How should Chinese foreign trade companies respond to the ongoing overseas epidemic in 2020?

1. Still believe in the power of government
The 2020 epidemic has actually affected the entire world. For the majority of foreign trade people, how to deal with the continuing crisis brought by overseas epidemics depends first on the strength of our powerful government. In fact, under the epidemic situation, our government has continuously issued policies to stabilize foreign trade, such as the “Notice of the Ministry of Commerce on Doing a Good Job in Stabilizing Foreign Trade and Promoting Foreign Investment and Promoting Consumption” Wait. In addition, the central government is further guiding enterprises to face the new epidemic environmental crisis. It is believed that as the epidemic situation continues, policies to stabilize foreign trade from the local to the central government will continue to be introduced, thereby helping small and medium-sized foreign trade enterprises and cross-border e-commerce enterprises in crisis.
2. Transformation and production of some foreign trade companies
The current outbreak in the overseas market, if it continues, some categories of industries will inevitably suffer, such as we mentioned above, outdoor supplies, non-necessities, etc. If such companies have a sharp decline in sales data, they can consider transitioning to production.
At present, the most typical case of transformation and production is making masks, or products related to epidemic prevention. In fact, China ’s manufacturing industry has very strong manufacturing capabilities, and the barriers to the manufacture of masks and other protective equipment are not high. For example, Ningbo Peacebird Company, a large-scale enterprise in fashion clothes, turned to masks due to the epidemic situation, and met the requirements well. The market needs, of course, many other small and medium-sized foreign trade companies to transform into successful cases of epidemic prevention products.
Just as our article also wrote, many products have experienced a surge in sales data in the overseas epidemic situation, such as pet products, indoor fitness, whether you are a trading company or a factory, you can choose the industry and products that have the current sales trend. In fact, as long as you carefully, transform It is not difficult to switch production, so that you can survive the market crisis of 2020 very well.
3. Enterprise minimum equipment, hard working internal skills, expanding ideas
In fact, I am also a foreign trade export company. In my opinion, for a business operator, the problems and shortcomings of the company are often better seen under the crisis. First of all, for the current economic situation, if your market is trending down, your company and factory can choose the lowest or most basic staffing, reduce costs, and save strength.
Generally speaking, at such a special moment, an operator of a foreign trade enterprise can think about the following issues. First of all, is your overseas market particularly unique, such as exporting to a single market in the United States? If the export market is too single, you can choose to develop in multiple markets, such as emerging markets. In addition, many foreign trade companies are also very good at transforming into domestic trade, so domestic trade can also be considered. Finally, branding must be chosen. This year’s foreign trade cross-border e-commerce industry is generally sluggish, and corporate branding has become even more necessary. Strengthening overseas brand building and improving profit margins is followed by further refined management within the enterprise, strict control of costs, and better performance. Assessment, etc.
4. Belt and Road countries in 2020 will be huge market opportunities
At present, for foreign trade companies, adjusting the layout of overseas markets should be affirmative. In addition to emerging markets, national markets along the Belt and Road as a national strategy, and countries and regions that have signed free trade cooperation with our country will all become market opportunities for international trade this year.

According to the foreign trade data of the previous two months, against the backdrop of the year-on-year decline in the total value of China’s import and export of merchandise trade, the import and export data of countries along the “Belt and Road” have increased against the trend.
In addition, according to customs statistics, in the first two months of this year, the total value of imports and exports of China’s goods trade was 4.12 trillion yuan, a decrease of 9.6% over the same period last year. Among them, exports were 2.04 trillion yuan, a decrease of 15.9%; imports were 2.08 trillion yuan, a decrease of 2.4%; the trade deficit was 42.59 billion yuan, with a surplus of 293.48 billion yuan in the same period last year.
In the same period, imports and exports of countries along the “Belt and Road” have grown against the trend. In the first two months, China ’s total imports and exports to countries along the “Belt and Road” were 1.31 trillion yuan, an increase of 1.8%, 11.4 percentage points higher than the country ’s overall growth rate, accounting for 31.7% of China ’s total foreign trade value, and a proportion of 3.5 percentage points.

5. 2020 Omni-channel foreign trade marketing channel selection
At present, the traditional offline channels have become very sluggish and will affect for a long time, but the online demand still exists or is even strong, so this year for foreign trade companies, multi-channel and even omni-channel overseas marketing becomes necessary. Such as Alibaba International Station, Amazon and other cross-border e-commerce platforms, Google search engine promotion, foreign trade big data marketing, overseas station self-built system, Facebook social media marketing, etc.

6. Promote the value of technology and technology Go to the higher end of the industrial chain.

In fact, the crisis of China’s foreign trade manufacturing industry has been going on for many years, and the ongoing epidemic overseas is even worse. In fact, many Chinese manufacturing industries generally have low thresholds, such as those in the Zhejiang region, which are all low value-added light industrial products. Under the impact of this epidemic, such products often have a very large impact. And technology-based enterprises and high-tech enterprises are often at the top of the industrial chain, the higher the degree of market dependence, the less affected by the epidemic. Therefore, in the future, the transformation and upgrading of China’s manufacturing industry will become more urgent, with science and technology as the lead and following the high-end industrial chain.

7. Make full use of policy dividends to help companies overcome difficulties
Because of the epidemic, the government has many policies to help enterprises, such as implementing policies such as export tax rebates and export credit insurance to reduce the export costs of enterprises. Foreign trade export enterprises should fully understand, understand and use these policy dividends to seek opportunities for enterprise development and reduce costs.

At the same time, the government will further expand the coverage of export credit insurance, reduce short-term rates, simplify foreign trade management procedures, guide companies to apply for import and export licenses paperlessly, and support business associations to issue force majeure factual certificates for foreign trade enterprises at no cost. . Foreign trade export enterprises should make full use of these policy dividends.
Overseas epidemic continues.


Post time: Mar-30-2020