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Building upgraded foreign trade

Posted by: Jenny | 2016-08-30 15:42:26

This year, China's foreign trade makes a good start. National measures to stabilize the foreign trade has gradually released positive effects. At the same time, facing with shrinking external demand, rising costs and other issues, China's foreign trade enterprises make the great efforts to improve innovative technologies, develop new markets and establish brand image. China's foreign trade is creating the upgraded foreign trade. Here I would like to share three foreign trade stories from the Fair with you.

Remote control shrinks 2/3

"Remote control size is only 1/3 of an ordinary remote control. I feel very good." One foreign consumers felt full of praise after trying the Hisense new smart TV VIDAA TV.

"In the highly competitive electronic information industry, enterprises can not live without innovation" said the chairman of Hisense Group Zhou houjian. Each Hisense innovative product had undergone a difficult process and so as the Smart TV VIDAA TV.

Hisense launched the innovation of this smart TV two years ago. To better understand consumer’s need, the project team collected various users’complaints of TV. "multi-tasking" was one of them. For example, when watching TV and it encountered advertisement, can it quickly jump to the game page? Ordinary smart TV needed 5-8 steps to finish. Can it finish in one step? Project team proposed the requirement of "one key fast switch between VIDAA TV four core functions". Technically speaking, this was a very difficult challenge: on the one hand, it needed to control the switching time within one second, on the other hand, it must be able to ensure a smooth switch back.

After several tests, Hisense's technology team finally achieved a technological breakthrough. Ultimately, VIDAA TV used 38 innovative technologies, becoming the world's fastest operation smart TV.

Innovation brings huge returns. Two days before 2013 Spring Fair, Hisense Group’s turnover broke $ 200 million. VIDAA TV was popular by the customers.

Hisense's story tells us that innovation can not only better meet consumer demand, but also can bring foreign trade enterprises greater market returns.

Some bigger disinfection cabinet dish rack

In the traditional slowdown market demand situation, foreign trade enterprises in emerging markets has become the sweet pastry. Many enterprises have started emerging market "battle". Ningbo Fotile Kitchen Ware Co., Ltd made Malaysian market as the target.

Fotile chose the market as the firstresearch stop. After purchasing a number of pots and pans, they found Malaysian dishes and pots and pans were much larger than China.This was because of the large Malaysian population and strong family values. If the disinfection cabinet dish rack and stove want to enter the local market, it needs to re-design: increase the volume of disinfection cabinet dish rack and the stove spacing. To learn more about cooking habits of local residents, Fotile sent a market researcher team to cook together with the local families and shoot a video for the R & D department for reference.

Market researcher told reporters that they also found that different from China’s kitchen mostly in the lateral house, many Malaysia kitchen designed in the middle of the house which needs the change of the smoke exhaust ventilator's exhaust duct design. Before, a  smoke exhaust ventilator sold from Fotile even installed a range hood exhaust pipe with 14 meters long.

The elaborate understanding of the market made Fotile achieved great success in develping the Southeast Asian market. In 2012, the total amount of Fotile’s exporting to the Southeast Asian market took 60% of the total exports with the increase of 16%, and it had been the forefront Malaysia high-end markt for many years.

In the Canton Fair, many exhibitors were optimistic with the emerging markets. When the traditional Western and Japanese market downturn, more and more companies successfully developed new markets to make up the traditional gap in market share decline. According to customs statistics, in the first four months of 2013, China's export to EU and Japan declined and to the U.S.had slow growth while to the ASEAN, Russia and South Africa grew 30.6%, 16.9% and 30.4%.

Calm with brand

Under the pressure of trade friction, the domestic ceramic enterprises encountered many problems. European Union launched the biggest anti-dumping investigations against China domestic ceramic. And before, the EU had imposed China domestic ceramic high anti-dumping duties.

Some ceramic enterprises were worried while Aston Goff Foshan Ceramic Company was very calm: the rising exports, market expanding from the initial Southeast Asia to South America, North America, Russia, the Middle East etc."The adversity growth is largely attributed to the brand building."said chairman Chen Yanbin.

Before the global financial crisis, Aston Goff had relatively small investment on brand management. At that time most of the domestic ceramic enterprises focused on "big orders", "big customer" and "great quantities", and the product’s market image only depend on the public praise of customers and recommendation of the distributors.

In 2007, Italy and other ceramic producing countries began to boycott Chinese ceramics."At that time I realized that the EU 'anti-dumping' will come sooner or later and we must take precautions." said Chen Yanbin, and the countermeasures was to put the brand competitiveness on the agenda.

A few years ago, when referring to the "Made in China", we would natural think OEM. "Brand" seems to be a “luxury” for Made in China. Aston Goff told us with its practical action that the brand “going out” was not a luxury for China's foreign trade.

To win the competitiveness, the company can not ignore the brand building. Nowadays, brand competition has become the focus of the competition. Focus on brand building is the only way to gain the firm foothold in the world market.

Admittedly, in many industries, multinational companies work hard to maintain their brand, so it will be difficult for China brand to break this model. Brand building might start from the industry and market with the least resistance. The international markets are not closely guarded everywhere. In furniture, ceramics, household items, etc., there is no monopoly brand in the true sense; while in some emerging market countries, many multinational companies have developed in depth. "Made in China" should increase brand building in these industries and markets.

Tags: Foreign Trade, Market, Exhibition, Foreign Trade​ Companies, Canton Fair

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