Diversified modes of trading turned to amid global health crisis

Since the outbreak of COVID-19, Jiangyin Youlite Houseware encountered a series of challenges, including production suspension, delay in overseas shipments and port closure. Thus the company was at a loss for months.

Facing the difficulties, the company shifted focus to the domestic market and found a way out.

Sales of originally export-oriented products in the domestic market do not simply mean a change in marketplaces, but require adapting products to the new market, said an executive at Youlite headquartered in Jiangyin, Jiangsu province.

“In cooperation with external researchers, we conducted investigation into domestic consumers’ preferences and upgraded our products to meet the needs of the domestic market,” the executive said. “At the same time, we have also expanded our distribution channels and opened shops on multiple online portals.”

The Youlite case is no exception at the Canton Fair, where a great number of Chinese companies involved in export and import businesses are taking flexible and pragmatic approaches to weather the storm of the health crisis.

“In response to the pandemic, we have changed the traditional OEM (original equipment manufacturer) model and added the RTS (real time stock) model, without requirement for a minimum shipment in an order,” said Li Yunhuan, sales director at Iuiu, a Dongguan-based household products manufacturer.

“The practice has relieved pressure on stock and capital and meanwhile enriched the purchase list of our customers,” Li said.

In the first half of 2020, the company increased its spending on new products’ research and development by more than 30 percent year-on-year. The continuous R&D efforts have strengthened customers' faith in the company and its market prospects.

Government policies are key to maintaining the stable development of foreign trade. In Guangdong province, a series of policies were rolled out to increase financing support, set up a special fund, provide export credit guarantee and foster new business models. The trade delegation from the province to the fair encourages its member exhibitors to make full use of digital marketing tools to secure orders and reduce risks.

Trade associations have provided guidance for businesses to increase their competitiveness in the markets involved in the Belt and Road Initiative. The China Chamber of Commerce for Import and Export of Machinery and Electronic Products has conducted surveys by industry and region, organizing experts to analyze the markets and released advice to member companies.