Foreign trade companies' brand inventory sales

On the one hand, it is the temptation to go to stock quickly and win cash flow. On the one hand, it is the worry of the impact on the serial goods and brand awareness. At the time of j company tangling, a “fantasy foreign trade trip” of inventory products is performed in acquiescence.

Domestic channel saturation of three or four-line brands seeking inventory sales Compared with last year, foreign trade companies Jinjiang Jinzhu Shoes Trade Co., Ltd.'s order structure this year has changed significantly. Among them, the "inventory orders for domestic shoes and apparel brands" is the fastest growing business item. Taking children's shoes as an example, the company has undertaken orders for more than 10 brands such as Doraemon, Babbean, Wantaisheng, Coolky, Knight, and Transformers this year.

“For foreign trade companies, brand inventory is a good-selling product. In previous years, our foreign trade companies had been seeking inventory. Now it is the brand companies that have taken the initiative to call us to handle the inventory. Even this year, we don’t have to go to the company to receive goods. Less third and fourth-tier brand companies will send their own goods, and many are still not in the past before the brand." Zeng Jinzhu, the person in charge of the Jinzhu shoes and clothing trade and Lai Zongyi, the head of the company, told reporters.

In this regard, many foreign trade companies share the same feeling. The reporter visited China and learned that "selling brand inventory" has become a key business for many export enterprises in Jinjiang this year.

“The phenomenon of branded exports to foreign countries has always existed, and the performance in these two years has become even more prominent.” Hou Fengyu, general manager of Jinjiang Sentai Sports Products Co., Ltd. introduced that many local shoes and apparel have sold inventory products abroad, including some Second-tier brand companies. "There are many companies that handle such inventory. The first- and second-tier brands have channels to export themselves. The foreign-trade companies are more likely to take orders from some third- and fourth-tier shoes and apparel brands."

j company is one of these three or four line shoes clothing brand. This year, the company strengthened its cooperation with multiple foreign trade companies and digested inventory through foreign trade channels.

“Now in the sporting goods industry, first- and second-tier brands have opened factory stores and discount stores to sell their inventories, and international giants have also channeled down, and the existing domestic sales channels have become particularly burdensome. From another perspective, domestic destocking channels are approaching. Saturation, competition is also intensified. It is difficult to parry the three-and-four-line brand, and the foreign trade of inventory is an inevitable trend.” Mr. Chen, the person in charge of the company j, said that many of the three or four-wire lines are walking the same way.

Compared with the first and second-line shoes and clothing brands, the third- and fourth-line brands are more passive in seeking foreign trade channels to digest inventory, and can only rely on external forces.

"Jinjiang's first and second tier brands have extensive marketing experience and can grasp the information of the foreign trade market. The overall sales ability is strong. Generally, they will set up their own foreign trade ministry to handle inventory; while the strength of the third and fourth tier brands is weak, they do not understand complicated foreign trade processes. Can only choose to cooperate with foreign trade companies." Mr. Ho inside the industry revealed to reporters.

Jin Zhu shoes and apparel trade and the Jinfu China shoes and apparel market, a number of foreign trade business practitioners further confirmed Mr. Ho's analysis.

“Exported Products” Reproduce the Domestic Market According to foreign trade companies, these three or four-line branded inventory products are popular among foreign customers due to their low prices and quality assurance. They are mainly sold to emerging markets, including India, Russia, and South America. Other regions.

“Emerging markets are rising, demand is increasing rapidly, and the market for brand inventories is naturally going up. At the same time, compared with European and American countries, emerging markets have relatively low requirements for style and quality. As long as the price is reasonable, it is very easy to trade. Because the stock shoes With low prices, the customer purchase rate will naturally be high, which is very impressive for foreign merchants who purchase stock shoes.” Foreign trade companies that cooperate with company j told Mr. Chen.

As a result, Mr. Chen envisions that their inventory products are being sold around the world in India, Russia, and South America. This not only quickly digested inventory, increased cash flow, but also maximized the brand's image.

Just as Mr. Chen confidently planned for inventory emptiness, when a brand was transformed and upgraded, a dealer’s complaint brought it back to reality.

The dealer complained about its exclusive agency market. The company’s products were sold at low prices, completely disrupting the market rules and pointing directly to the source of the company’s headquarters. With the help of this dealer's assistance, Mr. Chen discovered that these low-priced products that disrupted the market were exactly what the foreign trade company had “sold in foreign markets”. However, the direct sellers of these stock products are those that have been transferred by hand.

"Although I thought that the product may not be exported, I didn't expect it to be such a large-scale shipment." Mr. Chen sighed.

Zheng Youmin, director of marketing of Viking Cat (Fujian) Sporting Goods Co., Ltd., who once had the same experience, explained in more detail the reason why j company “returned domestic product market”: Many third- and fourth-tier brand companies that had been in urgent need of inventory put their stocks in stock. Acting directly on foreign trade companies, despite the signing of related contracts and the submission of margin, it is mostly acquiesced by foreign trade companies. The foreign trade companies can choose to export the agent's inventory for export, or they can choose to continue to sell at low prices in the domestic retail market. “By handing over inventory to a foreign trade company, this foreign trade company will transfer some of its inventory to other foreign trade companies for digestion. Each foreign trade company may be able to change hands again. clear."

In response, He Yaowu, the marketing director of Jinjiang Huakun Footwear Co., Ltd., also confirmed that, in fact, the number of three- and four-line brand companies that have converted their stocks to foreign trade is really small. “Foreign trade companies are playing a leading role in selling to foreign markets, but in reality most products are still digested in the domestic market.”

Even under the “help” of these foreign trade companies, the market for the stock market of many cities in the central and western regions has grown bigger and bigger. According to He Yaowu, Hebei’s original inventory sales market had only a dozen stalls in operation, and the monthly rent was only a thousand or two thousand yuan. The rapid development in these two years has resulted in the formation of a mature professional market for these specialized brand stores. In the market, the monthly rent has also risen to as high as six or seven thousand yuan. "In addition to the stocks of some agents, these inventory products are mostly those stocks that foreign companies purchase directly from brand companies."

In order to further verify, whether the export of inventory products, the reporter visited a number of foreign trade companies. Among them, many foreign trade companies are frank, "Although took a brand list, but not all exports. The lower the price of foreign trade orders to get goods, and then sell in the domestic market, compared to the factory discount price, foreign trade prices have an advantage ."

An unnamed brand inventory foreign trade agent introduced that, although the profit margins of shoes and shoes inventory products are relatively large, they must all be eaten down. For foreign trade companies, the financial pressure is relatively large. “Moreover, foreigners are more savvy now, and they will pick out some good-looking models with relatively complete yardage. With so many stocks left, we handle it online or in the form of retail outlets, mostly to the township market. It is easier to release products than the tedious process of exporting.

The helplessness of “Expensiveness and fishing” is just like the real outcome of “Fantasy Rafting by the Juveniles.” The planned export of inventory products has not really been exported, and the three or four-line branded inventory products have just taken a “fantasy foreign trade trip”. As far as the j company's experience is concerned, this fantasy trip is having an adverse effect on the brand.

"Inventory products are sold at low prices, which will lead to chaotic brand market prices, impair the profits of their agents, cause them to distrust their brands, lose confidence, and cause more serious legal disputes. A fatal blow to the brand image," He Yaowu pointed out sharply.

What is surprising, however, is the fact that most third- and fourth-tier footwear brand companies are unaware of what they are doing, but they do so.

"Even if you know, you still choose to hand over your inventory to a foreign trade company. In fact, people in the industry know that even if they do a better job, there will be a part of the export inventory going into the domestic market, but as long as there is no problem of large-scale serial goods, we It is also acquiesced. In order to return the cash as soon as possible, this is also helpless.” Zheng Youmin frankly, three or four-line brand corporate terminal channels are limited, coupled with the general environment is not good, had to quickly cash flow back.

Including the company j, many third and fourth-line brand companies frankly, even if they do not sell to foreign markets, as long as they can absorb the inventory of funds. The return of funds is the fundamental reason why the three-and-four-line brands have to spend their time fishing.

But at the same time, the company's encounter also sounded a warning to its peers.

It is reported that even if Jinjiang's first and second-line brand shoe companies commission foreign trade companies to export their products, they will require foreign trade companies to remove the product tag and submit a corresponding export certificate to prevent the product from flowing into the domestic market and affecting the brand value. However, most third- and fourth-tier brands, like j companies, did not require these special treatments when they delivered inventory products to foreign trade companies.

"In order to return the funds, they ignored the potential brand damage. This is what j company made and it shouldn't be wrong," said industry insider Lai Zong.

In Zheng Youmin’s view, as long as companies pay attention to some issues, the issue of large-scale serial goods can still be avoided. “For example, we divide inventory products into small orders and give them to many small foreign trade companies, and they are in different regions. In this case, even if these orders enter the domestic market, they will be small single products and will not affect the big market.”

A second-tier brand, Mr. Lin, also introduced the model for the export of its inventory products. "If it is a long-term cooperation with a foreign trade company, it is generally a good idea to pay all the money once and wait until after the goods are exported. It would be good if we could export the documents. If it is the initial cooperation or is a relatively small foreign trade company, we will take After the “bill of lading deposit” model had been obtained from the export inspection certificate of the state commodity inspection, it was confirmed that the goods were sold out according to the quantity and the deposit was returned to the foreign trade company, otherwise the deposit was forfeited.”

Zheng Youmin is more optimistic. He even expects that foreign trade companies will be able to sell Doraemon's inventory to a number of rural villages and towns to fill the market gaps of branded companies. "Of course, the transfer of branded stocks to export is only a short-term behavior, and companies still need to do a good job of the end office, and the brand can develop in good order. After the return of funds, we also carried out a terminal layout plan immediately. In September this year, the first domestic machine of the robot cat The store will open in the form of a factory discount store. After all, only with the first-line brands, with their own controllable channels, can the brand value be protected."