Can the production and sale of anti-epidemic materials under the overseas epidemic situation become self-help straw for foreign trade enterprises?
On March 17th, Chinese sellers received an email notification from Amazon that “FBA non-essential merchandise stopped storage.”The email stated that in order to alleviate the surplus of necessities, medical supplies and other items, from March 17 to April 5, the FBA warehouse at Amazon’s European and American sites (reporter’s note: Amazon’s warehouse provided to sellers) gave priority to receiving necessities and medical careSupplies, non-essentials or medical supplies cannot currently be sent to FBA warehouses.”This Amazon rule means that non-essential necessities or anti-epidemic materials will not be sold by sellers, which means that we have been temporarily pressed on the retail channel in Amazon in Europe and America.”Yiwu cross-border e-commerce company Sun Yong mainly sells daily necessities to the European and American markets through Amazon, eBay and the company’s website.Among them, Amazon’s sales volume surrounded 60% of the company’s orders.”Due to the closure of Amazon and poor international logistics, sales data is going down every day, and the order volume has dropped by 50% to 60%.”Sun Yong decided to stand up again.”Two or three months can still pass, and I don’t plan to lay off staff yet.”Sun Yong ‘s own factory supplies the company ‘s cross-border retail.”Although orders have decreased, we have not deliberately lowered the factory’s production capacity. We plan to temporarily ship the goods for half a year.However, Sun Yong also said that the current decision is based on the judgment that the overseas epidemic situation has been effectively controlled within three months.Although the company is currently well funded, if the epidemic of overseas epidemics expands for more than half a year, “it’s hard to say.”Peng Zhao is a large-scale apparel manufacturer in Yiwu, and is a supplier of overseas famous sports apparel offline stores such as Adidas, Puma, Decathlon, etc. The company’s products are sold to more than 20 countries in Europe and America.At the same time, the company also supplies Costco, Lidl, KIK and other large supermarkets in Europe and America.”Under the epidemic, there has been a closure of overseas offline stores. The European and American offline sports apparel stores that we supply have basically closed their large supermarkets.”Zhao Peng said that the company basically has no overseas orders after April.Costco, a well-known American warehousing chain supermarket, is still operating. This is the only customer in Zhao Peng Company in Europe and America that has not cancelled orders.”After the production of Costco’s orders is completed, our production line will continue to work on inventory-if not inventory, the company’s daily expenditure of more than 10 million yuan is equivalent to a loss in vain.If you do inventory, these basic expenses can also be spread into the inventory, waiting for the market to recover.”Zhao Peng said.However, Zhao Peng placed more hope on the overseas orders of the masks.As a large apparel manufacturing company, Zhao Peng’s company has a long-term strength R & D team that can develop seamless medical masks.”Some of the N95 masks we have recently developed have just been certified by the US FDA. If put into production, the factory can produce about 600,000 pieces a day.”Currently, Zhao Peng’s companies at home and abroad are preparing for overseas mask orders.Branches in Europe and the United States are in the process of anticipating mask orders with the local government. Among them, a company in the United States is bidding for the procurement list of the local government’s epidemic prevention materials.Once the bid is won, there are 10 million orders.”While the domestic production line is waiting for overseas orders, it is also stepping up training for employees of the original clothing production line, and the new mask production line is about to start.Recently, Zhao Penggang and the board of directors participated in the discussion on layoffs.”If there is no stable order, no one can eat more than 10 million per month.If the orders for overseas masks are not available, we plan to cut 30% of the assembly line workers.If orders for masks from overseas come up, the company will not lay off employees.”There are not a few foreign trade enterprises like Zhao Peng who are converted into epidemic prevention materials.”I went to the circle of friends to see that more than a dozen colleagues started to produce masks business-there are companies that originally produced small tools, those that produce high-power power supplies, and those that produce various electronic products.”Mr. Lin, the owner of the aforementioned LED manufacturer in Dongguan, also started the foreign trade business of masks, supplying the purchased medical masks to the local hospital through the Spanish branch.”Sales masks must be inspected for quality. Now employees of some companies are trained to go to the quality inspection of masks, or sent out to purchase and follow orders.”The shift to selling medical supplies has also become a new direction for Yiwu cross-border e-commerce.After being sealed, Yiwu’s cross-border e-commerce expanded its sales category to include masks, disinfectants, protective clothing and other anti-epidemic materials.A number of Yiwu cross-border e-commerce companies interviewed by Sauna Ye said that they have added a new category of anti-epidemic materials to their foreign trade sales, and that upstream apparel manufacturers supplying them have also begun to switch to producing anti-epidemic materials.Can epidemic prevention materials become the straw for Chinese foreign trade enterprises?According to media reports in mid-March, Amazon has announced that it has masked masks, hand sanitizer and other new coronavirus-related products on its website.eBay announced a total ban on the sale of masks and hand sanitizers to prevent price fraud.In addition, Wal-Mart and other e-commerce companies are also trying to stop third-party sellers from driving up prices for related anti-epidemic products.”Almost all the epidemic prevention materials are on sale overnight. Only after the sales qualification is reviewed on the foreign e-commerce platform, the goods can be put on the shelves again, and the price will be strictly controlled.”Mr. Jia said.”In Zhao Peng’s view, switching to epidemic prevention materials is one of the ways for foreign trade enterprises to save themselves, but not every enterprise has sufficient self-help capabilities.”We have the ability to develop medical masks that meet the requirements of the European and American markets, as well as a sales network throughout Europe and the United States.How many companies have such capabilities?I believe that few companies have such capabilities.”Zhao Peng said.Sauna, Ye Wang Hou Runfang Editor Yue Caizhou Proofreading Chen Diyan