Local exporters exploring domestic market options

Chinese exporters are shifting their focus to the domestic market, citing the growing buying power of Chinese consumers and instabilities in the global market amid the COVID-19 pandemic. 

Exporters have been among the hardest hit by COVID-19. The Chinese government has taken a slew of measures to help companies in foreign trade through the difficulties. One such measure is to help them sell more at home.

The ongoing 128th China Import and Export Fair, China’s signature trade event better known as the Canton Fair, has taken the lead to help. In addition to setting up an online platform for sellers and buyers, the fair is also holding offline activities to help exporters find domestic buyers.  

The Canton Fair’s organizing committee and the Guangdong Provincial Department of Commerce held an offline event on Friday to promote China’s dual circulation development model, whereby the domestic cycle of production, distribution and consumption is the mainstay while the domestic and overseas markets complement each other. 

More than 40 companies participated in the event, showcasing products including an oven that can cook all kinds of nuts and a machine that can knead dough. 

One participant was Guangdong province-based Murenwang Appliances, which designs, produces and sells kitchen appliances and cookware. 

More than 90 percent of the company’s products are shipped overseas, said Wang Wenxiong, chairman of the company. Its exports go to Europe, the Middle East, North Africa, South America and Southeast Asia.

“Our goal in participating in the dual circulation event is to better explore the domestic market while working on the overseas market,” Wang said, adding that the company’s exports in the first nine months of this year doubled year-on-year, driven by sales generated by the cooped-up population amid the COVID-19 outbreak.

Even so, the company is keen to further tap into the domestic market. “Because the domestic market is huge and has matured, and our factories are in China and our products are of good quality — there is no reason not to develop this market and serve domestic consumers well,” Wang said.

Another kitchen appliance company shifting its focus to the domestic market is Liantech Appliances based in Shenzhen, Guangdong province. 

Zhang Fuwen, deputy general manager of the company, said its products have been sold to Europe, Southeast Asia, the Americas and the Middle East by virtue of excellent quality and design. 

The company’s exports have increased by more than 40 percent so far this year and account for 95 percent of its total sales. 

Concerning the reasons for “looking inward”, Zhang cited the still grim pandemic situation outside China, and the political instability and exchange rate fluctuations in foreign countries.

Zhang said the living standards of Chinese consumers are rapidly improving and their buying power is nothing less than that of foreign consumers. “We hope that the share of domestic sales will gradually increase from 5 percent to 50 percent,” Zhang said. “We are looking for more domestic sales channels and the Canton Fair is a timely opportunity for us to do that.”