Small and medium-sized export enterprises transition dilemma: Christmas orders are diminishing

[Text / Gaogong LED Gan Qin] Unconsciously, Christmas has arrived, and the city of Shenzhen has become active. Colorful Christmas trees have been erected in front of the stores, specialty stores, hotels and restaurants. The windows of the malls are also full of beautiful gifts, full of festive atmosphere...

From October to December each year, it can be said that the delivery of Western Christmas orders is intensive. The export growth rate has increased at this stage. On the other hand, Christmas orders have boosted the performance of domestic export enterprises in the fourth quarter. effect.

“The most popular item in the US market during the Christmas season is the Christmas light. At present, the product has basically completed the LED replacement stage, but even in the most popular category of Christmas lights, there is still a large part of the United States. People like to use incandescent lamps," said Nie Pengxiang, chairman of the company.

Nie Pengxiang revealed that in addition to the Christmas lights, the indoor lighting that really drives the end of the year is mainly based on various types of bulbs and downlights for household LED products. Various brand manufacturers have raised the banner of Christmas promotion to attract consumers to flock. .

According to the statistics of the High-tech Research Institute LED Research Institute (GGII), the total export volume of indoor lighting in 2015 reached 85.96 billion yuan, a year-on-year increase of 20%, of which the export volume of downlights reached 13.7 billion yuan, a year-on-year increase of 29.4%. From the perspective of market reflection, downlights have been widely used in shopping malls, offices, factories, hospitals, home improvement and other fields due to their low heat generation, long life, energy saving and environmental protection, and low maintenance costs.

In fact, for enterprises that export to China, the models of large enterprises and small and medium-sized enterprises are completely different. Large enterprises such as Mulinsen mainly focus on their own brands for foreign expansion, do solid brands, and make local channels to develop local marketing. The team's export model is mainly based on OEM processing. From the perspective of orders, small and scattered is the biggest feature.

The general manager of a lighting company in Dongguan revealed that most of the company's product orders are mainly OEM. He pointed out that although many Christmas products have been processed, they have not made any money. "The price of materials has increased and the cost of labor has increased." The pressure on all sides is getting bigger and bigger, which makes the profits of export sales thinner and thinner."

In order to minimize the impact of these factors on corporate profits, SMEs must focus more on product technology research and development, in the hope of bringing greater added value, in addition, actively develop their own brands to end OEM days, It has also become the direction of many SMEs, but there are still obstacles in the short term.

Some large companies have established their own optical laboratories, which is the key to helping them develop the quality of their products. SMEs cannot be established because of limited funds, which makes it difficult for them to take the road of product innovation.

In fact, professional testing organizations play an important role in the quality control and resource integration of domestic expansion into overseas markets. As one of the few testing companies with laboratories in China and the United States, the incentive testing has done well in every business in the service industry that wants to enter the overseas market.

“Cost and technology are the obstacles for Chinese companies to enter overseas markets. At present, large importers and manufacturers have relied heavily on incentive testing to provide them with consulting and testing services and help them break through trade barriers.” Nie Pengxiang said that Access barriers are getting higher and higher. In addition to providing services to large companies, the company hopes to provide more help to small and medium-sized manufacturers in the future.

For the future development of small and medium-sized export enterprises, two outcomes can be foreseen: successful upgrade or elimination. It is possible to resolve the crisis by transforming and upgrading product performance and technology and increasing brand influence.

Rice Mill

Rice Mill,Rice Mill Machine,Small Rice Milling Machine,Rice Mill Equipment

Hunan Furui Mechanical and Electrical Equipment Manufacturing Co., Ltd. , https://www.thresher.nl