Guangdong Province Fosters Domestic Sales for Foreign Trade Enterprises

Strategic Insights -

As the global trade environment has become increasingly complex and uncertain, Guangdong Province is actively promoting the integration of domestic and foreign trade. At the 138th Canton Fair, the first domestic sales matchmaking event for high-quality foreign trade products was held, featuring a dedicated area of approximately 3,000 square meters. The event attracted over 100 exhibitors and 80 domestic buyers and trade service providers, including well-known companies such as JD.com, Taotian Group, and China Resources Vanguard.

Zheng Rong, a seasoned foreign trade expert, emphasized the importance of expanding the domestic sales market for foreign trade companies. Her company, Shenzhen Feishi Battery Co., Ltd., has recently shifted its focus to the domestic market, citing the need to explore new growth drivers amidst the changing external trade environment. Xu Xiaomei, vice president of JD Retail's Jingxi division, highlighted the three major difficulties faced by foreign trade companies in transitioning to domestic sales: low brand awareness, unfamiliarity with the domestic e-commerce ecosystem and consumer preferences, and unfamiliarity with domestic product pricing, fulfillment, and promotion models.

Key Takeaways:

  • Guangdong Province has issued a news release highlighting the importance of integrating domestic and foreign trade amidst the complex global trade environment.
  • The 138th Canton Fair held its first domestic sales matchmaking event for high-quality foreign trade products, featuring a dedicated area of approximately 3,000 square meters and attracting over 100 exhibitors and 80 domestic buyers and trade service providers.
  • Foreign trade companies face significant challenges in transitioning to domestic sales, including low brand awareness, unfamiliarity with the domestic e-commerce ecosystem and consumer preferences, and unfamiliarity with domestic product pricing, fulfillment, and promotion models.
  • Companies such as Shenzhen Feishi Battery Co., Ltd. and Zhejiang Yate Electric Appliance Co., Ltd. are taking the opportunity to focus on both domestic and foreign trade, adjusting their products to cater to domestic user needs and showcasing their products through livestreaming and e-commerce platforms.
  • Major platforms such as JD.com, Yonghui Supermarket, and Hema Guangdong have launched measures to help high-quality foreign trade companies connect with the domestic market, providing suggestions on store display, pricing, and specification adaptation, and leveraging the Canton Fair platform to acquire high-quality foreign trade product resources.

Statistics:

  • The Canton Fair's foreign trade products domestic sales matchmaking event attracted over 100 exhibitors and 80 domestic buyers and trade service providers.
  • Guangdong Wolai Technology Co., Ltd.'s products have a ratio of foreign trade to domestic sales of about 6:4.
  • SINOSURE has seen an 8% increase in domestic trade insurance coverage and a 22% increase in the number of companies served in the first three quarters of this year.
  • A Zhongshan company achieved daily sales exceeding 10,000 orders after working with JD.com to optimize its product mix and marketing resources.

Sources:

  • http://www.gd.gov.cn/gdywdt/ydylygd/content/post_4785602.html
  • Guangdong Province's news release
  • Interviews with Zheng Rong, Xu Xiaomei, Huang Wenyu, Luo Shiying, Wang Haiqing, and Sun Changchan.