The freighter, which is floating in the Indian Ocean, is carrying seven winter clothes, worth about $170000, that Chen maoyun supplied to the Dubai based landmark groups clothing brand on January 28. This is the first shipment he has made this year. From Shenzhen to Dubai, the logistics time is 18 days.
Years ago, my client asked me about my situation. I said that the epidemic was in Wuhan, and Guangdong should have little impact. However, on the same day that the goods were delivered, Guangdong Province officially announced the notice of the enterprises postponement of resumption of work. Chen maoyun was unprepared. More than 60 workers have all had holidays. Most of them have returned to Guangxi, Sichuan and other places. According to the customers order planning, the delivery date of the second batch of goods is April 25. Even if they return to work on February 10, the workers may not be willing to come back, but they will be isolated and unable to gather, and they do not know how to arrange the commencement. Chen maoyun knows very well that he cant catch up.
Landmark group is known as a retail giant in the Middle East. This customer is hard won and he really doesnt want to lose it. At the beginning of 2019, Chen maoyun met with the Indian supplier of landmark at an exhibition in India, and learned that the environmental protection standards of Indian factories could not meet the requirements of the head office. At that time, Chen maoyun was worried because a customer in the United States failed and he had nearly 1 million yuan of inventory on his hand. Landmark group, as a leading enterprise, can become its supplier, which is a good opportunity for Chen maoyun.
After the exhibition, Chen maoyun followed the supplier to visit landmark groups factory in India. When I went to see their environment, I thought we could definitely do it. The domestic environment is thousands of times better than them.
With the introduction of this supplier, Chen maoyun soon contacted the headquarters of landmark group in Dubai. In March 2019, landmark group asked Chen maoyun to sample first, and the first batch of 27 samples to see the effect. In the past, proofing enterprises would ask the other party to give proofing fees, but large customers like landmark didnt give them, so we also did it and wanted to serve as reserve customers.
We have been a Wal Mart supplier, but we still have confidence. Soon, the proofing effect passed the test, and Chen maoyun was invited to Dubai headquarters to discuss more details of cooperation. Before departure, landmark group issued another test order. More than 60000 US dollars, 40% in advance, and Zhejiang suppliers together with the cabinet delivery.
At the end of July 2019, Chen maoyun and his colleagues spent more than a week in Dubai and reached an annual cooperation agreement with landmarks brands. Landmark has a high demand for the factory. Before the commencement of construction, it sent a factory inspection organization to inspect it. We have been preparing for a full month from the factory environment rectification and staff training.
In November 2019, Chen maoyuns factory officially began to produce clothing for landmark groups orders. In January 2020, Chen maoyun and his colleagues, who are preparing for the Lunar New Year holiday, sent the goods to their destinations across the sea. He didnt expect that the outbreak of the new coronavirus would attract the worlds attention in just half a month.
First level response, delayed return to work, restricted entry and exit Chen maoyun is a little confused. Seventeen years ago, the SARS epidemic also attracted worldwide attention. At that time, Chen maoyun graduated from graduate school and just stepped into the society. The impact of the current situation is even greater. For Chen maoyun, if the goods on the sea at the moment cant complete the transaction, the goods cant be changed into cash, and the bank loan immediately matures, he will face a series of chain reactions that he cant even imagine. I think I can last two or three months at most.
On the night of February 2, he finally received a message that he didnt know how to respond properly. The customer temporarily asked Chen maoyun to show an official certificate of the epidemic situation, otherwise the ship would not be able to get the goods at the port. This certificate requires to confirm that the materials and personnel of Chen maoyuns cargo have not been affected by the epidemic since they left Shenzhen port.
Chen maoyun has been doing foreign trade for more than ten years. The garment industry didnt need this kind of document originally. The other sides requirement is obviously to have doubts about the safety of the goods. It makes sense to think like that, after all, its what people wear.
Coincidentally, China Council for the promotion of international trade (CCPIT) announced on February 2 that it would issue a certificate of force majeure of the new coronavirus pneumonia epidemic to enterprises. However, this report mainly aims to provide the enterprises unable to fulfill or fulfill the international trade contract as scheduled due to the impact of the pneumonia epidemic caused by the new coronavirus infection, and provide the factual proof related to the force majeure to reduce the loss.
Although the contents of this certificate are different from the requirements of customers, the official background documents still make Chen maoyun temporarily recognized. Now the most important thing is for them to sign for the first batch of goods, and then try to find a way.
A proven negotiation
Compared with Chen maoyun, who got the certificate first, there is a leading domestic home appliance enterprise.
There are confirmed cases. The above-mentioned household appliance enterprise group level person said to the reporter, but kept the details secret, worried that disclosing more information would cause panic. The company has more than 2000 employees in its production base in Guangdong, mainly providing services to overseas markets such as Africa and Canada, including OEM services for its own products and parts. According to the 2018 annual report of the enterprise group, the companys operating revenue exceeds 80 billion yuan.
On February 4, part of the management of the aforementioned home appliance enterprises held an emergency meeting to prepare for the epidemic prevention and control after returning to work. The living area was required to disinfect three times a day and regularly check the physical condition of employees. In addition to the prevention and control of the epidemic, the situation of employees return is not optimistic. The recruitment billboard at the gate of the factory has attracted less than a few people all day. Some temporary workers left in the factory during the new year began to be persuaded to become regular workers.
The notice we received was on the 10th, but its hard to say whether we will be able to return to work completely. But if we dont continue to work, the temporary workers will go. The relevant person in charge of the company said.
A person who has been engaged in foreign trade logistics for ten years in Shenzhen told reporters that 99% of the companys customers have said they will postpone delivery at present, but due to the uncertain resumption of work, the specific delivery time has not been determined. For export, there will be a stock of goods years ago. It was only after the Lantern Festival that we returned to work, so there is still a week or two of buffer time.
According to the data provided by the Shenzhen Council for the promotion of international trade to the reporter of the economic observer, as of the date of publication, the Council has issued 46 force majeure certificates for the outbreak of new coronavirus pneumonia to 26 enterprises, involving mainly small and medium-sized enterprises, but also world-famous enterprises like Huawei and Flextronics, but no application has been received from Shenzhen Foxconn at present.
What is the international recognition of this certificate? People from the Shenzhen Council for the promotion of international trade said that this is a concern of all enterprises consulting with them. But he said that this is a supporting proof provided by China Council for the promotion of international trade, and whether the enterprise is ultimately responsible for the delayed delivery still depends on the negotiation between the two sides. For Chen maoyun, how to keep the second batch of goods and subsequent orders is the real negotiation he has to face. According to the current progress, the second batch of goods can not be delivered at one time, and he intends to provide the other party with a phased delivery plan. His bargaining chip is the same as that he won the supplier qualification from the Indian factory. It is a better factory environment, a more complete upstream and downstream industrial chain matching, and a better business environment in China compared with Southeast Asia and India. Even so, Chen maoyun has to bear higher labor and logistics costs, but it is better than losing this customer. (Chen maoyun is a pseudonym) source of this article: economic observation network editor in charge: Guo Chenqi, Niu nbj9931
What is the international recognition of this certificate? People from the Shenzhen Council for the promotion of international trade said that this is a concern of all enterprises consulting with them. But he said that this is a supporting proof provided by China Council for the promotion of international trade, and whether the enterprise is ultimately responsible for the delayed delivery still depends on the negotiation between the two sides.
For Chen maoyun, how to keep the second batch of goods and subsequent orders is the real negotiation he has to face. According to the current progress, the second batch of goods can not be delivered at one time, and he intends to provide the other party with a phased delivery plan. His bargaining chip is the same as that he won the supplier qualification from the Indian factory. It is a better factory environment, a more complete upstream and downstream industrial chain matching, and a better business environment in China compared with Southeast Asia and India.
Even so, Chen maoyun has to bear higher labor and logistics costs, but it is better than losing this customer.