Due to internal and external pressures, many foreign trade enterprises have been transformed into domestic sales this year. However, in the process of external transfer, some foreign trade enterprises are crabs and pumpkins – I don’t know how to start.
We know that foreign trade companies have their own inherent disadvantages when they switch to domestic sales. We can classify this disadvantage as "six no enterprises." Namely: no product, no research and development, no channel, no team, no experience, no system.
However, while seeing our own disadvantages, we must also see the advantages of foreign trade enterprises. We have summarized these advantages into "four enterprises." Namely: stable production capacity, strict quality management system, rapid response capability in production, and good bank credit.
To compare the advantages and disadvantages of foreign trade enterprises, in terms of domestic sales, it should be that the disadvantages outweigh the advantages. The greater advantage of foreign trade companies is their strong production capacity. However, the more critical capabilities that domestic companies need are brand operation and marketing capabilities, not just production capacity.
Under such circumstances, if a foreign trade company lacks the brand's lack of marketing, the production capacity will not be of great use. Should it be taken from where?
Business model innovation, a better entry point for foreign trade to domestic sales
Shanghai Super-limit war marketing planning agency believes that the greater advantage of foreign-funded enterprises is not in production, because with the transformation of the domestic economy and the integration with the international market, production is already a low-margin link in the entire industrial chain, and only has this advantage. Not enough to win the domestic market.
In fact, the greater advantage of foreign trade-oriented enterprises lies in its "nothing". The so-called "no birth, one birth, one life two, two life three, three life everything", there is no big one. Foreign trade enterprises are transforming into domestic sales. Everything starts from scratch. A piece of white paper can draw better pictures, and it is better to draw pictures. It is easier to draw.
On the white paper of foreign trade enterprises, the better picture is not a tactical brand, not a tactical marketing, but a strategic innovative business model.
Drucker said: "The competition between enterprises today is the competition of business models."
As a company, you have countless problems, but first you should solve the problem of business model, followed by issues such as brand and channel.
Once the business model is resolved, the strategic direction is right, and other tactical brands, channels, and marketing issues will be solved. If the opposite is true, foreign trade companies rely on branding and marketing instead of branding and marketing. Direction, did nothing.
Because a company has the right strategy, even if the tactics are a little bad, the company can still develop; on the contrary, if a company is very tactical and has a strategic direction, then the company will still die.
What is a business model?
The business model is to accurately determine the profit zone of the value chain, and to quickly adjust the strategy according to the transfer of the profit zone, and to focus on the strategic measures of customer group selection, value acquisition, product differentiation and business scope determination. A higher profit area is used for configuration.
We know that the purpose of the existence of the company is to make a profit. To achieve profitability, companies must first know where their profit points are.
The profit model focuses on discovering profit areas and creating new value.
Every industry has a value chain. From the production and supply of raw materials to the design and production of products to the creation and sales of brands, a complete industrial chain has been formed.
In this industry chain, there are many profit areas, and the profit level of each profit area is different. Some profit areas are high, some are slightly higher, and some are very low. As a company, it is necessary to accurately grasp the higher profit area of ​​the industrial chain, and then design its own profit strategy and model according to this profit area.
In addition, in any industrial value chain, the profit area is not only unevenly distributed, but also drifts as the industry matures. As long as the product and service are homogenized in any link, the profit will leave there. .
Smart managers need to be good at identifying various strategic models, and applying the power of pattern thinking can help managers make more informed decisions.
For example, in the domestic textile and garment industry, profit transfer also occurs from time to time. It is well known that with the homogenization of production, the profit of spinning, weaving, garment production and other production links has been very meager, and profits have turned to other links. We use the PPG case to explain the path of business model innovation in the textile industry. From its success, we understand the importance of business model innovation for domestic sales of export-oriented enterprises:
PPG is a clothing brand that sells men's shirts. When it was founded in 2005, as a shirt company, the opponents are strong brands such as Youngor, Shanshan, Lodz, etc. PPG does not occupy any competitive advantage. However, PPG found that these traditional clothing manufacturers are doing “additionâ€. These companies often own upstream printing and dyeing, cotton field cotton spinning mills, manufacturing plants, logistics centers, and specialty stores. . . . . . They can be called "heavy asset models."
PPG has discovered another problem in the traditional shirt industry, namely: a shirt of 300 yuan, the processing fee is only 30 yuan, then where is the 270 yuan? We all know that most of the 270 yuan in the traditional shirt industry has been consumed by long channels, and consumers have not enjoyed the benefits.
Therefore, PPG decided to adopt a brand-new business model, namely, "selling men's clothing with Dell mode", fully utilizing the change of network information to combine the shirt market with online sales, and determine the unique marketing model of "server monopoly", focusing on the brand. , products, customers, outsourcing production, changing the sales pattern of traditional shirts with price advantage and channel mode.
PPG is a model that saves all the provinces' production links (production, channels), through the Internet and call center direct sales model, eliminating the need for physical channel investment, saving sales and management costs, eliminating the need to open a monopoly. The shop's distribution and inventory, eliminating a large amount of inventory costs; through low manufacturing costs, rapid response to the supply chain, outsourcing production, logistics, quality inspection, to achieve its "light company" model. Its product price is only half of the price of similar products in the mall, which has won the recognition of consumers.
PPG was established from 2005 to 2007, with fewer than 500 employees, 260 of whom are call center employees; there are no factory and assembly lines, only 3 small warehouses, no physical store, but 10,000 men can be sold every day. The shirt, in the shortest two years, was among the top three in domestic shirts.
In addition to rising sales, PPG has also gained multiple rounds of venture capital, which has injected tremendous momentum into its growth and development:
In the two years since its founding, PPG has experienced three rounds of venture capital investment from globrand.com, and has exchanged more than US$80 million in investment from TDF, JAFCO Asia, KPCB and Sanshan International for 40% of the shares.
This is the power of business models!
Similar to the PPG business model, the red child in the infant industry has achieved a good record by relying on its online and offline win-win strategy.
The Red Kids website provides users with baby products through catalogues and the Internet. They do not set a purchase for customers, free shipping, and receive the goods within 24-96 hours of order confirmation. At the same time, it cooperates with mature brands and shares customer resources. Red children undertake warehousing, customer service and distribution business, and sales are divided. At present, Red Kids has become a large-scale catalog sales company in the country and has successfully attracted two rounds of financing from VC.
PPG and Red Kids, a business model that can be easily financed, are urgently needed for domestic companies that lack access to financing.
In short, the transformation of foreign trade enterprises into the domestic market, if you only want to convert the original export products directly to domestic sales, the results are mostly defeated. Because, no matter which category in the domestic market, the market competition is already very fierce, this time, the market needs not a single product, but a new business model.
Therefore, starting from the innovation of business model and starting the domestic market, it should be the better way for foreign trade enterprises to switch to domestic sales.
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