How China Zhangzhou Watch Export Dilemma Turns into Opportunities

Zhangzhou City, Fujian Province, China, which is a famous Chinese watch city.

The spread of the global epidemic has left Zhangzhou watch enterprises, which rely on exports for more than 90%, facing a big test.

It is difficult to make a forest out of a lone tree. Zhangzhou City, more than 200 watch enterprises did not wait, but group response in the thorny path of pioneering, actively responding to the export of “late spring coldness”.

China Zhangzhou Watch Export Dilemma-Epidemic Increases Trade Risk

 “The end of February to early March, our industry basically resumed work and production, we worked overtime to catch up with the foreign trade orders before the holidays. Unexpectedly in mid to late March, the global epidemic spread, almost all orders in Europe and the United States were suspended or canceled, all of a sudden, the entire China Zhangzhou watch industry is facing an unprecedented challenge.” April 10, Zhangzhou Watch and Clock Industry Union President, Hengli Electronics Company Chairman Shao Yueming said. Can produce but no orders, this is the first challenge.

Coincidentally, Li Jiancheng ,the person in charge of Zhangzhou New Liju Hardware Products Co., Ltd. said frankly that the current situation is more worrying, even if there are orders to produce, most of the finished products are squeezed in the warehouse.Having goods that can’t get out is another challenge.

Orders canceled, closed gates, delayed payment, finished products backlog warehouse, capital pressure, raw material prices, a series of chain reactions triggered by the epidemic, which made many watch companies in Zhangzhou, the person in charge of a bit caught off guard. Only Hengli clock and watch an enterprise, the cancellation of exports to Germany, the United States, France, the order amount was more than 1.7 million U.S. dollars, shipments were affected by more than 150,000 clocks, resulting in economic losses of nearly 710,000 U.S. dollars.

Breaking the ice: Group response to break the ice

“The epidemic has certainly given us a lot of inspiration. For example, the domestic market share of southern Chinese watch companies is small, lacking the ability to resist the risks of the international market.” Li Jiancheng said, “the current orders from India, Pakistan are not too much impacted, but by the end of April there will be no orders to produce, the workers will become a problem. When the epidemic is over, the overwhelming orders will lead to a shortage of factory workers.”

There are always more solutions than difficulties. Zhangzhou City, the relevant functional departments, many visits to enterprises, to collect enterprise demands, and actively introduced stable job security, tax relief, social security deferred, financial credit and other “dry” policies to help enterprises out of short-term difficulties. Zhangzhou Watch and Clock Association also play the role of a bridge, in early March to visit the research, the formation of a written analysis of the report, launched a group of member companies to cope with the difficulties.

At present, under the initiative of Zhangzhou Watch Industry Association, nearly 50 watch enterprises plan to build a watch sales cloud platform with 500 Chinese domestic and international brand volume, group to develop the network marketing market; at the same time, the jurisdiction of enterprises to change the way of export insurance coverage, a collection of large volume policy for insurance rate preferences to reduce enterprise production costs; accelerate the approved Fujian Provincial Industrial Design Institute Construction, enhance product design and development capabilities, improve the competitiveness of the enterprise market …… a series of combinations down, greatly boosted the confidence of the industry’s development.

China Zhangzhou Watch Export Dilemma- a new model

“The epidemic has led to the shrinking of orders, we just use this time to transform the production line, improve the degree of automation and speed up the process of machine for work, which can not only ease the difficulty of recruiting workers, but also increase production capacity.” Shao Yueming stated the intention of many watch business owners to upgrade their automated production lines in the near future.

At the same time, as a senior watchmaker, Shao Yueming quickly changed his thinking to focus new product development on the Chinese domestic market, through the e-commerce platform, to increase product promotion. At the same time, continue to promote the construction of industrial tourism sightseeing factory, open the time restaurant to welcome guests and minimize the impact of the epidemic on the enterprise.

“This is an economical and practical clock, the right size, accurate time, very suitable for the young family home use ……” April 13, Haixi Watch and Clock Museum guide Yang Huiyan use the gap between work, live on the shake with goods. Affected by the epidemic, the West Coast Watch Museum was closed for a period of time, reopened, the guides also opened the “online with goods” mode ……

In early April in Zhangzhou, more than 200 clock enterprises are riveted to promote the resumption of work and production. As the world’s largest quartz clock production base, the most complete industry chain and the largest industrial brand cluster in China , Zhangzhou watch industry, steady progress to fight the storm.

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