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t have any domestic business?
Respondent: Yes.
Interviewer: Why don’t you explore the domestic market? And what’s you motive to export?
Respondent: just as I said. Because we attached to Dahua Garment factory, we can get sub-contract from Dahua, then we did not worry about the source of clients. On the other hand, we had not a very strong competitive advantage in domestic market compete with garment processing plant in south China. So we only worked as subcontractor of Dahua.
Interviewer: When the first step to internationalization? How you choose your entry country?
Respondent: Almost just at the beginning of our enterprise. The first order is from Dahua’s clients. But we didn’t have any connection with their overseas clients. All the communications must through Dahua company. Then we never considered which country we entered. And until now, we just work as OEM. So we don’t enter the foreign market directly. You know, we don’t sell product in foreign country. Most of our orders are from Hong Kong’s trade company and we in charge of processing on giving materials based on Hong Kong’s design drawing. Therefore, we don’t care about which foreign market we entered.
Interviewer: How do you first get order from Hong Kong’s trade company?
Respondent: Around 2006, we officially separated from Dahua Garment and we have to seek orders by ourselves. Because I have been working in export area for years, then some of my business connections help me to get orders through other trade or agent companies to make up for the shortage of orders from Dahua. At that time, we found a Hong Kong trade company which was the first-tier subcontractor of European upscale branded marketers or retailers. Hong Kong company signs a full-package contract with a European branded marketer. They undertook design and materials procurement. We work as their subcontractor which is in charge of processing on their raw material.
Interviewer: OK. Then you mean your enterprise just in charge of processing apparel for foreign brand, right?
Respondent: Yes, exactly.
Interviewer: Do you have your own brand?
Respondent: No. firstly, I think Chinese apparel brand is lack of competitiveness in the international market. Even you have your brand; we are lack of capital and knowledge to market our brand in the international market. Then your cloth only can be sold in flea market with very low price even your product with good quality. So I think for us, a small factory, own brand is not the priority.
Interviewer: What’s your priority now?
Respondent: We want to find more trade agent from Taiwan, Hong Kong, and local.
Interviewer: Why are these regions?
Respondent: Because of language reason.
Interviewer: Do you have any plan to exploit new overseas customers?
Respondent: Not yet. Until now, our orders from Hong Kong’s company are stable, and in recent year, the labor shortage is the main problem we faced. So we have no plan to explore the new customers. Hong Kong’s company has other foreign customers from the U.S., but, now, our production output can meet the European customers’ request. And because of the shortage of labor, our production output is a big obstacle. So our priority is not finding new customers but to satisfy our main customers.
Interviewer: how do you ensure that you would get the orders from the Hong Kong’s company constantly? Do you have any kind of long-term business relationship? I mean, maybe one