Is the Pet Supplies Foreign Trade Business Still Profitable?

In China, those involved in the pet supplies industry often share a common belief: domestic sales are unlikely to be very profitable, and the real money lies in foreign trade. This is true because the domestic market is highly competitive, and unless you're exceptionally lucky, it's hard to survive. With so many small and medium-sized pet supplies factories in China, most still focus on foreign trade. Without foreign trade orders, these businesses simply cannot survive. Given the current situation, let's discuss how foreign trade works and whether it's still profitable today.

The first question is: Why do traditional pet supplies manufacturers choose to focus on foreign trade rather than domestic sales? If we look at the major companies in China's pet supplies industry, the truly profitable ones are the ones engaged in export. A key feature of foreign trade is that the order values are generally much higher than those for domestic sales. This means that each order is more likely to sustain the factory’s workforce. Secondly, after the goods are shipped abroad, there are typically few after-sales issues. In contrast, dealing with after-sales service for scattered domestic orders can be a major hassle. Thirdly, foreign trade generally offers higher profit margins compared to domestic sales, particularly when it comes to pet supplies that require labor. Many foreign pet supply factories are highly automated, and their labor costs are significantly higher than those in China. If a product cannot be fully mechanized, China's labor cost advantage becomes very apparent. On the other hand, if you're dealing with domestic sales, labor costs are relatively similar across the board, leaving you with little choice but to compete on price, which means lower profits. Additionally, the contract enforcement in China isn't as strong as abroad, and often, final payments are not received, which is another reason why domestic orders are generally considered less profitable.

Now let's discuss how to secure foreign trade orders through overseas platforms. Many small factories don't directly deal with foreign clients; instead, they work with trading companies that acquire orders and then pass them on to these factories. If a factory is directly involved in foreign trade, it will need an operation team that understands foreign languages. Once the factory has a team, there are generally two ways to approach foreign trade: First, you can accept orders through platforms like Alibaba's international site; second, you can create your own independent website to attract orders. Now, let's address an important question: Given the drastic changes in both domestic and international circumstances, foreign trade has started to decline. Can we still make money from foreign trade? The global economic downturn undoubtedly impacts foreign trade, but from a long-term perspective, foreign trade in the pet supplies industry remains a very promising option. Foreign markets are still vast, and this provides a solid foundation for business. Moreover, if many domestic factories go out of business due to policy changes, it could trigger a significant reshuffling of the market. Pet supply factories that focus on high quality and building solid distribution channels are likely to thrive and survive.