Some foreign trade companies turn to their own market

[China Glass Network] For foreign trade companies, the big feeling this year has been "two pressures": on the one hand, the cooperative factory has repeatedly raised product quotations due to rising costs, and on the other hand, foreign customers have unacceptable quotations for foreign trade companies, repeatedly suppressing prices. . Foreign trade companies sandwiched between factories and foreign customers, because there is no physical support, lack of independent pricing power, the road to development is getting more difficult. Then, how can foreign trade companies break away from the loss of orders and the gradual loss of profits? This issue will be discussed with everyone.
Left and right pinch
Moderator: What kind of problems do you encounter in the development of foreign trade companies in our city?
Su Zhaohui: Before 2000, most factories in Quanzhou did not have import and export management rights. The export of products could only entrust foreign trade companies. By 2003, Quanzhou had a growing number of factories with self-operated export rights. These factories no longer rely on foreign trade companies to take orders. Instead, they get orders by participating in the Canton Fair and foreign exhibitions. Since then, the monopoly advantage of foreign trade companies in export has gradually disappeared. At present, most factories in Quanzhou have set up foreign trade departments, and more and more international buyers are more inclined to cross foreign trade companies and directly contact the foreign trade department of the factory to place orders and obtain price advantage. Therefore, the volume of orders of foreign trade companies has been shrinking in recent years.
Guo Jianzhou: With the continuous appreciation of the renminbi and the substantial increase in the cost of raw materials, most export companies have increased their product quotations this year, and the price of foreign customers has been stronger than in previous years. For foreign trade companies, if the factory refuses to lower the offer and does not want to lose the order, it can only give its profit points to foreign customers. As a result, the profits of foreign trade companies will undoubtedly become less.
Internal and external penetration search
Moderator: What transformations can foreign trade companies try to make and seek new development space?
Su Zhaohui: For a long time, foreign trade companies have been playing the role of middlemen. In fact, if you can try to change roles, you will find more ways out. Foreign trade companies can try to change from middlemen to domestic suppliers. First of all, starting from its own reality, from equity participation to holding business, from investing in other production enterprises to establishing wholly-owned production enterprises, and further developing the international market on the basis of physical support. Secondly, foreign trade companies can infiltrate foreign distributors through shareholdings and acquisitions, and realize the transition from middlemen to foreign distributors, thereby gaining high profits from overseas distribution channels. Xiamen International Trade is one of the successful cases of transformation of foreign trade companies. As a leading enterprise in Xiamen trade, Xiamen Guomao not only has its own luggage production factory, but also participates in many domestic enterprises, and actively carries out import business such as iron ore, which has formed a trade. The diversified development pattern of the three major industries, including terminal logistics and real estate development.
Zhang Qingshan: The state is planning to reduce the import tax on some goods. With the adjustment of import policies, the profit margin of import trade will be further increased. Foreign trade companies can try to carry out import trade while importing foreign products and sell them to domestic distributors without giving up export trade. At the same time, it can also provide services such as import customs clearance and transportation for enterprises that do not have import management rights and import requirements.
Guo Jianzhou: There are many foreign trade companies in Xiamen that use a large number of designers to innovate products and improve bargaining power. Foreign trade companies should master the R&D and sales of products even if they do not control the production process, in order to win more living space.
Master and deputy
Moderator: What issues should be paid attention to when transforming a foreign trade company?
Guo Jianzhou: If foreign trade companies choose to develop into industrialization, they must first take a look at their own “home”, fully consider the company's own funds, and see if the financial situation is sufficient to build a factory. If the funds are insufficient, you can choose a joint venture.
Secondly, when choosing a joint venture partner, we should focus on the business philosophy of the partner. If the other party's business philosophy is different from oneself, it is better not to cooperate. Because once the wrong partner is selected, it is likely to cause the failure of the factory operation.
Su Zhaohui: The actual situation of each foreign trade company is different, and the resources are different. When choosing the direction of transformation, foreign trade companies should decide according to their main business and advantages.

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