China's flooring enterprises have responded well t

2022-08-18
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Facing the trade war, Chinese flooring enterprises have responded well

in recent years, China's forest products industry has encountered many international trade barriers, such as the US 337 investigation against China, the US 332 investigation against China, the EU anti-dumping of OKUMAN plywood against China, and the US "double anti" against Chinese wood flooring. However, the 301 survey launched by the United States this year is the most widespread Trade Barrier Affecting China's forest products industry

on September 28, 2018 World flooring industry and Commerce summit was held in Huzhou, Zhejiang Province. "Trade war is coming, how should enterprises deal with it" has become the hottest topic at the summit

"trade war is both a challenge and an opportunity", "trade war will accelerate the transformation of enterprises, but the price is high", "trade war is not as terrible as expected"... The views expressed by some representatives of leading floor enterprises at the summit have added confidence to the forest products industry to deal with the trade war

some practices of these enterprises in dealing with the trade war also provide a model for the transformation of enterprises facing difficulties

production multi regional market diversification

from the perspective of enterprises, the trade war is not only a war, but also an opportunity. This is the view expressed by Lin Haidi, general manager of Jiangsu bell decorative materials Co., Ltd

according to Lin Haidi, Bell's products are currently exported to 128 countries and regions. Although the United States is a very important market for bell, bell paid more attention to the development of other markets after the Sino US trade war. Through the balanced expansion of other markets, bell allowed enterprises to maintain steady development and maintain their market competitiveness

Lin Haidi believes that from the perspective of long-term development, "going global" and "bringing in" are the development roads that enterprises must take

with the change of business environment and trade policy, more and more enterprises begin to choose to distribute production in multiple regions. Because the appearance of multi region or even cross country production is not a skill doubt. Domestic production can make customers trust the strength of enterprises more, and it can also reduce the risk of excessive concentration of enterprise capacity

but it is not enough to invest and set up factories overseas. Lin Haidi believes that the investment in setting up factories abroad only solves the problem of product manufacturing. If an enterprise wants to develop in the long run, it must consider the market side

bell now pays more attention to the sales of the front end of the market, and plans to set up a sales office in the market where customers are located, so that Bell's products can go closer to consumers, and reduce the links from factory to consumers to reduce costs

Lin Haidi also said that in response to the trade war, enterprises should do a good job in top-level design, and consider strategically what they want, whether they want customers, sales, market share, or profits. Only by considering what they want, can enterprises establish their next action plan

(picture source: Bell flooring officer, invasion and deletion)

only by doing a good job in market segmentation can we avoid risks and pursue good fortune

Jilin Dunhua Sentai Wood Industry Co., Ltd.'s leading product is solid wood flooring, which is mainly exported to the middle and high-end markets in Europe and America

according to qingxun, the chairman of Jilin Dunhua Sentai Wood Industry Co., Ltd., Lu Baiyin, whose conductivity and thermal conductivity are the highest, Dunhua Sentai wood industry has abandoned the road of large-scale development for many years, but gradually improved the profitability of products through continuous process reform and technological innovation

Lu qingxun believes that it is the way to avoid risks and pursue good fortune to deal with the trade war and do a good job in market segmentation

Lu qingxun said that at present, export-oriented flooring enterprises pay too much attention to the growth of output value, output and sales revenue, and have a strong feeling of being the boss and the first. Over the years, no enterprise in the flooring industry has achieved absolute control over a certain category or market

on the contrary, most enterprises neglect product quality upgrading due to excessive quantitative expansion, weakening technological progress and innovation. This has led to the oversupply of low-end low-value products, and enterprises are deeply mired in price war and vicious competition

Lu qingxun believes that doing a good job in product segmentation is the need to protect the marketing safety of export enterprises. At the same time, segmenting the international market is the only way for enterprises to implement the branding strategy

Lu qingxun said that at present, almost all international brands control the sales channels of various categories of Chinese export enterprises. Some domestic enterprises can compete with foreign large-scale purchasing brand companies in terms of operating years, technological innovation ability and output scale. Unfortunately, domestic powerful factories have high brand popularity in China and enjoy the premium of the brand, but their brand influence in the export market is still unproductive

Lu qingxun believes that the way to solve such a problem is simple and effective, that is, to subdivide channels

export enterprises can first maintain cooperation with foreign enterprises according to traditional habits, but they must take a certain category and a certain market as the entry point, and gradually cultivate the brand awareness of end consumers, so as to get rid of the control of foreign brand companies

Lu qingxun said optimistically that no matter whether there is a trade war or not, reducing production, upgrading product design levels and focusing on vertical industrial chain extension are the best ways to turn various challenges into opportunities

improve brand competitiveness and standard dominance

as far as the flooring industry is concerned, the trade war is not as terrible as expected. This is the view expressed at the summit by Ding Minghao, special assistant to the general manager of Huojia flooring, who vigorously develops the technology of plastic granulator using renewable energy and industrial waste heat

only China can produce some unique flooring products, especially high-end products

take lifehome as an example. Lifehome exports to the United States are self-developed high value-added products, and there are few alternative products in the market. At the same time, China is the world's largest producer and exporter of flooring. It is unlikely that the United States will build such a large capacity to completely replace Chinese products in a short time

Ding Minghao warned Chinese flooring enterprises that the most afraid thing to deal with the trade war is to mess up and lose their way. Ding Minghao said that since the beginning of the trade war, some flooring enterprises have planned to build factories in Vietnam, Cambodia and other countries with low labor costs

from the perspective of the survival and development of a single enterprise, this practice is understandable. But from the perspective of the entire Chinese flooring industry, this may not be the best choice

on the one hand, this practice does not expand the demand of the floor market, but just change the production in a lower cost place to grab orders from domestic enterprises, which is equal to competing with itself

on the other hand, this can only maintain low-cost competitiveness and continue the idea of low-end competition, which is not of great value to the transformation and upgrading of flooring enterprises

more importantly, the United States launched a trade war with no more than two motives, that is, to curb China's development and promote the return of manufacturing to the United States. If Chinese enterprises all set up factories abroad, or even in the United States, this practice is right for the United States

Ding Minghao believes that to cope with the trade war, we must improve the brand competitiveness and standard competitiveness of Chinese enterprises

according to Ding Minghao, lifehome flooring proposed to be "the lifehome of the world" to improve the competitiveness and influence of lifehome in the global market. In addition to global design and global market, there are two important signs of "world living home", that is, living home should build a world-class brand and build a world-class standard

at present, household flooring has been exported to more than 50 countries and regions, including the United States and Germany, and a large part of it is sold under its own brands and channels. Since 2012, lifehome flooring has been promoting its brand in major cities in the United States, Italy and other developed countries. This year, it will strengthen its brand promotion in Thailand and other countries

at present, lifehome flooring has established three global R & D centers in Milan, Italy. In addition to the research and development of fashion trends and products, it has also participated in the formulation of a number of national and international standards for the flooring industry. It is the only unit responsible for drafting national standards for antique wood flooring

Ding Minghao believes that in order to improve the influence and voice of Chinese flooring enterprises in the world market, they must occupy the commanding heights of standard construction and have the dominant power in the field of standards

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