Northeastern clothing store “teams up to go overseas” and sells all over the world! Liaoning Haicheng’s annual export volume reaches 4.5 billion yuan
Xiliu Garment City, located in Haicheng City, Liaoning Province, is one of the earliest, fastest growing and largest professional markets in the domestic textile and apparel market. In 2020, the “Market Procurement Trade Method Pilot” to facilitate the foreign tradeexport of small, medium and micro enterprises was launched here. This is also the only national-level market procurement trade method pilot in the three northeastern provinces. What changes has the country’s policy of facilitating trade brought to the “small and bulk” foreign trade in Northeast China?
Back in time 30 years ago, when Liu Qiang’s parents had just opened their own clothing workshop, Xiliu Garment City in Haicheng City, Liaoning Province was just a “roadside stall” that was “covered in dirt on sunny days and feet of mud on rainy days” .
Two generations of operation have made this market a leader in the national textile and apparel market, with an annual cargo throughput of 1.6 million tons, an annual transaction volume exceeding 90 billion yuan, and an annual foreign trade import and export volume of US$1.6 billion. There was once a saying that “Yiwu in the south, Xiliu in the north”, and “Xiliu products don’t have to worry about selling” was once the “happiness worry” of merchants.
As competition in the domestic sales market becomes increasingly fierce, the days when supply exceeds demand are gradually becoming a thing of the past. However, despite the decrease in customers and the increase in inventory, merchants in Xiliu are sensitive to the increasing number of orders coming from the south.
Xiliu manufacturing is popular throughout the Northeast and even the South, but it is rarely known in the international market and can only make wedding dresses for others. Merchants in Xiliu are also interested in doing foreign trade, which coincides with the thinking of the local government.
In order to allow market merchants to gain access to the foreign trade market as soon as possible, the government has, on the one hand, carried out training for market merchants who are willing to engage in foreign trade. On the other hand, it has organized merchants to participate in the Canton Fair every year since 2013 to learn from the experience of their peers and get in touch with experts from various countries. client. However, without export rights, it is difficult for merchants in Xiliu Market to flex their muscles in the international market.
To break down the export barriers for small, medium and micro enterprises, the government has set its sights on an experiment that started in Yiwu. In 2012, Yiwu pioneered some policies on market procurement and trade methods. That year, foreign trade experienced “explosive” growth, with annual exports totaling US$9 billion, a year-on-year increase of 150%. Beginning in 2015, this pilot program began to be gradually promoted nationwide.
It was also in this year that the Haicheng City Xiliu Market Construction Management Committee specially set up a market procurement trade mode pilot application team. Zhu Yong served as the executive deputy team leader and was in charge of various tasks for the pilot application. Under the leadership of the declaration team, a customs supervision site and networked information platform were built from scratch. However, the improvement of hardware has not brought about a significant increase in foreign trade transaction volume. Xiliu Garment City’s two applications in 2015 and 2018 ended in failure.
The pilot application team has started a new round of layout, allowing Xiliu’s products to completely go global. In addition to the traditional Canton Fair, they also lead merchants to go abroad and participate in overseas exhibitions.
At the same time, they are also trying their best to attract overseas buyers and develop Xiliu Garment City into an export-oriented clothing market with thousands of independent brands and growing brands from more than 50 countries. In 2020, after five years of transformation pains, Xiliu Garment City was finally approved for the fifth batch of “market procurement trade mode pilots.”
The implementation of the market procurement and trade method in Xiliu Garment City, Liaoning means that small and medium-sized merchants who did not have the right to export in international trade before can also simply participate in foreign trade activities through market procurement and trade, completely solving the problem that small, medium and micro merchants in Xiliu Trade City do not have export qualifications The problem.
Henry came to China in 2015 and has been purchasing in the southern market and selling to foreign markets such as the Middle East and North Africa. Hearing that Xiliu was applying for a pilot market procurement trade method, Henry, who had enjoyed the benefits of the pilot policy in Yiwu, made an immediate decision and went to Xiliu to register a company at the end of 2018. He officially purchased in Xiliu in early 2019.
With the official implementation of the policy in 2021, Henry became the first batch of foreign companies to export from Xiliu. That year, the company’s export volume in Xiliu reached US$20 million, and Henry, who is full of confidence, predicts that the export volume will triple in 2022.
In 2021, Haicheng City’s annual export total will be around 4.5 billion yuan, of which market procurement trade exports will account for 1/3 of Haicheng City’s total export volume, becoming a powerful growth point for local foreign trade stabilization.
Half-hour observation: “Decentralization, regulation and service” release new dividends
The “Market Procurement Trade Method Pilot” was launched in Xiliu Market, filling the gap in the Northeast region. Operators of clothing, shoe and hat wholesale markets across the Northeast no longer need to borrow boats to go to sea. As an independent innovation in my country’s trade field, the “market procurement trade method” is essentially a reform of “decentralization, regulation and service”. How to decentralize, manage and serve will test the wisdom of managers. Only by working together from top to bottom to implement reforms and continuously release the dividends of reform can small businesses enter the big market and turn small commodities into big businesses, thus gathering together to become a powerful force against uncertainty.
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