The situation of China's LED exports is not optimistic and manufacturing companies need to abandon the low-price strategy

The white paper shows that the overall economic assessment of China's export manufacturing companies is less optimistic than the previous year. Compared with 16% of Chinese export manufacturing companies in 2014 who believed that the overall economy has declined, this year the number has increased to 29%. Chinese export manufacturing companies face challenges on both supply and demand sides. The two most frequently mentioned challenges are: intensifying competition among domestic companies (39%) and declining domestic customer demand (37%).

"For export manufacturing companies, lowering prices is no longer the best solution to remain competitive. Competitors that can provide higher quality products (83%), improve customers' competitiveness (82%), and provide faster and more efficient supply chains (82%) are the reasons for customers to switch suppliers. The main reason for the request. "Li Songjiang, President of UPS China, told reporters, "This also shows that manufacturing companies need to abandon the low-price strategy, establish closer partnerships with customers, and provide higher-quality products and added value."

In the white paper, some cases of leading companies of "Excellent and Strong Made in China" are listed. They are better than other export manufacturing companies in terms of production efficiency, market share, income level and profitability. The possibility of achieving growth is significantly higher, and the possibility of business recession is reduced by 7%.

First of all, 97% of the leading "Excellent and Strong Made in China" companies sell products to at least one market in Asia, and pay more attention to key markets in Asia and Europe than other export manufacturing companies. For example, they are 161% more likely to focus on the Thai market than other export manufacturing companies, 151% more likely to focus on the Hong Kong market, and 151% more likely to focus on the French market. The market is 126% higher, the Indonesian market is 116% higher, and the UK market is 115% higher. Compared with other companies, leading companies are 6 times more likely to sell products to Oceania and 2 times more likely to sell products to Eastern Europe. Secondly, two-thirds (64%) of the leading "Excellent Made in China" companies sell products to both B2B and B2C customers, while other export companies focus more on B2B manufacturing.

Thirdly, the tendency of leading companies of “Excellent and Strong Made in China” to sell semi-finished products is 63% lower than that of other export manufacturing companies. This shows that leading companies are focusing on product innovation and moving up the value chain, turning to selling finished products. Leading companies that are “Excellent and Made in China” are more likely to recognize nearshoring (41%), industrial e-commerce (29%) and consumer e-commerce (24%) as emerging industry trends that will have a huge impact on their business.