Search

How will PCB industry foreign trade people get through tough times?

2022-06-10   


When the COVID-19 outbreak just broke out at the beginning of 2020, some people who work in the PCB industry predicted that this year may be the most difficult one for foreign trade in recent years. But we all know that 2020 has not been the toughest year. On the contrary, most foreign trade people around say "it's difficult!" this year. Affected by sea freight, raw materials, exchange rate fluctuations, etc, customers have fewer purchase orders; Companies with orders are also suffering from the impact of the COVID-19. Under such circumstances, how should foreign trade people get through this difficult time?

1. Be prepared for changes in the foreign trade environment. Why have customers been less aggressive in placing orders this year? The reasons are probably as follows: the first must be the unpredictable shipping, the freight has risen again and again. If the shipping cost is higher than the value of the goods, buyers will definitely consider carefully when placing an order. On the other hand, the shipping time is now once or even more than before the epidemic. Some customers have long missed the best sales opportunity when they get the goods that have been waiting for a long time. Either they pile up in warehouses or they sell them at a discount to clear inventory, which reduces customers' incentive to keep ordering. Secondly, the exchange rate of the local currency of the client's country against the US dollar is basically declining, while the CNY is rising, which is equivalent to increasing the import cost of the client. Third, the prices of some PCB raw materials have skyrocketed due to various reasons, resulting in increased procurement costs. Finally, our main export markets are currently facing the problem of soaring CPI, the annual inflation rate of the euro reached 7.5% in March; the CPI in the United States even reached 8.5% in March...... Rising prices have reduced consumer demand, which will inevitably affect the purchasing side, and sellers are reluctant to stock up on too much inventory at one time. What we foreign trade people need to change in thinking is: don't ignore small orders; can't neglect old customers; Don't just focus on mainstream markets in the US and Europe; When researching competitors, shouldn’t only look at domestic peers, but also understand the situation of foreign suppliers.

2. Deliver goods after receiving payment. Under the current circumstances, we also need to be more careful in terms of payment security. Many friends have already arranged the bottom line of "receive payment and then ship" for the company, caution is the parent of safety.

3. Keep abreast of the latest local policies actively. Since the beginning of this year, many cities have also introduced various policies to reduce the burden on small and medium-sized enterprises as in 2020, Shanghai, Jiangsu, Zhejiang, Guangdong and other places have them, basically including support for our foreign trade industry. It is recommended that you learn more about these policies and apply in time.

When you can't change the environment, adjust your mentality. Many foreign trade people are generally more pessimistic when talking about this year's market, and many foreign trade practitioners will be a little anxious. Especially for foreign trade people who have faced difficulties such as factory closures, working from home, and unsmooth shipments recently. But there are two points to keep in mind: First, the social environment can’t be changed by you or your company; Second, we all face the same problem. If your mentality is easily influenced by social media and public opinion, then uninstall these apps that affect your emotions and focus on yourself. It's good to think about whether you can learn something more, do something more during this time, or even give yourself a good rest. Life is so long, and you can't expect it to be smooth sailing forever. It is important to learn to live with adversity.


图片1