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Enterprises in Pearl Delta Area to Exploit Domestic Market by Group

Enterprises in Pearl Delta Area to Exploit Domestic Market by Group

Write: Tucker [2011-05-20]

Most enterprises in Pearl Delta Area are export-oriented enterprises. When the severe economy crisis hit the whole world in 2008, many of them were eager to enter domestic market to save themselves. Now, the crisis is almost gone. When orders from foreign markets grow drastically, these export-oriented enterprises still cannot say no to the domestic market.

For most of them, although the prospect of foreign market is bright, they still work hard to exploit domestic market due to the appreciation of Yuan and rise of labor cost. These two disadvantageous factors reduce enterprises' profits. Enterprises can survive only when they walk on “two legs" (both domestic and foreign markets).

Although they are eager for domestic market, they cannot take their shares easily. Many of them meet lots of difficulties during their adventure for domestic market. Lacking sales channel and brand popularity are their common disadvantages for their adventure for domestic market.

In order to tackle these difficulties, they begin to cooperate. An increasing number of enterprises start their adventure by group. Shoes enterprises in Dongguang, Guangdong Province establish a shoes brand union with over 40 members. This union helps its enterprises members to enter domestic markets more easily. What's more, it is very attractive to big purchasers.