Where is the future competitive advantage of export enterprises?

The appreciation of the renminbi, rising raw material prices, and labor shortages have led to the rise of many emerging low-cost countries. In 2013, almost all foreign trade companies are facing changes in the cost system.

When China's export products no longer have price advantages, can foreign trade companies survive with other advantages? Where is the future competitive advantage of Chinese enterprises?

As a leading company in the B2B industry, Global Sources has always been committed to creating the highest value for buyers and sellers. Based on the current situation, Global Sources specially launched a series of forums on smart & win the future export, inviting industry experts, business leaders and buyer representatives to share their insights and work with export companies to find strategies to win the future.

At the meeting, the then President of Corporate Affairs of Global Sources and the guests present jointly analyzed the future development of export enterprises.

China still has a unique production advantage

For the future development of foreign trade enterprises, Mr. Steven M. Dickinson, partner of Harris Moure PLLC and senior lawyer of international law, is optimistic. "For my clients, China's biggest advantage is in production. It has been for so many years, not five or ten years, but more than 20 years of production experience. This is China's advantage, and it is an advantage that others cannot catch up with. .”

At present, even if the cost advantage is no longer there, there are still many buyers who are optimistic about Chinese manufacturing because of their production capacity. "China's advantage is that it has a very complete supply chain, but if the supply chain in other places is up, it will also be the time when China's advantage disappears." Huang Hanzhen, general manager of Shantou Mingcheng Toys Industry Co., Ltd. said.

Quality remains king

When it comes to the development of export enterprises in the future, almost all business representatives still believe that "quality is king".

Wang Huiqun, chairman of Guangdong Yide Environmental Protection Technology Co., Ltd., has just won a large order of 10 million US dollars. He said with emotion: "Although it is small, we have hope for fine products. If we do not make high-quality products, we will regret it. Therefore, to outsmart the future, wisdom is to rely on our wisdom to improve all our production links and order, and to grasp our raw materials and quality. Today you are the cheapest, and tomorrow there will be someone who will be cheaper than you. Only after your positioning is accurate , the development of this enterprise will be unlimited after relying on quality to outwit, we don’t want to be the world’s aircraft carrier, we have a small submarine, it’s not bad.”

If you don't transform, you will die

In addition to the most important quality factor for enterprise survival, the second concern is enterprise transformation.

Liu Ruohong, general manager of Jieyang Tianlai Electroacoustic Equipment Co., Ltd., has repeatedly emphasized in the forum that Chinese enterprises must transform.

His company has very stable orders every year. He concluded from his own experience that in order to win in the future, apart from quality, the second major factor for Chinese companies is transformation. "Enterprise transformation must be automated. Enterprises that rely on manual work may disappear after five years at most. If they do not transform, they will die."