LED enterprise crisis into the road to success: e-commerce forced foreign trade transformation

European debt crisis, rising costs, shrinking international demand, the role of internal and external economic, foreign trade export enterprises are facing the turning point of market forced transformation. Foreign trade enterprises strive to find a new path of "made in China" industrial upgrading, change the original low-cost competitive strategy, in order to obtain high value in the global economic chain.

Once a year the fair will be opened, in the new situation, many export enterprises have already started the transformation of the way, the use of innovative thinking and new platform has created considerable economic value, in the transformation of foreign trade in the tide of "surfing" role.

The negative impact of the global economy has not bottomed out, foreign trade enterprises should upgrade from the scale of the expansion to the quality of change, from extensive to intensive change, through technology and management innovation to achieve the transformation and upgrading of enterprises. Alibaba relevant responsible person believes that e-commerce will help drive the transformation and upgrading of foreign trade enterprises.

Foreign trade orders fell more than 30%

GDP growth slowed, prices rose faster, weak external demand and rising production costs, export enterprises are facing operational difficulties, outstanding performance in terms of rising production costs, profitability weakened, shrinking orders and operating rate fell.

Pearl River Delta region industrial agglomeration, is the country's manufacturing center, or even the world's largest processing, small enterprises mainly labor-intensive processing, OEM based. Peking University National Development Research Institute of Alibaba jointly released report shows that with the rise of raw materials, labor costs, compared with 2010 the average corporate profits decreased from 30% to 40%, no new profit growth point, business difficulties began to increase.

Before the production of the lack of features, are normal household goods, lack of competitiveness, in 2011 by the impact of economic deterioration in Europe and the United States led directly to the export of such products orders reduced by more than 70%. Xinhui District, Jiangmen Yangyang metal products Co., Ltd., said Liang Yanguang, the relevant person in charge.

The city of Kaiping, Guangdong Chi bathroom plumbing factory also encountered the same dilemma, the annual sales of about 3 million yuan in the bathroom faucet products in the export trade, but this year, environmental change led to a reduction of export orders by 50%.

Not only the two companies feel the crisis and difficulties. Since 2011, orders in Europe and the United States market has gradually declined, the amount of inquiry from the two regions in August 2011 after the reduction of the impact of small foreign trade enterprises. Although the Christmas season in Europe and the United States, but the European market, most of the loading rate is still around 50%, the U.S. market is also lower than the shipment rate of 80%, compared to previous years, a higher decline. Orders from the Middle East and Latin America, Africa, a slight increase in the market, but can not make up for the reduction in orders in Europe and the United States market.

The report shows that the number of small businesses in the Pearl River Delta region fell by about 30% compared to 2010. Compared to the sharp decline in orders in 2008, the current orders are gradually reduced, the vast majority of small businesses worried about the uncertainty of the future situation.

Forced e-commerce transformation of foreign trade

Traditional foreign trade is difficult to do is recognized in the industry, low profits, long cycle has been accustomed to foreign trade. Especially in the global economic crisis, the increase in the cost of manufacturing personnel, exchange rate changes, the rise of new trade protectionism. For domestic and foreign trade export enterprises, the cost of the various factors of production increased, profit margins have been squeezed, profitability weakened, compared with 2010, compared with a profit reduction of about 40%, but the new profit growth point is not now.

Subject to the traditional factors, the domestic export enterprises are a high degree of homogeneity, the lack of competition, enhance the profit ability through brand building, core technology and other means, in the face of the original business profits decline, most small businesses do not have to make up for the new profit growth point. Survey data show that a small number of enterprises have a certain impact on the brand accounted for only 32%, only about 18% of small businesses have patents, and can rely on brands, core technology and other means to expand the profit margins of small businesses less.

The grim situation forced foreign trade enterprises to change the traditional marketing methods, with e-commerce to open a new blue ocean of foreign trade. The use of electronic commerce not only increase the profits of enterprises, but also can help business transformation and upgrading, change the mode of mass production, the implementation of customized production, the focus has shifted to the product, brand and service innovation, so as to further enhance the added value of the product or. Xiamen Huarong group executive director Xu Pingfan said.