About present Home trade and foreign trade in China, there is one common perspective that Paying equal attention to internal and external trade is the general trend in the future in China and even around the world. In the process of export to domestic sales, brand building is a long-term project, and channel construction is the top priority. Until now, form of foreign trade is so severe because European and American orders gradually have decreased. So for future development of enterprises, some of enterprises which extend oversea market are ready to move their competition
To domestic market. About home trade, certainly they also have to face relative difficulty such as how to organize management team, build sales channels. By this time let us analyse about Chinese Home trade and Foreign Trade.
Actually home trade in China face fierce and intense competition of markets. At the first, as a domestic enterprise we have to progress and develop it through brand building, extending marketing channel, R&D of New Design, in meantime the enterprise has to prepare excellent management team to coordinate relation and job among different Dept. of function.
- Aggravated Copycat
Anyone who has attended a Brand New Products Release Conference or an Order-placing Meeting often finds the word “no photography” on the spot. No matter what style is designed, once it appears in the domestic market, it will not take long for similar products to be overwhelming with relatively cheap price. Intellectual property rights of products are infringed frequently, and those imitators may save the cost of product for development and design, which leads to the high cost of product design of innovative brands.
- Higher brand expense
According to local market survey data in China, it costs at least 70 million Yuan to establish a brand of shoes and clothing in China. In addition, after the brand is established, the enterprises still continue to invest to maintain, often beyond the scope of investment opponents.
- Sales channel Fee increased
Another major difference between export and domestic sales is that domestic sales must spend a lot of effort on the construction of sales channels. It is reported that the current domestic market basically adopts the way of agency. The payment is seldom cashed on the spot. Long arrears are common phenomenon, even debts. In order to prevent the retailers and agencies from defaulting, the enterprise can only ask the other parties to pay a certain deposit, or to share in the way to co-operate monopoly point, thus increasing the cost of enterprise sales.
In China, the most of foreign trade enterprises depend on OEM to develop and gain livelihood. In this kinds of environment, the only thing the manufacturers have to do is about supervise good production, however the market risk and competition has to be undertook by foreign brand traders. Actually operation of OEM is much more easier than owned brand.