Can textile and apparel foreign trade companies outperform the new domestic demand track?

Under the current goals of expanding domestic demand, promoting consumption, and stabilizing growth, “walking on two legs” of foreign trade and domestic sales has become a new choice for many textile and garment foreign trade companies in 2023.

Facing the current changes in domestic and foreign markets, Sichuan Shuncheng Textile Co., Ltd. vigorously explores the domestic market and adjusts its marketing direction in a timely manner. Wang Shangxue, general manager of Sichuan Shuncheng Textile Co., Ltd., said that the “Strategic Plan for Expanding Domestic Demand (2022-2035)” has boosted corporate confidence. “While taking the ‘One Belt and One Road‘ construction as an opportunity to deeply explore the international market, the company will also adjust the variety structure according to the needs of the domestic market, with short, flat and fast products. Enter the domestic market and expand domestic market share.” Wang Shangxue said.

As an important part of the series of activities of “Excellent Foreign Trade Products Dress Up Pedestrian Streets”, Heilongjiang Province’s export to domestic sales enterprise promotion matchmaking meeting was recently held in Harbin, with 15 companies in the province Foreign trade companies attended the promotion and matchmaking meeting. Relevant personnel from the local Department of Commerce introduced that this matchmaking meeting is to use export products for domestic sales as a breakthrough, and strive to promote foreign trade companies to deeply explore overseas markets, based on the quality advantages of foreign trade products, Change the direction of development and find new opportunities in crises.

Li Xuebin, deputy general manager of Heilongjiang Keshan Jinding Linen Textile Co., Ltd., who participated in this matchmaking meeting, said: “The company’s products are mainly sold to the United States, Europe and Japan. However, since the outbreak, orders from the European and American markets have declined sharply. Overseas customers Orders were canceled, goods were rejected, sales channels were reduced, and the company was once in trouble.

　“In order to develop the domestic market, we established a marketing team and constantly created new products functions and scenarios. We not only added new products such as linen clothing and bedding, but also participated in Many live-streaming activities such as ‘Here Comes the County Magistrate’ have very good results.” Li Xuebin said.

Jiangsu Nayun Home Textile Co., Ltd. is a foreign trade company. In 2022, due to overseas customers canceling orders for the taffeta lambskin blankets produced by the company, more than 40,000 blankets were backlogged in the warehouse. In order to maintain the normal operation of the company, there is an urgent need to transfer Domestic market, sales funds will be withdrawn.

“Our products without a well-established brand can only enter the Taobao department or supply some live broadcasts. However, in order to increase sales, the Taobao and live broadcast industries have seriously lowered prices. The products produced in our factory according to export standards have a high cost. It’s not low, but we haven’t gotten good returns.” The person in charge of the company told reporters that the company will better develop high-quality products in 2023, establish an extensive domestic sales resource network, cultivate the development potential of the domestic market, and walk on two legs: export and domestic sales. Enhance the ability of enterprises to resist market risks.

However, during the interview, the reporter found that many companies believe that although the domestic market is large, the inability to develop the domestic market is common among textile and garment foreign trade companies. From a practical point of view, most of the companies that have successfully transformed are companies that already have “two markets”. It is more difficult for completely export-oriented and “both ends outside” textile and garment foreign trade companies to develop the domestic market.

Zhejiang Huifu Group Co., Ltd. used to focus on the export of textiles and clothing. It had few domestic customers and no long-term partners in the country. Shao Longhe, general manager of Zhejiang Huifu Group Co., Ltd., said: “The company’s current domestic sales mainly use employee circle of friends marketing, and domestic sales channels need to be further expanded.”

When a company switches from foreign trade to domestic sales, in addition to adjusting its assembly line, the process requirements for workers have also increased. The person in charge of Jiangsu Nayun Home Textiles Co., Ltd. mentioned: “Talent also needs a training period. Companies are not familiar with new tools such as live video broadcasts, purchasing equipment, Training personnel requires funds.”

In addition, the greater risk of collection from domestic customers is also a major concern for textile and apparel foreign trade companies.

The person in charge of Fujian Shangfei Garment Co., Ltd. said that foreign trade transactions are settled using letters of credit. Although bad debts may occasionally occur, companies do not need to spend too much time and energy to collect debts. Bank credit can ensure normal relations between buyers and sellers. Settlement. “After products are sold domestically, it is easy for funds to fail to keep up, payment arrears occur frequently, and companies are prone to capital chain breaks,” the person in charge said.

Furthermore, there are differences in positioning between domestic and foreign products, and foreign trade products are not completely suitable for the domestic market.

Li Xiaoying, deputy general manager of Guangdong Province Silk Textile Group Co., Ltd., said that some products have characteristics related to living habits, religion, etc., and most of these products are difficult to directly transfer to the domestic market. . If it is for the domestic market, it needs to be designed and produced specifically to meet the needs of the Chinese market.

There are still many discomforts for textile and apparel foreign trade companies in exploring the domestic market. Enterprise transformation is faced with constraints such as market development, channel transfer, financial pressure, brand cultivation, intellectual property rights and other factors. Therefore, not all foreign trade products are suitable for sale in the domestic market. Some products have problems such as different domestic and foreign product standards and large product differences.. This point requires sufficient attention.

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