Home appliances export: hidden behind the prosperity of the pressure loss
Overseas buyers increasingly mature and regulations regulate the exchange rate fluctuations in raw material prices
Domestic appliance exhibition held
Also attracted many foreign businessmen's concern
From Customs statistics show that 1 year? May exports of household electrical appliances in China to maintain stable growth, but the product average price decline, seriously affect the profits of China's home appliance business and sustainable development. Increase in domestic raw materials, large changes in exchange rates, technical barriers to trade pressures, China's household electrical appliance enterprises in overseas markets to ensure price competitiveness, some companies have small profit margins or even selling at a loss. Once the business is not obvious price advantage, the overseas expansion of China's household electrical appliance enterprises in turn blocked, market share will shrink. Loss of overseas markets can not continue to support long appliance enterprises in the future from our international development.
Increase in volume and profits by pressure
This year, many home appliance business overseas, especially exports are rather difficult. After years of market development and accumulation of household appliances in China's influence around the globe have been significantly enhanced co-operation took the initiative to find businesses in China are increasing, not many domestic enterprises abroad, as long as the participate in twice-yearly
Fair
Can have access to good order.
However, overseas buyers are increasingly sophisticated. On the one hand, they are very understanding of the Chinese companies often will surprise the cost and profit at the same time placed in front of the seller, the seller only to make a small profit. On the other hand, they will often take advantage of competition among peers, lower prices compared with each other, boon. At the same time, they for product quality, technology, technical requirements are also increased.
Overseas buyers in addition to mature, and from the overseas market barriers and regulations are constantly specification. This year in particular the full implementation of the EU "Double Green" instructions for the production of many domestic appliances higher costs. In addition to directly bring new standards of material costs, but also the face of the conversion process of internal friction, management costs increase. And the EU would also lead to the United States, Japan and other countries to follow suit, the pressure of domestic enterprises is expected to double.
Addition, this year domestic appliances environment are becoming increasingly severe.
Copper
, Aluminum, plastic and other raw materials, rising prices are directly contributing to China's household electrical appliance enterprises operating costs. Currently, many companies have taken in the domestic market prices the way to resolve cost pressures. Once the overseas market prices, the market will inevitably face enormous risks and strong resistance to overseas buyers. In addition, since last year's RMB exchange rate market-oriented reforms, exchange rate fluctuations on the household electrical appliance enterprises had not caused sufficient profit squeeze.
Competitive advantage in the decline
Overseas Chinese home appliance enterprises expanding their mind is simple. The one hand, enterprise and the value of spare capacity, the effective realization of scale benefits. On the other hand, the price of hard-fought away from the domestic market, instead the price is not highly competitive in overseas markets to find profits.
With the international strategy of China's household electrical appliance enterprises to accelerate upgrades, many companies have flocked to overseas. Some companies locate the global market and continue to build its own brand; some enterprises seeking short-term benefits for overseas buyers OEM, ODM cooperation and profits; there are a few companies to "cut corners", "shoddy" and so on unconventional means to participate in the international market competition, not only upset the market order, but also damage the overall image of our home appliances and more to the development of laying the seeds of its own. Without exception, these companies compete in international markets, many taken as a breakthrough price, volume and sales support to maintain the low-profit means of running the competition.
Recent years, the international expansion of Chinese enterprises are facing severe challenges. On the one hand, while Chinese enterprises through the introduction of foreign advanced management concepts and tools to achieve a modern operation, but in the management level, the average efficiency of long-term low-level staff operations, can not scale to meet the more benefits.
I am an expert from Cheap On Sales, usually analyzes all kind of industries situation, such as corrugated boards , wrapping paper xmas.
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