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As the global economic environment changes, many labor-intensive manufacturing companies that were once highly profitable are now facing new challenges that require them to upgrade and transform. In this context, UPS recently released the "Research Report on the Consolidation Index of "Excellent and Strong Made in China" Enterprises. The "Excellent and Strong Made in China" Corporate Consolidation Index provides a reference benchmark for corporate managers to help them formulate feasible development strategies and strengthen corporate competitiveness. At the same time, the index helps to promote the transformation of China's manufacturing industry and provides a useful reference for government-related institutions that formulate macro policies.

UPS looks forward to working with Chinese manufacturing companies to meet the challenges and realize their transformation from "made in China cheap goods" to "made in China possible". The "Excellent and Strong Made in China" Corporate Consolidation Index reflects the major changes in China's economy and affects the entire Asia-Pacific and global economic development. UPS believes that if Chinese export manufacturing companies want to gain an advantage in global competition, they must adopt a "customer-centric" development model, which is mainly based on collaboration, segmented industry solutions, and a sound supply chain strategy. The survey results show that companies with key characteristics of "excellent and strong made in China" - such as having strong logistics partners - are more likely to stand out from the competition. ”

The results of this survey and related research have made it clear that under the new situation of global manufacturing development, in order to maintain a leading position, the important characteristics that Chinese export manufacturing enterprises need to have, and the major changes that need to be implemented urgently. The survey results also show that Asia is still the primary export market for Chinese manufacturing companies (73%), while more than half of the surveyed companies plan to export their products to the Western European market, and one-third plan to expand their business to the North American market. .

"Research Report on "Excellent and Strong Made in China" Enterprise Consolidation Index" pointed out that China's export manufacturing industry needs to be improved in terms of preparation for future challenges and faces obvious development opportunities. This research also Four major areas of change that China's export manufacturing enterprises must be aware of and implement in the future are identified:

·More in-depth and detailed insights and understanding of customer business, market and environment

·Work more closely with customers to help them solve problems

·Create added value through logistics and gain competitive advantage

·Build corporate innovation capabilities and formulate corporate strategies

In these four major areas of change, ten prerequisites are set up in this survey, which reflect the changes in attitudes and behaviors that Chinese export manufacturing enterprises need to undergo in order to maintain their competitive advantage. The level of "awareness" and "practice" of these prerequisites is determined by the enterprise, and finally the enterprise readiness index score is obtained.

The main results of the "Excellent and Strong Made in China" enterprise readiness index survey include:

1. Manufacturing enterprises can better participate in international competition only if they continue to innovate (see Figure I for details)

The survey on the "Excellent and Strong Made in China" enterprise readiness index divides enterprises into Three categories: leading companies (8%), following companies (56%) and laggards (36%). The survey results show that the level of “Made in China” has a significant impact on the overall business performance of these companies.

Leading companies outperform their peers in a number of areas. Taking the past year as an example, there is a 16% higher chance of profitability growth; 16% higher operating income; 15% higher market share; productivity In addition, in terms of annualized growth probability, leading companies outperformed their peers in several other areas: 15% higher business output; 27% higher employee growth; pricing of goods and services 23% higher.

2. Leading enterprises of "Excellent Made in China" tend to adopt a "customer-centric" business model, with wider global business coverage (see Figure II for details)

"Made in China" has performed well in terms of availability, and can also help manufacturing companies expand into wider international markets. The survey results show that Asia is the primary export market for Chinese exporting manufacturing companies (73%). Most of the surveyed Businesses (76%) plan to More than half of the companies (52%) plan to export their products to the Western European market in the next two years, and one-third of the companies plan to expand their business to North America, Oceania, South America and Central America. This shows that Asia is still the region with the greatest potential for global trade development.

Compared with companies with less well-established "Made in China" companies, leading companies have a much wider reach in the global market. Their market share in Eastern Europe, Africa, the Middle East and North Africa, South America, Oceania and Central America is about twice that of the other two types of companies.

The survey results also show that leading companies are more likely to focus on "customer-centricity" when formulating future growth strategies. They place greater emphasis on partnering with customers on product innovation and strengthening their understanding of the customer's operating environment.

3. Retail export manufacturing enterprises (industry segmentation) and Shenzhen manufacturing enterprises (regional segmentation) performed the best in the “Made in China” readiness index (see Figure III for details)

The survey analyzed the performance of export manufacturing companies in the three vertical industries of retail, high-tech and auto industry in four cities: Shanghai, Shenzhen, Qingdao and Chengdu.

The retail manufacturing enterprises scored 52 points (out of 100 points), becoming the industry with the highest degree of preparation of "Made in China". These companies can change faster mainly because they face more severe challenges than other industries in terms of innovation and competition.

From a national perspective, compared with manufacturing enterprises in other regions, Shenzhen's manufacturing enterprises are more prepared to deal with competition, and their "Excellent and Strong Made in China" Enterprise Consolidation Index score is 54 points; at the same time , Shenzhen's export manufacturing enterprises' awareness level of the importance of various measures and indicators involved in the "Excellent and Strong Made in China" enterprise maintenance index is also significantly higher than that of manufacturing enterprises in other regions.

The Shenzhen-based manufacturer's approach to implementing change is arguably a positive response to a tougher market environment than its peers in other geographies—especially in terms of competition, business challenges, and customer needs. respond.

With its talent, global network and market segment expertise, UPS helps Chinese manufacturing companies and their customers gain a competitive advantage from advanced global logistics services. The release of the "Research Report on the Consolidation Index of "Excellent and Strong Made in China" Enterprises" continues UPS's commitment to promoting the transformation and upgrading of China's new generation of export manufacturing, bringing it into an exciting new stage. In order to realize the smooth transformation of the manufacturing industry, UPS will continue to invest in the Chinese market as an important part of its long-term development strategy.