Export-oriented SMEs Eye on Domestic Market
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For survival and a better chance to develop, many Chinese export-oriented small and medium-sized enterprise (SMEs) have begun to turn their eyes to the domestic market amid the global financial crisis.
The backbone of China's manufacturing industry, SMEs' products such as gifts and house ware account for more than 60 percent of the world's total. However, the worldwide financial crisis, which became apparent in 2007, dealt this industry a heavy blow.
Beijing Zhengzhang Badge Factory is one of the many export-oriented SME companies who showed up at the ongoing 8th China International Gifts, Premium & House Ware Exhibition that kicked off in Beijing on Wednesday. The factory has expressed its readiness to expand in the domestic market in order to curtail losses caused by decreasing overseas orders.
The Badge Factory is a professional badge-making manufacturer. Before the financial crisis, it had a frequent flow of export demand from countries like Australia, Sweden, Russia, and so on. According to its salesman Chen Xianyi, the company had 200,000 yuan overseas orders every month before the crisis. However, this number is almost zero at present.
"We are eager to open up the domestic market since it is less influenced by the crisis. In addition, the Beijing Olympics helped to promote our badges to Chinese people."
Gao Zhuangxiong, manager of Shenzhen based Lianfeng Stainless Steel Products Co., Ltd, has been engaged in tableware industry for 6 years. The company started domestic sales in 2007.
"China is a very large market. In my opinion, our nation is identical to all of Europe with respect of the consuming capacity."
As for domestic buyers, they also show their great interest in high-quality commodities originally produced for export. The Chinese domestic market has a huge buying potential.
According to the organizer Reed Exhibitions, the three-day fair will attract over 400 exhibiting companies and 20,000 professional visitors.
(CRIENGLISH.com March 19, 2009)