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New Tricks To Deal With The Financial Crisis -- Barter

2009/4/28 13:24:00 42073

In order to save costs and expand sales, Chongqing Lifan Group recently plans to exchange products with other enterprises by car, and exchange objects for raincoats, umbrellas, T-Shirts, tents and promotional calendars, etc. the total amount will exceed ten million yuan.

Coincidentally, in July of this year, Beijing Huiyuan Juice Group exchanged 400 thousand boxes of fruit juice with Qingdao AUCMA Business Co., Ltd. to exchange 6000 display cabinets with a value of about 14 million yuan.

In the same month, Shanghai handed down Art Development Co., Ltd. spent $3 million worth of cloth and PVC material with the finished Yuesai dolls and the French toy company.

With the financial turmoil triggered by the US subprime mortgage crisis sweeping the globe, the credit market has been tightening, the willingness of banks to lend is declining, the cost of corporate financing has increased, and even financing difficulties have emerged.

Under such circumstances, the barter approach that does not involve cash is gradually adopted by many enterprises.

The so-called barter, that is, the enterprise will exchange its products with other enterprises in exchange for the production of raw materials and consumer goods purchased in cash, so as to achieve the purpose of reducing the pressure of working capital.

Wang Liming, director of Beijing center, Qingdao AUCMA Business Co., Ltd. said: "barter saves the liquidity of the enterprise, and can exchange all kinds of promotional materials, advertising, employee benefits and raw materials that should be purchased.

The total volume of barter agreement is expected to reach about 60000000 yuan next year, which is equivalent to about 60000000 yuan of funds for the company.

In addition, barter between enterprises can save sales and procurement costs.

Normal sales need many links such as wholesale, retail and so on. The more links, the higher the cost of sales.

Business barter reduces intermediate turnover, thus greatly reducing the cost of sales.

It is estimated that the selling cost of general products is 27%, while that of bartering is only 5% - 7%.

Cui Guocheng, general manager of Beijing international barter network, said that modern enterprise barter has developed from the original individual face to face low efficiency barter, and developed into an efficient and barter enterprise through the network. The enterprise can only publish the product information easily and easily accessible on the barter network, so that it can find the cooperative enterprise quickly and accurately.

Cui Guocheng said that under the influence of the global financial crisis, domestic enterprises are facing difficulties such as financing difficulties, rising cost of raw materials and manpower, and accelerated appreciation of RMB. Therefore, if companies want to quickly stock up and expand sales, barter will be an option to be tried.

It is understood that after the Asian financial crisis in 1997, barter in Thailand, Malaysia, Japan, Korea and other countries also began to flourish.

Editor in chief: Du Jun