China’s Foreign Trade Enterprises Struggle Against the Current

At present, the global economic growth is slowing down and external uncertainties are increasing. The latest World Economic Outlook Report released by the International Monetary Fund (IMF) lowered the growth rate of the world economy in 2019 to 3%, down 0.2 percentage points from the forecast in July this year. Under this background, many foreign trade enterprises are facing greater export pressure.

China's Foreign Trade Enterprises Struggle Against the Current
China’s Foreign Trade Enterprises Struggle Against the Current

China’s foreign trade enterprises have been exploring countermeasures from the perspective of their respective industries’ development.

The global economic situation has a greater impact on exports.

“Seven or eight years ago, our export of plush toys to the South American market was quite good, but in the past two years, the South American market economy fluctuated greatly, and our export volume fell by about 40%.” Yu Yun, business manager of Nanjing Dadong Toys Co., Ltd., said in an interview with the International Business News that the company’s export market is mainly in Europe at present, but the purchasing intention of European customers is not very strong due to the relatively severe global economic situation. “On the one hand, the rise in industrial costs has led to an increase in product prices; On the other hand, the international market economy environment is not very good either. The combination of these factors has led to a decline in customers’ willingness to purchase. ”

Cai Fuman, general manager of Jinhe Trading Co., Ltd., also said in an interview with the International Business News that the global economic growth has slowed down from changes in customer demand. “Our customers are widely distributed, mainly from Russia, the United States, Europe, South America, Southeast Asia and other countries and regions. At present, they are more inclined to seek plastic toys packed in small boxes. The functions of a single product should be diversified and the unit price should be lower. ”

“The company’s product order volume has been relatively stable since this year, but the profit margin has declined.” Li Shijun, assistant to the chairman of Qixian Red Sea Glass Co., Ltd., said in an interview with the International Business News, “Our customers are mainly Muslim people from all over the world. In the current external environment is not very optimistic, the pressure on customers is greater than before. At the same time, updating and upgrading environmental protection equipment has also brought about an increase in production costs. In order to ensure a certain amount of orders and tide over difficulties with customers, we can only reduce profits accordingly. ”

Foreign Trade Enterprises Take Various Measures to Meet Challenges In Cai Fuman’s view, the current production chain of toy products is gradually turning to Southeast Asian countries. As far as production costs are concerned, it is difficult for domestic foreign trade enterprises to compete with them. However, there are also opportunities under pressure to force China’s foreign trade enterprises to grow. “The domestic toy market will gradually turn to the middle and high end. Now the products our company produces are mainly the middle and high end. In the future, on the one hand, the company will continue to enrich product types; On the other hand, as the toy market in developed countries is nearing saturation, the company will further explore the Chinese toy market. ”

Li Shijun said that since its establishment in 1963, the company has been engaged in the production, research and development, and sales of daily glass products. Its products have strong national characteristics, and most of them are made of high-end real gold materials and handmade, with high added value. “In the future, we will still adhere to the high-end line and continuously carry out research and development and upgrading of products, especially the diversification of embryo technology, so as to meet more and higher demands of customers.”

“Foreign trade enterprises themselves carry multiple pressures and need to keep an eye on global developments. No matter which country the product is exported to, as long as the local economic situation fluctuates, it will affect the export to a certain extent. ” Although the export pressure of foreign trade enterprises is increasing at present, Yu Yun is still optimistic about the future export situation of the company. “Because the customer’s demand for toys has always been’ buy new but not old’, the company pays great attention to investment in research and development, and produces 700-800 kinds of new products every year to meet the market demand. In order to keep the products competitive in the market, the company will focus on the fabric category and color matching of the products in the future. ”

 

Original Artical,Author:China Trade Agent,if repost,please give references :https://offers-bg.com/struggle-against-the-current/

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