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Current status of Chinese business due to the influence of coronavirus (Wuhan pneumonia) and future business style from the actual experience

China Business Column Principles of Management
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Hello. It is a hori of the manager.

The new coronavirus developed in Wuhan, China, which has become a global problem since around January 2020. In Japan, there was no prediction of the scale of damage at first, but from around February, a self-restraint mood was set up among the people, and the self-restraint (cancellation) of various events and the overwhelming decrease in foreign visitors to Japan (inbound) progressed.

As a result, the Japanese economy is facing a major pinch due to a large decrease in the number of customers at restaurants and accommodation facilities. In addition, the virus is raging not only in China and other Asian countries, but also in the United States, Europe, and the Middle East.

Finally, it was decided to postpone the Tokyo Olympic and Paralympic Games, which were scheduled to be held in July and August this year. What will happen to Japan's economy in the future? Of course, not only Japan but also the world's economy is worried.

Although everyone is worried about the future development, it is unavoidable to talk about macroeconomics endlessly on this page because they are worried, and there is no point in discussing the pros and cons of the administration's response. I would like to deliver useful stories in business to the last.

I would like to write about the actual impact of covid-19 in Chinese business, the learnings gained from it, the government system, and the direction of the business that will be needed in the future.

All Chinese businesses such as factories and logistics stop all at once! Unsuming to resume

I will tell you the experience story of the person who was doing the Chinese business on the front line. Until mid-January 2020, that is, until the chinese new year, the effects of the coronavirus had not surfaced at least in the field.

With the person in charge on the Chinese side, I had a little work left, but I felt like I should do it after the Chinese New Year. Then, on January 20, the Chinese authorities began full-scale measures against patients with pneumonia with unknown cause, and the uproar spread at a stretch.

There is also an argument that the Chinese government was slow to respond, but I will not mention it, so I will not spare it. However, if there was a person who could imagine the current situation at that time (March 25, 2020), it would be only some people who had some special information.

Around early February, when I contacted a Chinese business partner who could be contacted, the Chinese government ordered me to extend the Chinese New Year, so I was informed that it would be extended by about two weeks until the business resumed.

The chinese factory has many migrant workers from rural areas, so he replied that they did not know when they would return properly and resume business. Rather, there is a high possibility that they will not be able to return due to city blockades.

In addition, logistics from China to Japan was also significantly delayed. Even by shipping that I used a lot so far, they do not receive luggage, and even if you keep your luggage, you do not know how many days it will take to ship. In addition, the shipping cost is doubled normal!

At that time, the self-restraint system began to advance in Japan, and we entered a day when there was no prediction as to how long this crisis and disturbance would continue.

However, the inquiries from customers themselves were going well, so we responded to them as usual.

Even if the factory finally reopens, the response is mixed / The Chinese factory also seeks future responses

Suppliers who finished the Chinese New Year, which was extended around the end of February, informed us that the company and personnel in charge were safe and could resume business in the future, and in many ways, we received a report that we do not know when the factory will be fully reopened for the reasons mentioned above.

The tension system continues still more.

However, another Chinese partner said that factories and various offices in China want to work, but there are various circumstances, and the Chinese government can never go against regulations more strictly than the Japanese think, and it is in such a situation.

So don't think the Chinese factory is boycotting the job.
In addition, the introduction of telework is also progressing at factories in China, and various speed-up may progress in the future.

On the other hand, since the Work is decreasing sharply at the Chinese factory, it is also true that it has become easier to order small lots and create samples that could not be requested until now.

Fortunately, in a sense, a pinch is an opportunity.
Even my customers do not cooperate with authentication! If you do it by all means, start at least 500 lots! Even if it was said, I was informed that I was going to receive it from 100 pieces.

Moyamoya's days that can not be urged from here

I'm not going directly to the site, so I can't really understand, but according to several Chinese partners,

Thanks to some kind of dogmatic isolation policy, the spread of infections in China is being suppressed, and business counter partners are recovering.

Of course, the subsequent fire to Japan, neighboring countries, and European countries is large, but this time I will skip the reference to the story.

We have information that the Chinese side is recovering and we are building up our business based on it, but this time concerns from Japanese customers will erupt. Of course.

Can I really do business with China at this time of year?
There is no clear answer to this.

As long as you analyze various information, you can tell in your head that there will be basically no problem, but I can not wipe away my concerns. It is unavoidable.

The direction of the contract is also largely decided with the customer, and after the estimate is fixed, there will be no further final decision. I understand the situation, but I'm also curious about what will happen in the final.

However, it was difficult to hear the situation and progress from here because the situation was the situation.

This was the reason for the decrease in sales this time. Inquiries and requests are still as before, but due to the coronavirus, there are many delays in case-making.

Amid a lot of damage among Japanese companies, government-ready loans have moved.

In this situation, the Ministry of Economy, Trade and Industry has expanded the safety net No. 4 guarantee of "measures against small and medium-sized enterprises related to the new coronavirus infection", and the Policy Finance Corporation has implemented "Special Loan for New Coronavirus Infections".

Because it becomes a considerably advantageous loan, I think that it is better to act early because it is a first-come-first-served basis in a sense for the business operator who feels the necessity.

Business development that will be utilized in the future: Not over-selling sales in one plate

In this crisis, the Chinese import professional group that I know was in a catastrophic situation, even if it was temporary.

However, china's recovery was early besides the desire, and it seems to have helped greatly. In addition, there are cases where other companies and Chinese companies selling on Amazon are slowing down, and on the contrary, there are cases where the movement is attracting attention to products that are not selling well until now.

After all, when I think about this situation coming, I was keenly aware again that a single industry and a business with only a single product are very dangerous.

This is the iron rule of business that does not over-sell on one plate.

It is ideal to be able to do various things like a major company, for example, it may be difficult to do both import and export, but there is also a way to disperse not only China but also other countries such as Thailand, Vietnam, or Europe.

By the way, we are expanding the import of Thailand little by little, but it is still still a little compared to Chinese imports, so we are considering that we want to take this opportunity to start the movement in Thailand in earnest.

It is necessary to be involved in various businesses while having an axis, such as increasing the handling products and their genres, selling and consulting, and that much vitality will be essential for managers.

To give an example of my acquaintance, it seems that I was able to overcome this difficult problem because I was doing import business from Thailand other than China and earning regular income from consulting for domestic businesses. Rather, business from Thailand has started to grow rapidly, and now it is the busiest.

In any case, it is only one business that faces a pinch in such a difficult problem. For example, they are only doing website work, consulting only, and doing only the real estate industry.

Japanese people like to break through one point, but the disadvantage of breaking through one point is in such an emergency.

No matter how talented you are, if the customer itself is gone, you will lose your work at once.

If you think so, as I mentioned earlier, even if you narrow down the axis, you will need to switch from there to a business with many suppliers, product types, sales destinations, etc.

Always plan and execute new businesses in addition to existing businesses

These days when we do not know that the same business will last for a year, especially if there is a crisis like this on the way, we do not know whether the demand that has been discontinued once will be restored even if the situation is over.

It may be a little too optimistic that it will be okay if we get through now.

For example, even if you make a successful loan, you may simply be able to prolong your life. Again, I don't know if it will work the same way again once the business so far is lost. There is a possibility that the business that we are doing now will be terminated.

Even if you always keep a new business in mind and borrow it, it may be difficult to survive after an unforeseen situation without a vision to enter a new business with the capital, not just prolonging life.

As was the case with the Great East Japan Earthquake nine years ago, it is normal to face difficulties that can not be used when doing business.
In anticipation of this, we must focus firmly on our daily business and always prepare ourselves to set up something for a new business.

I believe that this crisis was a reminder of such a thing.

Although our axis of China business and certification business has not changed, we are looking to increase the number of items handled, and even in these circumstances we are increasing the number of products subject to certification.

In addition, in domestic sales promotions, until now, it has been announced with a single online advertisement, but we are rapidly promoting a system and system that directly approaches companies. There were some parts where I couldn't work because of corona, but I used that time to build a system and system.

The most recent job is important, but it is also important to prepare for several months and a year. We also support such business development. Finally, I'm sorry that it became a publicity、、、 but please feel free to contact us if you have any questions.

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