increased by 17%, indicating that high-quality foreign trade products are also welcomed by domestic consumers.
Yang Guoliang, deputy director of the Foreign Trade Department of the Ministry of Commerce, analyzed that from the perspective of domestic consumption, the national epidemic prevention and control war has achieved significant strategic results, and the domestic market demand is accelerating, providing a domestic market for export industries such as electronic household appliances, light industry, textiles and clothing, and agricultural products. From the perspective of investment, the promotion of new infrastructure, new urbanization and major projects in various places has brought new opportunities to export industries such as machinery and equipment, electrical and mechanical equipment and precision instruments. From the perspective of consumption upgrading, some foreign trade enterprises are shifting from traditional mass production to personalized customization, which can better meet the needs of domestic consumption upgrading. The rapid development of new modes, such as live broadcast with goods, has also opened up sales channels for foreign trade enterprises directly facing consumer groups.
On June 9th, the executive meeting in the State Council decided that in order to help foreign trade enterprises with nearly 200 million jobs out of difficulties, while encouraging enterprises to explore the international market, they should also support marketable export products to explore the domestic market. The General Office of the State Council recently issued the "Implementation Opinions on Supporting Export Products to Domestic Sales", which put forward 10 policy measures from three aspects: First, support export products to enter the domestic market, including speeding up market access for domestic sales, promoting the development of "same line, same standard and homogeneity" and strengthening intellectual property protection; Second, multi-channel support for domestic sales, including building a platform for domestic sales, giving play to the role of effective investment and accurately matching consumer demand; The third is to increase support, including improving the level of facilitation of domestic sales, providing financing services and support, increasing insurance support and strengthening financial support.
After the release of the "Implementation Opinions", many major foreign trade provinces quickly issued relevant policies to support enterprises to expand the domestic market and open up online sales channels. For example, many governments in Zhejiang Province and Pinduoduo signed a strategic cooperation agreement to help foreign trade enterprises switch to e-commerce platforms and promote export to domestic sales.
It is understood that the data of the tax authorities show that the export of some foreign trade products to domestic sales has indeed improved. For example, the Guangdong Provincial Taxation Bureau said that the export of communication equipment manufacturing industry, textile and garment industry and motor manufacturing industry has achieved outstanding results.
Li Danghui, deputy director of the Consumption Promotion Department of the Ministry of Commerce, said that more high-quality export products will be sold domestically, which will further enrich the domestic market supply, increase consumers’ choices, accurately meet demand, and promote consumption upgrading.
"Promoting export to domestic sales is a realistic choice for foreign trade enterprises to survive." Bai Ming, deputy director of the International Market Research Institute of the Research Institute of the Ministry of Commerce, believes that the export to domestic sales is the result of foreign trade enterprises seeking a "safe haven" in the situation of shrinking external market demand. However, if we want to make a difference in the "China Branch" of the global market, we should not just position the "China Branch" as a "safe haven", but must make long-term strategic planning.
At present, foreign trade enterprises also face some difficulties in turning to domestic sales, mainly because some products have different standards at home and abroad. For example, the size of clothing exported to Europe and America is different from the domestic standard, and the style and domestic market demand are also different, so it is necessary to make targeted adjustment or transformation when transferring it to domestic sales; Selling some export products to domestic market often involves brand and trademark issues, and requires foreign authorization; Some foreign trade enterprises have been producing according to orders for a long time, lacking domestic marketing experience and team, and their brand awareness in China is not high. In addition, domestic sales also face the difference of market settlement mode. Domestic sales usually adopt credit sales mode, which takes up more funds and has relatively high risks.
"By exporting to domestic sales, many foreign trade enterprises can have a chance to survive in the current shrinking international market." Bai Ming also stressed that in the "China Branch" of the global market, foreign trade enterprises also need to actively cultivate new competitive advantages in terms of quality, service, technology, brand, standards, marketing and talents. Not only should China’s foreign trade enterprises stay green, but also China’s manufacturing should have a chance to win the future. (Reporter Feng Qiyu)