How Foreign Trade Shoes Firms Turn to Domestic Sales

Foreign trade shoes industry is like "lead children" and convenient; while domestic sales are "bringing up children", although it is their own, but the process is very difficult, Zhang Yansheng, director of the Institute of Foreign Economic Research of the National Development and Reform Commission, describes foreign trade and domestic sales.

"Foreign shoe companies are very afraid to do domestic sales business. Before I took the glasses in the factory for domestic sales, the retailers did not pay for the goods at the time of checkout. Instead, they gave a batch of goods." This is Li Chunfang, chairman of the Shenzhen Asia Eyewear Co., Ltd. The real encounter. For this kind of situation, many foreign trade shoe enterprises that are devoting themselves to expanding the domestic market are also deeply impressed. However, as China's export-oriented economic model has shifted, more and more foreign trade shoe companies have begun to try to “raise children”. Domestic sales have become a strategic choice for most foreign shoe companies, not expedient measures under the crisis.

Endogenous adjustment

It is reported that the lack of foreign shoe sales is the brand and the right to speak in the market, often the big brands occupy the entire channel, and the channel ignores the new small brands.

Domestic shoe products need to be repositioned, designed and marketed according to the characteristics of domestic consumers. Hu Guohui thinks that there are big differences in the quality and grade of domestic and foreign sales products. "The domestic demand for digital goods is higher because domestic consumers have to hold digital products for many years, while foreign consumers usually buy them." It was lost several times, so there was no such high quality requirement."

For these shoe companies that are striving to expand domestic sales, they face not only a new start, but also adjustments and adaptations to the domestic business environment. The export of footwear can be done with boxes. However, the domestic sales of footwear should be studied more, such as how to establish a marketing system, what business philosophy to use, how to finance, and the use of convenient policies.

At the same time, export-oriented shoe companies also have a few tax refunds, and additional investment in trademarks, labels, and quality certification will virtually increase the cost of products and thus weaken the price advantage.

In the past 30 years, China’s foreign trade products have relied on excellent export policies and low costs to form an unrivalled competitiveness in the international market, but all this will no longer exist in the domestic market.

The company looks to domestic sales

In the Guangdong Foreign Trade Fair, which was regarded as a “vane for the development of import and export companies,” foreign trade companies in the past often used only foreign trade products for display. Even the English labels were not removed. Many foreign trade companies have started to develop new products specifically for domestic sales.

Zhu Junmin, deputy general manager of Shenzhen Jinshitong Digital Technology Co., Ltd., took the newly developed ARM platform high-definition tablet PC to the “First Financial Daily” reporter and hoped that this new product similar to the iPad could enter professional stores such as Gome and Suning. So as to open the domestic market.

"This new product has already appeared in the foreign stores, but it is just a sign of others," Zhu Junmin said.

This is an export-oriented enterprise. The international financial crisis has caused it to lose at least 30% of its orders. Although the export situation is now improving, this year Vision Vision realizes that it will not be as profitable as it used to be.

Guangzhou Long Electronic Technology Co., Ltd. also adopted the same strategy. According to its sales manager Hu Guohui, the company developed e-books in order to expand its domestic sales channels, and their major export products are digital cameras, digital photo frames, and digital video cameras.

“We tried to use the original team to do domestic sales many years ago, but it turned out to be unworkable.” Wang Wei, the owner of the Beijia footwear company, talked about setting up a brand-new company in Shenzhen and investing in unavoidably high costs. With excellent talents to expand the domestic footwear market.