“The current difficulties faced by Chinese auto parts enterprises include both domestic and international factors; it is both a challenge and an opportunity. The Chinese auto parts companies must not be internationalized for internationalization if they want to enter the international market. The key is to practice well.†"Internal work." Wen Jiaping said in an interview with this reporter. As the president of the source organization, he often travels between the domestic and international markets.
"In recent years, parts and components have gradually become the main force in the automotive industry's import and export, but 79% of them are resource-intensive and low-value-added products." Guo Yan, a postdoctoral fellow in industrial economics at the China Automotive Technology and Research Center, emphasized that "businesses go out, Technology is the core."
Co-building technology research and development platform
"Good products are the best 'knocksteps' for any market." Wen Jiaping analyzed that "Chinese auto parts companies can't stay in the stage of always doing 'big goods', but should seize the current world countries' Safety, environmental protection, and energy saving 'The historic opportunity for the attention and demand of automotive products, investing necessary funds, solidly researching and developing products, promoting the upgrading of products as quickly as possible, striving to occupy the 'commanding heights' of new technologies, and grasping the ground in cities' Weapons' can only be invincible in the international journey."
It is understood that in the recent upsurge of “mergers and acquisitions†prevailing in the automotive industry, there are actually more frequent M&As by foreign multinationals to China’s domestic leading enterprises, and the number of mergers and acquisitions by Chinese companies abroad is still rare.
Obviously, only with unique advantages can we compete with competitors. "Now, with the internationalization of the domestic market, China's spare parts enterprises cannot yet have an advantage in the domestic market, and it is impossible to talk about competitiveness in foreign countries." Guo Wei said, "The parts and components have international competitiveness, and the basic condition is to have a comparative advantage. Is the technological innovation advantage."
There are many disadvantages for domestic parts and components companies: small scale, lack of R&D capital, lack of professional and technical personnel, tight domestic zero-reduction relationships, lack of direction in parts and components companies innovation, high risk in technology research and development, and unreasonable parts industry structure. Decentralized investment is serious.
"For the unfavorable situation of the domestic parts and components industry, parts and components companies must jointly build a technology research and development platform." The joint construction of a technology R&D platform has saved R&D costs and reduced investment risks. It is understood that consensus has been reached in the industry.
Joint force overseas market research
According to an interview with reporters, the common problem faced by enterprises is the occlusion of overseas market information and blind spots in the market that prevent companies from operating.
"We must do a good job in market research: The uneven development level of the international market, combined with political, cultural, religious, and customary complexities, and entering the international market, I am afraid there is no solution to the problem once and for all. As the saying goes, do as the Romans do. Before attempting to enter the international market, component companies must make use of various channels, channels, and methods to earnestly conduct in-depth market research on the target market. Only the demand capacity, characteristics, structure, and competition structure of the target market are numerous. However, in order to take a solid step toward internationalization, Wen Jiaping said.
According to Wen Jiaping, as the Chinese have strong personal awareness, they prefer to go it alone even if they are overseas. Parts companies are not willing to form a joint relationship with each other because of various considerations. Market participants also share the same view: Some overseas markets do not have a good export situation, and domestic companies hold down each other's prices and kill each other. This is an important reason why domestic companies should unite and avoid vicious competition.
“Party companies should strengthen their joint efforts overseas to conduct market research,†Wen Jiaping said. “The joint research will not only help reduce costs and extensive access to information, but also help to change the situation of China's auto parts exports.â€
According to the reporter’s understanding, in recent reports submitted by the relevant experts to the Ministry of Industry and Information Technology of the People's Republic of China, the issue of asymmetric information in overseas markets was also actively recommended to the relevant government agencies and industry associations and other intermediaries to provide spare parts for their respective resource advantages. Enterprises provide strong support.
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Multi-channel use of export policy
"Actually, there are still many opportunities for companies to go out." Wen Jia said with a clear focus, "No matter from the official level or the corporate level, export enterprises need to pay extensive attention to various international trade policies and regulations."
It is understood that the main ways for SME market development and product promotion are to participate in the Canton Fair and the China Fair, and they have not received due attention and promotion for other forms of domestic and foreign exhibitions, various forms of advertising, and e-commerce. Many parts and components companies export a single form.
Wen Jiaping believes that domestic parts and components companies must pay attention to the opportunities that various export policies may provide in a variety of channels and in various forms. For example, attending a trade show is not only a contract, but also communication with a local company to understand who is the main competitor, who is the main buyer, what the opponent's strategy is, and where the buyer's demand is. Second, reading trade magazines and participating in some of the most influential industry seminars will also give you plenty of opportunities. In addition, talk to marketing service providers such as trade magazine publishers, online search engine operators, and more.
Wen Jiaping also reminded that, like obtaining a “visa†for the target country, Chinese auto parts companies must also make great efforts to obtain “passes†for market access through internationally recognized or authoritative organizations in the target countries if they want to go to the international market. Proactively do quality certification and brand awareness. In addition, due to the complex and ever-changing international market, many businesses and affairs, especially after-sales services, require the parties to come to their own territory to handle. “Choose carefully the partners†is not only necessary, but also can be said to be internationally successful. The essential.
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