Ah, Barry, how do I draft the water?

There are fewer orders. From the first 7 months of this year, the import and export of China's foreign trade shows: as at the end of July, China's foreign trade exports 802.91 billion U.S. dollars, growth of 22.6%; imports 679.2 billion U.S. dollars, growth 31.1%. The cumulative trade surplus of 123.72 billion dollars, down 9.6% from the same period last year, NET reduction of 13.1 billion dollars. Of these, the PRD accounts for 40% of the country's total exports. Another indicator of a slowdown in exports is the 103 Canton Fair, where buyers from North America are down 17% per cent year-on-year.

David Wei, Alibaba CEO, said yesterday that the original international market orders have been reduced, we can go to explore the international "blue sea" market. That is: The US economy has slipped and orders have fallen, but among the international buyers of Alibaba's inquiries, the largest international market in 08 compared to the first quarter of 07, including the South American market, which accounted for 64% of the total, 33% in North America and 30% in the European market. The international market with a significant increase in enquiries includes: Brazil , increased by 64%, France 56%, Canada 43%.

　　To open up the "blue Sea" outside North America.

The difficulties faced by export enterprises in the PRD are, above all, increased competition. From India, Vietnam, Pakistan and other Southeast Asian manufacturing enterprises lower labor costs to China's export enterprises to form pressure, textiles, clothing and other traditional Chinese export advantage industry has a big impact.

Mr. Wei believes that we can go to open up "blue sea" industry, mining "unpopular" industry new business opportunities. Alibaba nearly 30% of buyers procurement industry, China's few suppliers, such as: Plant and animal oil, national apparel, office paper, frozen food, charcoal and other industries.

At the same time, the rise of overseas emerging markets has brought competition and created a lot of new business opportunities. Such as: India's textile, software, pharmaceutical products and other industries active suppliers 08 years in the first quarter than the same period, the average increase of more than 200%! As India's textile suppliers have more than 10,000, China's textile machinery export enterprises market opportunities.

And Pakistan's apparel, medical equipment, sporting goods and other industries, active suppliers in the first quarter of the 08-year average rose by more than 400%; Brazil's active suppliers of food and beverage, sportswear and other industries in the 08-year average rose by more than 100% over the same period!

Mr. Wei further pointed out that the dollar depreciation on the renminbi, the U.S. dollar settlement of the market orders reduced, we can turn to the non-US dollar settlement market. We can choose to cooperate with the market without US dollar, in order to reduce the adverse effect of the depreciation of the dollar on foreign trade exports. Despite the depreciation of the dollar, currencies such as the euro and Yen rose 9% and 7% respectively against the renminbi in the past year, to exports to the European Union and Japan, with non-US dollars. Export to Europe is the current preferred target of Chinese enterprises, the EU as China's first export trading partner, its economic growth steadily, and the euro against the renminbi in the trend of appreciation. October 2007, Alibaba established a branch in Europe, through strategic alliances with the European top exhibition companies and major trade associations, such as: Italy Aice&api Association, London Chamber of Commerce, Swedish trade union, France Ubifrance&classeexport, etc. , we should vigorously develop European members and strive for more business opportunities for their members.

　　Increase electronic business to reduce costs

The export companies in the PRD generally share the same sentiment: profits have fallen.

What would be the way to raise profits when profits have fallen? Mr. Wei believes that the state to control the expansion of trade surplus, policy regulation, export tax rebate. In the case of the increase of raw material and labor cost, the appreciation of RMB and the competitive bargaining of domestic and foreign peers, enterprises should seek the way to break through, reduce the cost and enlarge the gross margin is a more effective choice. Among them, to reduce the expensive traditional marketing channel input, increase e-commerce and other low-cost marketing channels is an effective solution. By reducing the cost of manpower and time in every link of the line, and choosing the convenient and fast marketing channel, we can effectively dissolve the cost pressure and realize the aim of increasing the gross profit. At the same time, to increase semi-finished products, parts of the mainland procurement efforts, from the raw material market price advantages of the overseas market, the use of RMB appreciation, increase imports, in the labor cost advantage of the obvious central and western regions, such as building plants, is also a cost-effective way to reduce costs.

The original product can not enhance the value, increase sales, we will develop innovative products, improve product competitiveness.

Mr. Wei, for example, said: Shandong Oriental Marine Technology Co., Ltd. before the export of seafood processing products, in the economic environment is depressed, and Guangdong enterprises have encountered the same dilemma. But they have the courage to find a way out, to develop innovative nutritional value of the fish skin products, leading enterprises out of trouble, in the crisis sustained profit growth. The industry to do through, bigger, and constantly tap new business opportunities, in order to deal with the adverse effects of the outside world, to ensure sustainable and healthy development of enterprises.

"Enterprises, in addition to seeking their own way out, with the help of the Government, it is necessary to obtain strong assistance." "said Mr. Wei. Guangdong provincial party secretary Wang Yang, in view of the current difficulties faced by Guangdong Enterprises, put forward the idea of relying on E-commerce to upgrade the industry, for Guangdong Enterprises pointed out a way out. Subsequently, the Guangdong Provincial government introduced E-commerce leading enterprises Alibaba, the United Alibaba in Guangdong to promote free E-commerce training, and Guangdong University to cultivate e-commerce talent, and with the help of Alibaba in the buyer's resources to explore and advantage, for the Guangdong Small and medium-sized enterprises to provide some ideas for the winter.

Mr. Wei further explained. Guangdong provincial Government of a series of e-commerce information revolution, "traditional industrial production" into the "personalized and customized industrial production" era, represents the inevitable trend of industrial development, but also forced Guangdong enterprises from the cultivation of internal strength, adapt to market development rules, enhance brand competitiveness. Thus changed the Guangdong Kaoshanchishan, Mishing, industrial innovation consciousness is not strong status quo.

　Case

Shenzhen xinxing plastic bag factory in charge of He Jia Rong: Different years to move different ideas

"Now is the winter of foreign trade. This year, many foreign trade people will put this remark on the mouth.

"Is it winter?" We're fine! "He Jia Rong always teases a sentence.

He Jia Rong is the head of new plastic bag factory in Shenzhen. Founded in 1990, the Hong Kong-funded enterprises, with more than 500 employees, annual output of more than 10,000 tons, annual output value of 50 million U.S. dollars.

The "good" and "bad" of the economic situation are not invariably the same. In "Bad" years, there will also be "good" period. As a businessman, the most important thing is to do "right things" in "Right Time". He Jia Rong explains.

He Jia Rong Operating although is a small and medium-sized plastic bag Enterprise's foreign trade department, but with rich experience in foreign trade and Hong Kong people shrewd business acumen, seven or eight years ago, he entered the plastic bag industry's foreign trade field. "The network was not developed at the time. We find customers from exhibitions in Hong Kong and abroad, and then we collect buyers ' listings to contact them. "He Jia Rong said. Do foreign trade, different years have different ideas. In the 2005, He Jia Rong The idea of electronic commerce.

To mention the original intention of cooperation with Alibaba, He Jia Rong memory is very vague.

He only knows that the way to do foreign trade is not afraid of many, not afraid to try, not to mention the "traditional channels" and "E-commerce" difference. After the November 2005, the Electronic Commerce platform brings the massive information to provide the abundant business information for the company. Many customers also through Alibaba "Chinese suppliers" found the new plastic bag factory. He Jia Rong is very optimistic about the prospects of online trade, for many years has maintained their own response to customer mail habit.

Through electronic commerce, the new tape factory expanded its business scope, its own products sold to the Netherlands, Britain, the United States and so on, so that can only be found at the exhibition of customers through the network to send orders.

He Jia Rong introduced to us, enterprises to learn to avoid harm, he cited an example: At present, although the entire foreign trade industry experienced the majority of raw materials, but the plastic bag industry has experienced a period of price increases, is now in a period of decline in the price of raw materials. For his factory, this period, they put more energy on the procurement, with the current relatively cheap raw materials to do the previous period of raw materials in the period of the rise of the orders signed, enterprises to obtain more profits, but also let their customers get the other factories can not get the benefits.

"When the raw materials are cheap to buy materials, when the raw materials are expensive to receive orders." He Jia Rong explains why he can feel warm in the winter.

It is precisely because of this business thinking, he and his customers in the process of cooperation has also been the establishment of mutual trust. Over the past few years, through E-commerce and other traditional channels of accumulation of these customer sources, but also become a new plastic bag factory to ensure the smooth development.