As more hardware companies shift their focus from foreign trade to domestic sales, the transition is proving to be a complex and challenging process. Some are small manufacturers forced to adapt due to declining international demand, while others are larger players strategically repositioning themselves in response to market changes. Regardless of the reason, the author argues that moving from export to domestic sales is far from straightforward for the hardware industry.
The path to domestic success is not smooth. The Canton Fair has long served as a key indicator of China’s foreign trade performance. Historical data suggest that its transactions strongly reflect overall export trends. However, recent figures from the 105th session indicate a continued decline in exports, signaling a less-than-optimistic outlook for foreign trade. In the first phase of this period, cumulative export turnover dropped by 20.8% to $13 billion, with even steeper declines in key markets—over 35% in the EU and Japan, 11.2% in Australia, and 4.9% in the U.S.
At the same time, emerging markets present their own set of risks. While some regions like Argentina, India, and ASEAN showed growth during the first phase of the Canton Fair, others such as Russia and Brazil experienced sharp drops—42% and 35%, respectively. These declines even surpassed those seen in traditional markets. This trend can be attributed to the delayed impact of the global financial crisis, which has hit emerging economies harder in recent quarters. With no signs of improvement in these markets, Chinese exporters must remain vigilant about potential risks.
Entering the domestic market requires starting from scratch. Many companies lack brand recognition, distribution channels, and local expertise. For foreign trade firms, transitioning to domestic sales involves more than just shifting products—it means building an entirely new market presence. Brand development, channel establishment, and team building all require significant investment and time. Most companies admit the challenge is overwhelming. They often have to hire more staff to manage branding and distribution, further increasing operational costs.
This shift is not just a strategic move but a transformation that demands new skills, resources, and long-term planning. Companies that fail to adapt may struggle to compete in the increasingly competitive domestic landscape. Ultimately, the journey from foreign trade to domestic sales is not only difficult but also a test of resilience and innovation.
JIANGSU CHENG AO METAL TECHNOLOGY CO., LTD , https://www.chengaostainlesssteel.com