The COVID-19 pandemic in 2020 is the biggest "Grey Rhino" incident in China and the world economy, especially for China’s foreign trade export enterprises, they have experienced repeated domestic and international shocks. Facing the two-way impact on the supply side and demand side of foreign trade caused by the pandemic, China’s foreign trade enterprises actively respond and strive to save themselves. At the same time, relevant government departments actively help enterprises to guarantee orders and promote exports, foreign trade enterprises are generally stable and good, which provides strong support for China’s economic recovery.
In the field of export-oriented art canvas, facing the “Serial attacks” came with the pandemic at home and abroad, Jiangsu Phoenix Artist Material Technology Co., Ltd. with more than 60% export share sought for opportunities in danger and striving for self-help, the company has embarked on a road of rapid recovery against the trend, showing the unique tenacity and tenacious vitality of Chinese enterprises.
Looking for opportunities in danger and responding positively Basing on industry and practicing well
Jiangsu Phoenix Artist Material Technology Co., Ltd. is a typical export-oriented enterprise, 80% of its products are sold to North American and European markets. Due to the effective control of the pandemic in China, Phoenix Artist Material have been put into production rapidly since the resumption of work on February 10 this year. However, with the spread of the pandemic in Europe, America and even most countries and regions in the world in March, many overseas customers have asked for delayed delivery, delayed payment and even cancelled orders, foreign trade business basically stagnated or even frozen. For the Phoenix Artist Material, which has just recovered and is ready for a big fight, it is no different from a "cold spring", and the negative impact is obvious.
The domino effect of stagnant overseas market soon spread to domestic factories, sales and other links. Not only the existing business affected, but also new product development and new business development are hindered. Regularly, the first half of the year is the golden age for overseas market promotion. Phoenix Artist Material will participate in 4-5 international large-scale exhibitions every year, and exchange visits and negotiate new business with overseas major customers. However, from March this year, Frankfurt (Dubai) Paper Products Exhibition, National Art Education Exhibition and other important exhibitions were cancelled. As early as a few months ago, Phoenix Artist Material had already prepared samples, reserved related booths, air tickets, hotels and so on for these overseas exhibitions. All of these expenses are wasted, and the new product promotion plan of the enterprise is even more impossible to carry out, which is bound to affect the sales performance of the whole year.
In addition to the business stagnation during the pandemic period, the "post pandemic" crisis has not ended, which is adding more uncertainty to the future. The COVID-19 pandemic is rampant around the world, and the negative impact on the global economy is hard to predict. It is still uncertain whether some major overseas customers can survive the pandemic, whether overseas raw material suppliers can maintain normal supply, and whether the whole international market can recover. Any link in the international trade industry chain will be affected by other enterprises, especially for Chinese foreign trade enterprises which are highly dependent on overseas markets, the whole field is highly integrated with mutual stake.
But, after "the first anti-dumping lawsuit between China and the United States in the era of post quota" in 2005, as well as the impact of the Sino US trade dispute that has continued since 2018, Phoenix Artist Material have been actively responding to the crisis. Phoenix Artist Material paid attention to production, speed up research and development of new products, vigorously develop overseas factories, and further expand production capacity; focused on sales, strengthen communication and coordination with overseas customers, strive to "minimize the number of orders cancelled by customers, minimize the extended accounting period of customers, and minimize the loss caused by customers’ postponement or cancellation of orders." At the same time, Phoenix Artist Material actively innovated the marketing mode, joined hands with large supermarkets and institutions, and vigorously developed cross-border e-commerce business. Since late March, the overseas market began to pick up significantly, the pandemic has given birth to the prevalence of "home economy" in European and American countries, and people’s demand for home culture and daily necessities has surged, Phoenix Artist Material worked hard to seize this market opportunity, speeded up the supply capacity of overseas factories, and fully implemented production automation. At the sales end, Phoenix Artist Material implemented the strategy of scale and brand, cooperated with large retailers to develop and supply in a joint name, developed cross-border e-commerce, started our own brand, and enhanced the added value and profited margin of products through brand empowerment.
Upgrading of traditional products Cross-border e-commerce ride the wind and waves
The one who dare to face the bleak life is the real warrior. Facing all kinds of uncertainties in overseas markets under the epidemic crisis, Phoenix Artist Material and other Chinese enterprises respond calmly, keep upright and innovate. They seized the new market opportunities in the crisis and open a new window in the complicated situation.
Upgrading of traditional products
Products are the foundation of manufacturing enterprises. No matter how the external market changes, Phoenix Artist Material always insist on production. During the pandemic period, overseas factories such as Vietnam and Cambodia stepped up production and fully prepared goods, to prepare for the market rebound after the pandemic. In particular, in the second half of 2019, Vietnam Phoenix cultural products Co., Ltd., which is newly built and put into operation, adopts all automatic production lines, which brings the overseas supply capacity of Phoenix painting materials to a new level.
Step up research and development of high-end pigment products. Since 2019, Phoenix Artist Material has vigorously developed high-end pigment products, which is committed to changing the situation that the world high-end pigment market is monopolized by a few imported brands. For this reason, Phoenix Artist Material introduced the core team of famous British brands with a history of 100 years and adopted the most advanced technology standards in Europe. Phoenix Artist Material meticulously created Phoenix plus Picasso artist grade watercolor, oil painting and acrylic series of high-end pigments, and launched them simultaneously in both international and domestic markets.
At the same time of meeting the needs of professional art groups, Phoenix Artist Material vigorously develop middle and high-end children’s painting materials to meet the needs of popular cultural consumption. As more and more Chinese parents attach importance to children’s art education, the domestic children’s painting material consumption market began to rise. However, the phenomenon of homogeneity and low-end market is widespread. In order to change this situation, Phoenix Artist Material introduced the Spanish century-old painting material brand, Bonfil, as early as 2016, and repositioned it. Phoenix Artist Material built the brand into a high-quality children’s painting material loved by Chinese children, and the company cooperated with large-scale national chain of children’s art education institutions for directional development.
Cross-border e-commerce ride the wind and waves
As early as 2017, Phoenix Artist Material opened an online store in Amazon. After two years of development, it has gradually matured. With the outbreak of the pandemic in Europe and the United States this year, cross-border e-commerce business has increased rapidly. The cross-border e-commerce Department of Phoenix Artist Material actively seized this opportunity and increased its overseas market investment. Since March, Phoenix have stepped up the preparation of goods, made enough inventory, and increased the variety of products in order to let the European and American customers who stay at home because of the pandemic have more choices, and make the Phoenix a leader in the sales of Amazon’s similar products. At present, the weekly sales volume of Amazon Phoenix Artist Material store is equivalent to the sales volume of the same period last year. In August this year, the annual target has been exceeded ahead of schedule. From January to September, the year-on-year growth rate of sales performance reached 342%, almost quadrupling that of 2019.
Focus on high quality and practicing well Globalization of brand development
Although the global epidemic crisis continues, we are still confident in the future. “We believe that God helps those who help themselves. While Phoenix Artist Material and other local foreign trade enterprises, trying to save themselves, they also got the attention from the government and the community. Government have also introduced a lot of relevant measures, which gives enterprises great confidence. I believe that with the introduction of more warm enterprise policies, enterprises will be able to get out of the crisis. The pandemic crisis will finally come to an end, and spring will come after the cold winter.” Said Chen Weihong, chairman of Phoenix Artist Material.