An Analysis of the Dilemma of China's Hardware Foreign Trade to Domestic Sales

There are not a few hardware companies that have begun to transfer their products from foreign trade to domestic sales. Some of them are small factories that are forced to make expedient measures. And some are the strength manufacturers that take this opportunity to carry out market adjustment and brand strategy management. No matter what kind of situation, the author believes that foreign trade to domestic sales is not an easy task for the hardware and hardware industry.

The road to domestic sales is uneven. The Canton Fair has always been regarded as a barometer and barometer of China's foreign trade. Historical data show that the transactions of the Canton Fair have a good indication of exports. At the same time, the export situation of the Spring Canton Fair converged during the year. However, the export value from the 105th period shows that the decline in exports will continue and the foreign trade situation is not optimistic. In the first phase of the current period, the cumulative export turnover was US$13.0 billion, down by 20.8%, of which the decline rate for EU and Japan was more than 35%, and the decline rate for Australia and the United States was 11.2% and 4.9% respectively.

While the export of developed countries' foreign trade markets has experienced a sharp decline, it is also necessary to pay attention to the risk of a decline in exports to emerging markets. The first phase of the Canton Fair turnover shows that there have been growth in markets such as Argentina, India, and ASEAN, but it has fallen by 42% and 35% against Russia and Brazil, respectively, and even exceeded the decline in the European and Japanese markets. Since the fourth quarter of last year, with the deepening and spread of the financial crisis, emerging markets have been affected by the lag. This has also become the main reason for China's decline in exports to emerging markets. Judging from the current situation, the economic downturn in emerging markets has not seen any improvement. We must pay high attention to the export risks in these markets.

To open up the domestic market, all of them lack a brand from scratch and face a lot of competitors. The challenges faced by export-to-export companies are not small. Turning to domestic sales is not just about getting the goods to domestic sales, it's simple, but it's about redeveloping a brand new market. Brand building and channel construction all need to start from scratch. Foreign trade companies have many disadvantages when they switch to the domestic market. That is: no product, no brand, no channel, no team, no experience. Many foreign trade companies acknowledged that they were tired when doing a domestic market transition. For example, they had to send more staff to do brands and channels.