After the disappearance of the hottest foreign tra

After the disappearance of foreign trade orders in the Pearl River Delta,

at 4 a.m. on April 26, there was only one hour before the delivery time. The affirmation order is from high to low. In a factory in Dongguan, Chen Ahua calculated that there were still 100000 masks left. This is the fourth mask factory he ran tonight. Like the previous three, the other party falsely reported its production capacity, and fiveorsix workers were actually manually pressing the edge

if the goods cannot be delivered, the business will lose 200000 yuan. He recognized the plant, went out of the factory, got into the car, and didn't want to work anymore. Over the past 40 days, Chen Ahua has worked as an forehead temperature gun, met an unlucky man, and also made millions in a night through the mask business

he has gained wealth and felt the fall of fate. However, if the customer didn't cancel the order at the beginning, Chen Ahua would still be willing to return to solid foreign trade electronic manufacturing

in Dongguan, Chen Ahua originally operated a small electronic foreign trade processing factory, and the products were sold to Europe, America, Japan and South Korea. I thought I could last until May this year with two orders before the year. But at the end of March, the customer suddenly cancelled the order, and the company immediately fell into a situation of making bricks without straw

this is also the recent experience of most electronic foreign trade processing small and medium-sized enterprises in the Pearl River Delta. The Ministry of industry and information technology said at the press conference of the state information office on May 20 that as of May 18, the resumption rate of small and medium-sized enterprises across the country had reached 91%. However, with the accelerated spread of the epidemic in the world, foreign trade enterprises, especially small and medium-sized foreign trade enterprises, have great difficulties

the Pearl River Delta is an important manufacturing town of consumer electronics in the world, such as wearables, and electronic products account for 70% of the total exports of the entire Pearl River Delta. Since the end of March this year, with the sudden outbreak of the epidemic in Europe and the United States and other overseas regions, electronic foreign trade orders have been cancelled. Compared with the clothing industry chain, the electronics industry chain covers a wider range, and the composition of upstream and downstream is also more complex. Once a problem occurs, it will spread far beyond other industries

according to Caijing, up to now, nearly 80% of small and medium-sized enterprises in the Pearl River Delta have encountered order problems, and most factories have nothing to do. Even if the order is not cancelled, the payment cycle of overseas customers is also significantly extended, and the financial pressure increases instantly

many small and medium-sized enterprises predict that if the order demand in June does not recover, many factories will be unsustainable. In order to maintain their operations, most small and medium-sized enterprises are downsizing and shrinking, while changing production like Chen Ahua, returning cash flow

career or career, must return. Huang Guanghui, the founder of a new material startup in Shenzhen, told Caijing. He also switched to the production of masks, but he believes that after the epidemic, there will be a demand outbreak, depending on whether the enterprise can persist

orders that disappeared

the tension began in late March. Several pieces of news about the collapse of garment factories began to circulate among small business owners in Dongguan. Chen Ahua didn't take it seriously: he only mentioned large garment factories, not electronics factories. Clothing belongs to fast-moving consumer goods, and the demand change of consumer electronics is relatively stable

but only one week later, the customer chargeback information popped up one by one, and I was dumbfounded

in Chen Ahua's hand are the orders placed by American customers in December last year for the first quarter of this year, two batches of small OEM (original equipment manufacturer) car stereos. Due to the lack of capacity in the early stage, the delivery was postponed to the second quarter, but now the customer requests to cancel it all

another medium-sized foreign trade electronic manufacturing enterprise, Shenzhen ingenuity original technology Co., Ltd. founder humanities and military described the whole process as a roller coaster, and customers turn their faces like books. I was still adding orders before, and I immediately said to cancel it. He mainly manufactures Lanyan earphones and stereos for European, American, Japanese and Korean brands

during the Spring Festival, customers urged goods while adding orders. In order to meet the demand, Wen Hejun offered 20% higher wages than the normal level to attract workers after returning to work at the end of February. The customer's additional orders have been scheduled to the end of June, but as soon as the end of March, Wen Hejun successively received the notice of postponement of delivery from the customer, and the intended orders were basically cancelled

in the early stage, a large number of ODM (original equipment manufacturer) and OEM foreign trade electronic factories were first impacted by the contraction of overseas consumer market. By early April, the order crisis began to pass to downstream supply chain enterprises

Li Hong's screw factory has received customer order adjustments since April 9. Due to the spread of the epidemic, the factory of a Japanese headphone brand customer in Mexico was temporarily closed, and Li Hong was informed that there was no need to supply any more. Next is the shutdown news of customers' factories in the United States, Malaysia and Singapore

as soon as the customer's overseas factory was closed, Li Hong's orders instantly decreased by 10%. He worried that if the overseas epidemic could not be controlled, the order losses would double month by month from May

what disappears with orders is the cash flow of the enterprise. Compared with the large enterprises with billions of accounts, the situation of small and medium-sized electronic foreign trade enterprises in the Pearl River Delta is more difficult. According to Caijing, due to the rising rent, labor costs and raw materials, even small and medium-sized enterprises with an annual income of 100 to 200 million can support for up to two to three months

if there is still a large amount of inventory in the early stage, the situation will be even worse. According to the customer's early order requirements, Wenhe armament has completed the materials for at least June and needs to pay for the goods. Although customers' orders are suspended, downstream suppliers are still delivering goods one after another, and they can't stop even if they want to. Wen Hejun saw that the materials were being stuffed into the warehouse one by one, so he could only worry

by the middle and late April, the finished products piled up in the company's warehouse, but could not be delivered. Wen Hejun calculated that if the customer did not take part of the goods in May, the company might have capital turnover problems in June

in order to alleviate the financial pressure, Wen Hejun reduced the number of production line employees from 150 to about 80 at the end of April. At the same time, communicate with downstream suppliers to make different payment times for completed and unfinished material orders

reducing costs and maintaining operations are also the practices of most electronic foreign trade enterprises in the Pearl River Delta. When the factory is idle, it loses 5000 yuan every day. Chen Ahua said that in a word, the epidemic caused orders to be delayed and returned, and all the profits made in the past two years were lost, leaving less than 20000 on him. In order to save costs, on the one hand, he dragged the supplier's payment, on the other hand, he reduced the rented plant from three floors to two floors

domestic sales or production

in order to support for a few more days, in addition to frugality, small and medium-sized enterprises in the Pearl River Delta are trying to open source and find demand

40% of Li Hong's orders come from China, involving automotive, consumer electronics and other fields, and do not all rely on foreign trade. Since the reduction of overseas orders, the company temporarily changed its market strategy and shifted its focus to China

for enterprises with relatively diversified revenue structure, it is a natural choice to expand the domestic market when foreign trade is impossible. But the actual difficulty is beyond most people's imagination

due to the weakness of domestic automotive and consumer electronics industries, the entire metal parts industry was in short supply last year, and the domestic revenue of most enterprises generally fell by about 30%. In addition, the demand is still recovering after the epidemic. At this time, expanding domestic sales channels is tantamount to finding increment in an already shrinking market, which is a huge challenge

Li Hong was on business all April, and finally contacted a power supply factory at the end of the month. This Shanghai based enterprise has been supplying government agencies for a long time. Although it did not cancel orders, the new orders were reduced by half. But for Li Hong, something is better than nothing

in order to win the favor of potential new customers, Li Hong even considered transportation. It took only two hours to fly from Shenzhen to Shanghai, but he decided to drive for 18 hours and drive 5000 kilometers to meet customers. After flying, I'm afraid the customer feels that meeting is risky

on the one hand, orders are in short supply, on the other hand, foreign trade manufacturers trying to expand domestic sales are increasing. In areas such as consumer electronics, competition is fierce

after the foreign orders stopped, Wen Hejun was thinking about how to expand the domestic market, which accounted for 40%. He has bid for headphones and stereos from several domestic manufacturers. After being shortlisted for Huawei's annual speaker gift project, I found that Huawei had set up a total of three rounds of elimination, including 15 in the first round, 3 in the second round, and only one in the end

competitors have changed from domestic factories to the sum of domestic and foreign trade, and the scope of competition has obviously expanded

relying on contacts and product accumulation, Wen Hejun has previously won the order for new complimentary headphones released by vivo 3S. He is not afraid that he has no competitive advantage, but he worries that even if these lists are obtained, the compensation for external orders is only a small part

compared with external orders, the profit of internal orders is generally low. Orders cut at this time are at the expense of profits. He said. Due to the large number of competitors, Huawei has high requirements for speaker gifts this time, but the quotation is lower than usual

it is the consensus of the electronic industry chain that it is harder to do internal orders than external orders. In addition to relatively thin profits, The pressure of the capital chain is also more popular. Timken's experimental method (the oil test temperature is 52 ℃. The account period of domestic customers is almost one to two times that of overseas customers.

this is also the reason why most foreign trade factories were unwilling to take the initiative to switch to domestic sales. Foxconn is one of Li Hong's domestic customers, accounting for 30% of its domestic business harvest. Foxconn once wanted to expand its business with Li Hong, but Li Hong refused at that time. First, the profit is not high, second, the payment for goods is slow, it takes more than 90 days, and the business relationship is also complex, Take care of interpersonal relationships. He said

no matter the accounting period, delivery and inspection, the playing methods of internal and external orders are completely different. This means that it is even more difficult for foreign trade factories with a single customer structure to develop the domestic market

everything needs to start from scratch. It takes time to cut in. It won't work in a few months. Chen Ahua has long been familiar with this. The mainstream of such foreign trade electronic factories in Europe, America and Japan is to change production. The categories of production conversion are also carried out around the demand, and medical equipment such as forehead temperature guns and masks have naturally become the choice of most people

however, changing production also requires market smell. Chen Ahua felt that changing production was like buying stocks, and he made the wrong bet at the beginning

Chen Ahua chose the forehead temperature gun, which seems to be more profitable, but has no market. Unlike masks, forehead temperature guns are not consumables, but once a business has a huge profit and friction coefficient, entrants will soon flock to it

as of March 15, there are more than 100 kinds of forehead temperature gun molds in Dongguan, which means that at least hundreds of thousands and millions of forehead temperature guns are available every day. In less than a month, the market scale of forehead temperature gun has at least doubled, and the price has also plummeted

an investor who has a long-term view of the medical industry told Caijing that the performance of professional medical supplies companies follows the general trend of the market. If the market is good, the performance will be good, and the general trend will return to normal in the past. And companies such as BYD, which can withdraw and return to their main business at any time, are less affected by market fluctuations

the key is that these small and medium-sized new entrants can only survive on the imbalance between supply and demand, so the risk is the greatest

with the lesson of forehead temperature gun, Chen Ahua saw the source of tourists before starting to work when he switched to mask production. At the beginning of April, the customer's $700000 deposit was paid to the account. He pulled a few friends and bought a 20 station spray press for 3million yuan to produce N95 masks, which had been paid back in less than half a month

in addition to the sense of market, you have to have capital