On November 18th, in the weaving workshop of Baoji Dadi Textile Co., Ltd., workers were stepping up the production of domestic medical clothing fabrics. Our correspondent Wang Ling photo
On November 18th, in the weaving workshop of Baoji Dadi Textile Co., Ltd. (hereinafter referred to as Dadi Textile) located in Zhouyuan Town, chencang district, workers were stepping up the production of products ordered for domestic sales. As a key foreign trade enterprise in Baoji, the company mainly focuses on cloth production and foreign trade sales, and its products sell well in more than 40 countries and regions such as the United States and South Korea.
Affected by the COVID-19 epidemic, the company’s foreign trade export orders were seriously affected this year. In order to achieve steady development, Dadi Textile changed its thinking and management mode, and actively explored the domestic market. Liu Hongbing, the general manager of the company, led the sales staff to participate in the exhibitions of fabric accessories all over the country non-stop, and signed large sales orders on the spot through frequent communication with local merchants, effectively alleviating the impact of the epidemic on the company’s exports. By the end of October, the company had achieved sales of 46 million yuan, and the annual sales revenue is expected to exceed 100 million yuan.
Support the development of products with the same line, standard and homogeneity.
Accelerate the market access for domestic sales; Make full use of online sales, live delivery, scene experience, etc. to promote the integration of online and offline development; Give full play to the role of special funds for foreign trade and economic development, and support foreign trade enterprises to participate in online and offline domestic exhibitions … Recently, the general office of the provincial government issued "Supporting Measures for Supporting Export Products to Domestic Sales" (hereinafter referred to as "Supporting Measures") to help Shaanxi foreign trade enterprises explore the domestic market, and strive to help foreign trade enterprises tide over the difficulties and stabilize the basic foreign trade market.
It doesn’t sound difficult to turn foreign trade into domestic sales, but it’s not easy to realize the transformation. Due to the different domestic and foreign trade market environment, foreign trade enterprises often face some specific difficulties in expanding the domestic market, including the difficulty in expanding sales channels, the difficulty in turning production lines and the difficulty in brand building.
"Foreign trade exports are mainly order-based sales. After switching to domestic sales, enterprises lack market sales channels and are unfamiliar with market access and sales rules. It is more difficult to win domestic orders." Wang Zhigang, general manager of Xi ‘an Shengxuerong Cashmere Products Co., Ltd. (hereinafter referred to as Shengxuerong) said frankly. At the same time, domestic and international standards are inconsistent, and foreign trade products that are sold domestically need to be adjusted and transformed according to domestic standards, otherwise they cannot be sold domestically. In addition, some foreign trade enterprises are not well-known in the independent brand market, and it is also difficult to enter the domestic high-quality retail channels.
Based on this, the "Supporting Measures" first focuses on supporting export products to enter the domestic market, including accelerating the market access for domestic sales; Promote the development of "same line, same standard and homogeneity"; Strengthen intellectual property protection, etc. For example, support enterprises to develop products with the same line and the same standard and homogeneity, and encourage more foreign trade enterprises to participate in the special action of "100 cities, 1,000 industries and 10,000 enterprises" to upgrade the standards; Carry out the evaluation of foreign trade enterprise standards "leaders" and create a number of foreign trade enterprise standards "leaders".
According to Tang Yugang, deputy director of the Provincial Department of Commerce, in the context of weak global external demand, the accelerated release of domestic demand provides opportunities for foreign trade enterprises to switch to domestic sales, and supporting marketable export products to expand the domestic market can not only help foreign trade enterprises tide over the difficulties, but also further stimulate domestic consumer demand.
Accurately meet domestic consumer demand
What is the first step to enter the domestic market? Many foreign trade enterprises have turned their attention to the e-commerce platform.
Pingli County Nuwa Tea Co., Ltd. is a key export enterprise in the county, and its products are exported to overseas markets such as Southeast Asia and Africa. This year, the company vigorously explored the domestic market, selling tea online through Taobao Tmall, Tik Tok and other platforms, and offline through the company’s direct stores in Xi ‘an, Ankang, Pingli and other places. Up to now, the sales have reached 30 million yuan.
On June 18th, 11 e-commerce and commerce circulation enterprises, including Xi ‘an Chengcheng Yulang, Alibaba, Supply and Marketing Daji and 51 Barter Network, docked with more than 40 foreign trade enterprises in the province, and many enterprises reached cooperation intentions. Thirteen foreign trade enterprises registered online stores on Alibaba platform to expand domestic sales.
In addition, our province also held a series of activities of exporting products to domestic market with the theme of "Foreign Trade Premium Collection Dressing up Pedestrian Street" in Datang City, Xi ‘an. 121 foreign trade export enterprises in the province participated in the exhibition, and the products on display involved more than 500 kinds of high-quality foreign trade export products in five categories, including consumer goods, specialty agricultural products, textiles and clothing. More than 100 domestic trade circulation enterprises and well-known e-commerce platforms participated in the procurement, and a live webcast room was set up to build domestic and foreign trade integration, online and offline for enterprises. During the event, nearly 30 enterprises inside and outside the province signed centralized contracts for export to domestic sales, with a contract amount of 70.4 million yuan.
"There are problems such as inconsistent product positioning at home and abroad and unstable domestic sales channels when exporting to domestic sales." Ling Tingting, director of the office of Pingli County Nvwa Tea Co., Ltd. said that products that sell well abroad may not sell well in the domestic market, and they should be adjusted by themselves according to the demand characteristics of the domestic market. In this regard, the "Supporting Measures" proposes to guide enterprises to accelerate the transformation of development mode, research and develop marketable domestic products through personalized customization and flexible production, create their own brands, and accurately meet the demand for consumption upgrading in the domestic market.
In order to alleviate the loss of a large number of cancelled foreign trade orders caused by the epidemic, Shengxuerong actively cooperated with domestic and foreign trade enterprises and online sales platforms to sell cashmere products, and on the other hand, customized cashmere products for customers through personalized customization to expand the domestic market. "We should enhance our innovation ability and enhance the core competitiveness of products exported to domestic market." Wang Zhigang said.
Do a good job in financing services and support.
Foreign trade plays an increasingly important role in the economic development of our province. In 2019, the total import and export volume of our province was 351.58 billion yuan, which directly led to employment of about 2 million people. In order to help export to domestic sales, our province’s financing, insurance and other policy support is increasing.
The "Supporting Measures" clearly stipulates that banks are encouraged to provide loans to foreign trade enterprises, and guarantee institutions provide guarantees for foreign trade enterprises’ loans, and provide risk compensation for qualified small and micro foreign trade enterprises’ loans; Implement various policies to reduce the RRR and interest rates, and guide financial institutions to focus on supporting foreign trade enterprises and projects that export to domestic sales; Support intellectual property pledge financing business of foreign trade enterprises and open a green channel for intellectual property pledge registration in Xi’ an agency; Support insurance institutions to carry out domestic trade credit insurance, and provide risk protection for credit sales formed in enterprise trade and labor activities.
Improve the level of facilitation of domestic sales. Xi ‘an Customs shall declare the processing trade enterprises that meet the requirements and can go through the domestic tax collection procedures in a centralized way before 15th of each month on the premise of not exceeding the validity period of the manual (account) or the deadline for verification, and adjust it to declare within 15th day after the end of each quarter at the latest.
"The series of measures introduced this time to support the export to domestic sales are of great help to enterprises, which provides a guarantee for enterprises to expand the domestic market and has strong operability." Liu Hongbing said.
The relevant person in charge of the Foreign Trade Department of the Provincial Department of Commerce said that it will give full play to the role of special funds for foreign trade and economic development, support business training, publicity and promotion, information services related to export-to-domestic sales, and support foreign trade enterprises to participate in online and offline domestic sales exhibitions; Subsidies will be given to the expenses of equipment procurement or transformation, self-owned brand construction and promotion, domestic trademark registration and qualification certification generated by enterprises affected by the epidemic.
Tang Yugang believes that encouraging financial institutions to increase credit support for foreign trade enterprises will help enterprises solve the problem of tight capital chain, thus helping enterprises tide over difficulties and recover and grow rapidly. "Only by retaining the green hills can we win the future." Tang Yugang said.