Market Status And Opportunities For Production-Oriented Enterprises

Compared with foreign trade companies, manufacturing enterprises have certain advantages in foreign trade competition. Professional buyers will prefer to cooperate with manufacturing enterprises, which can be said to be a unique advantage. But again, a manufacturing company is at home, and you have to compete with your peers; In foreign countries, although China is a manufacturing power, many foreign businesses and orders have been transferred to Vietnam, the Philippines, Sri Lanka and other countries with low labor costs, so the manufacturing enterprises also face a very severe test. Market status ofProduction-oriented enterprises The pressure of market competition faced by manufacturing enterprises is relatively large, facing not only domestic counterparts but also foreign companies. For example, if we look at electrical products, such as plug-in boards and extension cords, the same products of the same quality, compared with Chinese products and Indonesian products, the US importer may be more inclined to Indonesian products. Why? Because the United States and Indonesia are the most-favored-nation relationship, imports from Indonesia are zero-tariffed, while imports from China are subject to tariffs. In addition, this product is a low value-added product, and its own profit is small. In addition, the difference in tariffs and labor costs (in Indonesia, labor costs are much lower than in China), its labor costs will inevitably seriously affect the product sales price, so the impact on exports is also very large. Let's take another example. In the past, the United States used to buy from Asia, but with the rising labor costs in Asia, many import purchase orders from the United States have been transferred to Mexico. In terms of tariff policy, everyone knows that the United States, Mexico, and Canada have signed the North American Free Trade Agreement. These three countries' imports are exempt from tariffs. Geographically, Mexico belongs to Central America and borders the United States. The time difference between the two countries is not so great, and many American imports now arrive by land from Mexico. When the labor cost in Asia is rising, the United States actually tends to place some orders to import from the Latin American market, so the foreign trade market environment is very severe. So let's take a look at the market opportunities for manufacturing enterprises? What should I do? Market opportunities for Production-oriented enterprises The first is to create your own unique brand. Some foreign trade people feel that the matter is far away from their interests when they hear the word “brand”. In other words, we are working on labor-intensive products. In the supply chain, we do not do the design and research and development. It is more difficult to create a brand. However, a wooden comb like Tan Carpenter can sell for hundreds of dollars, which is because of its brand effect. Brands are most likely to generate a premium. Even if you don't have a brand right now, from the perspective of long-term development, you need to build your own brand. And we need to enhance the technical content and added value of products and seize the opportunity to transform. In the supply chain of different industries, we cannot always play the role of "manufacturer". As we all know, in the smile curve of the supply chain, manufacturing is at the lowest end, and many exporters are in the manufacturing position. While the design and sales position at both ends of the curve are usually high value and profit. It is recommended to gradually transform to both ends of the "smile curve", for example, your product is labor-intensive products, you must constantly consider how to increase the technical content and enhance the added value of the product, which is very critical. A certain type of product, usually it has secondary development space, but we do not go deep into the market information to explore the value of the product. There are certainly some customer segmentation needs in the market which are not met, in this case, if we can do secondary development, it is possible to add more value to the product. In addition, in the supply chain of foreign trade market, we should try to do irreplaceable roles, such as in the manufacturing position and you may be replaced at any time. But if you're in a key part of your design and development, and you're very competitive and it's hard to be replaced. Of course, a brand is unlikely to be created and done at once. Therefore, it is recommended to start from building domestic brands, first to open up the domestic market, such as covering well-known e-commerce platform to make a name for itself, to develop packaging and business suitable for retail, and to enter physical shopping malls, supermarket shelves and so on. If you want to achieve long-term development, this is the way to go.

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