Chinese Fastener Enterprises Should Meet Opportunities and C
2019-07-25
Statistics from China Fastener Professional Association show that China's fastener production reached 4.3 million tons in 2006, an increase of 14% over the past year, while the export fastener growth rate reached more than 30%. Everything has come so fast that Chinese fasteners, which have been attached to the domestic market for many years and are keen on domestic enterprises, have finally found their own coordinates.
Despite the astonishing growth rate of China's fastener industry, the anxious Chinese fasteners dare not be complacent. They found that more than 450 of the world's top 500 conglomerates have set up companies in China, which has attracted many firms to invest in China. So far, nearly 200 firms have total assets. It has accounted for about 25% of China's fastener industry, which will certainly promote and enhance the overall level of China's fastener industry. After small and medium-sized private fastener enterprises have gained a certain market share with low price strategy, the performance-price ratio advantage which once made them proud of is gradually weakening. With a large number of multinational fastener enterprises starting to participate in price war, the situation of private enterprises is becoming more and more crisis, and the development of domestic fastener enterprises in China has reached the most critical point. Key and most difficult moment. "The key" is that with the development of market economy for so many years, the output of fasteners in China accounts for about a quarter of the global total demand. With the formation of the international procurement market of fasteners, the export volume of fasteners will increase year by year. "The most difficult" is that in terms of the current market environment, local enterprises are facing unprecedented challenges in the fierce competition with multinational companies.
At present, because a considerable number of fastener enterprises are under tremendous pressure of production capacity, multinational corporations are limited by the foreign market strategy in China, at least for a considerable period of time, products can not be exported in large quantities. In order to expand the market share in China, multinational corporations fastener enterprises are increasing in the introduction of high. At the same time, they also began to fight the price war they have always disdained. With their first-mover advantage and brand awareness, the low-cost advantage of fastener local enterprises has been difficult to show.
At present, the products and technologies of Chinese firms are "very troublesome", and even more troublesome is that the monopoly circle of multinational firms will have a fatal impact on local firms.
The domestic fastener enterprises in China are relatively backward in technology, so it is difficult to gain trust. In addition to the reasons of multinational corporations, many and small enterprises are also the reasons of weak competitiveness. If we want to break through the "monopoly circle", we must speed up the pace of integration and form large-scale, well-skilled and powerful enterprises.
Taiwan's fastener companies mainly support Japanese cars. When Japanese companies enter the mainland, many of them follow suit. The largest one actually built more than 20 joint ventures in the mainland. But the R&D of these enterprises is carried out simultaneously in Taiwan and Japan. They only take fasteners to the mainland to produce and assemble, so that they become OEMs of automobiles.
There is a big gap between Chinese firms and multinational firms in terms of technology and management. The technical gap is because there is no money, foreign fastener enterprises are rich, they can study synchronously with automobile enterprises, even if they fail, they can afford to pay, but we do not have this strength; in management, private enterprise management concept is still backward, private enterprise development time is very short, many things are not perfect, even to others. Learning is not possible in a short time. But we should not be pessimistic and disappointed because of these problems, but should shorten the gap and shorten the learning time as soon as possible, which has become a top priority. China's fasteners will have to compete with multinational companies in the international market. But first of all, we should practice our basic skills well at home and do our domestic affairs well. We should not only focus on the present, no matter how long it lasts, but also in the face of opportunities and challenges. This is the most important thing.
"In the face of the opportunity of pursuing low-cost manufacturing for fasteners, quality should be the most important task. In order to expand market share by quality, we must actively strive for international market besides continuing to expand domestic sales market."
