Future Several Years’ Development Tendency of Import Products-- International Trade

2016-1-8

2016-01-08

At present, we provide services for a multinational company which is specialized in international trade for half a year. Through contacting with clients earlier, product analysis, and other domestic imports sales market, on the whole, desire for imports is much larger than exports abroad. The rule is simple, one is with no substitution, rigid; another one is only price advantage without quality assurance, flexible.

We prefer to develop the domestic market for the imports, because it’s easy to do something obey the market rule. But you can’t misunderstand that the imports must sell well, in fact it’s contrary, many products sell well in foreign but take small proportion of the market of China. Some products are ignored by foreigners but take large proportion of the market of China. Both Chinese and foreigners confused.

From the overall structure, in the future 5-8 years, the imports which take large proportion of domestic market will build their own brand awareness and related market. 10 years is a basic industry cycle, the industry development is related to the complete set of industry transformation and upgrade. 10 years will go fast. The up-limitation is 8 years, the best market economic will go down in the last 2 years. There will be a pity if we throw off, but if we don’t abandon there will be a wasting. Being similar with coffee tree, the early years for cultivation, center period for picking, although there be also pulp in late period but all dry goods with bad quality.

Then the key point issued, the best international trade profit comes from the trader’s working tools which can find the overlap between the limited output volume or industries’ needs with bad quality in domestic markets, with the surplus output in overseas’ market.

 

Currently, we think there are 3 main categories of products may have the increasing sales tendency in middle and long term period in China: 1. Food; 2. Cosmetic 3. Some fashion products.

1. Food, especially those ingredients that both domestic and foreign kitchen and restaurants will use, Chinese people are willing to accept them rather than manufactured goods with senior package.

1) Because domestic animals and plants, especially the pedigree breeding poultry breed is not an industry can be cultivated at short time, so if you like to eat foie gras, and beef, you want to eat black pork, I'm sorry, please buy imports, there is no alternative.

2) Here we don’t mention all kinds of fake meat safety problems, which also attribute to more people to choose imported ingredients from the opposite aspect.

3) The government doesn’t open the door for import commodity inspection, which attribute to high commodity prices, contribute to the high-grade feeling, and cause illegal profits space for these smugglers

2. The cosmetics, especially refer to Japan, South Korea beauty and skin care products that are suitable for Asian skin, including part of Europe and the United States perfume. Cosmetic brands continue to occupy the high-end market by the brand advantages. 

1) Because China's large population determines the women is most in the world, and women are between 18 and 40 years old, no matter how beauty evolved into the skin care, all in all the huge consumer market of women became the most enduring and irrefutable foundation of the market.

1)  China's large population determines its number of women is the most in the world, and most of women are between 18 and 40 years old. No matter how beauty evolved into the skin care, all in all the huge consumer market of women became the most enduring and irrefutable foundation of the market.

2) The above view has proved the demand, and series of professional division of labor, including cosmetics, skin care products on the material, research, development, design, marketing, etc. Europe, the United States, Japan and South Korea have formed a complete industrial chain. It’s impossible for a domestic enterprise to change the pattern by a special material. We should know that consumers choose a product eventually not because of the real effect of the product, the first problem for domestic businesses is unavoidable: though your product is very good, how to make the target consumers know that? Instead of solving this problem, only want to earn a quick money by doing business in Tao Bao online, just want to default payment everywhere, just list & finance, just want to cut cost, just want to make perfect in the most quick way. These are most true portraiture of domestic private enterprises. If you expect to build your own brand by these, you are a fool. Domestic consumers don't make enough analysis for this, but they have been cheated for a time, so they will choose imported cosmetics of expensive but high quality. After all, the cosmetics are related to our face. So the imperfect cosmetic supply conditions reversely contributed to the good sell of imported cosmetics and skin care products.

3) Domestic conditions of urban transformation have been changed and the statistic of it published in country's statistical yearbook publicly a few years ago: China's urbanization rate was above 50%. That means more people change their work to internet hiking and business from doing farm work.

Don’t talk me about that many of the third industry is a research and development, high-tech area. If you go to state, city, district high-tech industrial zone, you will know what the domestic high-tech information companies are doing. In these years, the company that cells bed sheet and other products in Tao Bao can be called high-tech, they has no need to develop clients. It’s so ridiculous.

Don’t talk me about that many of the third industry is a research and development, high-tech area. If you go to state, city, district high-tech industrial zone, you will know what the domestic high-tech information companies are doing. In these years, the company that cells bed sheet and other products in Tao Bao can be called high-tech, they has no need to develop clients. It’s so ridiculous.

3. Part of fashion products, especially those full of creation (not necessarily great but it's very practical and close to life, it takes a lot of time to design, such as, MUJI.

1) Many industries of China's manufacturing are leading the world at present. But if we consider from the aspects of quality, design, brand, and many other elements, we only have price advantage. The demographic dividend gradually disappears, and the price advantage is being eroded, if we want maintain the status quo, we can only reduce the quality of service and cut cost. So, some foreign products designed in the domestic but with overseas team for design and marketing. Such fashion class products always take large proportion of China market.

2) From furniture to the vehicle, what the people want to improve most after the economy improvement changed from furniture to the vehicle re-construction, while this has been applied for many years by foreigners. They make the products from their own experience which is difficult for us. So, in the short term, if the Chinese development speed will not slow down, no one will spend a lot of time to design and observe life, there would not appear good innovative products. The need of innovation is relatively loose atmosphere and inner passion for a better future life. How many people can meet these conditions?

It is difficult for us to further subdivide the above three kinds of products, such as infant products, quality education, the high-end medical and so on, all of these are our weaknesses. Although these weak links in the field can't completely meet the huge domestic market, but from the application point of view, they are relatively small, mainly based on China's huge population to attract the attention of some investors.

All in all, the introduction and sale promotion plan of international imported products must be based on two aspects reasons, look for intersection, so there will be sales and profit space for the introduction of the goods. A plane is unable to meet the domestic demand for rigid segments, the other is can meet the demand of domestic and foreign reserve domestic distributor price enough profit space. In the opposite, it will not succeed. One is the small market that domestic demand that rigid segments are unable to meet, the other is that foreigner market can meet the demand of domestic market and reserve enough profit space for domestic dealers.

Writer: Louis WU